HRM: Overcoming Difficulties in Diversifying the MNCs

Much as we are aware about the significance of the human resource aspect in organizations, a strategic form of management applied within the arena of human resources permits the easier facilitation of organizational change. Although the human resource agenda have immemorially been incorporated in the principles of strategic planning, an understanding of the applicability of these processes in organizational management is relatively new.

Today, as more companies recognize the benefits that organizational development and the role of human resource management, sturdy provisions reengineered with applicable implementation guidelines could often promote positive outcomes in operations In a society that evolved in promoting the features of being different, multiculturalism, gender politics, affirmative action, preferences and mandates have been applied in the workplace.

The workforce, composed of people of different origins, are categorized by race, gender, national origin, ethnicity, sexual orientation, religion, cultural norms, physical ability and socio-economic status. We have discovered we are diverse and we always were. Upon the embarkation of the globalized era, the value of employees with cross-cultural skills and diverse demographic characteristics has increased. In order to maximize cross-national management capabilities, we need to understand how people in different national settings respond to similar concepts within their particular functions.

This can be useful in clarifying the influence of a wide range of variables on cross-national HRM in multinational companies (MNCs) as well as developing practical induction and training tools for expatriate and international managers (Budhwar & Sparrow 1998). It will also help to test the convergence-divergence thesis from a functional point of view (McGaughey & De Cerie, 1999) and to highlight the ‘context- specific’ nature of HRM (Rousseau & Fried 2001).

The globalization dynamics promoting convergence and divergence in organizations and managerial practices worldwide have attracted attention from a broad range of social disciplines (Guillen, 2001). Two lines of the debate are currently very well defined. A common argument is that market, technological and managerial forces compel multinational corporations (MNCs) to adopt common strategies and practices, fostering economic, organizational and employment homogenization in its various locations.

Primarily, MNCs are seen as being carriers of globalization, spreading managerial knowledge and techniques internationally through the dissemination of `best practice’ (Martin ; Beaumont, 1998). An institutional approach suggests an alternative stance (Hollingsworth ; Boyer, 1997). The massive institutional complexity that MNCs face as a result of operating in numerous host countries acts as a counterweight to pressures for convergence.

At the same time as globalization forces promote the standardization of certain elements of management systems, including personnel issues, local culture, institutional arrangements and labor practices manifest the resilience of capitalist variety (Mall ; Soskice, 2001). This difficulty in the part of MNCs has been observed by Ferner and Quintanilla (August, 1998) that this globalization debate has prompted repercussions of having different national ‘models’ of capitalism to continue to be the basis of economic actors’ engagement in the world economy.

Far from being ‘stateless’ organizations operating independent of national borders in some purified realm of global economic competition, MNCs continue to have their assets, sales, work-force, ownership and control highly concentrated in the country where their corporate headquarters are located. Although the MNCs are separated across several nations, it remains a single enterprise and therefore must consider how to balance com¬peting pressures for differentiation and integration (Galbraith, 1987).

Multinationals must decide how to be sensitive to unique demands of the indigenous environment without inhibiting their abili¬ty to coordinate the internal operations of local units in pursuit of global strategies. Because these issues of differentiation and integration are often facilitated by human resource management activities, they represent a critical component in international HRM (IHRM).

An example of this dual focus is found in most American based MNCs, which tend to assign primary responsibility to their subsidiaries for local compensation and benefits, training, and labor relations, with regional units assuming secondary (i. e. , coordinating) responsibility (Reynolds 1992; Merchant 2000) One tension which the central HR function encountered in Case Study 1 which cited Engineering Product’s dilemma. This refers to the balancing act the company is facing between standardizing practices and allowing variation between plants to reflect local factors.

Many elements of personnel practice necessitated to be standardized across borders, and the Engineering Product’s headquarters (HQ) was prepared to use sanctions to ensure that this occurred. However, in other areas, variations in the nature of the law, institutions and national cultures meant that differences in practices persisted. One example was the variations in the way performance-related pay operated; different arrangements reflected the expectations of both plant managers and employees concerning fairness. Another example was employee representation.

In the American plants, there were no formal structures through which employees could be represented; the law did not oblige management to recognize unions and nor were unions influential enough to force management to recognize them. In the European plants, on the other hand, it would have been inconceivable for the company to avoid dealing with unions, given their well-established position in the plants and In some cases the legal support they enjoyed. Clearly, the central HR function had to balance the drive to standardize practice with adapting to local conditions in the country where they will be expanding.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with My Homework Geeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat


eskişehir escort


eskişehir escort
Live ChatWhatsApp


eskişehir escort