The Strategic Role of Hrm in Multinational Corporations

Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed

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

Human Resource Management (HRM) are activities managers perform to plan for attracting, develop, and retain a productive workforce (Kinicki & Williams, 2016). The role of human resource management is to prepare, develop, and administer policies and program designed to make expeditious use of an organization human resources. Part of control which is concerned with the people at work and with their relationship within an enterprise. HRM have their hands full; they have to face employees daily with a complaint, write-ups and sadly terminating of the worker. All areas of HRM such as, staffing, orientation, training, development, pay wages benefits are all significant parts that are dealt with daily. Human resource management presents itself as

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

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

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

On a professional level, repatriation programs help global firms to build a strong unifying culture. By recognizing the employee’s experience abroad the firm at large gains from the foreign knowledge and perspective of the country of which they are partnered. This sharing of experience allows the company to learn, appreciate and integrate the firm’s multi-national staff members. In addition, repatriation programs allow the returning employee to share the knowledge they acquired while overseas in order to

The theory developed by Hofstede (1980) suggested that the national cultural differences have greater influence on shaping the management and business operations. The international experience from the repatriates has considerable positive effect on pre-departure training program. Enhanced cultural awareness is expected, since the repatriates are more familiar with the host country culture. The expatriate experience from the repatriates could provide more realistic information on business context in the host country which develop positive attitude to the assignment. They could act as guidance to allocate the resources to ensure that the expatriates familiarized the new culture and produce appropriate behaviours necessary within that culture. In other word, the chance of expatriate failure is likely to be diminished. On the other hand, repatriate experience could also play a role to aid with expatriate selection. Appropriate candidate for expatriate required to have “the ability to learn new business concepts, to supervise subordinates from different culture, to deal with family relocation issues and to adjust personally to a new culture” (Webb, Wright, 1995:39). Thus, we can know that the candidate selection is not solely depends on the technical competence but also the relational abilities. The international

Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)

The human resource management function can be found in almost every organization, unless otherwise outsourced to a third party. It is one of the most important functions within the organization, although many may not realize this. For many people, human resource management includes overseeing supportive and administrative areas like compensation, benefits, recruiting, employee relations, and training and development. However, human resource management today is so much more than that and organizations are recognizing that human resource management has evolved into a strategic role with significant impact into all areas of the business (Anca-Ioana, 2013). This review of strategic human resource management explores what it means for HR to be a

One of the most useful definitions of Human Resources Management (HRM) is “ HRM involves all management decisions and practices that directly affect or influence the people or Human resources who work for the organization”. - By Fisher,

At a political and economic level, globalization is the process of denationalization of markets, politics and legal systems i.e. the use of the so-called global economy. Globalization refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity (village markets, urban industries, or financial centres). It means that world trade and financial markets are becoming more integrated. Growing internationalization of business has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles, work ethics etc. HR managers have a challenge to deal with more functions, more heterogeneous functions and more involvement in employee’s personal life.

Recruitment and selection for the success of expatriate assignments and ability to enable international firms to compete in the global market is one of the most important elements of Human Resources.

The second HR activity is about compensation and benefits. Firstly, this HR activity for multinational firms involves different currencies and stability of currencies. With the fluctuation of exchange rates, a foreign currency may appreciate or depreciate, which bring more risk for multinational firms. Also, with the diversity of nations and cultures, the institution of compensation may vary from parent company to subsidiary. For example, different countries have different price levels, which lead to different wage levels. Lastly, according to three categories of employees, the compensation and benefits are different. Compensation is a key factor to increase satisfaction of staff and job performance. The main problem about compensation and

The increased strategic importance of HRM means that human resource specialists must show that they contribute to the goals and mission of the firm. The actins, language, and performance of the HRM function must be measured, precisely communicated and evaluated.