Australia, is known as a vibrant free-market democracy, has recorded extraordinary

economic development without experiencing a single recession for almost 25 years. In

addition to its abundant natural resources, the economy has benefited from lasting
entrepreneurial growth facilitated by an effective political system. The economy of
Australia is one of the largest mixed market economies in the world, with a GDP of
US$1.525 trillion as of 2014. Australia's total wealth is 6.4 trillion dollars. In 2012, it was
the 12th largest national economy by nominal GDP and about 1.7% of the world
economy. The Australian economy is dominated by its service sector, comprising 68% of
GDP. The mining sector represents 7% of GDP; including services to mining, the total
value of the Mining Industry in 2009-10 was 8.4% of GDP. Economic growth is largely
dependent on the mining sector and agricultural sector 12% of GDP with the products to
be exported mainly to the Asian market. (Finace, 2015)
New Zealand
New Zealands a competitive economy benefits from a strong commitment to openmarket policies that facilitate by global trade and investment. Transparent and efficient
regulations are applied evenly, encouraging dynamic entrepreneurial activity in both
public and private sectors. The economy of New Zealand is heavily depended on
international trade, mainly with Australia, the European Union, and Asia. The New
Zealand Australia means economies are closely aligned, imitating the North American
economy. New Zealand's economy has a sizable service sector, accounting for 63% of
all GDP activity in 2014. Large scale manufacturing industries include aluminum
production, food processing, metal fabrication, wood and paper products. Mining,
manufacturing, electricity, gas, water, and waste services accounted for 16.5% of GDP
in 2014. The primary sector continues to dominate New Zealand's exports, accounting
for 6.5% of GDP in 2014. (Economics, 2016)

Cultural Dimensions
Power Distance
This dimension deals with the fact that all individuals in societies are not equal it
expresses the attitude of the culture towards these inequalities amongst us.
Australia scores low, with 36 similar to New Zealand who scored a 22. Australian
and New Zealand based organizations, hierarchy is established for convenience,
superiors are always accessible and managers rely on individual employees and
teams for their expertise. Both managers and employees expect to be consulted
and information is shared frequently. At the same time, communication is informal,
direct and participative.
Individualism
Individualism refers to the degree of interdependence in a society, for example do
they have an I or a we mentality.
Australia scored 90 on this dimension and New Zealand scored a 79. These scores
illustrate that both nations are highly Individualist culture. This translates into a
loosely-knit society in which the expectation is that people look after themselves
and their immediate families. In the business world, employees are expected to be
self-reliant and display initiative. Also, within the exchange-based world of work,
hiring and promotion decisions are based on merit or evidence of what one has
done or can do (Hofstede, 2015).
Masculinity

A high score (Masculine) on this dimension indicates that the society will be driven
by competition, achievement and success, with success being defined by the
winner or best-in-the-field. This value system starts in school and continues
throughout ones life both in work and leisure pursuits (Hofstede, 2015).
Australia scores 61 on this dimension and is considered a Masculine society, while
New Zealand scores 58. Again as we can see that both nations are extremely
similar. Behavior in school, work, and play are based on the shared values that
people should strive to be the best they can be and that the winner takes all.
Both nations are proud of their successes and achievements in life, and it offers a
basis for hiring and promotion decisions in the workplace. Conflicts are resolved at
the individual level and the goal is to win (Hofstede, 2015).
Uncertainty Avoidance
Uncertainty Avoidance refers to which to the extent to which the members of a
culture feel threatened by ambiguous or unknown situations and have created
beliefs and institutions that try to avoid this. Australia scores a very intermediate 51
on this dimension while New Zealand scores a 49. (Hofstede, 2015)
Long Term Orientation
Normative societies, which score low on this dimension, for example, prefer to
maintain time-honored traditions and norms while viewing societal change with
suspicion. Those with a culture which scores high, on the other hand, take a more
pragmatic approach. (Hofstede, 2015)
Australia scores 21 on this dimension, whereas New Zealand scores a 33 and
therefore both nations have a normative culture. People in such societies have a
strong concern with establishing the absolute Truth; they are normative in their
thinking. They exhibit great respect for traditions, a relatively small propensity to
save for the future, and a focus on achieving quick results. (Hofstede, 2015)
Indulgence
This dimension is defined as the extent to which people try to control their desires
and impulses, based on the way they were raised. Relatively weak control is called
Indulgence and relatively strong control is called Restraint. (Hofstede, 2015)
With a high score of 71 and 75, Australia and New Zealand are Indulgent countries.
People in these nations hold high regards to enjoying life and having fun. They
possess a positive attitude and have a tendency towards optimism. In addition, they
place a higher degree of importance on leisure time, act as they please and spend
money as they wish. (Hofstede, 2015)
Deployment. Getting the right skills to where they are needed in the organization
regardless of geographical location.
Knowledge and innovation dissemination. Spreading state-of-the art knowledge
and practices throughout the organization regardless of where they originate.

 Identifying and developing talent on a global basis. Identifying who has the ability
to function effectively in a global organization and developing these abilities.
Dealing with such challenges means that most employers have had to develop HR
policies and procedures just for handling global assignments. From a practical point
of view, one has to address issues such as:
Cultural Factors: Wide-ranging cultural differences from country to country demand
corresponding differences in HR practices. For instance
Economic Factors - Differences in economic systems among countries also translate
into intercountry differences in HR practices. In free enterprise systems, for
instance, the need for efficiency tends to favour HR policies that value productivity,
efficient workers, and staff cutting where market forces dictate. Moving along the
scale toward more socialist systems, HR practices tend to shift toward preventing
unemployment, even at the expense of sacrificing efficiency
Labour Cost Factors: Differences in labour costs may also produce differences in HR
practices. High labour costs can require a focus on efficiency, for instance, and on
HR practices (like pay-for-performance) aimed at improving employee performance.
Industrial Relations Factors: Industrial relations, and specifically the relationship
between the worker, the union, and the employer, vary dramatically from country to
country and have an enormous impact on HRM practices. In Germany, for instance,
codetermination is the rule. Here, employees have the legal right to a voice in
setting company policies.