human resource management practices of argentina · relationships are the key to successful hrm...

Human Resource Management Practices

of Argentina

BUS 601.2 : Human Resource Management Group- I

Fast Facts

Official Name: Argentine Republic

Capital: Buenos Aires

Population: 40.6 million (UN, 2010)

Area: 1,073,518 square miles

GDP growth (annual %): 9.2%1

GDP per capita (current US$) : $9,1242

Official Languages: Spanish

Money: Argentine peso

Industry: Food processing, motor

vehicles, consumer durables, textiles

Agriculture: Sunflower seeds, lemons,

soybeans; livestock

Exports: Edible oils, fuels and energy,

cereals, feed, motor vehicles

Argentina: The land of “Silver”

1World Development Indicators, 20112 ibid

Influence of national culture on HRM practices

Hofstede’s Cultural Dimensions

Power distance

Power-distance refers to the extent to

which less powerful members expect

and accept unequal power distribution

within a culture.

86

4946

56

PDI score :49

◘ Business organisations in Argentina tend

to be hierarchical.

◘ Decisions and ideas are generated at the

top of the company.

◘Status is important in Argentine society

and respect should be given to supervisors

and work colleagues.



Individualism

‘‘Individualism’’ is the degree to which

people of one country prefer acting

individually rather than as member of a

group. The dimension opposite to

individualism is ‘‘collectivism’’

UAIPDI

IDVMAS

86

4946

56

IDV score: 46

Score

◘ Argentineans expect and prefer cordial

and affective interactions at work

◘ Personal relationships are highly valued

◘ Loyalty, trust, organizational flexibility,

and administrative efficiency grows

◘ work group orientation and group

collaboration



Masculinity

The ‘‘masculinity’’ dimension,

whose opposite is ‘‘femininity,’’

concerns the degree to which

values for assertiveness,

performance, success, or

competition are manifested in

society.

◘Argentine women’s

participation in the labour

market has increased

sharply

◘ women went to work

because of the economic

crises, and had to take

informal or precarious

jobs.

◘There are more women

in positions of authority

◘ Less occupational

segregation than in many

countries.

86

49 4656

UAI PDI IDV MAS

MAS score: 56



Uncertainty avoidance

The extent to which members of

a society feel threatened by

uncertain or unknown situations

◘ Argentines value

certainty and stability.

◘ Strict rules, laws,

policies, and regulations

are adopted and

implemented

◘ Workers typically prefer

specific instructions and

close supervision

◘ Catholic countries have

a low tolerance for

ambiguity

86

49 46 56

UAI PDI IDV MAS

UAI score: 86

Argentinean organizations have one of the best

management practices in the region.

According to the scholars, effective personal and social

relationships are the key to successful HRM practices in

this economically expanding region.

Many corporations in Argentina (TELMEX, Teneris)

have developed a key HR practice which is known as

HYBRID management model.

Modern

HRM

Practices

Traditiona

l HRM

Practices

Combining

HYBRID

Management

Model

Identify Vacancy

Prepare Job Description

Advertising the vacancy

Managing the response

Short-listing

Arrange Interview

Conducting Interviews

1. Screening Applicants

2. Arranging the Interview

10. Employment Offer

7. Criminal Background Check

9. Disqualification of Applicants4. Selection Test

11. Post Interview

3. The Interview

5. Hiring decision

8. Drug screening

6. Reference Checks

Like all other Latin American countries, Argentine company’s Training and

development encompasses three main activities: training, education, and

development.

To the scholars these ideas are often

considered to be synonymous.

To practitioners, they encompass three

separate, although interrelated, activities:

Training

Education

Development

Performance Appraisal

Oracle performance

management

Business goal

Growth

strategy

Performance Appraisal

OPM

Define and track

Align individual

objectives

Evaluate

competencies and

progress

Feedback

Cascade

Compensation and Benefits

Provided by State

Universal old- age pensions (PBU)

Compensatory payment (PC)

Old system pension (OSP)

Advance age pension (PEA)

Others

Paternity benefits

Family allowances

Industrial Relation

Minimum Salary

Collective bargaining

Work Day and Week

8 hours and 48 hours

Overtime charge

50% on week days and

100% on holidays

Strike

legal strike

illegal strike

Profit sharing

constitutional clause

Thank you!!!

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