Differences in the Approach of the Human Resources People Function Between Industries and Countries

11.07.24 10:18 AM By Linq HR

Human Resources/People (HRP) functions serve as the backbone of organisational development and employee management. However, the approach to HRP can vary significantly between industries and countries, shaped by unique industry demands and cultural contexts. Lets take a look.

Industry Specific HRP Approaches
Different industries necessitate tailored HRP strategies to meet their distinct needs. For instance, the technology sector often emphasises innovation and rapid adaptability. HRP in tech companies prioritises attracting and retaining top talent through competitive compensation, continuous learning opportunities, and flexible work arrangements (Society for Human Resource Management, 2023). Conversely, the manufacturing industry, characterised by structured processes and operational efficiency, focuses on compliance with safety regulations, labour laws, and maintaining a stable workforce (Schuler & Jackson, 2014). In supply chain and logistics, HRP practices are centred around workforce optimisation and effective management of a diverse employee base spread across multiple locations (Brewster, Mayrhofer & Farndale, 2018).

Moreover, in sectors like healthcare, the HRP approach is heavily influenced by regulatory requirements and the need for specialised skills. HRP professionals in this industry concentrate on credential verification, continuous professional development, and addressing the emotional wellbeing of staff working in high stress environments (Cascio, 2016).

Country Specific HRP Approaches
Cultural and legislative differences across countries significantly impact HRP practices. In the United States, the HRP function often deals with a dynamic regulatory environment and places a strong emphasis on diversity and inclusion initiatives (Society for Human Resource Management, 2023). Employee benefits in the US also reflect a competitive landscape, with companies offering comprehensive healthcare and retirement plans to attract talent (Schuler & Jackson, 2014).

In contrast, European countries like Germany have robust labour laws that mandate employee participation in decision making processes through mechanisms like works councils. HRP practices in Germany are geared towards compliance with these laws and fostering a collaborative workplace culture (Hofstede, Hofstede & Minkov, 2010). In Australia, HRP approaches are influenced by a strong focus on work life balance, anti-discrimination laws, and fair work practices (Brewster, Mayrhofer & Farndale, 2018).

In Asia, particularly in countries like Japan and South Korea, HRP functions are often shaped by cultural norms that emphasise loyalty, hierarchical structures, and long term employment. HRP strategies here focus on employee retention, seniority based progression, and fostering a sense of belonging within the company (Hofstede, Hofstede & Minkov, 2010), although in multinational companies this is moving more towards western management practices such as promotions based on performance.

The origin of a company can also have an effect on its HRP approach, with European and American companies as an example often exhibiting varying management styles. European firms typically adopt more collaborative and egalitarian management practices, while American companies may lean towards a more hierarchical and performance driven approach (Schuler & Jackson, 2014).

Conclusion
Understanding the nuances of HRP approaches across different industries and countries is essential for HRP professionals. Adapting strategies to fit the specific context not only ensures compliance with local regulations but also enhances employee satisfaction and organisational effectiveness. By recognising and responding to these differences, HRP can play a pivotal role in driving business success globally. 

For HRP Professionals, its important to be able to adapt to various industries and work with different cultures and backgrounds. 

Linq HR are Australian Employment and Workplace Specialists assisting organisations and employees be their best at work. Ph 1300234566.

References
Cascio, W. F., 2016. *Managing Human Resources: Productivity, Quality of Work Life, Profits*. 10th ed. New York: McGraw-Hill Education.
Hofstede, G., Hofstede, G. J. & Minkov, M., 2010. *Cultures and Organizations: Software of the Mind*. 3rd ed. New York: McGraw-Hill Education.
Schuler, R. S. & Jackson, S. E., 2014. *International Human Resource Management: Policies and Practices for Multinational Enterprises*. 5th ed. New York: Routledge.
Society for Human Resource Management (SHRM), 2023. *Industry Specific HR Practices*. Available at: <https://www.shrm.org/ResourcesAndTools/hr-topics/Pages/industry-specific-hr.aspx> [Accessed 11 July 2024].
Brewster, C., Mayrhofer, W. & Farndale, E., 2018. *Handbook of Research on Comparative Human Resource Management*. 2nd ed. Cheltenham: Edward Elgar Publishing.