venture management. If international managers do not know something about the culture of the local country they deal with, the results can be quite disastrous.
Motivation also contributes to the success of International human resource management. Abraham Maslow proposed five levels of human needs. The essence of this theory is the satisfaction of human needs, which occur in hierarchical order ranging from the lowest level of survival to selfactualization at the top of the hierarchy. Before people are motivated to attain higher level needs, their lower-level needs must be fulfilled.
While considering the motivation level of employees of the joint venture, the human resource manager has to take into account the following issues:
Current living standards
Cultural characteristics of the country
Relationship among people in group and individual level
Sentiment and emotional aspect of the people
And redefine the elements of hierarchy of needs to meet the countrys environment.
In most of the cases we follow reactive attitude in addressing a problem. And sometimes it is also different to perceive the problem well before it occurs, hence human resource manager has to follow a flexible procedure continuously identifying and developing the system to upkeep the organizational tempo. Very recently, a lot of Western investors invested in Asian countries and some of them are facing problems in keeping up the organizational tempo and balancing cultural gap and meeting the needs of both local employees and headquarter.
To become successful in any organization communication process is also very important. The process does not consider only the verbal aspect of the communication; it covers the tone of the communication also, which depress the local language of the organization as a whole. All human relations depend on the ability of the human resource manager how he/she communicates while being seen or being behind the veil. Sometimes language barrier and hesitation of people and lack of competence in expression creates a lot of problem. Hence a clear collaborative and caring culture is necessary to any international ventures to be successful.
As competition among companies grew companies became more concerned about loyalty of the stakeholders. This loyalty gets translated in terms of protection of patents, technology etc. Employees are the users of information and different facilities of the company and human resource manager has to ensure a culture of self-reliance and a feeling as if the company is her/his family. Thus this issue also the important aspect of human resource management in multinational joint ventures.
The most important dimension of human resource management is managing cultural differences. When an organizational entity enters into a new country, it gets exposed to a new culture, new setup, new people etc. The human resource manager must balance the things, has to be the charge agent while considering the following things:
Effective intercultural performance
Concept of cultural management
Concept of changing international business
These, combined with intellectuality, make the manager truly global.
Each of individuals is faced with the problem of integration into unfamiliar culture. They must learn the accepted cultural behavior in a unique organizational environment that will ensure their entry, acceptance, and effectiveness in that setting. Whether one is a recruit in the organization, transferred within the company domestically or internationally, or an employee of a subsidiary owned by a larger entity, each must learn to cope with a unique subculture.
Culture gives people a sense of who they are, of belonging, of how they should behave, and of what they should be doing. Culture has a great effect on HRM. If managers are to be effective leaders, they need not only to understand the influence of culture upon organization, but also utilize that culture to improve performance and productivity. Organization creates culture. The organizational culture is a set of coping skills, adaptive strategies used by members in and out of the system. The organizations culture has a powerful impact on the workers or members morale and productivity. It even influences the organizations image of itself which, in turn, is communicated to its public. The different cultures of managers in Joint ventures represented by differences in languages, interactions, perceptions and mentalities leads to problems in communication, working together, problems solving and team sense. The tendency of people within a certain culture to perceive the others as belonging to a single class or category is different to that in the other cultures, which is called stereotype. Stereotypes can affect the actions, coordinations, and corporation of people from different cultures. Values within a culture are the basic convictions that people have regarding what is right or wrong, good or bad, important or unimportant. They help direct the persons behavior. And differences in cultural values often result in varying management practices.
Different cultures will affect differently the thinking and doing of people, therefore, they could be the source of conflicts in HRM operation of joint ventures, between managers having different cultural backgrounds.
The figure in the next page illustrates many aspects of organizational culture. There are aspects of an organizations culture that are formal, explicit, and overt, just as there are dimensions that are informal, implicit and covert. In attempting to achieve its goals and missions, the organizational culture is further influenced by leadership practices, norms and standards, rules and regulations, attitudes and principles, ethics and values, polices and practices, structures and technologies, products and services, roles and relationships.
In summary, the following factors affect Human Resource management in international joint venture:
Communication process and language
Responsibility and authority structure
Employee participation and loyalty of the employees
Compensation and reward system
Training and development
Fair competition among employee and
Level of team maturity
Flexibility and strictness
So for human resource manager the following steps are very important and these has to be fulfilled to ensure smooth and efficient operation of the joint venture
Establish peoples participate
Give emphasis more on employees interest and their welfare
Give emphasis on career development
Understand more about the joint venture and its operation
Align benefits and reward system in the line with countrys or well as companys interest
Development of good training system
Establish harmonious relationships with labor union
Build relationship with regulators
By undertaking these activity at the JV level;, the HR manager would be able to create a suitable and sustainable environment for the company to be successful while satisfy the needs all the stakeholders and establishing fit with its external and internal environment.
Amacom “Managing HR in small and mid sized companies” American management Association New York 1987
Hamis Philip R. Moran Robert T. “Managing cultural differences” Gulf publishing company Houston Texas,1991
Hirsch Georges, Swierzcek Fredric W. “Multicultural perspectives on European and Asian Management” EAP 20th Anniversary.
Jenks V.O “ Human relations in organization” Harper and Row, New York.
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