The researcher of this essay will attempt to critically explore and examine how institutional and cultural issues impact International HRM with specific reference to two multinational corporations (MNCs) of researcher’s choice from different regions…
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This essay will provide an analysis on the literature available on International Human Resource Management and how companies deal with the challenges of globalisation and of managing employees of different culture. International human resource management is an important emerging phenomenon in international business. There is a sudden growth of interest over this due to the rapid growth of industrialisation and globalisation. Globalisation has revolutionized the way organisations function; it has been enhanced by continuous technological advancement, the Internet and Information Technology. Organisations have to expand both as an organisation and as a business. Businesses, which have been internationalized because of intense globalisation, have to introduce more new products and services. Competition dictates these companies to be always changing and innovative. The importance of borders between different countries is reduced, and similar events and phenomena in countries throughout the world are more easily linked. The identities of cross-border structures are strengthened, and the power of organisations operating only within the nation state is weakened. International human resource management has its origin in the 1980s, as a reaction against the more functional approach embodied in personnel management. McKern stated that during the early years of the post-war development of the modern international corporation, organisational structures evolved slowly in response to geographical and market diversity. It was easy for management to change structures incrementally. But now changes in the organisation are based on complex environmental factors. International HRM was born. Guest (1990 as cited in Cray and Mallory, 1998) says that ‘the apparent novelty of HRM lies in the claim that by making full use of its human resources a firm will gain competitive advantage’. HRM Paradigms Human resource management is the strategic and coherent approach to the management of an organisation’s most valued asset – the people. Due to the emergence of various forces in globalisation, organisations and businesses have become global as a result of technological innovations, and the introduction of more development in communications and transportation. There are two paradigms focusing on HRM. The universalist paradigm, which is dominant in the United States and widely used elsewhere, assumes that the purpose of the study of HRM is to improve the way human resources are managed strategically within organisations (Harris et al., 2003). In contrast, the contextual paradigm searches for an overall understanding of what is contextually unique and why. Many management researchers find the universalist paradigm ironically excluding much of the work of HR specialists in such areas as compliance, equal opportunities, trade union relationships and dealing with local government. This paradigm is not helpful in regions like Europe, where significant HR legislation and policy is enacted at European Union level (e.g. freedom of movement, employment and remuneration, equal treatment) as well as those of particular countries or sectors (Brewster et al, 1996, qtd. in Harris et al, 2003). HRM is now considered the determinant factor in the success or failure of international business. The success of global business depends most importantly on the quality of management in an organisation. There is a shortage of international management talent that constrains implementation of global strategies (Scullion and Paauwe, 2004). There is a lot of challenge placed on the manager in managing an organisation of different culture. Along this line of thought is the concept on comparative human resource mana
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“How Institutional and Cultural Issues Impact International HRM Essay”, n.d. https://studentshare.org/human-resources/1394232-how-institutional-and-cultural-issues-impact-international-hrm.
The purpose of this paper is to evaluate the impact of cultural issues on the international organization. In addition, resource management issues and their impact on the international market are discussed about. The last part of this document looks at the theoretical models and complex issues associated with management of international organization.
This has led into the need to establish of uniform human resource practices that will enhance understanding and smooth coordination of activities across the subsidiaries in different countries (Batt 2003). This strategy of deploying and integrating the human resource practices across all the subsidiaries of all multinational companies is the difference in the flexible working and work-life balance human resource practices.
They do not focus on the race, religion, culture of the employee. This is one of the main reasons, things are getting tough day by day. Competition has been raised a lot in past few years. Till the end of 1960s and 1970s, cross-cultural research suggested a new term, exploring topics like expatriate employment, differentiation between various cultures, and the link between motivation factors and the culture itself.
This is a field which has been a matter of recent debates in HRM. The most debated issues according to Pinnington and Harzing (2011: Ch 1) are “staffing policies, differences between countries, types of employees, and multinational corporations HRM activities.” International HRM also deals with Parent Country Nations (PCN), Host Country Nations (HCN) and Third Country Nations (TCN) as opposed to HRM which is mostly concerned with local business environment.
According to the paper the world today is organized by accelerating globalization which strengthens the dominance of capitalist economic system of world by eroding the local traditions and cultures through a global culture. Globalization leads to convergence and homogenization in the strategies of organization, processes and structures and consumer choice along with a global division of labor that widens the income gap between and within societies between haves and have not’s.
It must closely watch the moves made by external constituencies including foreign governments, political and religious groups. A host of other issues relating to employee compensation, health safety, welfare etc, need to be monitored carefully. Employees on international assignments represent valuable assets and hence need to the managed systematically and strategically so that they can easily adapt survive and flourish in diverse culture and environments.
Normally, the idea of greater interdependence connotes economic interdependence which in turn entails “an increasing amount of cross border trade in goods and services, the increasing volume of international financial flows and increasing flows of labour.”
an two decades, ideas and theories concerning strategic HRM have formed an extremely potent approach that is directed towards the business management turf. This set of ideas and practices have been implemented on the government level as well as within organizations to encourage
e technological changes and the changes in the business environment due to globalisation have increased the vitality of standardisation in the human resource management (Kossek, Lobel and Brown, 2006). The operation of the human resource management needs to be flexible as per
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