Cultural Implications of Transfer of Hr Practices in Mncs

5373 Words22 Pages
Transfer of Human Resource Management Practices in Multinational Corporations: A Perspective

Dr. Daleep Parimoo
Associate Professor,
School of Business Studies
Sharda University, Greater Noida, U.P Ms. Fehmina Khalique
Research Scholar at Sharda University and
Visiting Faculty
At Global Institute of Information Technology
Greater Noida, U.P Abstract: With the advent of globalization and liberalization, the emerging economies like China and India have grown manifolds. The mushrooming of MNCs is taking place at a very fast pace. The role of HRM in these companies has shifted from being a mere administrative to strategic one. The companies have
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In their landmark book, Corporate Cultures, first published in 1982, the authors describe culture in the following terms: "Values are the bedrock of any corporate culture". They go on to add: "As the essence of any company 's philosophy for achieving success, values provide a sense of common direction for all employees and guidelines for their day-to-day behaviour" (Deal and Kennedy, 1982)
Needless to mention, HR policies guide various functions of HRM. HR policies of certain companies seem to discriminate on the basis of its diverse backgrounds of its workforce for example, sex, race, age, religion, education, sexual orientations and so on and so forth. The sources of the country of origin effect lies in the culture and institutions of the home country of the MNC. The mechanisms through which the effect manifests itself are the hiring of home-country nationals by the MNC, and the inbuilt administrative preferences of these host-country nationals in the organizational structures, procedures and processes of the MNC. The homogeneity of the home culture, substantive characteristics of the home country culture, size and openness of the home-country economy, the cultural and institutional diversity of the environments in which the MNC operates, and the international growth path of the MNC are often taken to impact on the strength of the country-of-origin effect. Often, cultural perspective has concentrated its attention on the
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