Exploring the mutual interaction of societal culture and human resource management practices

Abstract

This paper attempts to interpret the HRM practices studied through the CRANET research in the light of the general societal culture tendencies as revealed by the GLOBE study. The study analyses the nine dimensions of societal culture, using data from 19 countries that have participated in both studies (Australia, Austria, Denmark, Finland, France, Germany (former East and West), Greece, Ireland, Israel, Italy, Japan, The Netherlands, Portugal, Spain, Sweden, Switzerland, Turkey and UK). The most significant correlations between societal culture and HRM have been isolated and will be discussed. Results show that the function that seems to be related the most to culture is internal communication, while the least related is rewards and benefits. This study's findings could serve as a guide in transferring HRM policies within MNCs or across countries, as they give an indication of the most culture‐sensitive practices and the way they are related to societal culture characteristics.

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