In: Finance
what are the factors that affect the national differences in HRM between Australia, Indonesia and United Kingdom
Ans:
1. Political and legal factors : some countries are very stable in nature and some are ruled by dictators or very unstable because of war. Here australia is very stable in both the area but UK has very tough laws that make hard for companies to bear with. Whereas indonesia is very liberal in law but political problem is there. Religious problem and employment issue and sexual harassment is big problem for both UK and Indonesia. This factor is affected by tax law, labour law, environmental law etc of that country.
2.Economic factor: Economy is important factor for HRM. A thriving economy will give bigger benefit for comoany. Although government of all the country try to maintain a peace relationship with each other so that a less developed country can get FDI from developed country to boost their economy. Australia and UK economy is developed economy where as Indonesia is underdeveloped. In this case underdeveloped country can help developed country by providing cheap labour to produce goods from that company can generate good profit. This is affected by globalization, stock market implosion, monetary policies etc. Of that country.
3.Cultural Factors: Difference in culture is also important for HRM. Different country has different belief system and company has to maintain it. UK and Australia and Indonesia all has different religions , cultural values and belief. So working with different people from different parts of the world can create ethical confusion among them that should be managed by HR.
4. Regulatory factors: Where ease of doing business is better there will be most of the companies as most of the factors that influence trading will be better than others. There will be more transparency in works. As Australia and UK has better regulatory framework than indonesia.
5. Technological factors: Technological factors give organization an edge over others. Australia and UK has much better technological setup than Indonesia as it is underdeveloped it has to improve many side than Australia and UK.