Another angle on the HRM convergence and divergence debate: Preliminary evidence by comparing a foreign versus local bank in China

In the international human resource literature, there is a long lasting debate concerning the extent to which foreign companies should adopt local human resource management (HRM) practices. However, evidence for both convergence and divergence can be found and there is no clear answer to the trend of convergence. In this study, we attempt to provide a different angle to approach this debate. Specifically, we argue that to gain legitimacy in attracting and retaining necessary human resources, quality of work life which reflected the end results of HRM practices will be similar among organizations. For individual HRM practices, they will be affected by the interaction between specific institutional forces and the organization's strategic choice. Using this perspective, we are able to explain the similarities and differences of the quality of work life and individual HRM practices in a foreign and local bank operating in Shanghai. There are two important implications. First, while individual HRM practices may differ among organizations, the end results of these practices quality of work life provided have to be similar. Second, both the institutional forces and the strategic choices of organizations have to be carefully examined in order to understand the convergence and divergence of their HRM practices.

Subjects

HRM Practices

Convergence

Divergence

Work Life

Foreign Bank

Local Bank

China

Options

Another angle on the HRM convergence and divergence debate: Preliminary evidence by comparing a foreign versus local bank in China

Availability at HKSYU Library