Human Resource Management in Developing Countries

Abstract

'Developing countries' (also known as less developed countries) cover a large population spanning several continents and regions with diverse cultural 1raditions. They also represent a constellation of sovereign states with mark­edly different political regimes, institutional arrangements, industrial structures, stages of economic development, and national strate­gies for global economic integration and social development.1 These diversities and distinctiveness underpin each nation's employment systems and human resource management (HRM) practices. While similar characteristics and HRM challenges may be evident across these nations, specific practices and solutions may differ at national and sub­national level. As it is impossible to cover HRM of all developing countries in one chap­ter, this chapter focuses mainly on the larger and relatively more developed economies within the developing country category, such as China, India, Malaysia, Vietnam, Russia and South Africa, and other emerging mar­kets. It is important to note at the outset that the intention of this chapter is not to provide a definitive account of the characteristics of HRM of these countries (for more detailed country-specific discussion see Davila and Elvira, 2009; Horwitz and Budhwar, 2015; Budbwar and Mellahi, 2016; Cooke and Kim, 2018). Rather, it aims to outline pressures, features and developments experienced by these nations in the context of economic glo­balisation and technological transformation to identify key factors shaping the development of HRM in developing countries (sec Figure 25.1). For the purpose of this chapter, the term 'developing countries' is used for general discussion, the terms 'emerging economies' and 'transitional economies' are also used to refer to the sub-groups of developing coun­tries that are relatively more developed (emerging economies) or have transitioned from a former socialist regime towards a market economy system, notably in Eastern and Central Europe (transitional economies).