Factors That Influence Multinational Companies ( Mncs )

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.

HR Policies and Strategies are the backbone of the HR Department. When the company is looking for internationalisation and starting up a strategic alliance, Joint venture, or Merger it is mandatory to carefully look into the HR practices of the host countries and diligently map the home country practices into the host country practice and find the gaps between two and rectify the flaws and making the Good practice and Good fit is the main task in international HR management.

1. The international business environment is multi-dimensional, including economic, political, socio-cultural and technological influences. While each can be viewed in specific national settings, increasingly they have become interrelated through processes of globalisation. In particular, the role of transnational corporations has been a key to the deepening interrelationships across national borders. Yet, globalisation has not led to convergence. Considerable diversity between nations and regions continues to shape the

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

Hill, C. (2011). International business, competing in the global marketplace. (8 ed.). New York, NY: McGraw-Hill Irwin.

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

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

Human resource management functions in multinational companies are incredibly complicated by the need to adapt policies and procedures related to personnel, to differences between the countries, which is one of the branches. In particular, the countries cultural differences, differences in economic development and legal systems may require an international company adaptation programs of hiring, firing, training and remuneration for

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,

Increased business globalization, emergence of new economic hubs like BRIC countries (Brazil, Russia, India and China) as well as more intense competition among organizations at the domestic and international level alike over the past two decades, have necessitated the need for studies in the comparative Human Resource Management (HRM) (Budhwar & Sparrow, 2002a). As a result, a growing number of conceptual (Aycan, 2005; Edwards & Kuruvilla, 2005) and empirical studies (Bae, Chen, & Lawler, 1998; Budhwar & Sparrow, 2002b; Easterby-Smith, Malina, & Yuan, 1995) have addressed the configuration of HRM in different

Briscoe D., Schuler R., Tarique I., (2011). Internatonal Human Resource Management : Policies and Practices for Multinational Entreprise.

According to Charles W. L. Hill (2016), “International business refers to, any firm that is involved in international trade or investment. With that being said, all a company has to do to be classified as a globally recognised company is export and import products to/or from other countries. Companies decide to go global and enter international markets for various reasons, and these different objectives at the time of entry should produce different strategies, performance goals, and even forms of market participation.

We have little knowledge about the report, we are discussing about the global talent management (GTM) and the role of the corporate human resource function in multinational corporations. International mobility its new forms, increased global talents hunting are the two perspectives of GTM. GTM discusses and considered primarily about the mechanisms and following the willingness to enter the emerging markets using organisational ability to maintain or managing the talents. These issues addressed or shows when once the new corporate roles have identified. GTM theory and practice our basic understanding advances by seeing of challenges facing by corporate HR in the future.

An international business is a business that is in two or more region, countries or nations. A good example of an international business is Wal-Mart. Wal-Mart is a giant shopping centre in the United States, but is also in the United Kingdom. In the United Kingdom Wal-Mart is known as Asda. Asda has a chain of stores around Britain and sells food, clothing, electronics and household items

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).