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Background

Discuss about the International Human Resource Management for Environment.

In the recent scenario, it is seen that many companies are focusing on expanding the business activities in the international market so that good position can be attained in the market. So, it is important to consider regional differences so that internal subsidiaries can be acknowledged. The organizations in many different locations are influenced by the different people, culture, and environment. So, at the time of entering a foreign market, it is essential to consider the differences so that the differences can be addressed in a proper manner.

The report focuses on the international companies that have entered the Indonesian market. The company has to face a problem related to the difference in culture in both the countries.

In this report, the difference in culture and activities are outlined of Australia and Indonesia. The report will offer recommendations to consider the problems.

The report will offer recommendations to the expatriate managers who are working in Indonesia.

At the time of enhancing the activities in a foreign country, the organization focuses on the specific characteristics of the market so that it can be easy for the organization to achieve success in the market. If specific characteristics are not considered than it can be difficult to achieve overall goals and objectives in a proper manner. There are many differences related to culture between Australia and Indonesia that should be evaluated so that subsidiary can be established in the Indonesia market. It is seen that culture of both the countries is same. So, it can be useful to run subsidiary as it is beneficial in New Zealand (Shiraev & Levy, 2016).   It can help to achieve success in the market.

Also, the company has started a subsidiary in Indonesia. The difference is in the culture of both the countries. Hence, it is important to adapt the differences and consider the leadership style so that positive culture can be created in Indonesian subsidiary. By having proper leadership style it can be easy to maintain the culture of the company and through this to achieve success is also one of the easy task (Bird & Mendenhall, 2016).

There are many variations in the context of individualism and collectivism and also power distance should be taken into consideration so that among various individuals miscommunication and misunderstanding can be reduced.

The difference in Culture between Australia and Indonesia by focusing on the Hofstede's Model (Problems faced by the organization)

Identification

In the Hofstede's research model, there are many characteristics related to the culture of Indonesian like high power distance and collectivism and masculinity. The organizations will several problems while expanding in Indonesia due to difference in culture of both the countries. The Indonesia people have different approach towards work and coworkers.  In reference to Australia, it is seen that there are various characteristics like power distance and low uncertainty avoidance (Hofstede1 Insight, 2018). By giving focus on the model it can be evaluated that the individualism in Australia is at 90, which shows that employees are more focused towards the verbal communication and they do not shy in showing the arguments.  The people of Australia do not hesitate in saying the word "no".

In Indonesia, the score is low which states that the society of Indonesia is a collectivist. This means that the individuals in the society focus on securing their culture. The society is also related to the strong interpersonal communication and gives assistance to the other people of the society (Triandis, 2018). The individuals in the culture of collectivist try to reduce the issues by provoking less people. The collectivism also showcases the long-term commitment level by emphasizing on the children and senior members of the society. It can be evaluated that people of Indonesia try to reduce the conflicts and consider nonverbal and indirect approaches to showcase their discontent (Irawan, 2017).

By emphasizing the power distance it is seen that in Australia, it is low and in Indonesia it is high. Due to having low power distance, the Australian people consider the flat organization structure (Yuliansyah, Rammal & Rose,2016). The balance between the authorities minimizes and focus is given on the consultation. The people of Australia do not emphasize on giving respect to the people of different age or position.  There are many companies who prefer culture but they do not assign any title of higher authorities to the individuals (Bleidorn et al., 2016).  In context to it, the power distance of Indonesia is high this states that the people who have less power consider an unfair distribution of power in the company. The top management also has high authority and they manage the decision process of the company. Respect is given to the leaders by the subordinates in the company and they call their leaders with respect (Hallinger, 2018).

The hierarchy in Australia is created for convenience. Proper hierarchy is formed for convenience of the employees. Equal treatment is given by the employer and employee to each other. They take the decisions in the company by having a proper consultation with each other (Gelfand, Aycan, Erez & Leung, 2017).

Purpose

Next are uncertainty avoidance and masculinity. In this context, it is seen that Indonesia has a low score and in Australia, the score is high in masculinity. In uncertainty avoidance, Indonesia has a low score if the comparison is made with the world average that shows that Indonesia community focuses on avoiding the conditions, that impact on the lives in a negative manner (Popli, Akbar, Kumar & Gaur, 2016).  In the culture of Australia, the individuals disagree with the various situations by considering the logical arguments. The individuals do not avoid the situation which is uncomfortable bout showcase their displeasure with the circumstances. In Australia, it is seen that masculinity has a high score which showcases that the Australian society is driven by the competition and achievement level. The People of Australia focuses on winning (Mangundjaya, 2013).

The Hofstede dimensions of masculinity and femininity also state that there are various differences which are concerned to the gender prominence. It evaluates the overall difference between the forcefulness and also the care given to others. In the society of masculine, it is seen that the individuals can analyze their success based on the various characteristics of income and work progress (Rajadhyaksha, Korabik & Aycan, 2015).  In the feminine society, the emphasis is given to the relations of the human. In this, it can be stated that Indonesia is a country where a majority of Muslims are there, so it can be seen that the values are affected by the values related to Islamic (Caprara et al., 2017).  The people of Indonesia take into consideration more feminine as compared to the people of Australia Therefore it can be analyzed that they give more emphasis on taking care of the workers and their subordinates.

The perspective of Australia towards uncertainty avoidance is intermediate. This shows that how individuals of the different situation can conduct the activities by knowing the fact that future is not predictable. Each and every person considers that future can be never predicted but should people sometimes to control the dilemma. The anxiety is seen towards ambiguity and there are various people who deal with anxiety in different cases. The culture of Australia is normative which states that people thinking pattern is also normative. They give respect to the old traditions and emphasis on following traditions (Bratton & Gold, 2017).

It can be analyzed that managers from different areas have to face various challenges at the time of leading and managing the individuals of a foreign country. To manage the people of Australia is not same as managing the people of Indonesia. It can be evaluated that leadership strategy cannot be effective in one culture same as it is effective in other culture (Liu, 2017).  There are many characteristics in reference to Indonesian culture like collective well-being in the society and also it differentiates it from one culture to other. So, it is important for the company to focus on the culture of the organization so that individuals can show compassion towards other workers (Kurman, Liem, Ivancovsky, Morio & Lee, 2015).

Scope

As the activities of the company are conducted on a global basis, it is not important for the managers to give influence towards the culture of the workers with their own culture. It can be difficult to distinguish the culture of the host country from the practices related to management. The managers should focus on maintaining weak and short-term society relation between the employees. The managers should focus on the interest of the individuals. Since it can be stated that Indonesia is a collectivist society which promotes individualism, it is essential for the managers to introduce various values by considering the new environment.

It can be analyzed that Indonesia value collectivism which has given negative impact on the employee and employer relation. The woman has a different role in the society which is created according to the traditional customer of Indonesia. The women have a higher authority in the Australian market. In the present scenario, the managers are focusing on reducing the gender difference at the workplace. In Indonesia, the leadership varies from time to time and also from country to country. To be a good leader it is important to acknowledge the difference between the various cultures. Leadership needs an intellectual understanding of the workers and the various the culture. In Indonesia, the culture is analyzed by considering the high power distance and also collectivism so that leaders can be treated in a proper manner (Mendenhall et al., 2017).

According to the research it is seen that there is a cultural shift in Indonesia. The overall culture of the society is not dynamic and it changes from time to time.

Conclusion 

So, it can be researched that there is a cultural shift in Indonesia. The work values have shifted from collectivist to individualist and feminine. The human behavior is affected by the socio-cultural factors. At the time of entering the foreign country, it can be evaluated that the culture of the country is considered and also the leadership and culture style is considered to the native culture. In the recent scenario, it is seen that the Australian company is trying to enhance in Indonesia. The independent subsidiary is already situated in New Zealand. To enter the foreign market of Indonesia the company evaluates the cultural feature of both the countries. There are high collectivism and feminism is seen in the culture of Indonesia. This states that the employer and the employees behave in a way a family stays so that goals of the organization can be achieved. The culture is not related to the success of the individual.

References 

Bird, A., & Mendenhall, M. E. (2016). From cross-cultural management to global leadership: Evolution and adaptation. Journal of World Business, 51(1), 115-126.

Bleidorn, W., Arslan, R. C., Denissen, J. J., Rentfrow, P. J., Gebauer, J. E., Potter, J., & Gosling, S. D. (2016). Age and gender differences in self-esteem—A cross-cultural window. Journal of personality and social psychology, 111(3), 396.

Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.

Caprara, G. V., Vecchione, M., Schwartz, S. H., Schoen, H., Bain, P. G., Silvester, J., ... & Baslevent, C. (2017). Basic values, ideological self-placement, and voting: A cross-cultural study. Cross-Cultural Research, 51(4), 388-411.

Gelfand, M. J., Aycan, Z., Erez, M., & Leung, K. (2017). Cross-cultural industrial organizational psychology and organizational behavior: A hundred-year journey. Journal of Applied Psychology, 102(3), 514.

Hallinger, P. (2018). Bringing context out of the shadows of leadership. Educational Management Administration & Leadership, 46(1), 5-24.

Hofstede Insight. (2018). Country Comparison. Retrieved 9 May 2018 from https://www.hofstede-insights.com/country-comparison/australia,indonesia/

Irawan, D. A. (2017). Expatriates Perceptions toward Hofstede’s Indonesia Cultural Dimensions. The Winners, 18(2), 83-92.

Kurman, J., Liem, G. A., Ivancovsky, T., Morio, H., & Lee, J. (2015). Regulatory focus as an explanatory variable for cross-cultural differences in achievement-related behavior. Journal of Cross-Cultural Psychology, 46(2), 171-190.

Liu, H. (2017). Reimagining ethical leadership as a relational, contextual and political practice. Leadership, 13(3), 343-367.

Mangundjaya, W. L. (2013). Is there cultural change in the national cultures of Indonesia. Copyright 2013 International Association for Cross-Cultural Psychology ISBN: 978-0-9845627-3-2, 59.

Mendenhall, M. E., Osland, J., Bird, A., Oddou, G. R., Stevens, M. J., Maznevski, M., & Stahl, G. K. (Eds.). (2017). Global leadership: Research, practice, and development. Routledge.

Popli, M., Akbar, M., Kumar, V., & Gaur, A. (2016). Reconceptualizing cultural distance: The role of cultural experience reserve in cross-border acquisitions. Journal of World Business, 51(3), 404-412.

Rajadhyaksha, U., Korabik, K., & Aycan, Z. (2015). Gender, gender-role ideology, and the work–family interface: A cross-cultural analysis. In Gender and the work-family experience(pp. 99-117). Springer International Publishing.

Shiraev, E. B., & Levy, D. A. (2016). Cross-cultural psychology: Critical thinking and contemporary applications. Routledge.

Triandis, H. C. (2018). Individualism and collectivism. Routledge.

Yuliansyah, Y., Rammal, H. G., & Rose, E. (2016). Business strategy and performance in Indonesia’s service sector. Journal of Asia Business Studies, 10(2), 164-182.

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