StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Why Multinational Corporations Seek To Transfer Their Home-Country HRM Policies to Their Overseas Subsidiaries - Essay Example

Comments (0) Cite this document
Summary
This essay examines why multinational corporations seek to transfer their home-country human resource management policies to their overseas subsidiaries. The researcher uses examples to explain the difficulties that firms might encounter in the transfer process. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.6% of users find it useful
Why Multinational Corporations Seek To Transfer Their Home-Country HRM Policies to Their Overseas Subsidiaries
Read TextPreview

Extract of sample "Why Multinational Corporations Seek To Transfer Their Home-Country HRM Policies to Their Overseas Subsidiaries"

Download file to see previous pages This research will begin with the statement that the strategies of multinational organizations are quite complex having to address a wide range of issues related to different cultural and economic conditions. In this context, many firms chose to promote similar policies in regard to their various sectors aiming to reduce relevant risks. In the HRM area, such practices are quite common. In fact, it has been proved that a high percentage of organizations prefer to transfer their home-country human resource management policies to their overseas subsidiaries. At a first level, this practice can be possibly considered as justified allowing the easier establishment of the organization in the host country, at the level that no time is wasted on the preparation of locals for working in key positions of the organization’s branch in the host country. The reasons for which organizations transfer their home-country human resource management policies to their overseas subsidiaries are presented and evaluated in this paper. Emphasis is given on the difficulties of this project and on the possible ways for resolving the problems involved. The most common reason for the transfer of home-country human resource management policies to overseas subsidiaries is the need of organizations for promoting homogenous policies in all their sectors so that conflicts and failures are minimized. Such issue is highlighted in the study of Wilton where reference is made to the example of Japanese firms that had to establish branches and operational units abroad. Japanese firms tend to promote team working and task sharing; however, after entering the US market the Japanese firm had to align their HRM strategies with the US laws and ethics. In order to avoid conflicts with local laws and culture, the Japanese firms transformed their HRM policies promoting ‘task demarcation and functional specialization’. From a similar point of view, Sparrow notes that firms may choose to transfer their home-country human resource management policies to their overseas subsidiaries in order to reduce costs related to training of new employees. Such perspective can be valuable only if the time during which the home country HRM policies are used in the overseas subsidiary is limited; if such practice is continued for a long period of time, then the cost involved would be much higher compared to the development of new HRM policies, aligned with the local culture. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Why Multinational Corporations Seek To Transfer Their Home-Country HRM Essay”, n.d.)
Retrieved from https://studentshare.org/management/1592116-examine-why-multinational-corporations-seek-to-transfer-their-home-country-human-resource-management-policies-to-their-overseas-subsidiaries-use-examples-to-explain-the-difficulties-that-firms-might-encounter-in-the-transfer-process
(Why Multinational Corporations Seek To Transfer Their Home-Country HRM Essay)
https://studentshare.org/management/1592116-examine-why-multinational-corporations-seek-to-transfer-their-home-country-human-resource-management-policies-to-their-overseas-subsidiaries-use-examples-to-explain-the-difficulties-that-firms-might-encounter-in-the-transfer-process.
“Why Multinational Corporations Seek To Transfer Their Home-Country HRM Essay”, n.d. https://studentshare.org/management/1592116-examine-why-multinational-corporations-seek-to-transfer-their-home-country-human-resource-management-policies-to-their-overseas-subsidiaries-use-examples-to-explain-the-difficulties-that-firms-might-encounter-in-the-transfer-process.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Why Multinational Corporations Seek To Transfer Their Home-Country HRM Policies to Their Overseas Subsidiaries

Multinational Corporation Subsidiaries

...portion would finally identify and rationalize which country one would prefer to work and live in. Multinational Corporation Subsidiaries One of the most famous MNCs globally is Coca Cola, operating for already 125 years. According to its official website, there are approximately 139,600 worldwide employees of Coca Cola that operates in more than 200 countries around the world[The116]. The operating groups of the Coca Cola are indicated as Eurasia & Africa Group, Europe Group, Latin America Group, North America Group, Pacific Group, Bottling Investments Group, McDonald's Division[The116]. For the chosen potential countries to...
10 Pages(2500 words)Essay

The Reasons for Transfering the Home-Country Human Resource Management Policies to the Overseas Subsidiaries by Organizations

...? Examine why multinational corporations seek to transfer their home-country human resource management policies to their overseas subsidiaries. Use examples to explain the difficulties that firms might encounter in the transfer process. 1. Introduction The strategies of multinational organizations are quite complex having to address a wide range of issues related to different cultural and economic conditions. In this context, many firms chose to promote similar policies in regard to their various sectors aiming to reduce relevant risks. In the HRM area such practices are quite common. In fact, it has been proved that a high percentage of organizations prefer to transfer their home-country human resource management policies... to their...
7 Pages(1750 words)Term Paper

Multinational Corporations

...with positive impacts and lastly negative impacts. Employment It is a common thing in developing countries for the governments to actively seek for foreign investors. Multinational corporations provide both direct and indirect employments to developing countries which is a major challenge in these countries. Banking and telecommunication companies are some of the most common companies which have developed over large regions. Due to the size of these companies they create more job opportunities. Creating these job opportunities also account for increased domestic expenditure and income. These companies introduce new technologies to the...
7 Pages(1750 words)Essay

Multinational corporations and sweatshops

...by is welcomed. The recent recessions and their implications have seen a number of companies lay off their workers and students drop out of schools. These factors combined have forced many workers to accept any environment condition, particularly workers in developing countries. These situations have been so dehumanizing that these individuals have found it acceptable to take any job offer. They have made employees be easily abused and exploited by their employers. This implies that, for the multinational corporations to stop these kinds of misuse and abuse of the workers, they must set up just backgrounds and institutions that will not allow for exploitation. This cannot happen if the...
6 Pages(1500 words)Essay

National Subsidiaries of Multinational Companies

...and Subsidiary Autonomy in Multinational Corporations Academy of International Business, Stockholm. Lukes, S. (1973). Individualism Oxford: Basil Blackwell Myloni, B., Harzing, A.K., Mirza, H. (2004). Host Country Specific Factors and the Transfer of Human Resource Management Practices in Multinational Companies International Journal of Manpower. Nohria, N. and Ghoshal, S. (1994). Differentiated Fit and Shared Values: Alternatives for Managing Headquarter-Subsidiary Relationship Strategic Management Journal, Vol. 15, pp: 491-502 Rosenzweig, P.M. and Nohria, N. (1994). Influences on HRM Practices in...
16 Pages(4000 words)Research Paper

Multinational corporations

...without a critical understanding of the notion of democracy. The assumption of unequal gains from globalization has led to many demonstrations and opposition. Below is a short summary of the causes of unequal gains: Inequalities in the terms of trade the price earned by a country's exports as a ratio of the price paid out for its imports The role of multinational corporations or enterprises (MNCs/MNEs) Repatriation of profits Freedom to relocate if a subsidiary is relative less profitable Intra firm trade and manipulation of transfer (internal) prices; tax avoidance Monopoly power/profits Variability in productivity gains from FDI is related...
12 Pages(3000 words)Essay

Multinational Corporations

.... The company has major sporting events internationally. The coca cola company has sponsored such sports as football in developing nations by providing the teams with uniforms, painting stadiums e.t.c As Multinational corporations operate in many different countries, they are subject many tax jurisdictions. They are thus suppose to pay taxes in the countries that they operates. The tax systems usually differ between nations and thus the process is usually complex. These differences among the tax systems have affects the managers' decisions of the multinational corporations. The U.S government usually does not differentiate between that...
2 Pages(500 words)Essay

Multinational Corporations

.... Multinational Corporations have now become an integral part of the international society. Whether these multinational giants are beneficial or damaging to the society as such is a question which is debatable. There are opinions for and against the multinationals depending upon one’ perspective and social position in this world. We shall discuss the impact of multinational corporations in detail and present views for and against them in the following paragraphs. One major factor to be considered when one talks about multinationals is that most of them are from the developed countries like the USA,...
4 Pages(1000 words)Essay

Multinational Corporations

...are increasing in number. For those who said that their family members worked in multinational corporations, 25% worked for not more than 2 years. 25% worked in multinational corporations for between 2 and 5 years, while the rest 50% worked for more than 5 years. Most respondents (75%) also described multinational corporations as those companies that invest in many countries. 25% of them viewed multinational companies as large companies trading in more than one foreign country. Regarding to work ethics, respondents were asked whether they thought that multinational...
2 Pages(500 words)Essay

Multinational Enterprises Regulation

... to take place. Given that the majority of multinational corporations are based in developed nations, though, there is a greater tendency for them to enable some level of knowledge transfer in regards to HRM functions whenever they create subsidiaries in developing nations (Sparrow, Brewster, and Harris 2004). The Human Resources Management Intentions in the MNC’s Native Nation and Foreign Branches From the viewpoint of the nation of origin, there are cultural and institutional variables that have to be taken into consideration when considering knowledge transfer. There are also distinct HRM models that have to be evaluated for effectiveness, as well as the result of the dominance of the home system. The native country... that it is best...
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Why Multinational Corporations Seek To Transfer Their Home-Country HRM Policies to Their Overseas Subsidiaries for FREE!

Contact Us