Similarities and differences in human resource management in the European Union

Abstract

Abstract This study explores similarities and differences in human resource management (HRM) in the European Union (EU). Common factors in the development of European HRM are the importance of consultation, the emergence of flexible work patterns, the role of work and the employer in the life of employees, and the introduction of the Euro. National, company, and regional factors create divergence in European HRM. National factors include societal hierarchy, different cultures and mental models, societal structure, and language. Company factors include size of companies, public versus private, and multinational or local. Regional factors differentiate along north‐south and east‐west axes. The EU had relatively little impact on HRM in terms of harmonization of labor and tax laws but had major impact on the opening up of markets to foreign competition and privatization of public sector companies. While cultural diversity remains strong, the influence of large multinational companies may lead to more regional integration in the practice of HRM. European HRM is much more comfortable operating in a polycentric mode than U.S. HRM, which seeks universality and standardization. © 2003 Wiley Periodicals, Inc.