From MultiNational to TransNational and Centers of Competency

An analyses which will allow Haelec Management Team to implement an expansion programme in terms of establishing HR Policies abroad.

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

In this paper we will discuss the case of Singhania and Partner. We would examine the case of Singhania and Partners and evaluate the organization’s strategy. Next we would evaluate each of the five IHRM practices with respect to recruitment and selection, training for cross-cultural adaptation, management development, evaluation, and compensation. Later we will discuss which of the five practices can be approved. Afterwards, we would make recommendations to management to successfully improve the current IHRM strategy. Finally, we would explain how the recommended changes impact the

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

While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the

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,

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

There are human resource issues that are impacting the company on a global level. These issues range from change management, leadership development, HR effectiveness measurement, organizational effectiveness, compensation, staffing: recruitment and availability of skilled local labor, succession planning, learning and development, staffing: retention, and benefits costs: health & welfare (University Alliance, 2016). Many of these issues arise from cultural differences during expansion into new foreign markets or when the currently targeted markets shift. To rectify these issues the company currently addresses each situation on a case-by-case basis. In the past, this has addressed the issues at hand. Due to cultural

National companies do not become global companies immediately. Involvement in international HRM depends greatly on a company 's phase of globalization. Import-export firms. Firms in the first phase of globalization simply move products across national boundaries. The firm does not employ people in other countries, except a few managers responsible for negotiating business agreements. These agreements usually involve buying or selling complete products or services. Import-export firms need to understand their trading partners ' cultures and usually must overcome communication barriers to negotiate agreements. Negotiations are usually done by expatriate representatives, but expatriates are not employed as extensively by import-export firms as by multinational enterprises. HR policies and practices remain relatively unchanged from the company 's traditional home-base practices. (HR Magazine,06-01-1995)

For the organization to successfully achieve internationalization, a special focus must be placed on Human Resources. Human Resources can ensure effective internationalization management of employee staffing, selection, and performance management. “For the achievement of the goals of the international organization, the specific jobs should be filled with specific individuals at the proper time and proper place” (Jadoon, 2015). "The selection decision for international assignees is critical. Errors in selection have a major impact on the success of overseas operations” (Tarique, Briscoe, & Schuler, 2016). Moreover, “performance management is the process of quantifying the efficiency and effectiveness of actions, in order to compare results against expectations, with the intent to motivate, guide and improve decision making” (Szlavicz & Berber, 2014).

Human Resources approach performs an extremely essential function in creating and maintaining competitive advantage; many organizations disregard the importance of HR in creating competitive advantage. The three priorities will require major transformation in the organization. HR strategy should support the conversion, and help the workforces to acclimatize in different environment. One major objective of the innovative HR strategy will be to create a healthy organizational culture that supports innovation, collaboration, and intercontinental operation. Leadership plays enormously important role in developing healthy organizational culture. (Dessler, 2013)

In the face of globalization, organisations struggle to develop the human resource management strategy (HRMS) between global integration and local differentiation. This is regarded as a critical concern for multinational enterprises (MNEs) since they suffer from cultural and institutional differences to integrate HRM practices and shape HRM activities to operate abroad. Regarding that, each cultural and institutional factors are developed over its history with unique insight into managing the organisation, the

With the increase in globalization, organizations need to alter their structure to support their operations and employees in different areas of the world. The human resources function is a critical component of any organization that needs to adapt to this increasingly complex environment (Cullen & Parboteeah, 2011). The human resources team must be able to provide for consistency across each of the business units in through systems and practices. This consistency is important in order to support the multinational corporation’s needs in recruitment, selection and development of the employees of the

Although the multinational is separated in several nations, it remains as a single enterprise and therefore must consider how to balance competitive pressures for differentiation and integration (Lawrence and Lorsch, 1967). Multinationals must decide how to be sensitive to the unique demands of the indigenous environment without inhibiting their ability to coordinate the internal operations of local units in search of global strategies. As these issues of differentiation and integration are often facilitated by HRM activities, they represent a critical component in the IHRM. An example of this dual focus is found in most multinational corporations based on international business, which tend to assign primary responsibility to their subsidiaries for local compensation and benefits, training and labour relations, with regional units assuming secondary responsibility (Reynolds 1992). Productive globalization occurred with the growth and expansion of multinationals. They are present in all the countries of the world and currently undergo mergers and acquisitions, with the expansion of its branch of activity.