Divergence And Convergence Of Employment Relations

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While many convergence theorists support that there is 'one best practice' of HRM approaches for organizations across nations to follow in order to fit the external environment regardless of differences in technology or stability of environment, it fail to explain how these managerial ideas and practice are interpreted, implemented and respond vary at individual, firm, industrial and institutional level. 1. Culturalism Perspective
One of the criticism emphasis on the remained cultural differences between economies. The popular work of Hofstede (1980;1992) can applied to explain the variation in management aspect. Culture is defined as the 'collective programming' of mind of individuals or groups which is reflected in particular assumptions, beliefs and norms held by that person or groups. Apply these perspective to employment relations area, these cultural factors was believed to be of the main important elements that shape management behavior and working practice, therefore bring about divergence. Hofstede concluded that each country will have distinct 'national economic culture' since they respond differently along axis of four dimensions (power distance, individualism, masculinity and uncertainty
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Even convergence at the global level in terms of political, economic, socio and technological forces as mentioned on the first part, divergence still remain. Divergence remains at the national and intra-national level (macro) since these forces are interpreted, responded and implemented by different way with each country's unique tradition and cultures. At the firm, employee level (macro) divergence occurs since each individual have their own distinctive behavioral mindsets to make commitment and internalization the newly adopted practice. (Kottova, …show more content…
On one side, multinational enterprise apply global standards to their employment system with best practice transferred at various levels, therefore push the convergence button. On the other side, institutional and mindsets differences, the level of HRM practice integrated, internalization, implemented push the divergence button. More importantly, it was agreed that both process occur simultaneously and there is no 'best practice' for all. Depend on their own unique culture and structure. firm will design their own HRM practices as their strategic advantages to be globally successful.

References
Whitley, R. (1998) Internationalization and Varierities of Capitalism: The Limited Effects of Cross National Coordination of Economic Activities on the Nature of Business System. Review of International Political Economy, 5: 445-481.
Harbison, F. and Myers, C. (1959) (eds.) Management in the Industrialized World. NY: McGraw Hill.
Kerr, C., Dunlop, J., Harbison, E. H., & Myers, C. (1962). Industrialism and industrial man. London: Heinemann.
MacDuffie, J.P. (1995) 'International Trends in Work Organization in the Auto Industry: National-Level vs Company-Level Perspectives' in K. Wever and L. Turner (eds.) The Comparative Political Economy of IR, Ithaca, NY: ILR Press, 71-113

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