Global Are Culture-Specific HR Policies a Good Idea?

Over the past 10 years, East Computer Company has grown from a domestic producer of microchips in Boston to a multinational company with assembly plants in four foreign locations. The companys personnel policies were developed five years ago, before East Computers international expansion, by a task force headed by the vice president for HRM in Boston. The companys CEO has just appointed a new task force to examine the extent to which current domestic personnel policies can be exported to Easts new international locations. The essential elements of these policies are the following:

1. All job openings are posted to allow any employee to apply for a position.

2. Selection is based on merit. Appropriate selection devices (for example, tests, structured interviews, and the like) are used to ensure proper implementation of this policy.

3. Nepotism is expressly forbidden.

4. Promotion from within is the norm whenever feasible.

5. Equal employment opportunities are available to all, regardless of sex, race, national origin, or religion.

6. Pay for various positions is established through a rational process that includes both job evaluation and market survey data.

7. There is equal pay for equal work, regardless of sex, race, national origin, or religion.

8. Goals are jointly set by supervisor and subordinate, with an annual formal appraisal session at which both parties have the chance to discuss progress toward goal achievement. The appraisal is used both to provide performance feedback to the employee and as a basis for merit pay decisions.

As a first step in evaluating these policies, the vice president for HRM classified the countries where Easts facilities are located according to Hofstedes dimensions. She came up with the matrix shown below.

You have been hired by East Computer Company to help management develop personnel policies for each of the four international facilities. Ideally, management would prefer to use the same policies that it uses in the United States to maintain consistency and reduce administrative problems. However, the vice president for HRM has made a strong case for tailor-made personnel policies that are suitable to each facilitys cultural environment.

1. 17-38. Given East Computer Companys present personnel policies, what problems is the company likely to face in each facility if it transports its domestic policies abroad?

2. 17-39. How would you change or adapt each of the companys current personnel policies to better fit the cultural environment of each international facility?

3. 17-40. What set of management recommendations would you provide for keeping, changing, or adapting East Computer Companys HR policies for the United States, Australia, Mexico, England, and Norway? In your recommendations, be sure to mention any risks associated with implementing your recommendations.

Cultural Dimensions
Facility Location	Power Distance	Individualism	Uncertainty Avoidance	Masculinity	Long-Term Orientation
Australia	Low	High	Medium	Medium	Low
Mexico	High	Low	High	High	Medium
England	Low	High	Low	High	Low
Norway	Low	Medium	Medium	Low	High