In the age of global economy, dealing with different sets of workforce from different nationalities and cultural background would be more prevalent nowadays. Globalization is forcing existing managers to abandon their erstwhile rather parochial outlooks for broader horizons, and pockets of good practice in intercultural training are beginning to establish themselves (Randlesome, 2000). .
In the case of Medical Precision System (“MPS”), different HR nationalities arising from their expansion to overseas region specifically Europe certainly poses HR challenges for MPS to overcome. There are after all a number of critical differences between the North American and the European context (Brewster, 2004).
AMERICAN VS EUROPEAN MODELS OF HUMAN RESOURCES MANAGEMENT (“HRM”) (Question 1 (a))
In comparing the American (“United States of America or USA”) and European HRM models, we can review based on the following perspectives:- Table A
| Perspectives/Dimensions| American| European|
1| State regulations| Low Trade Union| Strong Trade Union| 2| Individualism vs Collectivism| Individualistic| Collectivism|
Under the institutional perspectives, a major difference between HRM in the USA and Europe is the degree to which HRM is influenced and determined by state regulations (Brewster, 2004). Generally speaking, legislation affording employees consultation and negotiation rights is stronger in Europe than in USA (Edwards & Rees, 2006). HRM in Europe differs from American in the context of the degree of employment protection, the legislative requirements on pay and hours of work and legislation on forms of employment contract (Brewster, 2004) (Tayeb, 2005). The EU’s preferred “social market” approach, characterized by comparatively high levels of labor regulation and strong trade unions, contrast to the US “free market” approach which—apparently—affords employers greater autonomy (Morley, 2004).
Europe is the region of the world with the largest percentages of employees in membership of independent trade unions. In this context, the USA where membership is probably less than one-tenth of the working population, is consider weaker (Brewster, 2004). Management consults the unions in Europe; about economic goals to try to achieve a harmony of interests. In most European countries, there is legislation requiring employers over a certain size to recognize unions for consultative purposes (Brewster, 2004).
Thus, in MPS we can see strong union presence in the United Kingdom (“UK”) and Sweden operations. In UK, Joe Mendes didn’t understand this perspective when he started negotiation with the unions to the extent suggesting that one union representing the rest in the negotiation process. Whilst in Sweden, the lack of understanding of this dimension leads to rejection of the Swedish workforce of targets set under performance management scheme.
Individualism vs Collectivism
US culture is significantly more individualistic, achievement oriented than most other countries (Brewster, 2004) (Balkin, 2000). And more short term orientated (Hofstede, March 2009). One manner in which this can be clearly seen is on the rewards and remunerations policy.
The predominant conventional wisdom is that USA is the true home of pay for performance, and most particularly individual performance-related pay. It is quite common in the USA, the adjustment to individual salaries is aimed at motivating and rewarding individual performance. (Edwards & Rees, 2006) (Walker).
Compared to Germany, a social market economy with over half of the private sector which themselves comprise more than three-quarters of all employment, offer some form of payment by results. This applies similarly to Sweden with over 60% of manual employees goes with payment by results, often on a team basis. (Edwards & Rees, 2006). Germany society culture places more responsibilities towards society....