International Human Resource Management in context - Essay Example

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They have production facilities in different countries around the world. Often they operate in countries which have entirely different culture than the culture of their home country. This impacts the company’s human…
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International Human Resource Management in context
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Download file to see previous pages It will consider examples of various MNCs operating in different countries and will conclude with the outcome of the essay.
Human Resource Management is a broad term for personnel policies, recruitment and staffing, training and development, redundancy and other broad issues involving the workforce of an organization. Human Resource Policies are influenced by internal and external policies of an organization. Internal policies include management style and degree of centralization. The culture of host and home countries comes in the external factors of the organization. Together with government policies, culture makes the most important factor influencing the human resource management policies of multinational organizations.
The problem arises when a company operates in two countries one of which is developed and other is a developing organization. A company may have very strict recruitment and staffing policies of an organization. However, it may not be able to follow such stringent policies when operating in a developing country. Similarly, the Multinational Corporations may also not have luxury of having a high-level staff in the organization given that the culture of a developing country may not put too much focus on high level of education.
This may lead the MNC to hire people that do not meet their criteria of recruitment and selection. This is one way the culture of a developing country may affect the MNC organization’s HRM policies (Amba-Rao, 1994).
Apart from cultural difference, the legal environment of business dawns an important influence on the HRM practices. The studies done in the field state those legal requirements are the driving force of all managerial practices including Human Resource Policies in different parts of the world. Similarly, the culture, proficiency in foreign language, ability to follow foreign policies and having different objective from a job are all important factors that ...Download file to see next pagesRead More
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