The Factors Influencing Mnc 's Ability

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.

It is hypothesized that cultural differences in behaviour will mean differences in HRM practices within different cultures but those within the same cultural cluster will be similar whereas those in different clusters will be dissimilar. Employees and managers from different cultures take decisions in different ways – the processes, behaviours and values are not the same. People have different value orientations as a result of individual psychology, life-stage and generation and assumptions about behaviour determined by cultures are linked to a variety of organisational behaviours.

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

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 this essay will be examined three of the major external factors with which organizations have to face everytime and ,accordingly, these determine how it is shaped their HR agenda. It is a well-known fact that a company for its economic processes and to achieve its aims has to adapt itself assiduously to the changing conditions of the environment in which acts. The external contexts that will be evaluated in this paper are the economic, the political and the technological.

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

According to Koster (2012), “For consistent policies, standardization is imperative” (para 14). Nevertheless, the HR restructuring taking place at IBM is moving in a different direction from that of the Coca-Cola Company. For an organization with as large a global footprint as that of IBM’s, a traditional HR approach, like that at the Coca-Cola Company, was no longer tenable and a structural change was necessary.

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.

In this changing world, our global business theories and literature have implications toward the future. The future of this growth and success depends largely on the key component which is Human Resource Management. So, we as researchers hope to enlighten and inform you as employers the significance of an effective solution that both understands your employees and is beneficial to your company. That is why we offer our recommendations in the end of this article based on our findings.

A rapidly changing business environment due to technological changes and the impacts of globalization has resulted in shift of human resources paradigms (Khan, 1997). In every organization

Needless to mention, HR policies guide various functions of HRM. HR policies of certain companies seem to discriminate on the basis of its diverse backgrounds of its workforce for example, sex, race, age, religion, education, sexual orientations and so on and so forth. The sources of the country of origin effect lies in the culture and institutions of the home country of the MNC. The mechanisms through which the effect manifests itself are the hiring of home-country nationals by the MNC, and the inbuilt administrative preferences of these host-country nationals in the organizational structures, procedures and processes of the MNC. The homogeneity of the home culture, substantive characteristics of the home country culture, size and openness of the home-country economy, the cultural and institutional diversity of the environments in which the MNC operates, and the international growth path of the MNC are often taken to impact on the strength of the country-of-origin effect. Often, cultural perspective has concentrated its attention on the

That is why intercultural management cannot be ignored when it comes to the organization performance, and the ‘universal best practice’ approach to HRM have to be critically considered because what is appropriate to a specific environment will not systematically be for another.

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).