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 I. Introduction

Companies are being encouraged more and more to enter overseas markets and participate in
"globalization," a concept that has permeated today's corporate culture to the point that it is
now a fundamental component of the modern business model. The fundamental drivers of
globalization for companies include the development of technology, the decline in costs, and
the specialization of trade. Beyond those previously mentioned, there are a lot more reasons
for firms to expand internationally. In spite of this, when they want to extend their market,
many businesses fail to realize the advantages of global human resource management (IHRM).
Organizations that place less significance on IHRM are also less likely to face failures and the
"chain effect."

This project, which is separated into two halves, focuses on international human resource
management (IHRM) (IHRM).

Academics could approach IHRM research in one of three ways. An overview of the cultural,
institutional, and international approaches to IHRM research is given in this portion of the
article. These approaches are used by academics to define and evaluate research hypotheses as
well as to support and refute some of their opinions.

What exactly is meant by the claim that globalization would cause human resources policy and
practice to converge into a universal "best practice"? An argument is made that the IHRM
suffers from a convergence-divergence problem; this article will use empirical data to examine
this assertion.

II. Three approaches to studying IHRM

Skilled workers are crucial to a country's economic and social growth. The importance of
attracting and retaining outstanding talent is being emphasized by an increasing number of
businesses throughout the world. Many businesses have come up with unique approaches to
the issues brought about by globalization. IHRM studies primarily use international human
resource management, institutional tactics, and cultural policies. Clifford Geertz and Michael
Pacanowsky were at the forefront of their discipline when they created the cultural approach
to organization theory. The proponents of this concept emphasize that each firm or organization
has its own unique corporate culture. A common set of assumptions and conventions influences
employees' opinions of the company's culture (Geertz, 1973). It is probable that someone other

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than Geert Hofstede conceived or created the intercultural communication theory. This model
illustrates the many ways in which societal standards may influence an individual's worldview
and behavior (companyfinanceinstitution.com, 2021). In comparative politics and political
science, institutional orientation and institutional approach are words used to express
perspectives that emphasize the importance of institutions in affecting political behavior and
outcomes (Mohamed, 2021). Finding, attracting, employing, training, developing, and
compensating personnel from across the globe may be difficult for multinational organizations.
The business acumen and manufacturing expertise of a parent company are essential to the
success of a global subsidiary (economicdiscussion, 2021).

Managing human resources is the toughest job any manager or HR department could have.
Management of people is risky business in the modern, information-based economy. The
current trend of globalization makes human resource management more difficult. According
to Brewster et al., a community's culture may be defined as its shared worldview, norms, and
practices (2008). The native cultural backgrounds of the individuals involved are crucial to the
success of multinational initiatives and missions. As a result of this cultural gap, several
multinational corporations have implemented recruiting techniques and training programs.
Insightful evidence of national cultures and cross-cultural distinctions is provided by Geert
Hofstede's Research on Cultural Aspects. Poor management practices lead to unmotivated
employees, low productivity, and significant staff turnover, according to Earley (1994). In
order to create and execute HRM plans and policies more successfully, an organization's
culture has to be enhanced. As a result, Hofstede's cultural components will be the focus of this
essay.

Thanks to Greet Hofstede, an early researcher of cultural differences, the Hofstede model has
been widely used for decades. Take a look at Hofstede's study on IBM employees across 70
nations, where each of the 70 countries' employees answered questionnaires. He came to the
conclusion that four factors could account for cultural variances. He included five cultural
indicators in his dimension: individualism, power distance, uncertainty avoidance, masculinity,
and long-term orientation (Hofstede G., 1973). A fifth element, a long-term orientation, was
created by Hofstede after his own independent study in Hong Kong. In order to contrast self-
satisfaction (Infatuation) with constraint (Restraint), Hofstede developed the sixth dimension
in 2010. (corporatefinanceinstitute, 2021).

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There are strong claims that Hofstede's paradigm is no longer applicable in the current global
corporate environment. To start, the number of countries and regions where commodities,
markets, businesses, labor, and other production factors are linked has expanded, with many of
these links being established, coming from, or already existing ( Papaconstantinou,1995). Since
several decades, the number of international enterprises engaged in offshore investments and
multinational corporations (MNCs) functioning on a worldwide scale has steadily increased.
Every company has an own culture, and employees must adjust to it by encouraging
collaboration or participating in decision-making. Most of these companies have similar
organizational culture practices all over the world. People's behavior is also influenced by the
educational system. The transition from the industrial to the informational eras in civilization
has led to the development of cultural imperialism. By changing the responsibilities of students
and teachers and creating an information-based society, this transformation is reflected in
education (Chinnammai, 2005). Only IBM provided data for Hofstede's research, and those
sources were involved in the information technology sector, which is a special industry. Despite
the fact that all employees were included in this research, Hofstede's data to build a national
cultural comparison were predominantly confined to marketing and sales personnel
(McSweeney, 2002). In addition, since all responders were IBM employees, the effect of
corporate culture was evident and consistent (McSweeney, 2002). Therefore, it may be claimed
that the skills and ideas of IBM workers do not properly include the many viewpoints of a
surprisingly small group, i.e. nations (Mead and Andrews, 2009).

The workforce as a whole is not adequately represented by the data from one middle-class firm.
Hofstede (1980) asserts that a single international employer removes the impact of corporate
policies and management practices from several firms, which have differing effects on
behavior, leaving only national culture to account for cultural differences. Williamson (2002)
contends that organizational and national culture are not side issues. As a result, it has been
noted that a country may still be separated into several cultures even when company policies
and management practices are eliminated. Hofstede's claim that one can tell a country's cultural
differences just by its IBM Company products is thus unjustifiable. Institutions, social
structures, and economic conditions are examples of non-cultural factors that also influence
culture (Williamson, 2002). Hofstede, on the other hand, tended to ignore the value of
community and how communal variation affects people's lives (Papamarcos et al., 2007).
According to Hofstede (1980), Japan has a substantial power gap, yet some Japanese businesses
place a focus on equitable employee development. By using these characteristics at various

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points along a continuum, a Western bias favoring Eastern research may be shown
(Papamarcoset al., 2007). Based on this information, his conclusions have been misinterpreted.
It was conceivable for him to see the emergence of individualism in nations that had made
economic progress and to predict that this pattern would hold as the economy developed. Japan,
for instance, highlights the ambiguity of his findings.

III. The convergence-divergence debate

When a business expands its activities abroad, the implications of globalization on human
resource management and development are evaluated. Consider implementing a variety of
required modifications to guarantee that dispersed personnel can be recruited, trained, retained,
and supported in their current employment. Human resources departments must adjust their
tactics to accommodate for global technological developments, foreign legislation, and cultural
differences (Natter, 2020). Every business must find individuals, hire them, train them, put
them to work, motivate them, pay them, and then arrange for their departure (Brewster,
Sparrow, Vernon & Houldsworth, 2011). Human resource management (HRM) is used in a
number of contexts around the globe. The institutional and cultural contexts of multinational
corporations are significantly distinct from those of their home country. Businesses must be
aware of these variations and have a sophisticated awareness of how HRM trends are
converging or diverging in order to successfully manage their human resources. The highest
levels of innovation, quality, speed, and customer focus are only feasible for the most talented
individuals and teams with superb HR management and leadership. the worldwide market for
goods and services (Scholz, 2008). Staff involvement and competence, according to Scholz,
are crucial success elements for global organizations. For this reason, the company's
competitiveness is even more dependent on the quality of its human resource management.
Human resource management (HRM) trends may be moving toward "best practices" or away
from them toward "best fit," based on a variety of issues that businesses must be aware of and
have a better understanding of.

An accepted theory or model indicates that subsequent researchers will use rival theories or
models, according to Kuhn (1970). The Universalist model is a sentimental method of social
research that establishes unbreakable laws (Brewster, 1999). This strategy focuses on
increasing organizations' human resource management by uncovering "best practices," which
in turn aims to "best practices" that can be applied to numerous circumstances, with the end
goal being to increase organizational efficiency. The Convergence hypothesis is hence

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connected to the Universalist perspective. The Convergence hypothesis focuses on the several
factors that are leading human resource management practices throughout the globe to
converge. It is crucial to keep in mind that "convergence" might signify many things.
According to the Market Force model, as firms become more scattered and as societal and
corporate ideals diverge, technological advancements are replacing improvements in
managerial techniques. Companies that want to succeed in today's era of pervasive technology
need to use cutting-edge methods of human resource management (Kidger 1991; Gooderham
& Brewster 2008). As a result, HRM practices all across the globe have a similar evolutionary
trajectory.

Disparities in legal, union, and market environments throughout Europe may have an influence
on human resources management, according to Schermuly's (2017) research on the
convergence approach for "best practices." The implementation of HRM may be hindered by
macro-level political structures in Member States with similar legal frameworks.
Institutionalists, on the other hand, focus on local or national convergence rather than global.
One popular theory is that Europe will soon adopt a unified human resource management
system (Brewster, 2006). The search for HRM best practices is a global endeavor that has
drawn the attention of researchers like Ouchi (1981), Peters and Waterman (1982), and others.
One of the most important fields is HRM, which is culturally influenced (Hendry, 1991). As a
consequence, if the "best practices" described here can be shared internationally, additional
managerial tasks ought to be possible. As long as the HRM theory of convergence is confirmed
by evidence on international learning, this is a positive indicator.

Instead of emphasizing the similarities and variations between HRM in different contexts,
proponents of the context model stress the "precursor of such discrepancies" (Brewster, 2006).
These theories examine the local employment market, labor unions, and business ownership in
an effort to comprehend the distinctive characteristics of the region and their underlying causes.
The paradigm lays less emphasis on the effect of HRM programs and "best practices" on
organizational success compared to the Universalist approach. Instead than concentrating on
specific businesses, context studies attempt to illustrate the political and legal environments in
which organizations operate. Diversity scholars contest the idea that there are universally
applicable "best practices" for human resource management, regardless of an organization's
size, location, or other factors. According to many ideas, in order to "best fit," human resource
management techniques in various countries are becoming more unique over time. As a
consequence, human resource management practices are developing in several ways.

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According to diversity theorists, owing to cultural and institutional differences, each country
will have its own approach to staff management in organizations (Kaufman, 2016).

Tayeb (1994) believes that the cultural disparities between British and Japanese employees'
views of leadership styles required Japanese managers to adopt the original management
systems for the UK subsidiaries in order to successfully convey Japanese practices. Some
systems need localization modifications. Cultural differences are what Kamoche understands
by "differences" in human resource management in the context of global business (1996). The
term "diversity" in human resource management refers to the adoption of comparable practices
that have evolved differently in various countries through time. Human resource (HR) plans,
according to the "best-fit" approach, need to be aligned with the rest of the business's goals and
the external environment if they are to be successful. A strong human resources plan is one that
is tailored to the needs of the organization (Boxall & Purcell, 2011).

Global human resource management has spawned competing perspectives on how to lead a
global team most effectively (IHRM). As economic and technological power increases in the
United Asserts, the "convergence hypothesis" states that the structure and organization of the
workforce will converge closer to the "best practice" model of management practice. In
contrast, the divergence approach provides empirical evidence that variations in national or
cultural institutional business systems impede "best fit" performance. National economies may
become increasingly similar to their global counterparts as globalization continues. Case
studies reveal that multinational corporations don't always succeed in implementing the control
system they believe is best suited for their subsidiaries. There is no silver bullet for managing
people, but MNCs may benefit from adopting HR strategies that are consistent across countries
and help put the global business plan into action. As a result of the ability of IHRMs to combine
parent business models with local institutional and cultural components, there is no best method
for managing human resources.

IV. Conclusions

The foundations of Hofstede's study have been affected by an examination of his theory of
culture and the conceptions of cultural research that have been developed upon his theoretical
framework. There has been a change in how culture is examined, and the expansion of cultural
research reflects this movement. The statement adds, "Globalization also means that HR
standards and procedures will converge into a single 'best practice' everywhere." This author
recommends that companies use cross-linking. Companies with a worldwide presence profit

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immensely from this. This is the foundation for accessing the foreign market, and every firm
must possess this understanding.

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