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Human Resource Management in Developing Countries

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Human Resource Management in Developing Countries Human Resource Management in Developing Countries Increasing globalisation and competitiveness have brought to the fore the importance of effective human resource management for national and international organisations. In recent years, there has been a remarkable development in HRM throughout the world, however, the majority of research has focused on HRM in advanced industrial societies. This book redresses the balance by providing a thorough analysis of HRM in thirteen developing countries in Asia, Africa and the Middle East. Contributors examine the influence of core national factors on the determination of HRM policies and practices in China, South Korea, Taiwan, India, Nepal, Pakistan, Iran, Saudi Arabia, Algeria, Nigeria, Ghana, Kenya and South Africa. These factors include: • national culture • national institutes • business environment • industrial sector A common framework is used by all authors throughout the work to analyse not only the ‘context-specific’ HRM functions in these countries, but also the diverse and unique configurations of national factors which impact on HRM in cross- national settings. This work will prove valuable for human resource management practitioners, as well as scholars and students involved in teaching and researching HRM and International Business. Pawan S.Budhwar is Lecturer in OB and HRM at Cardiff Business School, University of Wales. He received his PhD from Manchester Business School and has published in the fields of international HRM, comparative management, managerial cognition and research methods. Yaw A.Debrah is a Senior Lecturer in Management at Cardiff Business School. He teaches courses in Human Resource Management and Comparative Management at both undergraduate and graduate levels. He has lived and worked in Africa, North America, Asia and Europe, and has published numerous articles and book chapters. Routledge Research in Employment Relations Series editors: Rick Delbridge and Edmund Heery Cardiff Business School Aspects of the employment relationship are central to numerous courses at both undergraduate and postgraduate level. Drawing from insights from industrial relations, human resource management and industrial sociology, this series provides an alternative source of research- based materials and texts, reviewing key developments in employment research. Books published in this series are works of high academic merit, drawn from a wide range of academic studies in the social sciences. 1 Social Partnership at Work Carola M.Frege 2 Human Resource Management in the Hotel Industry Kim Hoque 3 Redefining Public Sector Unionism UNISON and the future of trade unions Edited by Mike Terry 4 Employee Ownership, Participation and Governance A study of ESOPs in the UK Andrew Pendleton 5 Human Resource Management in Developing Countries Edited by Pawan S.Budhwar and Yaw A.Debrah 6 Gender, Diversity and Trade Unions Edited by Fiona Colgan and Sue Ledwith 7 Inside the Factory of the Future Work, power and authority in microelectronics Alan Macinlay and Phil Taylor Also available from Routledge: Rethinking Industrial Relations Mobilisation, collectivism and long waves John Kelly Employee Relations in the Public Services Themes and issues Edited by Susan Corby and Geoff White The Insecure Workforce Edited by Edmund Heery and John Salmon Public Service Employment Relations in Europe Transformation, modernisation or inertia? Edited by Stephen Bach, Lorenzo Bordogna, Giuseppe Della Rocca and David Winchester Reward Management A critical text Edited by Geoff White and Janet Druker Working for McDonald’s in Europe The unequal struggle? Tony Royle Job Insecurity and Work Intensification Edited by Brendan Burchell, David Ladipo and Frank Wilkinson Human Resource Management in Developing Countries Edited by Pawan S.Budhwar and Yaw A.Debrah London and New York First published 2001 by Routledge 11 New Fetter Lane, London EC4P 4EE Simultaneously published in the USA and Canada by Routledge 29 West 35th Street, New York, NY 10001 Routledge is an imprint of the Taylor & Francis Group This edition published in the Taylor & Francis e-Library, 2003. © 2001 Editorial selection and material, Pawan S.Budhwar and Yaw A. Debrah; individual chapters, the authors All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Human resource management in developing countries/edited by Pawan S.Budhwar and Yaw A.Debrah. p. cm. Includes bibliographical references and index. 1. Personnel management—Developing countries. 2. Human capital—Developing countries—Management. I. Budhwar, Pawan S. II. Debrah, Yaw A. HF5549.2.D48 H859 2001 658.3´009172´4–dc21 00–051780 ISBN 0-203-46437-0 Master e-book ISBN ISBN 0-203-77261-X (Adobe eReader Format) ISBN 0-415-22333-4 (Print Edition) To Laxmi and Gaurav, who gave me the freedom to complete this task. To Dorothy, Denise, Lorraine and Derek with all my love To those who are interested in international HRM and its progress in developing countries. Contents List of figures ix List of tables xi List of contributors xiii Foreword by Randall S.Schuler xv Preface xvii Acknowledgements xix 1 Introduction 1 PAWAN S.BUDHWAR AND YAW A.DEBRAH PART I Human resource management in Asia 17 2 Human resource management in the People’s Republic of China 19 MALCOLM WARNER 3 Human resource management in South Korea 34 WON-WOO PARK 4 Human resource management in Taiwan 56 TUNG-CHUN HUANG 5 Human resource management in India 75 PAWAN S.BUDHWAR 6 Human resource management in Nepal 91 DEV RAJ ADHIKARI AND MICHAEL MULLER vii viii Contents 7 Human resource management in Pakistan 102 SHAISTA E.KHILJI 8 Human resource management in Iran 121 MONIR TAYEB 9 Human resource management in Saudi Arabia 135 KAMEL MELLAHI AND GEOFFREY T.WOOD PART II Human resource management in Africa 153 10 Human resource management in Algeria 155 MOHAMED BRANINE 11 Human resource management in Nigeria 174 FRANCA OVADJE AND AUGUSTINE ANKOMAH 12 Human resource management in Ghana 190 YAW A.DEBRAH 13 Human resource management in Kenya 209 KEN KAMOCHE 14 Human resource management in South Africa 222 GEOFFREY T.WOOD AND KAMEL MELLAHI 15 Conclusion: international competitive pressures and the challenges for HRM in developing countries 238 YAW A.DEBRAH AND PAWAN S.BUDHWAR Subject index 255 Name index 259 Figures 1.1 Factors determining cross-national HRM practices 6 9.1 Saudi male population: age and employment, 2000 137 10.1 The structure of self-management in Algeria 161 10.2 The structure of the SME at the unit/plant level in Algeria 163 13.1 A processual, strategic model of HRM in Africa 211 ix Tables 1.1 Details of sub-components of national factors determining cross-national HRM 8 2.1 Background statistics on the Chinese economy, mid-2000 20 2.2 The Chinese industrial and labour relations system 28 3.1 The transition in the characteristics of HRM of Korean companies 51 3.2 Past and future of Korean HRM 53 4.1 Structure of industry as percentage of GDP in Taiwan 57 4.2 Employed people by industry structure 58 4.3 Working hours and monthly earnings 58 4.4 Profile of labor underutilization in Taiwan 59 4.5 Approximate percentage of time spent on HR matters 63 4.6 The rank of the activities in terms of their importance in the contribution made by the HR function to organizational objectives in the last three years 64 4.7 The extent to which the importance of the HR function contribution to organizational objectives has changed in the last three years 65 5.1 Influence of different aspects of national culture on Indian HRM 79 5.2 Influence of different institutions on Indian HRM 82 5.3 Influence of dynamic business environment on Indian HRM 84 5.4 Influence of business sector on Indian HRM 85 6.1 Economically active population in Nepal 92 6.2 Number of disputes and man-days lost in Nepal 97 7.1 Sectoral distribution and its percentage share of GDP in Pakistan (1998–99) 103 7.2 Employment by occupation in Pakistan (1998–99) 103 7.3 Important national factors and their impact on HRM in Pakistan 110 9.1 Saudi Arabia: key economic data (billion US$) 136 9.2 Comparison between HRM practices for Saudis and non-Saudis 141 12.1 Ghana: economic summary 191 14.1 Occupation levels by race in South Africa 225 15.1 Top 10 MNCs based in developing countries 247 xi Contributors Dev Raj Adhikari Reader, Central Department of Management, Tribhuvan University, Kathmandu, Nepal. Augustine K.Ankomah Senior Lecturer, School of Health, University of Teesside, UK. Mohamed Branine Lecturer, Department of Management and Organization, University of Stirling, Scotland. Pawan S.Budhwar Lecturer, Cardiff Business School, Wales. Yaw A.Debrah Senior Lecturer, Cardiff Business School, Wales. Tung-Chun Huang Professor, Institute of Human Resource Management, National Central University, Taiwan. Ken Kamoche Associate Professor, City University of Hong Kong, Hong Kong. Shaista E.Khilji Assistant Professor, Department of Management, McGill University, Montreal, Canada. Kamel Mellahi Senior Lecturer, Coventry Business School, University of Coventry, England. Michael Muller Senior Research Fellow, Leicester Business School, University of Leicester, England. Franca Ovadje Lagos Business School, Nigeria. Won-Woo Park Assistant Professor, College of Business Administration, Seoul National University, Seoul, Korea. Monir Tayeb Reader, Department of Business Organization, Herriot-Watt University, Edinburgh, Scotland. Malcolm Warner Professor and Fellow, Wolfson College and Judge Institute of Management Studies, University of Cambridge, England. Geoffrey T.Wood Senior Lecturer, Coventry Business School, University of Coventry, England. xiii Foreword The importance of managing human resources has been growing over the past twenty years, both in academia and in practice.
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