Critically evaluate the factors influencing MNC’s ability to transfer HR practices from one national context to another.
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globalization
• embeddedness of managerial models
• cultural convergence and divergence of HR practices
• institutions • standardization of HR practices
• transfer is not a smooth sailing- why? identify reasons that influence MNC’s ability
• for examples: cultures differences (power distance, languages); social factors, political pressures; industrial characteristics
Along with the trend of globalization, multinational organizations (henceforth MNCs) seek for appropriate human resource management (henceforth HRM) strategies to address and fulfill the needs for global efficiency, national responsiveness
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Through the effect of globalization, not only that local cultures were extended abroad, but heterogeneous cultures were incorporated and integrated into the existing corporate culture (Featherstone, M. (1995). In an attempt to discuss how cultural differences affect the way that MNC transfers its HR policies and practices, we first present the three general guideline on how culture shapes the way people perceive and react to HR policies: convergence, divergence or crossvergence.
The theory of cultural convergence underlines best practice HRM, which coincides with standardized HRM practices. It implies that individual cultures develops and through integration and incorporation, they become increasingly similar to one another, so HR practices can be generalized across countries without adaptation (Katz, H., & Darbishire, O. (2000). Under this theory, factors such as open communications and dissemination of the idea of western capitalism have facilitated the standardization of organizational activities and made it easier for MNCs to transfer HR practices. Specifically, effective communication would help the organization to discuss freely about how HR practices should be organized to achieve higher performance, and reach consensus before implementation. In addition, the widespread concept of western capitalism has encourage more
It is hypothesized that cultural differences in behaviour will mean differences in HRM practices within different cultures but those within the same cultural cluster will be similar whereas those in different clusters will be dissimilar. Employees and managers from different cultures take decisions in different ways – the processes, behaviours and values are not the same. People have different value orientations as a result of individual psychology, life-stage and generation and assumptions about behaviour determined by cultures are linked to a variety of organisational behaviours.
This report examines cultural and institutional factors of Mexico and how they can impact global HR management and practices. Specifically, by analyzing Mexican culture based on Hofstede’s dimensions, economy, labor legislation, union and employment tradition we reached the conclusion that the features of Mexican culture (high power distance, strong collectivism, high level of masculinity and uncertainty avoidance) and institutional factors have a strong impact on management styles and HR practices of business in Mexico and may arouse some challenges for global company and their expatriates, especially those from countries that bear different cultural features and institutional conditions. In order to minimize the potential conflict between Mexican local employees and expatriates, parent companies need to provide trainings (culture assimilation, country condition, etc.) before sending anybody to Mexico. Also, whether the expatriates should put more effort to disseminate home country (headquarter) culture or to adjust to local culture depends on the company’s strategy in terms of being localized or standardized around the globe.
Often referred to as the “Father of Our Country,” George Washington (1732-1799) is regarded as one of the most prominent figures in the early history of the the United States of America and a hero of the Revolutionary War. Honest, humble, noble, farmer, commander-in-chief - all words still used this day to describe our country’s first President. After eight years of war fighting for freedom from British tyranny and corruption, the American colonists were ready for peace, an organized government system, and strong leadership in their new-found freedom and as an independence nation. During the American Revolution (1775-1783), Washington worked his way through the military ranks serving as a Major during the French and Indian War (1754-1763), then Colonel under British General Edward Braddock 's army. In August, 1755, Washington was appointed Commander in Chief of the entire Continental Army. “He was sent to the frontier to patrol and protect nearly 400 miles of border with some 700 ill-disciplined colonial troops and a Virginia colonial legislature unwilling to support him”(Biography.com). Although he is credited for winning few battles against the British, he had a powerful ability to keep the struggling colonial army unified and motivated in the war effort despite the lack of military training of the enlisted men, the harsh weather conditions, and lack of food and supplies. Masterminding the defeat of the British forces at Yorktown, Virginia, under British General
In this essay will be examined three of the major external factors with which organizations have to face everytime and ,accordingly, these determine how it is shaped their HR agenda. It is a well-known fact that a company for its economic processes and to achieve its aims has to adapt itself assiduously to the changing conditions of the environment in which acts. The external contexts that will be evaluated in this paper are the economic, the political and the technological.
They need to build integration among HR practices and strategies of its auxiliary firms in distinctive region with a specific end goal to accomplish general organizational targets. Then again, these associations additionally guarantee a critical level of adaptability in their IHRM procedure on the grounds that representatives from distinctive nations are sponsored by diverse cultures and social qualities. Adaptability impacts the workers' execution. Due to the strengths of globalization and the associations' interest to create and implement a worldwide methodology, International Human Resource Management (IHRM) is turning into an essential to accomplishment of the organizational. The essential distinction between domestic and global human resource administration is the knowledge and obligations
The HRM policy of a firm is looked as a most important strength which needs to be taken care of all the time to have a competitive advantage within the industry they operating in. Multinational corporations (MNCs) seek to transfer their home-country human resource management (HRM) practices to their overseas subsidiary as to them it is just another approach towards globalisation. It can be an element of success for MNCs if they manage to transfer these HRM practices across their subsidiaries in an effective manner. An effective transition of these policies depends on the organisational, cultural, social and relational factors (Bartlett & Ghoshal 1998; Evans, Pucik & Barsoux 2002; Poedenphant 2002). The transition of these policies
Coco Chanel is the most influential fashion designer of all time. Over fifty years, Coco Chanel was considered to be the "Grande Mademoiselle" of the fashion and society scene. She was the fashion icon of the 20th century, she revolutionised the way women wore clothes. After losing her mom and being put in a foster care, she was taught how to sew. Once she got older she became a singer and opened her first clothing store.
According to Koster (2012), “For consistent policies, standardization is imperative” (para 14). Nevertheless, the HR restructuring taking place at IBM is moving in a different direction from that of the Coca-Cola Company. For an organization with as large a global footprint as that of IBM’s, a traditional HR approach, like that at the Coca-Cola Company, was no longer tenable and a structural change was necessary.
People live in a certain area that has the resources they need. Including water sources, food sources, and transportation. Some of the earliest civilizations built their civilizations close to a water source like an ocean, river, or lake. According to Lesson Why do People Settle in Certain Areas, (2001-2011), “Many of the oldest and largest cities in America are located along the Atlantic Ocean.” A water source could be used for food, transportation, and as a drinking source. Some people plant crops for a food source like corn, beans, or wheat. There are many kinds of things you can use for transportation. Some examples are a boat, a car, a bus, or even an airplane.
Briscoe D., Schuler R., Tarique I., (2011). Internatonal Human Resource Management : Policies and Practices for Multinational Entreprise.
A rapidly changing business environment due to technological changes and the impacts of globalization has resulted in shift of human resources paradigms (Khan, 1997). In every organization
Globalisation, as an integrated and independent world economy, has contributed to the rapid expansion of international trade and world’s economic growth (Paik & Vance, 2006; Mutsuddi, 2012). The increase presence of global firms is shifting domestic HR towards global HR in addition to carry out a wider span of HR responsibilities (Losey, Meisinger & Ulrich, 2005; Rao, 2010; Jie, 2011; Mutsuddi, 2012). The generation of cross-border labour market also had brought human resource management into an international context (Mutsuddi, 2012).
Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,
While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the
In this changing world, our global business theories and literature have implications toward the future. The future of this growth and success depends largely on the key component which is Human Resource Management. So, we as researchers hope to enlighten and inform you as employers the significance of an effective solution that both understands your employees and is beneficial to your company. That is why we offer our recommendations in the end of this article based on our findings.