Macro‐institutional conditions in Ghana and the challenges to HRM program development and implementation

Abstract

Multinational enterprises (MNEs) originating from advanced economies with operations in less developed host countries need to have a good understanding of the macro-institutional conditions of the host country. Given HRM practices are context-specific and embedded within the institutional and cultural settings of the host country, an exploratory qualitative study approach was employed to ascertain the host country's institutional dimensions (drivers) likely to undermine HRM program implementation in large local companies and in MNEs. Data were drawn from key stakeholder participants, including HR managers from MNE subsidiaries, domestic firms, and officials from key stakeholder institutions. The evidence points to six (6) dimensions of a less-developed host country's macro institutions that undermine firms' HRM advancement.These include the regulatory system, education and training arrangement, labor market conditions, cultural barriers, political actors' intrusion, and economic uncertainty. The implications thereof are discussed.

Ethnocentric HRM practices: evidence from Western MNEs in Ghana

“…In Ghana, decisions regarding recruitment and selection in public organisations are often based on close family relationships or ethnic/kinship ties rather than on merit. Political actors also have an influence on HRM practices in that the political party in power recruits party members into work organisations (Ayentimi et al , 2019). Despite the Ghana Civil Service Law of 1993 prohibiting the appointment of any individual into the service without holding the required qualification, in accordance with the merit system, nepotism, corruption and cronyism are still prevalent (Abdulai, 2000).…”

“…Weak linkages between industry and tertiary institutions impede knowledge and technology transfer (Osabutey, 2013), leading to a mismatch between graduates’ skills and those sought by industry. MNEs compete with local firms for skilled staff and endeavour to attract and retain highly qualified and talented employees (Ayentimi et al , 2019). Training infrastructure is insufficient due to lack of resources, and decisions about employee training and employee career plans are mostly made by supervisors (Azungah et al , 2018; Haybatollahi and Gyekye, 2015).…”

Cultivating social capital: an exploratory analysis of business postgraduates in Ghana

“…It was much easier for the individual to secure employment through these two social network platforms. This reflects the in-group favouritism tendencies in Ghana generated by tribal, religious, political and ethnic identity (Ayentimi et al , 2019). Tribalism, ethnic diversity, political affiliation and religion remain noticeable barriers to education and employment opportunities in contemporary Ghana (Ayentimi et al , 2019).…”

“…In-group favouritism that is manifested in Ghana through tribal and ethnic identity is the predisposition to respond more positively to people in our in-group compared to people in our out-group (Castelli and Carraro, 2010). These in-group tendencies in Ghana have been largely manifested by tribal and ethnic diversity and to a lesser extent through religious diversity, political polarisation and colonialisation (see Ayentimi et al , 2019). In the extreme case of colonial control, race and nationality were privileged in job access and career development, especially in the civil and public service that itself was privileged by its generous employment conditions as compared to the private sector (Ayentimi et al , 2018).…”

“…In this context, the generation of opportunities for access to networks and social capital development become important for graduates who must negotiate the biases and barriers associated with being outside of ethnic, political and tribal identity when it comes to accessing jobs and developing careers in both the public and private sectors. These access barriers that are present in the labour market are intensified by other personal features such as gender (Ayentimi et al , 2019) and means that there is a need to utilise immediate social networks that are linked to ethnic, political and religious identity, but also to access social networks and ties beyond one's immediate identity.…”