The varying role of IHRM in different MNCs - Essay Example

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The varying role of IHRM in different MNCs.
In a situation where an organisation has recently merged with or acquired another company, the methodology involved in managing human resources fluctuates from the home country based on social, cultural or organisational values as they pertain to the overseas environment. …
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“The overall purpose of human resource management is to ensure that the organisation is able to achieve success through people” (Armstrong, 2006, p.14). Human capital development, then, should be the focus of the definition of international human resource management, a difficult objective in a multi-national organisation that deals with customers and employees with varying values and different operational standards in environments that demand different regulatory compliance. Human resources involves maintaining flexibility and focus on the internal dynamics that drive or hinder organisational success as it relates to people development. “It emphasizes teamwork and employee commitment through the development of a strong value system that promotes corporate identity” (Panayotopoulou & Papalexandris, 2004, p.499). The main goal of IHRM is to establish a highly motivational environment and employee support related to merit awards, equal opportunities, involvement, empowerment, communication and individual or group development (Panayotopoulou & Papalexandris). This is especially true in an MNC where cultural values often conflict and a system is required to gain unity and harmony among differing employee attitudes and motivational preferences.
It was first necessary to define the objectives of international HRM in order to determine best practice methodology for the MNC as it relates to people development and/or job satisfaction. In relation to organisational learning, especially as it pertains to training, conflict is a major consideration of the HR manager. van Dam, Oreg & Schyns (2008) identify that there are many psychological mechanisms that drive employee attitude as it relates to change leadership. It is leader-member exchanges and the perceived development climate that are the major concerns of IHRM leadership especially in an environment where a merger has just occurred where participation and trust in management require intensive focus (van Dam, et al.).In the MNC, especially a recently merged entity, change is constant and evolution of business practices are on the forefront of business development. Thus, in order to provide training that will be embraced by diverse employee or management groups or ensure organisational learning, removing the barriers to success that are caused by change resistance are of considerable concern. For instance, one of the most fundamental issues arising in a recent merger or acquisition at the MNC is the restructuring of technology either through ...Download file to see next pagesRead More
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