This Presentation is going to discuss whether HRM practices and procedures can be transferable from the US to other countries. This presentation will discuss if HRM can transfer to countries in the European Union specifically Germany. Germany was chosen since in the 1980’s the US criticized Germany for the HR practices suggesting that their practices would not hold up. Germany has proven us wrong. We will show Germany has been successful and if Germany could utilize HRM practices without negative consequences.

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HRM includes policies, practices and systems that influence employee behavior attitudes and performance. (Festing 2012, p.37) HPWS enhance firm performance as a single practice or a bundle of practices that are not dependent on the context of their application. HPWS includes high-commitment management, and high-involvement management HPWS is an umbrella to describe “best practices” SHRM is practiced in the US The question that arises is can SHRM practices transfer from the US to other countries?

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Ranked 4th worldwide in Gross Domestic Product 2010 (the World Bank, 2011) They are a world leader in exporting manufactured goods, ranked 2nd worldwide in 2011 US 3rd (estimates from CIA, 2011) coordinated market economy (CME), where other EU countries are liberal market economies (LME) ( Festing, 2012 p.43). Due to the CME Germany has a more institutional environ. Which replaces the personnel department to an extent.

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The SHRM model is based on Cultural values, strong individualism, self-assertiveness, strong achievement orientation, low power distance, hight acceptance of openly disucssed different interest between various actors (Festing, 2012, p.40) EOE act, discrimination,

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Dual vocational is a n important pillar of German education systes is the initial dual vocational training arrangement which combines simultaneous theoretical learning in professional schools with ont-the-job learning in firms. (Festling, 2012 p. 43) Germany was perceived to be “more reactive, more legalistic, less autonomously professional, and more concerned with training.” (Festling, 2012 p.43) Germany has the lowest turnover rate of all investigated countries (5.3%) (Festling 2012, p.45)

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German companies ownership is not based on short-term business success as in the US German markets are also based on social markets with an emphasis of cooperation between managers and labor based on relatively high level of labor regulations and legislation (Festing 2012, p.42) Employees are selected based on CV with a long term perspective in mind Employee evaluations occur less and occur when an employee is more highly qualified codetermination makes employee dismissal difficult and allows employees to work more freely and they in turn work more productively which works well in a HPWS system like the US (Festing 2012, p.45)

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All too often leaders assume that their method of human resource management is the best practice without examining all the cultural aspects of a company and the region another branch or company is located. When a merger or a change in management has occurred there needs to be a study done on the culture and how a change in one area might be effected differently in another region. The data presented here demonstrated that before changes are made the cultural diversity needs to be examined and taken into consideration.

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This study found that HRM practices cannot be separated from their culture.

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