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How can international human resource management respond to the need for global integration yet also local responsiveness in transnational corporations - Essay Example

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What about if it replicates its human resource policies in the oriental countries? These dilemmas represent the typical worries of 21st…
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How can international human resource management respond to the need for global integration yet also local responsiveness in transnational corporations
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How can international human resource management respond to the need for global integration yet also local responsiveness in transnational corporations

Download file to see previous pages... Multinationals often learn the hard way when it comes to integrating HR systems to function optimally across the world, and some have spent enormous sums of money to solve this problem.
Even for the biggest and most innovative companies, this problem still worries them because the transition requires time to manage successfully. Time is something multinationals do not have. For most international corporations, the question is not an option between globalisation and localisation, but the delicate balance between the two. On one hand, business resembles an organism; it must build a global brand to maintain its organisational attributes in international expansion (Badie, 2011:39). On the other hand, global variation in cultural and institutional settings demands multinationals to establish local responsiveness. Overemphasis on global control and consistency can only impede domestic vitality and result in what is commonly referred to as the “headquarters syndrome.” This paper will examine how multinationals can implement and practice glocalisation – “think globally, act locally” – to balance its local HR needs with global HR systems so that overemphasis on one does not cause negative consequences for them (Kaynak and Fulmer, 2013:11).
Glocalisation requires HR managers to combine both global and local strategies. When implemented correctly, the rewards can spread evenly between local divisions and the multinational headquarters based abroad. Despite the global recession that followed the 2008 financial downturn, glocalisation surges on steadily. Scholars have argued that the core driver of glocalisation today is international corporations, which is true because they are the ones who need it the most. According to Drori (2013:18), as many large companies set up local or regional divisions in emerging and culturally rich markets, HR practitioners are required to implement sustainable HR practices that respond to local needs. HR ...Download file to see next pagesRead More
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