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RESOURCE
MANAGEMENT
[ Question 6 ]
Developing nation :
Africa, Asia (except Japan), Latin America
What is Western HRM?
2) Staffing
3) Performance Management
4) Compensation Management
5) Training & Development
6) Employee Relations
Western HRM in India?
Do not yield the same results in emerging
economies like India
Staffing
Recruiting based on job specifics – skills, responsibilities,
purpose
Adopting a combination of common selection methods –
interviews, skill test, personality test, track records
(education, work experience, etc.)
Modifications/Adaptations:-
Recruitment in Latin America is often based on family
connections
Selection methods to include peer review of short listed
candidates – group decision and employee voice in a
collectivist society. Eg: Fujitsu Asia
EXPORTED HRM BEST PRACTICES
Modifications/Adaptations:-
Training to include personal development as a form of
long term employee investment – eg: Effective
Communication Skills
Emphasize on-the-job training (apprenticeship)
Companies in China also sends employees abroad to
foreign universities for training. Eg: Motorola China
EXPORTED HRM BEST PRACTICES
Performance Management
Performance Appraisal
Benchmarking
HR Scorecard adoption
Tying Performance with Promotion
Modifications/Adaptation:-
Performance measurement includes teamwork
contribution instead of only bottomline and profit
benchmarks
EXPORTED HRM BEST PRACTICES
Compensation Management
Performance, skill & knowledge based pay system
Various types of performance bonuses
Health Benefits
Adaptations/Modifications:-
Group incentive bonus based on team performance for
collectivist countries such as China, Singapore, Malaysia
Compensation often includes free meals,
accommodation allowance and special training package
in China.
EXPORTED HRM BEST PRACTICES
Employee Relations
Fostering a sense of partnership and will to co-operate
between employee and the company
Includes employee voice, workplace safety, fairness in
HR decision – negotiations through Trade Unions
Modifications/Adaptations:-
Trade unions in China & Singapore are sponsored by the
government rather than fully operated by union members
CONCLUSION
Many developing countries adopts Western
HRM extensively due to its easily available
materials and models