A Comparison of HRM Systems in the USA, Japan and Germany in their Socio-Economic Context

This article provides a comparative analysis of the HR practices of American, Japanese and German companies. The starting point is an investigation of the managerial, economic, socio-political and cultural contexts of the three HR systems. It will be demonstrated that the socio-economic contextual factors of the American and Japanese HR systems are in many ways at opposite ends of the spectrum, with the German factors in between. Subsequently, the three HR systems themselves are analysed. The data show that the same pattern, USA and Japan at the extremes and Germany taking a middle position, is valid also for the HR systems. This suggests that the relevant socio-economic context is highly pertinent for the establishment of an HR system. This outcome does not exclude either the integration of HR practices from a foreign HR model into the domestic one or standardisation efforts of HR practices of multinational companies, but confines the potential for cross-cultural learning and standardisation to what is within the ‘fit’ of the relevant socio-cultural context.