Examination and Evaluation of the Distinguishing Features of Human Resource Management in Europe: A Study Based on Certain German and British Companies

Liying Wei

doi:10.5539/ijbm.v11n8p176

Abstract

<p>This paper studies the distinguishing features of HRM in Europe by focusing on firms in Germany and UK. The study offers a contrast and explanation about how European firms develop and use their HRM policies, such as different cultural predispositions, employee resourcing, training and development as well as pay. According to the empirical analysis using STATA on 1882 active publicly listed companies in the UK and Germany, the effects of HRM on operating revenue per employee were exhibited in detail. Longer power distance led to more operating revenue per employee except those in banks. Furthermore, individualism guaranteed more operating revenue, but only in Germany and in the industrial companies. On the contrary, a negative coefficient was identified between operating revenue and short-run orientation especially in industrial companies. Additionally, there was no obvious relationship between operating revenue and the gender of the chairman/president.</p>

Highlights

The history of the European Community in attempting to form a hyper country institution is one of adequate, but complex recognition of differences among nations and religions
This paper focuses on German and British firms, being a Coordinated Market Economy (CME) and a Liberal Market Economy (LME) respectively, and ijbm.ccsenet.org
In order to lower down the variance inflation factor (VIF), gdp, pop and intres were dropped in Model (2)

Summary

Introduction

The history of the European Community in attempting to form a hyper country institution is one of adequate, but complex recognition of differences among nations and religions. As one of the key characters, human resource management (HRM) in Europe is a comprehensive one. As Neo-corporatist ideology goes, German economic management is consistent with a high level of employee skill and is founded on highly development of national infrastructures and social welfare (Hollinshead, 2010). Doerflinger, and De Franceschi (2016) stated whether and how union power to shape flexibility and security policies is affected by national institutions in UK and Germany. Pudelko (2006) empirically studied the ‘balanced’, ‘moderate’ and ‘equilibrated’ character of German HRM. German companies would like to have a long perspective in their development, whereas UK companies tend to place more emphasis on short run performance, and invest strictly driven by financial criteria (Marginson, 2004). Companies pay less attention on employee development but more to financial performance

Methods

Results

Conclusion