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Table of Contents

S/N Content Page

1 Introduction 3

2 Globalisation 4

3 Convergence and Divergence Theories 6

4 UK HRM Practices 9

5 Nigeria HRM Practices 10

6 Comparing the UK and Nigeria 11

7 Implications of Different HRM Approaches: Convergence, Divergence and Cross-Vergence 12

8 Conclusion 13

9 Critical Reflection 14

10 References 15

List of Figures

S/N Figure Page

1 Hofstede's Cultural Dimensions Theory (Hofstede, 1980). 6

2 Figure 1: Hofstede Cultural Dimension of Nigeria and UK (Hofstede, 2001). 7

3 The World Bank's support for the agricultural sector in Nigeria (World Bank, 2022) 11

The Impact of Globalisation on HRM Practices: A Comparison of the UK and Nigeria

Introduction

The impact of globalisation has caused increased connection and integration between countries through the advancement of technology and transportation, easing trade barriers, and rapid movements of investment, goods and people across borders (Dowling et al., 2013). This has helped to drive the explosion of the global presence of MNCs by allowing them to access new markets, sources of raw materials and diverse cultures abroad. On the one hand, multinational corporations operate worldwide despite being in diverse national contexts. Hence, the debate surrounding whether their HRM practices converge to a universal best practice model or retain distinct local characteristics echoes the divergence (Brewster et al., 2016). Convergence theorists point out that a tendency of MNCs to adopt identical HRM policies and practices globally results from the time of one voice they experience under the effect of global forces for the sake of consistency and efficiency (Pudelko and Harzing, 2007). Unlike the 'divergence theorists, enduring institutional, cultural and business system differences between countries are what constrain true HRM convergence and are the reason for the persistent national-specific practices (Rutherford et al., 2017).

This essay assesses the convergence, divergence and cross-vergence approaches to multinational corporations' HRM strategies, using the UK and Nigeria as case studies. The tool examines the principal HRM policies, such as recruitment and selection, performance management, and rewards, in each specific location. The discussion of the implications focuses on sustainable HRM. The UK stands for a developed liberal economy, displaying certain convergence in recruitment and ongoing divergence in areas such as work-life balance (Gooderham and Mazur, 1999). The Nigerian case illustrates the challenges of a developing economy in blending Western practices of HRM with home-bred systems due to cultural and institutional mismatches (Imhonopi & Urim, 2014). Evaluation of varying contexts of characters is essential for better understanding which national characteristics influence HRM rather than only relying on Western

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models. The essay considers internationalisation and specialisation the most effective ways of

customising and cross-border HRM.

Globalisation

Globalization is an interaction process that enhances links and interdependence among countries

worldwide (Dowling et al., 2013). However, this has resulted from a mixed bag of factors, such

as the speedy development of communication and transportation technologies, the decision of the

government to liberalise trade and investment flows, and the promotion of market deregulation.

The ease of entering new markets has also driven the two approaches. The result of this is the

rapid growth in the movement of goods, services, finance, and people across the borders. In

addition, it has also led to the advent of the exchange of ideas and cultures. International

exchange and transaction obstacles are lower than they used to be.

But, the main result is that a new level of international access to everything from inputs,

resources, skills and markets, all that is not available to the extent to which they were before, is

now possible for organisations (Schuler et al., 1993). Such corporations (MNCs) have their

subsidiaries and suppliers in countries around the globe. The process of globalization offers some

significant advantages for MNCs. First, the companies may tap into new markets abroad to sell

their products and services, leading to financial growth (Bjorkman et al., 2007). Secondly, they

have the economic advantage of lowering human and material costs and more extensive team

engagement as they subcontract activities abroad (Pudelko and Harzing, 2007). Thus, the third

advantage of globalization is the instant transmission and dissemination of the most innovative

management ideas, business models, and technologies, as well as the best practices

internationally, which the MNCs may use to get ahead of the competitors (Harzing &

Pinnington 2015).

However, globalisation creates opportunities for MNCs to exploit it, as well as challenges for

them to balance the issues of conflicting pressure (Schuler et al., 1993). On the other hand, the

factors that encourage the integration of international operations to be similar, large-scale, and well-organized are also present (Taylor et al., 1996). In contrast, the establishment of the multinational corporation is often accompanied by high levels of local responsiveness in terms of consumers' differing preferences, culture, regulations, institutions and economic and political conditions existing in the country or countries where the MNC is operating (Rugman and Verbeke, 2004).

The tensions in these aspects concern marketing, operations, and human resources management (HRM) within MNCs (Brewster et al., 2016). Specifically, it shapes critical decisions regarding whether to: Specifically, it shapes critical choices regarding whether to:

• Adopt globally standardized practices across all subsidiaries for consistency, efficiency and integrated learning.

• Customize policies and practices locally in each country to provide contextual fit with specific cultural values, business systems, laws and stakeholder expectations.

In essence, MNCs find themselves in a dilemma—they have to either create a uniform set of universal best practices at a global level or create a plethora of practices tailored to the unique requirements of each local environment. (Farndale et al., 2017) Their standpoint on this issue has profound effects on HR, both ethically and sustainably.

Convergence and Divergence Theories

Convergence theorists point out that globalisation drives the similarity (convergence) of management politics and practices, including human resource management (HRM), around the world, as MNCs (multinational corporations) adopt best practices that work everywhere (Rowley and Benson, 2002). They underline the quick global dissemination of knowledge using technology, while internationalization involves the demands of standardization and coordination (Taylor et al., 1996; Pudelko and Harzing, 2007). Convergence advocates contend that a universalistic set of ‘best’ HRM practices exists, which represents the state-of-the-art knowledge on how to optimally manage human capital for performance (Pudelko and Harzing, 2007). These

practices include recruitment methods, training techniques, compensation models, performance management systems etc. Convergence theorists argue that as many HRM challenges are similar across organizations and national contexts, it is logical for MNCs to implement standardized best practices globally to maximize efficiency, consistency, and integrated learning worldwide (Taylor et al., 1996; Pudelko and Harzing, 2007).

Headquarters often play a key role in diffusion of universal best practices by exporting HRM policies perceived as advanced or superior from their home country across the entire organization (Noorderhaven and Harzing, 2003). For example, US multinationals have actively transferred practices like individual performance-related pay and talent management globally. Convergence theorists also highlight how management consultants and business schools promote adoption of universal best practice HRM models internationally (Pudelko and Harzing, 2007).

Overall, convergence theorists downplay persistent differences between national contexts, arguing that global forces create overwhelming pressures for similarity in HRM practices as MNCs gravitate towards a universalistic model. They view HRM policies and practices as technical systems that can be codified and implemented universally with little need for local adaptation (Rowley and Benson, 2002).

In contrast, divergence theorists contend that substantial differences remain between national environments which constrain meaningfully convergence of HRM practices (Brewster et al., 2016; Rutherford et al., 2017). Each country context has distinct institutions (political, legal, economic systems), regulations, socio-cultural norms and values which shape dominant management and HRM policies and practices locally (Aycan, 2005).

Cultural values also remain diverse globally despite some diffusion through globalization. Hofstede's (2001) cultural dimensions theory highlights key differences between societies on dimensions like power distance, individualism vs. collectivism etc. which shape management practices from abroad (Pauwe and Farndale, 2017). For instance, national regulations on issues like employment contracts, minimum wage, work hours, dismissal procedures etc. affect HRM options. Firms require institutional support, constraining convergence.

Institutional theorists emphasize that organizations are embedded within wider societal institutions that create path dependencies and inertia against adopting alien management practices from abroad (Pauwe and Farndale, 2017). Each country context has distinct institutions (political, legal, economic systems), regulations, socio-cultural norms and values which shape dominant management and HRM policies and practices locally (Aycan, 2005).

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norms. High power distance cultures demand greater hierarchy and centralized authority versus

flatter, participative leadership in low power distance countries. High uncertainty avoidance

cultures emphasize stability and structured processes versus greater risk-taking and flexibility in

low uncertainty avoidance societies. Given cultural boundaries on management practices, divergence theorists argue that localization of HRM practices is required for contextual fit (Aycan, 2005).

Figure 1: Hofstede's Cultural Dimensions Theory (Hofstede, 1980).

Cross-vergence theory presents a midway perspective, arguing that MNCs’ HRM policies evolve over time through constant interaction between forces of global integration and pressures for local responsiveness (Sartor et al., 2019; Brewster et al., 2016). Rather than rigid convergence or divergence, MNCs adopt a ‘glocal’ approach for HRM, blending and adapting global best

practices to suit the requirements of each local cultural and institutional environment (Ralston, 2008).

Cross-vergence allows sufficient flexibility to customize HRM practices to provide contextual fit, while still transferring globally integrated frameworks, processes and some common policies across borders for consistency (Farndale et al., 2017). Headquarters develop global guidelines on issues like recruitment, training, compensation etc. but allow subsidiaries latitude to adapt execution based on local regulations, cultural preferences and business conditions. A participative process enables contextualisation.

By leveraging global knowledge while providing local flexibility, cross-vergence aims to balance pressures for integration and responsiveness (Sartor et al., 2019). Proponents argue this pragmatic hybrid model enhances contextual fit and sustainability, versus pure convergence or divergence. However, it requires compromises and effort on both the headquarters and subsidiary side. The appropriate balance is constantly negotiated.

Figure 2: Hofstede Cultural Dimension of Nigeria and UK (Hofstede, 2001).

Nigeria

in comparison with the below

80 40

30 90

60 62

55 46

16 29

PDI IDV MAS UAI LTO

Nigeria UK

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UK HRM Practices

The UK represents a liberal market economy with low regulation, flexible labour markets and individualistic cultural values (Gooderham et al, 1999). Historically, there was more emphasis on compliance than strategic HRM (Brewster et al., 2016). However, adoption of some US practices and reduced union power enabled more performance-driven, individualistic HRM lately (Lloyd and Payne, 2014).

For recruitment and selection, the UK has largely converged to universal best practices favouring assessment centres, structured interviews and psychometrics to evaluate skills and person-organisation fit (Aycan, 2005). Multinationals favour these methods for their perceived predictive validity and objectivity (Ryan et al., 1999). However, local divergence remains.

Equality legislation constrains discrimination, while unions still influence hiring processes in

some sectors (Dickmann and Muller-Camen, 2006). Overall though, convergence dominates

recruitment and selection.

Regarding performance management, goal-setting, monitoring, appraisals and performance-

related pay are widely adopted to drive individual achievement, suiting the high individualism

culture (Hofstede, 2001). Tesco links evaluations to bonuses (Bal, 2017). Work-life balance

protections diverge from US models though (Colling and Clark, 2002).

For pay and rewards, most UK firms adopt merit-based systems and bonus schemes prioritising

high performers, reflecting market-based employment relations (Gooderham et al, 1999). However,

national minimum wage legislation constrains pay rates (Cooke, 2018). Pension contributions and leave allowances

are also affected by domestic regulations. This again indicates cross-vergence.

Nigeria HRM Practices

In contrast to the UK's advanced economy, Nigeria exemplifies a developing country facing

greater challenges implementing Western HRM models (Ahiazu, 1986). Weak infrastructure,

governance and corruption hinder business (World Bank, 2022). Culturally, collectivism and high power distance conflict with Western norms of individualism and egalitarianism (Hofstede, 2001; Aycan, 2005). This impedes convergence.

For recruitment and selection, local firms exhibit strong divergence. Nepotism and cronyism are common, undermining meritocracy (Anakwe, 2002; Mbanaso & Nwokocha, 2015). Assessments focus on relationships rather than qualifications or performance. MNCs struggle to install structured interviews and skills-based assessments. Locals often resent expatriate managers overriding traditional hiring practices. Successful MNCs empower indigenous managers to localise recruitment and selection processes.

Regarding performance management, locals are unaccustomed to objective assessments, critical feedback and confronting poor performers (Imhonopi & Urim, 2014). Open communication conflicts with high power distance and collectivism. Locals expect rewards based on seniority and status rather than performance. MNCs that impose individual appraisals and target-setting without adaptation risk alienating local workers. Again, successful MNCs localise performance management through participative adaptation to gain acceptance.

For compensation, lack of transparency and corruption allow pay inequities unaffected by market forces, while locals expect seniority-based pay and benefits reflecting status hierarchies rather than performance (Anakwe, 2002; Mbanaso & Nwokocha, 2015). Individual merit-based rewards contravene cultural norms. MNCs must customise pay systems to align with local expectations or risk failure.

Overall, indigenous Nigerian HRM diverges markedly from Western models. MNCs exhibit localised convergence by selectively adopting modified practices where possible. But progress is slow due to institutional constraints.

Nigeria: Commitments by Fiscal Year (in millions of dollars)*

2020 2,501

2021 3,375

2022 2,400

2023 2,000

2024 1,450

*Amounts include IBRD and IDA commitments

Figure 3: The World Bank’s support for the agricultural sector in Nigeria (World Bank, 2022).

Comparing the UK and Nigeria

This analysis reveals substantial differences in the HRM landscape between the UK and Nigeria.

The UK represents a developed economy with relatively well-established HRM practices, exhibiting moderate levels of convergence towards global best practices along with continued localization reflecting some divergence (Gooderham et al, 1999; Brewster et al., 2016).

Its stronger governance, infrastructure, education system and Western cultural values allow greater assimilation of certain universal practices like structured selection interviews, performance management and merit-based rewards (Lloyd and Payne, 2014; Aycan, 2005).

However, aspects of divergence remain where institutional misalignment limits adopting alien practices.

For instance, work-life balance protections diverge from the US model, while domestic regulations affect compensation design and trade unions still influence hiring in some sectors.

(Dickmann and Muller-Camen, 2006; Colling and Clark, 2002). Overall, the UK exemplifies selective adoption of global best practices within the constraints of its national business system - indicative of cross-vergence.

In contrast, Nigeria represents a developing economy with nascent HRM practices still heavily localized and divergent from Western models (Ahiazu, 1986; Anakwe, 2002). Weak institutions, infrastructure, prevalent corruption and tribalistic cultural values emphasizing loyalty to kinship groups all impede convergence currently (Aycan, 2005; Mbanaso & Nwokocha, 2015). Indigenous organizations exhibit strong divergence in areas like nepotistic hiring, seniority-based pay and limited performance management (Imhonopi & Urim, 2014). MNCs face challenges implementing individualistic appraisals and structured recruitment. Progress is very gradual.

However, while Nigeria has far to travel to reach the moderate convergence evident in the UK, neither country exhibits absolute convergence or divergence. Nigeria displays incremental local adaptation among MNC subsidiaries, while the UK blends global integration with areas of ongoing localization. Elements of cross-vergence occur in both, but to varying degrees. The analysis emphasizes how national contexts shape HRM options and orientations.

Implications of Different HRM Approaches: Convergence, Divergence and Cross-Vergence

Proponents argue pure convergence enables consistency, efficiency and integrated learning within MNCs, but risks ethnocentric imposition of unsuitable practices (Pudelko and Harzing, 2007; Tayeb, 2005). Customisation through divergence provides local relevance but can isolate subsidiaries, prevent scale economies and constrain practice transfer (Noorderhaven and Harzing, 2003). Cross-vergence attempts to balance these tensions but progress may seem slow and piecemeal to both sides.

However, it requires compromises from both headquarters and subsidiaries. HQ must provide

flexibility when developing global initiatives, while subsidiaries should willingly integrate

adopted practices locally (Brewster et al., 2016). A participative approach facilitates this.

Developing economies like Nigeria reveal that macro forces like improving institutions,

infrastructure, education and governance are also critical enablers for sustainable HRM progress

over time. Multinationals and governments play important roles in supporting these capacity

building efforts (Horwitz, 2019). Overall, contextual alignment remains essential for sustainable

HRM.

Conclusion

In conclusion, while aspects of convergence, divergence and cross-vergence coexist in reality,

cross-vergence seems most effective at balancing global integration with local responsiveness for

sustainable HRM. However, this demands nuanced effort to blend and adapt practices

appropriately for each context. Developing economies like Nigeria reveal they have further to

travel to establish supportive conditions for advanced HRM. But with gradual institutional

improvements and mindset shifts, they can also progress on HRM localisation efforts over time,

benefiting both MNCs and indigenous organisations. Sustainable HRM ultimately requires

contextual alignment between societal characteristics and HRM policies and practices.

Critical Reflection

This essay aimed to provide an enriched, contextual analysis of HRM convergence theories using

the UK and Nigeria as examples. Comparing different countries illustrates how national

characteristics shape HRM beyond reliance on familiar Western models. However, I recognise

that Nigeria represents only part of Africa's vast diversity. The UK comparison risks reproducing

post-colonial power relations by positioning the ‘West’ as superior. Despite Nigeria's gaps in

meeting the SDGs, the deficit framing misses marking the indigenous strengths. "Amalgamating

more Nigerian knowledge will help to achieve the points of view locally."

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In international HRM theory, institutional and cultural determinism can often overlook agency and dynamism. The simplest concept of convergence/divergence dichotomies can obscure the actual blends in practice. HRM, being a political activity, often masks the power dynamics between managers and workers, which are in a constant state of contest or negotiation. It's essential to question what is considered 'the best practice' here, as it can sometimes hide the exploitation of workers, such as work intensification and lowering protections, which are part of the ongoing debates.

However, sustainable HRM's main challenge is dealing with the multiple stakeholders' interests, accountability and the need to avoid narrow ethnocentrism and respect different worldviews. MNCs should devise concrete actions in association with local stakeholders on contextualization. Create your Digital Resume For FREE on resplendor.com. Apart from studying comparative HRM in the context of globalisation, researchers should display self-reflexivity regarding their positioning and possible biases. There are complex universals - take a nuanced approach to local realities! It will help your management to be ethical and sustainable.

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