Hrm Brunei vs Other Western Country Essay

Introduction Employees are indispensible to an organization. Personnel management, now known as human resource management (HRM), ensures that an organization produces maximum output with the greatest efficiency. The role of HRM covers selecting and hiring the right employee, training and retaining talent, wage dispensation to maintaining employee relations (Nankervis et al, 2011). In this essay, we will be looking into a case study of HRM in Brunei and will cover three topics. Firstly we explore how culture affects the way a country runs its economy, its legal and political system, and how they adapt to technology. Next, we discuss how HRM allows individual employees to acclimatize themselves to technical differences in an organization. Lastly, we will do a comparison of how HRM differs in Brunei as compared to a western country. Culture (An Overarching Umbrella) Laurent (1986, p. 92) stated that, ‘every culture has developed through its own history some specific and unique insight into the managing of organization and their human resources.’ Hofstede’s (1984) cultural dimensions theory defines that the values of a society are influenced by their culture, and their belief in those values shapes the behavior of the society. This cultural dimension is most frequently used across culture studies, especially in differentiating Asian and Western cultures (Cho, et al. 1999). Figure 1: Hofstede’s Software of the Mind (Hofstede, 1984) Dimension| Explanation| Power Distance| The degree to which the less influential associates of institutions (such as family) and organizations expect and accept the unequal distribution of power.| Collectivist vs. Individualist| The scale of which individuals are incorporated into groups| Masculinity vs. Femininity| Refers to the distribution of roles and values between the genders. The women in feminine countries have the same modest, caring and competitive, like the men. However, in masculine countries, women are more competitive and assertive, but not as much as the men.| Uncertainty Avoidance| A society’s tolerance for uncertainty and ambiguity| Figure 1 identifies the characteristics of the four dimensions (Hofstede, 1984). Brunei regained independence from British rule in January 1, 1984 (Brunei Civil Service, 2007). Bruneian’s are ruled by the Sultan and adopt the National Philosophy called the ‘Malay Islamic Monarchy’ (MIB) where the Malay culture, language, customs and Islam is incorporated as a set of model values. The population in Brunei is estimated at 390,000 and it comprises of Malays, Chinese and Ethnic Minorities with 67 per cent, 15 per cent and 18 per cent respectively (Kramar & Syed, 2012). According to the Country Paper of Brunei Darussalam, the Government Sector employs 12.23 per cent of the entire population (Brunei Civil Service, 2007). Brunei’s legal and political system is based on both the Islamic law and English Common law. The Sultan takes on the role of the Prime Minister and is the head of government and chief of state (Central Intelligence Agency, 2013). Brunei’s social structure is one of absolute conformity to the Sultan’s authority and challenges made by individuals and organizations are frowned upon (Clarke & Salleh, 2011). Therefore it is evident that power distance is high in Brunei. Brunei’s economy is heavily dependent on the Oil and Gas sector. Actions have been made to branch out into a variety of non-oil related sectors. In a 2008 estimate by the Central Intelligence Agency (CIA), the labor force is composed of agriculture, industry (oil and gas) and services, with it being 4.2 per cent, 62.8 per cent and 33 per cent respectively (Central Intelligence Agency, 2013). Local males and females hold different employment structures, with the females being hired excessively in office, cleaning jobs and associated occupations. Males are predominantly hired in top managerial roles, as well as ‘non-office’ middle level jobs, such as agriculture, plant and machine production. Employment patterns between the local genders does not drastically differ from 20 years prior to 1991, and has been ingrained in Brunei’s employment structure. Thus, masculinity proves to be strongly evident in Brunei due to the job scopes each gender undertakes. The socio-culture in Brunei’s organizations stresses the importance of upholding the national heritage to pass down to generations to come. Islamic values and teachings have been endorsed since 16th century, which differentiates Brunei from other South-East Asian Islamic or Malay countries (Zanko & Nugi, 2003). Hence, Brunei is skewed towards a collectivist culture as they are influenced by the MIB, which instills a family like culture in the workplace. Loyalty to family and the Sultan is expected of Bruneians (Minnis, 1999). The Sultan, in a bid to improve data entry efficiency, transparency and eliminate the use of paper, is implementing a new form of technology. The system, also known as Government Employee Management System (GEMS), is being implemented in three main sectors: government employees, human resource administrators and the public. GEMS will permit the sharing of documents, leave applications and benefits entitlement to be accessible any time, anywhere. There has been mixed reactions toward the implementation of GEMS, with some preferring to stick with the old system, as it is in Malay, which is their national language. It may cause stress to older employees who have difficulty keeping up with technological advances and learning of a new language. From this, we can conclude that Bruneians have concerns towards adapting to new technology. Therefore we can conclude that they have high uncertainty avoidance. From the results above, it can be deduced that Brunei’s culture is adapted in their law and politics, technology, and the economy. The Importance of Human Resource (HR) Policies The heart of organizational effectiveness is developing long-term goals to nurture and skillfully develop human resources as key assets. The importance of investing in training and development has proven to contribute positively to the success of organizations. Government policies worldwide have since adopted management programs to help improve the quality of their human resources, in order to improve overall organizational effectiveness (Rajah & Wallace, 1993). According to Brunei Economic Development Board, 54 per cent of its population is made up of 20-54 year age group that are economically productive. This indicates a major productive workforce with both experienced and inexperienced individuals. With the availability of the workforce, HRM needs to provide training and development to upgrade their staff with knowledge and skills that is required in both macro and microenvironment. (need evidence) Comprehensive policies and procedures establish the foundation of HRM in the public sector. Policies are crucial and serve several important functions. It ensures that organizations comply with legislation and are accountable for the protection against employment claims. Policies also help the management make consistent judgments that are perpetual and expectable. Established HR policies protect not only individuals, but also organizations as well from the pressures of pragmatism (Hard Power: Soft Power, 2011). Human rights legislation is crucial as it protects employees from discrimination. It guarantees equality treatment for the people regardless of well-known characteristics that involved stereotyping or biasness in relation to employment. In Krama & Syed (2012), some interviewees felt that favoritism is still the pivotal point of recruitment, particularly in the government sector. Some interviewees suggested that cohesive social relationships in Brunei society had influence on work connection in the workplace. Although the impact was moderated by the HRM practices, particularly in employment, there is a strong need for Human Rights Legislation to be firmly enforced in Brunei in order to create inclusive workplaces that are more diverse and respectful. (can we link this to how hrm enables individual employees to adjust themselves to technical changes?) Krama & Syed (2012) stated that staff not in managerial roles was not familiar with the availability of the General Order (GO) and State Circulars (SC) as the regulations were poorly imposed. To improve the situation, HR policies must be enforced and properly implemented. Communication of policies horizontally and vertically is important. All new and existing staff could be issued an employee handbook that clearly defines an organization’s values, expectations and standard operating procedures (SOP). The purpose of the policies should be transparent, easily understood and not perceived as variable. A policy training session across the board can be implemented for certain policies like dispute resolutions, disciplinary and safety issues, which are more complicated. With the policies inaugurated, it will greatly support the country’s consistency in treatment of staff, fairness and transparency. These policies must be direct, serve the organization’s mission and not simply be enforced to regulate the conduct and rights of the staff. HRM could also implement key training in communication skills. As mentioned above, Brunei’s national language is Malay, which may lead to language barriers. Teaching employees to communicate in fluent written and spoken English is vital as Brunei branches out into the international market. In comparison to the old SIMPA system in Malay, the new GEMS system in English causes older employees to have a harder time in keeping up with the changes. HRM could provide information technology (IT) trainings to older generation employees to ensure that they are equip with relevant IT skills such as computer software (usage of emails, software program and knowledge of file format) and hardware skills, usage of organization intranet/internet and how to access and use GEMS systems (including searching, gathering of information, applying electronic-leaves, allowance and benefit application). Provision of IT skills would equip them with knowledge and skills to keep up with the technology. HRM can also implement performance management systems within the organization. The purpose of these systems is to identify, gather individual performance and information through self-review of employees and their managers/supervisor. With the self-review programs, managers/supervisor would gather more information about each individual within a team. Self-review program promotes team bonding, interaction and communication between managers/supervisor and staff. By discussing, identifying potential key individual talents, retaining key individuals that benefit the organization. With this, it allows HRM to identify key training areas that can be provided to their employees to adapt to the ever-changing environment. It could be done by overseas attachment allowing the staff to get more exposure and experience. Workshop targets on leadership quality, self development and team building within the organization that allows HR to identify potential leadership quality in individual of each different department of the organization, thus helping individual to achieve self actualization. Implementing formal and informal work environment learning in the organization. Informal workplace learning involves senior experience and junior management where senior management would hold a small meeting/sharing session with the junior management on their knowledge, skills and experience in their field of work. And as for formal work environment learning, a junior will be attached to a senior manager to attend for international meeting or conference held overseas for exposure and experience. Learning and Development program such as social and business etiquette, current affairs between host and home countries, languages, sensitivity awareness and pre-departure training. HRM In Brunei Versus HRM In A Western Country Using Hofstede (1984) and Cho, et al. (1999), we will examine the difference in society cultures of Brunei as compared to a western country, and the differences between their HRM. As mentioned above, Brunei’s culture and politics are represented by Malay-Islamic values whereas a western society where wide mixtures of culture groups are incorporated in the workforce. (need evidence) Malay cultures are highly collectivist with strong emphasis on family orientation (Blunt, 1988; Maxwell, 1996). HRM in Brunei looks beyond the welfares of the employees. Consideration for their families implemented in their HRM policies. A married female interviewee stated that work hours are family friendly and flexible. (Krama & Syed, 2012) Individuals are also less receptive to individual responsibilities, and prefer collective responsibilities in the organization. However, this collectivism also results in informal recruitment as suggested by the case (Myloni et al. 2004). In the individualist western context, employees are likely to focus on self, which also applies for compensation and rewards, where HRM rewards individuals for good performances rather than that of a team, or as collective whole. High power distance is present in Brunei’s workforce; senior managers of organizations take the lead and are regarded as significant role models based on rank, title and status, along with a tall organizational structure. (Abdullah, 2005) In the past, employees were afraid to disagree with their superiors. (Blunt, 1988) Nowadays, managers take into consideration the suggestions and point of view of employees to ensure that they feel valued by the organization. (Kramar & Syed, 2012) Apart from that, managers have no authority to press for change. This reflects a centralized system where the top management exercise great power and subordinates choose to leave the decision making process to senior executives. It is the duty of HRM to ensure that these leaders are highly committed in leading subordinates to fulfill the organization values and goals. In the western context, a decentralized structure is adopted and employees seek to be part of management decision-making process. A low power distance means that they want to be empowered by their management and be autonomous, being able to make decisions and be given responsibilities. The way to motivate them is through challenging jobs, where HRM needs to focus on the job design (Herzberg, 1966). Group discussions value the input of individuals that are taken into consideration, whereas in Brunei, SC and GO shape the HRM practices and the Sultan holds the decision making power. As mentioned in the case study, Bruneians have high uncertainty avoidance. (Blunt, 1988) Employees prefer a clear organizational structure and respect and behave ritually towards authority figures. Promotions or a raise in salary are also based on passing an examination based on the SC and GO. In contrast, a western country is skewed towards having low uncertainty avoidance whereby they are more uncertainty accepting, with higher acceptance for new ideas, innovative products and a willingness to try something new, be it technology or business practices. They also tend to be more tolerant of ideas or opinions from anyone and embrace freedom of expression (Hofstede, 1994). Maybe find a country to support this? In Brunei, the emphasis is on masculinity, men are expected to be assertive and dominant over women in social relations and demonstrates ambitious and competitive behavior. (Maxwell, 1996)