Novo Nordisk Case Study: Mexican Experience from a Danish Firm: “Changing” Mexican Culture

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Mexican Experience from a Danish Firm: “Changing” Mexican Culture i. Introduction Nowadays is common to hear that the trend of business world is located in Emerging Markets, therefore most of the biggest and important companies in the world are startin to enter to those undeveloped economies that have a great potential. Develop assertive HRM practices in those new markets are key issues in order to achieve the expected success. The international human resource management models developed in the last decade pursues a contextual analysis of the standardization (global integration) of multinational parent companies ' human resource management policies and practices and localization (local differentiation) of host countries…show more content…
In other words, the main challenge of Novo Nordisk in order to succeed is combine the “modern-value-based management with traditional control” (Ramirez & Zapata Cantú, 2009). They need to find a way to operate company respecting and following the Novo Nordisk’s core corporate values, but at the same time they must recognize they key cultural differences between Mexico and Denmark. Meaning that, they need to change the way of thinking of Mexicans workers, they have to enhance the participation, create self-confidence in their decisions (with training) and make them to get used to openness and freedom, while at the same time they keep rules to achieve goals and provide the economic security and rewards that keep the employees motivated and loya to the company as they are used to. 2. What is the ‘right’ HR strategy for Novo Nordisk Mexico – hybrid or centralized? Why? Evaluate the different options (pros and cons). As we have mentioned before, due to the important differences between both cultures and all the factors around them, it would be more assertive if the company design a unique strategy that balances the main features of both cultures, taking into account the circumstances of the environment. “Best HRM practices” may not always transfer across countries due to cultural and institutional differences Regarding MNC subsidiaries, argued that organizations try to balance the need to standardize best HRM practice

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