Cultural influences on human resource management practices; Implications for Arab subsidiaries of multinational enterprises

The process of adapting organizational practices to different institutional environments is critical for multinational enterprises (MNEs) as managers seek to transfer those practices across borders. This qualitative study and literature review examined how managers of Arab subsidiaries adapted human resource practices to the Arab environment, and how the influence of the culture affected adaptation. Culture was defined as the values that guide members??? behaviors in society and that translate into work-related behaviors and attitudes. To understand how subsidiaries adapted their human resource practices, I synthesized the existing research into an integrative literature review. The case studies and examples presented in the literature served to increase understanding of potential ways managers can adapt practices in subsidiaries. In addition, I conducted semi-structured interviews with two human resource managers working in two Arab subsidiaries of two U.S. MNEs. Through those interviews, the participants described the pressures facing their subsidiaries in the Arab world, how those pressures affected their human resource practices, and how they responded to them. After generating important themes from the data collected one of the major findings was that, contrary to the literature review, neither participant found the Arab culture or work-related attitudes to be influencing factors on HR practices. While many studies emphasize the influence of culture on organizations as it affects work-related values and behaviors, the findings of this study emphasize the influence of culture on the qualities of the talent pool available to organizations. It was suggested that the real challenge for MNEs in the Arab world was imposed by values attached to language, education, and women that affect the number and skill level of bilingual people, experts, and women available in the workforce. Therefore, this study highlighted the importance of adapting human resource practices to the cultural influences on the talent pool rather than to the cultural influences on employees??? workplace practices