The Human Resource Management Function

1228 Words Aug 30th, 2015 5 Pages
Globalization according to Kuruvilla and Lakhani (2013) is believed to be the process of shrinking the cultural and physical borders between countries for trade through the relaxed legal framework. Due to the increasing globalization the multi-national companies have to face new challenges to work efficiently across the borders. Human resource management function has to be reshaped to operate in new countries. Despite all the advantages of adopting the parent companies’ familiar practices, it does not prove to be effective in all countries (Brewster & Mayrhofer, 2015). There is a significant extent of proof in the field of comparative HRM to state that HRM in MNCS faces different kinds of institutional and cultural differences between the countries. The essay keeps to the following structure: First, it discusses the three main institutional differences of state, firms and trade unions between the countries with the help of Hall and Soskice (2001) varieties of capital. Second, it discusses the cultural differences with the help of Hofstede (2001) dimensions. Third, it provides a conclusion of the essay by concluding the arguments mentioned in the essay.

A multi-national company can be defined as a company operating in more than two countries as mention in the work of Buckley and Ghauri (as cited in Morgan, 2005). As noted by Sparrow, Schuler and Jackson (1994) with the increasing internationalization of organizations, HRM is now seen as creating a competitive edge for a…
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