Cultural differences affect international human recourse management, specifically in joint ventures.

Essay by xiaoguaiUniversity, Bachelor's November 2006

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Human resource management is somewhat different in the global environment than in the domestic environment. Different business cultures choose to manage their human resources in different ways. The international human resource manager must remember that the employees' behaviours in HCNs, PCNs and TCNs are shaped by their cultural background. For the members of a particular culture, their ways are logical and reasonable. However, people from different cultural backgrounds may not be alike even though they may appear to be similar on the surface. They may actually have very different beliefs, values and assumptions. This might lead to miscommunication and misunderstandings when employees work together in the IJV. For example, understanding the host culture gives expatriates valuable information which can assist them in better executing their work tasks. This will allow for the development of culturally appropriate products and services by the multinational company. The following section will explain the ways that cultural differences affect international human recourse management, specifically in joint ventures.

The Cultural Gap and Cultural Risk

There are thousands of examples of where the lack of awareness of cultural differences has killed deals, harmed working relationships, inhibited sales, and increased costs. Human resource managers should hire the right expatriate who will be able to work with people across borders. This will also enhance the business's competitive advantage by building stronger, more sustainable relationships with all stakeholders. If the expatriates hired for international projects are unaware of cultural differences, they can break joint venture business relationships.

PCNs' cultures might perceive time as a commodity that is linear and sequential, with value attached to it. However the TCNs or HCNs in the IJV might treat time as a process that's cyclical and simultaneous. Similarly, PCNs in the same JV might act more individually whereas HCNs...