 In this topic, we are going to discuss the broad cultural context of human resource management. The broad cultural context, it includes a number of factors and a number of dynamics from various different levels of the environment that affect the human resource management practices of a country and a number of things are surrounding in the environment of an organization that affect the human resource management practices. So we are going to take a look at how the cultural aspects they affect human resource management practices. So you can see in the diagram that there are overarching variables, factors that are determining the national human resource management policies. You can see that in the first line there are socio-cultural institutions. What are socio-cultural institutions? We will discuss in the next slide. Then there are national political and economic institutions and policies. Your national institutions are national policies. For example, there can be a policy of equal employment opportunity. Apart from that, if there are joint ventures regarding your international human resource management, there can be your national policies that you have to give representation to the local market. Apart from that, there can be your financial policies in which multinationals or requirements for them are that how much capital they have to keep or regarding human resources, what are the requirements for their visa, what are their security requirements. So there are so many various different national political economic institutions and policies that will then affect your national human resource policies. Then again, these national political economic institutions, they affect the supranational political economic institutions and policies. The supranational institutions are the one. For example, supranational institution is the United Nations. Supranational political economic institution is the OECD. It is the European Union. So there are a number of supranational institutions which are affected by the policies of the national institutions of its member countries. So the national system will affect the supranational system and the supranational system will again, it will affect the national human resource management policies. On the socio-cultural institution side, the socio-cultural institutions will affect the cultural values and attitudes. The institutions and your national institutions will determine your cultural values. And on the basis of that, your organizational culture will develop. And on the basis of that organizational culture, your national human resource management policies, a general national human resource management policies will evolve. And when you arrive at the national human resource management policies, that leads to national human resources management. In a particular country, what is the policy of a general human resource management that affects human resource management in organizations? And then when you go on the cultural side, you can see that the cultural values and attitudes, on one side they affect the national human resource management policies. And on the other side, they also affect the organizational culture as well as the leadership styles and the management competencies of people who are working in the organizations. And then they affect the human resource management in organizations as well. So it is a bi-directional and multi-factor model of the cultural context of human resource management in organizations. So basically, your socio-cultural institutions generate your cultural values and attitudes. Your national institutions generate your overall national policies. And that leads to an overall national human resource management. Culture affects your organizational culture and leadership. All of that ends up how you manage human resources in organizations. So that is a broad cultural context model of human resource management in organizations. Now, the same variables when we elaborate each of the variables that affect the national human resource management policies. And we try to elaborate what are the elements of each of those variables. So in the national culture, you can see that there is a socialization process. There are the common values, norms of behavior and custom and influence of pressure groups, assumptions that shape managers' perception match to the organizational culture. So basically, the national culture that is based on the various different common values of the people that are living in that particular country. Then the institutions that we talked about, the socio-cultural institutions. Those are, for example, the national labor laws, what are the trade unions, the educational and vocational training setup. Then another very important institution is the labor market. Then the professional bodies of international institutions that also are always very active. Then the industry by itself, it is an institution. The employer's federations, that is, the organizations have their own federations. Other than that, consulting organizations. So these are the institutions that exist in your socio-cultural environment and influence your national human resource management policies. Then there is the dynamic business environment that has a major effect on your national HRM policies. What is in the dynamic business environment? What type of competition there is? What are the different business alliances that we have previously discussed in the previous topics, merger and acquisitions and joint ventures, etc. Then the changing composition of workforce, that is very much important. Your national population has more youth, or more middle-aged people, or more ageing population. For example, China has a very big issue that their ageing population is now dominating because they have been controlling their population a lot. Their youth, their size, their proportion is low and now there is more ageing population. That also affects what kind of human resource policies you can implement in a particular environment. Then there could be restructuring and the focus on how much your national culture has focused on customer satisfaction. Then facility of information, change of technology and globalization of the business. All these things are related to the dynamic business environment. Then another factor which is affecting the national HRM policies is the industrial sector. And within the industrial sector, then there are a number of things which need to be considered. For example, what are the common strategies of that industrial sector? The business logic and goals, what are the business logic and goals of that particular industrial sector? Regulations and standards, sector specific knowledge are related to the human capital industry. For example, if you talk about the IT industry, then how many people are there who are skilled in IT? Or if you talk about manufacturing, then how many people are there who can manage production management and operations management? So sector specific knowledge exists. Information and formal benchmarking, informal and formal benchmarking, cross sector cooperation, common developments in the business operations and labor or skill requirements. All of these things, they are part of your industrial sector and they define your national human resource policies and practices. Then there could be contingent variables which could be affecting and those are age, size, nature, life cycle, stage, level of technology, presence of unions and human resource strategies. Then business sector, in which business sector the organization is operating and different stakeholders' interests. All of these things, they also affect your human resource management policies and practices. And then human resource policies and practices are further elaborated. You very well know that they are related to recruitment and selection, training and development, career development, performance appraisals, pay and benefits, transfers, communication, retirement, separation, all these things are part of your HRM policies and practices. And finally, your national human resource policies and practices, they affect the organizational strategies and policies, which are also a part of your, which are determined by the national HRM policies and practices. So the organization then develops those policies which are, which are fit with the national context and the cultural context. So this was a basic model of the broad cultural context of human resource management. And indeed, each one of the variable involved in this model of culture can be defined with a lot of elaboration. But in this topic, we have tried to summarize the basic external factors that affect the human resource management policies from a cultural perspective.