The Convergence-Divergence Debate in Business

Paper Summary:

This paper examines how a critical issue in international and comparative human resource management (HRM) studies concerns the perception that ?globalisation? is creating convergence (or contingency) in business and industrial relations practices. It looks at how academic debate centres on the crucial argument of whether convergence is an increasing phenomenon, fuelled by globalisation, or, in reality, the opposite is true ? that national cultures and institutions are a unique force for perpetuating diversity and divergence. Consideration is given to contemporary sources that analyse the convergence-divergence debate in HRM and international management.

From the Paper:

"The convergence perspective originated from the work of Kerr et al (1960), which stated that organisations? use of functional specialisation would increasingly create a convergent dynamic for business - leading to a common structuring of the workforce within and across countries, based on technological changes and work systems. Beardwell and Holden (2001) note the convergent similarities in car production plants worldwide, echoing the findings of Mueller and Purcell (1992), that see globalising forces as a key factor in converging operational and management processes. Ritzer (1998) also applies the convergent paradigm to his studies into fast-food businesses and society. "The McDonaldization Thesis" illustrates the way multinationals use and perpetuate convergence in order to homogenise working practices, business processes and human resource management for increased economies of scale and competitive advantage."

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