HRM in an MNE
Tara McNealy, Bus 325
Domestic and International HRM
“The challenge of many multinationals is to create a system that operates effectively in multiple countries by exploiting local difference and interdependencies and at the same time sustaining global consistency.” (Dowling/Festing/Engle, 2013) From the text in the book I believe the differences between domestic and international HRM would be the different countries, where more people are being are sent out of their own countries and work in another country. Many firms underestimate the complexities and problems ...view middle of the document...
“Members of a group or society who share a distinct way of life will tend to have common values attitude and behaviors that are transmitted over time in gradual, yet dynamic process there is evidence that culture has an important impact on work and HRM practices.” (Dowling/Festing/Engle, 2013) In any organization it is important to encourage the heart by recognizing contributions and enlisting others, so that they can appeal to common ideals. Organization need to find what really drives performance in most cases it is not metrics. It’s passion plus pride which equals performance. Therefore, using a specific training system and recruitment process that has worked in one country and adapting it to another to meet the needs of the culture equals success within an organization.
“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 multinational enterprise (MNE).” (Dowling/Festing/Engle, 2013)
“The global innovators provides significant knowledge for other units and have gained importance as MNEs move towards the transnational model.” (Dowling/Festing/Engle, 2013) An example of the global innovator would be “Apple” in the telecommunication and equipment organization, AT&T would be another. These companies add new jobs and they secure gloal patent protection for their intellectual property, continue to push the envelope with new technologies. These are the companies that are driving growth, creating jobs and mentioned before and pioneer new products and services constantly.
When a company is ready to expand from local to global a company must have a strategy to increase sales this should take place by acquiring a bigger location, different pricing to fit the culture, new and improved marketing techniques. The company must have cost outlays of moving the product into new demographics; have a plan to duplicate the first business, be a good teacher, be able to prepare training manuals and be prepared to travel. To continue on the expansion of the company the organization also needs to create a strategic alliance a merger to increase intellectual capital and delivers operational efficiencies.
“The factors driving localization include the cultural and institutional environment and features of the local entity itself.” (Dowling/Festing/Engle, 2013)
Impact of the Culture and Institutional Context (environment) on :
• Recruitment and selection- selection of the most appropriate person for the job. Trained staff is required and must have knowledge of discrimination laws and guidelines. These...