Culture And Human Resource Management Assignment Overview

Culture And Human Resource Managementassignment Overviewcase Assignmen

Arik Air is one Nigeria’s largest airline, with approximately 10 percent of its employees being expatriates. The company faces complexities in recruiting and retaining expatriates, especially pilots, due to higher wages and potential resentment from local employees. With a recent acquisition by an American firm, the new owners must develop a strategic human resource plan addressing the management of Nigerian staff, expatriates, and potentially other international employees. Key considerations include cultural differences, management strategies, and staffing compositions.

Your task is to create a 4- to 5-page paper that proposes a human resource strategy for the American owner of Arik Air, integrating cross-cultural and international HRM principles. The plan should consider:

• Analysis of cultural values for Nigeria and the U.S. using Hofstede’s scores—focusing on individualism, power distance, and uncertainty avoidance—and the implications for HR management.
• The most appropriate HR management approach (geocentric, polycentric, or ethnocentric) for the airline, with reasoning supported by Steers and Nardon (2005) or Rao (2010).
• The ideal staffing mix—Nigerian employees (host-country nationals), American employees (home country nationals), or third-country nationals—and the challenges associated with each group. Arguments should be supported by scholarly sources.
• Consideration of the unique issues related to managing human resources in an airline operating in Nigeria, especially post-acquisition.

Paper For Above instruction

The strategic management of human resources in multinational corporations (MNCs), particularly those operating in culturally diverse environments like Nigeria, requires a nuanced understanding of cross-cultural differences and tailored HR practices. The case of Arik Air, Nigeria’s largest airline now acquired by an American firm, exemplifies the complexities of managing a diverse workforce amidst cultural, economic, and organizational challenges.

Cross-Cultural Analysis: Nigeria and the U.S.

Understanding cultural disparities is a foundational step in designing effective HR strategies. According to Hofstede’s dimensions of national culture, Nigeria and the United States exhibit stark differences that influence managerial practices and employee relations.

In Nigeria, the cultural scores reveal a high power distance, indicating a societal acceptance of hierarchical order and centralized authority (Hofstede, 2011). Nigerians tend to expect and accept unequal power distribution, which influences supervisory relationships, communication practices, and decision-making processes within organizations. Conversely, the United States scores low on power distance, emphasizing flatter organizational structures, participative management, and egalitarian relationships (Hofstede, 2011).

Regarding individualism, Nigeria’s level is relatively low, reflecting a collectivist culture that values group cohesion, family ties, and loyalty (Hofstede, 2011). U.S. culture, on the other hand, scores highly on individualism, promoting personal achievement, independence, and individual rights. This divergence implies that Nigerian employees may prioritize group harmony over individual recognition, which impacts motivation, team dynamics, and leadership styles.

Uncertainty avoidance measures how societies cope with ambiguity and change. Nigeria scores relatively high in uncertainty avoidance, indicating a preference for structured environments, risk aversion, and clear rules (Hofstede, 2011). The U.S. scores lower, suggesting greater comfort with ambiguity and entrepreneurial risk-taking. These differences pose challenges in implementing HR policies, change management, and strategic planning in the merged organization.

Implications for HR Management Strategies

Given these cultural disparities, the American airline’s HR management should adopt a flexible, culturally sensitive approach. A geocentric strategy, which integrates best practices from both home and host countries while emphasizing global standards, appears most appropriate (Rao, 2010). This approach facilitates the development of a unified corporate culture that respects local traditions but aligns with global corporate values.

Steers and Nardon (2005) recommend that MNCs prioritize adaptable management practices that accommodate cultural differences. For Nigeria’s collectivist, high power distance, and high uncertainty avoidance culture, leadership should be authoritative yet participative, fostering a sense of stability and inclusion. American managers should be trained to understand local norms and sensitivities, promoting trust and reducing resentment among Nigerian staff.

Staffing Strategy: Local, Expatriate, and Third-Country Nationals

Choosing the right mix of Nigerian nationals, American expatriates, and third-country nationals hinges on strategic objectives, cost considerations, and cultural fit. Hiring Nigerian employees ensures local expertise, cultural understanding, and stronger community ties but may present challenges related to training, motivation, and adapting Western management styles. Conversely, deploying American expatriates can facilitate the transfer of corporate culture, uphold quality standards, and provide leadership continuity; however, expatriates often face adjustment challenges, higher costs, and potential resentment (Steers & Nardon, 2005).

Third-country nationals—individuals from countries other than Nigeria or the U.S.—offer a potential middle ground. They may possess cross-cultural experience and language skills applicable to both environments, but their recruitment and integration can be complex and costly (Rao, 2010). Each staffing choice requires careful analysis of specific roles, cultural sensitivities, and organizational goals.

Challenges and Recommendations

Key challenges include managing cultural conflicts, mitigating resentment from local employees, controlling expatriate costs, and ensuring compliance with Nigerian labor laws. These issues necessitate targeted training programs, transparent communication, and inclusive HR policies. Developing expatriate repatriation programs and cultural assimilation workshops will foster smoother integration and retention.

Furthermore, implementing a participative leadership style aligned with Nigerian collectivism and respect for hierarchy can enhance employee engagement. Modern HR information systems can also monitor morale and identify integration issues early, enabling proactive solutions (Steers & Nardon, 2005).

Ultimately, the successful management of Arik Air’s human resources post-acquisition relies on balancing global standards with local customs. The HR strategy should foster cross-cultural understanding, promote inclusive practices, and align staff incentives with organizational goals.

Conclusion

The acquisition of Arik Air by an American company presents both opportunities and challenges in HR management. By leveraging Hofstede’s cultural insights, adopting a geocentric approach, and carefully selecting staffing models, the new management can build a cohesive, effective, and culturally sensitive workforce. Addressing the unique issues of managing airline personnel in Nigeria—such as cultural differences, legal compliance, and employee morale—will be instrumental in ensuring the airline’s global success and local acceptance.

References

• Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture, 2(1). https://doi.org/10.9707/2307-0919.1014
• Rao, T. V. (2010). Building Cross-Cultural Competence in International Business. Journal of International Business and Cultural Studies, 4.
• Steers, R. M., & Nardon, L. (2005). Culture, Strategy, and Human Resource Management. Academy of Management Perspectives, 19(2).
• AllAfrica.com. (2014). Nigeria loses N500 billion annually to expatriate pilots. https://allafrica.com/stories/201401240188.html
• Fajana, S., Owoyemi, O., Elegbede, T., & Gbajumo-Sheriff, M. (2011). Human resource management practices in Nigeria. Journal of Management and Strategy, 2(2).
• Additional scholarly references supporting cross-cultural management strategies and HR practices in multinational airlines.