Convergence in HRM in Europe

Convergence

When countries become more alike in HR practices

Divergence

When countries remain different due to national cultures and institutions

Types of Convergence

• Final Convergence

• Directional Similarity

Final Convergence

When countries become identical in HRM (Not found)

Directional Similarity

When countries become identical in HRM e.g increase in training (found)

2 main forces shaping HRM in Europe

• Globalisational forces

• Institutional Forces

Global forces

Push countries to become similar

Institutional forces

Keep countries different

Global Forces

• International competition

• Multinational Companies

• Transfer of best practices

• European Integration

International Competition

• Companies compete globally

• They need to efficient and productive to be successful

• They adopt the best HR practices

• e.g. performance based pay, efficiency focused HR systems.

Multinational Companies

• Big firms operate in many countries

• They often use the same HR systems everywhere

• E.g. appraisal and leadership training

European Integration

• In Europe there are shared regulations and policies that businesses have to follow

• The leads to increased cooperation and makes systems more aligned

• E.g GDPR

Transfer of Best Practices

• The ideas of good HRM systems are spread globally

• Manager can copy the successful models and incorporate them into their workplace.

• E.g. talent management

Institutional Forces

• Culture

• Education and Training systems

• Laws and regulations

• Industrial Relations

Culture

• There are many different cultures around the world, values and attitudes toward work differ

• This influences the leadership styles and motivation systems that a company uses

• E.g individualism vs collectivism

Education and Training systems

• Businesses in each country tend to train their staff differently

• This affects the skills available to the employees and the HR development practices

• E.g Austria is a vocational training system

Laws and regulations

• Labour laws differ between countries HR practices must adopt to local law.

• E.g min wage, rules about hiring and firing

5 HRM elements

• Assignment of HR responsibilities

• HRM Staff ratio

• Employee Development

• Employee Rewards

• Employee Communicaition

Assignment of HR responsibilities

The distribution of HR tasks between HR specialists and line managers

HRM Staff Ratio

The size of the HR department relative to the workforce and its influence within the organisation

Employee Development

Training and learning activities that improve employees skills, performance and long-term capabilities

Employee Rewards

Financial and non-financial incentives used to motivate, retain and reward employees

Employee Communication

The exchange of information between employees and management to support engagement and job satisfaction

Rational Actor Model

Companies use best practices to maximise efficiency and profit, but cultural and legal differences prevent them from becoming identical

World Polity Theory

Companies adopt global management norms to appear legitimate and modern, becoming more alike, even if it doesn’t improve efficiency.