Global, regional and local similarities and differences in Human Resource Management

Abstract

This study follows a contextual research paradigm of investigating similarities and differences in human resource management (HRM) practices in various countries with a special view to global trends in comparison with practices in Central and Eastern Europe (CEE) in general and Hungary, in particular.

Within the conceptual framework of cultural clusters and comparative economics, their interaction and correlations in explaining phenomena are examined. Since the last economic crisis, important changes in HRM areas have been observed. These changes and their converging or diverging nature, as well as some features particular to Hungary, are reflected in the last two Cranet surveys which encompass six European regions (including Central and Eastern European countries) and the United States.

As the earth is not monocentric there is not only a single method to address human resources management issues across the globe. In our article we follow the comparative HR paradigm, aware of the effect of the cultural and institutional differences which inform HR solutions of a single country or a cluster of them. Our comparative analyses are primarily aimed at identifying the presumed particularities of HR practice in the CEE region. The HR practices in Central and Eastern Europe and in our country’s organisations follow international trends in several areas, while country-specific variations are still present. Countries in our region, including Hungary, have a number of HR particularities, especially regarding HR departments and HR strategies, performance appraisal and atypical employment. But they are catching up with the world’s most economically developed regions, and in the use of electronic HR information systems, our country is on par. This is noteworthy because, in both the Hungarian and the Central and Eastern European sample, small companies represent a relatively larger proportion.

Although the importance of performance appraisal or the role of atypical forms of employment is clearly recognised within the organisations in Central Eastern Europe, they do not show a rosy picture when it comes to the strategic role of HR: the results suggest that individuals responsible for human resource management are not part of senior management and thus do not participate in the formulation of business strategy in our region or in our country.