Chapter 9: IHRM in the host-country context
Standardization and localization of HRM practices * Controlling cross-border operations of an MNE centres around what processes, routines, procedures and practices can be and should be transferred abroad. In the process of transferring systems and know-how the role of people is critical. * The aim of global standardization of HRM practices is to reach consistency, transparency and an alignment of geographically fragmented workforce around common principles and objectives * The aim of realizing local responsiveness is to respect local cultural values, traditions, legislation or other constraints such as government policy. Though attempting to implement methods and techniques that have
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This problem threatens to increase with changing workforce demographics as well as changes in attitudes and values.
Chapter 11: Performance Management
Multinational performance management
MNEs have specific expectations for each of its foreign subsidiaries, cooperative ventures and other forms of operations modes, in terms of market performance and contribution to total profits and competitiveness. It is important to recognise constraints that affect goal attainment when evaluating subsidiary performance. These include: * Whole versus part – a multinational is a single entity that faces a global environment. Integration and control imperative often place the multinational in the positions where it decides that the good of the whole is more important than the subsidiary’s short-term profitability. * Volatility of the global environment – because subsidiaries operate under such volatility and fluctuation, they must tailor long-term goals to the specific situation in a given market. Problems arise when subsidiary managers perceive that goals are set by distant HQs strategy team are unrealistic and inflexible, due to a failure to take into account local conditions that change as a result of a volatile environment. * Separation by
Multinational Corporation - business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries, also known as a transnational or international corporation. These corporations originated early in the 20th century and proliferated after World War II.
Alignment between HRM practices and organizational strategy establishes a coherent system for organizations. There has to be a "fit" between the human resource planning and organizational strategy, Internal fit aligns HR practices with strategic organizational objectives while external fit aligns HR practices with the external environment. The external fit exhibits a more precise fit between quality policy and assertive performance HRM practices (Youndt,
Transnational organizations also have flexible and ever-changing structures. Their managers incorporate innovation and strategies for the corporation as a whole. Unification and coordination goals are achieved by corporate culture, shared values, vision, and management style. It offers a high level of differentiation, while ensuring that a global organization can coordinate activities and transfer knowledge across various functional areas and geographies (Daft, 2010).
As we experience the spectacular changes in the workforce, we are all sure that these changes will even continue more over time.
Constraints on Multinationals Multinationals generally start off with clear advantages in two areas: They have
‘It has been designed to be relevant and applicable to HR Professionals operating anywhere in the world, in all sectors and in organisations of all shapes and sizes’.
As a result, workforce demographics are changing and continue to change as more women, Blacks, Asians, and
This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.
Version 2015-02-09 Academic Year 2014-2015 Course unit Title: Multinational Management Course unit code: BMAN 70012 Credit Rating: 15 credits 1 Instructors Contact details Umair.Choksy@mbs.ac.uk Room: MBS East F3 Office hours: by arrangement Noemi.Sinkovics@mbs.ac.uk www.manchester.ac.uk/research/noemi.sinkovics Phone: (0161) 275 6492 Room: MBS East F11 Office hours: by arrangement
The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational
Brief Description: Responsible for noting the minutes of the project teams meetings, along with her assistant; Dai Wei. She tries her best to contribute her own ideas to meetings, and is always on the lookout to impress her superiors.
One important implication of our changing demographics is the very real potential for a labor shortage. Managers are expected to experience increasing
one of the first matters she had to attend to involved devel_ oping job descriptions for her store managers. As fennifer tells it, her lessons regardiig job descriptions in her basic management and HR minagerient courses were
The objective of MNC to operate in other countries is to gain competitive advantage through several ways. Firstly, MNC is able to take advantage of difference in country-specific circumstances. For example, MNC may choose to locate its productions in less developed country like Vietnam to gain cheap labor cost. Secondly,
Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy)