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The complexities of operating in different countries and employing different national category of workers are key variable to differentiate domestic and international HRM. This research explores these differences and the variables moderate the differences between domestic HRM and IHRM. It is also observed that the exact balance of a firm's HRM standardization-localization choice is based on factors of influence such as strategy, structure, firm size and maturity. During the research, several recent surveys of global executives have identified the ability to maintain a common corporate culture as one of their greatest challenges. By establishing cultural hubs, companies can harness cultural capabilities that reside in different geographic locations and across functions and groups. The subsidiary role specifies the position of a particular unit in relation to the rest of the organization and defines what is expected of it in terms of contribution to the efficiency of the whole MNE.
Human Resource Management, 2007
Journal of World Business
Proceedings of the Academy of International …, 2006
This paper contributes to two recurring and very central debates in the international management literature: the convergence vs. divergence debate and the standardization vs. localization debate. Using a large-scale sample of multinationals headquartered in the US, Japan and Germany as well as subsidiaries of multinationals from these three countries in the two other respective countries, we test the extent to which HRM practices in subsidiaries are characterized by country-of-origin, localization, and dominance effects. Our results show that for German and Japanese subsidiaries the dominance effect is most important, i.e. their practices appear to converge to the dominant US practices. For US subsidiaries localization effects are particularly important. Hence our results lead to the rather surprising conclusion that for what might be considered to be the most localized of functions-HRM-convergence to a worldwide best practices model is clearly present for Japanese and German multinationals. The lack of country-of-origin effects for Japanese and German multinationals leads us to a conclusion that is of significant theoretical as well as practical relevance. Multinationals might limit export of country-of origin practices to what they consider to be their core competences and converge to best practices in other areas. .
The rapid rise of multinational Corporations (MNCs) from emerging economies has led to greater interest and urgency in developing a better understanding of the deployment and diffusion of managerial strategies from their perspective and without assuming the prevailing Western ethnocentric orthodoxy. This paper develops a conceptual framework of global HR strategies and practices in MNCs from emerging economies across their subsidiaries in both developed and developing markets. Using data from a pilot study of an Indian MNC, it provides insights and guidance into the motives, strategic opportunities and constraints in cross national transfer of HR policies and practices in a multi-polar world.
After 1990 multinational companies (MNCs) have started to invest and operate in Central and Eastern Europe (CEE), where they have played an important role in the distribution of modern HRM concepts and have been models for the implementation of relevant HRM practices. As MNCs - beside their capital - usually bring also their management philosophy to the region, they contribute to the internationalization of their local subsidiaries. The aim of this paper is to explore the HRM function's level of internationalization in local subsidiaries of MNCs. The analysis has been carried out on data collected through the international benchmark research project Central and Eastern European International Research Team (CEEIRT) during 2012-2013. The sample is made of about 250 companies from five CEE countries (Hungary, Poland, Romania, Slovakia and Serbia), participating in the CEEIRT research project on a voluntary basis. The paper covers issues related to the employment of expats, the role...
2005
The HR literature has been abundant in providing typologies of the roles of HR professionals in their organisation. These typologies are largely related to the changing nature of HRM over time, and the context in which empirical work was carried out. In this paper we focus on the context of the increasing internationalisation of firms and how this has an effect upon modern-day typologies of HR roles. We explore these roles by focusing on the way in which HRM practices come about. Especially in a MNC setting of increasing internationalisation of firms the issues of coordination, shared learning and standardisation versus leeway for adapting to the local context (customisation) are prominent. These issues present themselves both at the corporate and regional level and at the national and local (plant) level. On all these levels HR practitioners are active and find themselves amidst the interplay of both (de-)centralisation and standardisation versus customisation processes. This paper thus explores the way in which HR practices come into being and how they are implemented and coordinated. These insights help us understand further the roles of international corporate HR functions that are being identified. Our data is based on 65 interviews, which were held (as part of larger study of HR-function excellence) with HR managers, line managers and senior executives of six multinational companies in eight countries from September to December 2004. This data reveals new classifications of processes by which HR activities are developed, implemented and coordinated, both in terms of who is involved and how these processes are carried out.
The International Journal of Human Resource Management, 2005
Thi.s paper addresses the debates about the nature of strategic HRM in intcriiaiiimal companies. It builds on a substantial research programme using questionnaires and detailed case studies to argue that the international HRM field is changing .significantly and rapidly and that there is a need for better understanding of these developments. Five distinct, but linked, organizational drivers of international HRM are identified and discussed: efficiency orientation, global service provision, information exchange, core business processes and localization of decision-making. These factors are creating a new set of pressures on HRM specialists. Three distinct, but linked, enablers of high-performance international HRM arc being developed by multinational enterpd.ses: HR afl'ordability. central HR philosophy and HR excellence and knowledge transfer. A series of ditierent strategic recipes combining these drivers and enablers are identified. These recipes in turn are delivered through a series of important HR processes: talent management and employer branding, global leadership through international assignments, managing an international workforce and evaluation of HR contribution. A tentative model of the relationships belween these drivers, enablers and processes is proposed.
Focusing on HR practices planning and implementing, this paper discusses the various influences upon HRM practices adaptation within multinational corporations (MNCs) under cross cultural context. It is generally acknowledged that cultural differences influence institutions and HRM practices adaptation at national level. However, the paper emphasise more on the other influential factors upon agreeing national cultural and institutional influences on HRM.
… of Human Resource Management, 2005
In this paper we address a key issue that dominates internal ional HRM research, namely the global-local question. The question concerns how multinationals can or should balance the pressures to develop globally standardized policies with the pressures to be responsive lo the peculiarities of the local context In our view, three important conceptual weaknesses have restricted research progress in this held; the inadequate conceptualization of national effects, which results in culture being used as an unsatisfactory 'catch all' for national differences; the lack of attention to the influence of internal organizational polities; and the absence of focus on the internal division of labour within MNCs. We discuss the ways in which these weaknesses can be addressed and the implications of these alternative concepts.
This article focuses on the roles and responsibilities of HR units in multinational enterprises (MNEs) in the region of Central and Eastern Europe. The authors analyze 705 questionnaires originating from foreign owned subsidiaries operating in five countries (Hungary, Poland, Romania, Serbia, and Slovakia). The results show that the culture of the MNEs home country, the age of the subsidiary, and the pattern of international staffing assignments influence the HR control relationship between the headquarters and the subsidiary. Also, the findings reveal a significant impact of subsidiary level factors such as the age of the subsidiary, business sector, size, mode of market entry, focus on executive human capital, and international assignments on the degree of HR practice autonomy at the subsidiary level.
Human Resource …, 2010
MNCs based in 19 countries. The fi ndings are applied to develop a contextually based framework outlining the main corporate HR function confi gurations in MNCs, including new insights into methods of IHRM practice design.
2005
The HR literature has been abundant in providing typologies of the roles of HR professionals in their organisation. These typologies are largely related to the changing nature of HRM over time, and the context in which empirical work was carried out. In this paper we focus on the context of the increasing internationalisation of firms and how this has an effect upon modern-day typologies of HR roles. We explore these roles by focusing on the way in which HRM practices come about. Especially in a MNC setting of increasing internationalisation of firms the issues of coordination, shared learning and standardisation versus leeway for adapting to the local context (customisation) are prominent. These issues present themselves both at the corporate and regional level and at the national and local (plant) level. On all these levels HR practitioners are active and find themselves amidst the interplay of both (de-)centralisation and standardisation versus customisation processes. This paper thus explores the way in which HR practices come into being and how they are implemented and coordinated. These insights help us understand further the roles of international corporate HR functions that are being identified. Our data is based on 65 interviews, which were held (as part of larger study of HR-function excellence) with HR managers, line managers and senior executives of six multinational companies in eight countries from September to December 2004. This data reveals new classifications of processes by which HR activities are developed, implemented and coordinated, both in terms of who is involved and how these processes are carried out.
2017
The effective deployment and management of human resources is a key contributor to the sustainable success of the modern day global organisation. One of the most important decisions the global HR manager has to make is to what extent should headquarters HR policy be applied elsewhere. The challenge involves thorough investigations into the deeprouted values of the home national culture, and the culture of the subsidiary location. This paper investigates the inherent challenges of applying Anglo-American HR management concepts and policies in the Chinese subsidiary organisation. The research reveals that the main cross-cultural factors for consideration by HR managers are related to the concepts of power-distance, individualism vs. collectivism, longvs. short-termtime orientation and highvs. low context communication. The effects on organisations of Confucianism, guan-xi, social harmony and face are also discussed. The research provides a discussion which includes recommendations and...
2015
And In terms of style there are two basic styles namely Participative and Autocratic style of the HRM practices. Among all styles, Participative HRM style is more widely used style. And Participative strategy certainly boosts the HRM practices and influence on the organizational performance. The current Study is focused on the comparison between Foreign MNCs and Local South Asian companies regarding the impact of culture on HRM practices. The study would closely examine the determinants of the differences between Foreign MNCs and Local South Asian companies. The study is intend to answer two basic research questions likely: 1. What are the impacts of Culture on HRM Practices? 2. What are differences between Foreign MNCs and Local South Asian companies regarding HRM practices in South Asia? In order to answers of these research questions an Empirical study has been conducted on the basis of questionnaire answers by the Managers. Rationality The rationalities of the study are as follows: 1. South Asia (DE Bloom, 1998) (Annual Report : 2013, n.d.) is considered as the most potential business hub in the world. The Going rate of Trade and Commerce make the South Asia as the center of the attraction. Many foreign subsidiaries are now coming here to do the business. Thus the issue of HRM has come forward. In order to achieve success the HRM is a key Issue (Tzafrir, 2005). Thus the study is conducted. 2. Culture is the great Influential of any organization. And Cultural impact is very vital in case of business and its performance (Frenkel & Kuruvilla, 2002). The Impact of culture on HRM practices is vital because it determines the way of doing business and manage the manpower. Thus the study has focused on the cultural issue relating to the HRM practices. So the study has significant importance. 3. Firm performance is influenced by set of HRM practices (Wood & Wall, 2007). This research paper is intended to study the relationship between HRM practices and HRM style and its effect on organizational performance. 4. The study is focused on the HRM Practices, HRM strategy and HRM Style. And it also examine the association with company Performance. 5. To find out the differences between Foreign MNCs and Local South Asian Companies in terms of HRM practices. The current study is closely studied regarding the issue. 6. Strategic human resource management (SHRM) is one of the mean to achieve organizations" competitive advantage (Chang & Huang, 2005). The present study covers the relationship between HRM strategy and HRM style and its effect on organizational performance. 7. Firm performance is influenced by set of HRM practices (Wood & Wall, 2007). This research paper is intended to study the relationship between HRM practices and HRM style and its effect on organizational performance. 8. Strategic human resource management (SHRM) is one of the mean to achieve organizations" competitive advantage (Chang & Huang, 2005). The present study covers the relationship between HRM strategy and HRM style and its effect on organizational performance. Home and Host country effect on HRM practices Different country follows different HRM policies and HRM practices (Ferner, 1997). It is a critical job to transfer the HR policies and practices to different country (Bae, Chen, & Lawler, 1998). HR practices are mostly affected by host country"s culture and business strategy and style. In this paper we are conducting comparative study between foreign MNCs and South Asian companies in South Asia. Here home countries are south Asian companies in South Asia and host country are foreign MNCs. HRM practices of the organization are influenced by internal and external environment of the organization. The internal environment in work culture of the organization and external environment is country"s business environment, market characteristic, and industry practice and so on (Aycan ,. Z., et al., 2000). The HR practices are recruitment and selection, Training & development, Compensation and benefits and performance appraisal. In one study we have found that South Asian companies HRM style is most autocratic (Miah & Bird, 2007). South Asian managers follow autocratic style to manage their employees. They take decision independently without taking any input from the team. Employees do not have any decision making authority where else the style is usually view as controlling, bossy, and dictatorial. On the other hand Japanese company"s mangers follow higher level of participative HRM style. According to (Huselid, 1995) HRM practice has positive relationship with organizational performance including work attachment, firm financial performance, and productivity. In an another study, (Delaney & Huselid, 1996) found that practices consistent with a high involvement HRM strategy, such as highly selective staffing,
The International Journal of Human Resource Management, 2020
The human resource (HR) function plays a critical role in how multinational companies (MNCs) centralise decision-making or coordinate and exploit expertise internationally. However, there has been limited attention on the extent to which the HR function in MNCs is integrated internationally and the influencing factors behind this. Using nationally representative, cross-country comparative data, this paper identifies the degree to which internationally integrated HR functions exist and tests the extent to which this is shaped by the strategy and structure of the MNC or its nationality of origin. We demonstrate the multidimensionality of an internationally integrated HR function; with the structural configuration, level of inter-dependencies between MNC operations and country of origin each partially impacting its nature. A key implication concerns the need to move beyond solely focusing on either nationality as per institutionalist theory, or corporate strategy and structure as characterised in the strategic international HRM literature, towards an integrated explanation that incorporates both sets of factors.
The International Journal of Human Resource Management, 2013
This study provides some important insights on identifying the underlying characteristics of HRM practices that are likely to be adapted to the local cultural and institutional milieu by subsidiaries of MNEs. Further insights are provided on the distinctive characteristics of HRM practices pursued by local firms that are more likely to converge to the practices pursued by subsidiaries of MNEs. Our findings support the idea that HRM practices that are easy to diffuse, control and manage and reflect a core organizational value will not be adapted to the local context. Our results provide evidence of the emergence of an established set of global best practices in MNEs. We also identify some instances where MNEs are more likely to adapt their HRM practices to the local context. We posit that this is more likely with regard to HRM practices that are difficult to diffuse, control and manage and require sensitivity to local institutional pressures.
Journal of International Business Studies, 2007
This study sets out to explore HRM practices in MNC subsidiaries within an institutional theory framework. Based on a sample of 158 subsidiaries of multinational corporations operating in the United States, Russia, and Finland, the paper examines factors hypothesized to influence the HRM practices adapted in US, Japanese, and European MNC subsidiaries located in Russia, Finland and the US. The results indicate significant differences in HRM practices used across host countries. Both the status of the subsidiary HR department and the degree to which the subsidiary was involved in knowledge transfer with other parts of the MNC had a significant impact on the selection of HRM practices.
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