The Factors Influencing Mnc 's Ability

1692 Words Nov 30th, 2015 7 Pages
Critically evaluate the factors influencing MNC’s ability to transfer HR practices from one national context to another.

globalization

• embeddedness of managerial models

• cultural convergence and divergence of HR practices

• institutions • standardization of HR practices

• transfer is not a smooth sailing- why? identify reasons that influence MNC’s ability

• for examples: cultures differences (power distance, languages); social factors, political pressures; industrial characteristics

Along with the trend of globalization, multinational organizations (henceforth MNCs) seek for appropriate human resource management (henceforth HRM) strategies to address and fulfill the needs for global efficiency, national responsiveness
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Through the effect of globalization, not only that local cultures were extended abroad, but heterogeneous cultures were incorporated and integrated into the existing corporate culture (Featherstone, M. (1995). In an attempt to discuss how cultural differences affect the way that MNC transfers its HR policies and practices, we first present the three general guideline on how culture shapes the way people perceive and react to HR policies: convergence, divergence or crossvergence.

The theory of cultural convergence underlines best practice HRM, which coincides with standardized HRM practices. It implies that individual cultures develops and through integration and incorporation, they become increasingly similar to one another, so HR practices can be generalized across countries without adaptation (Katz, H., & Darbishire, O. (2000). Under this theory, factors such as open communications and dissemination of the idea of western capitalism have facilitated the standardization of organizational activities and made it easier for MNCs to transfer HR practices. Specifically, effective communication would help the organization to discuss freely about how HR practices should be organized to achieve higher performance, and reach consensus before implementation. In addition, the widespread concept of western capitalism has encourage more
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