Global Integration and Local Adaptation of HR Strategies
How do MNC firms come up with new strategies and procedures for their operations in local conditions, such as in emerging countries? How can multinational firms withstand the pressures exerted by HR strategies and the local conditions at large (Horwitz, 23)? There are various theories of multinational management that try to come up with solutions for the various activities of the current multinational corporations in various adaptations. Many scholars have tried to come up with some explanation of how to link the current MNCs with the local environment (Horwitz, 40). Many scholars are on their toes to explain globalization and its effects.
The essay tries to discuss the overall field of international management so as to come up with a full comprehension of the HR strategies in MNCs over the competitive sectors within the field of operation.
In some cases, despite the fact that many research bodies have undermined the HR strategy, there was a clear picture portrayed by many theories explaining the MNCs with the integration (Heikkila, 46). The diffusion of HR management strategies occurs in some subsidiaries of MNCs, which in many cases tends to be similar to normal Human Resource Management practices. HRM advocates for a high level of integration and also standardization, which cuts across all the MNCs so as to come up with effective and efficient importance to the business organization.
In many situations, it is known that most of the MNCs have features such as standardization, centralization, and basically the overall human resource management policies and decisions at large. The rate of diffusion of HR practices across MNCs has posed a huge challenge to organizations and, in so doing, given rise to large differences in the organization. Factors such as the transfer of employment positions have initiated a debate in human resource management over the MNCs (Heikkilä, 75). The organization’s culture and the results or effects of political aspects between the subsidiaries and the centers of MNCs are also factors.
The essay will try to view the rate of diffusion of the human resource management strategies across all the subsidiaries of the MNCs (Minbaeva et al., 65). The paper points out the pressures that may be incurred by the institution’s diversity during the transfer of organizational practices in human resource management across all the subsidiaries of the MNCs (Minbaeva et al., 160). There are factors that try to give researched evidence on the diffusion of the HR strategies to the subsidiaries of the MNCs in the management of the organization. Some of the pressures between the human resource management strategies and the MNCs are discussed below:
Duality And HRM Diffusion Strategies
Taking into consideration the internal integration of HRM strategies in management and the decision-making process forms a vital part of the MNCs’ system (Pudelko and Anne-Wil, 122). This section tries to pinpoint the limitations of MNCs in coping with the new changes in human resource management. Some implementations and internalizations of the diffused spheres of human resource strategies need to be clearly identified and managed with a comprehensive approach so as to cater to the MNC’s strategies as required in the global market (Pueblo and Anne-Wil, 230).
The Scarcity Of Research Into The Diffusion Of Human Resource Management Strategies
Considering the duality and human resource management diffusion strategies, it gives a clear picture that HRM strategies ought to differ from MNC strategies (Cooke et al., 134). Currently, HRM literature has advocated that some of the subsidiaries that were used before have been adopted in some strategies of the MNCs, although in some cases this is not well explained (Baddar et al., 430). Many scholars and also some human resource information centers have found that most organizations have tried to adopt MNC technology as compared to HRM strategies, thus giving a challenge to HRM strategies (Baddar et al., 500). In general, only a little knowledge has been received from researchers indicating that, to some extent, HRM can result in conflicts and political behaviors that need skills to solve and tackle (Baddar et al., 640).
Methodological Approach
This is based on a research process whereby multiple units of analysis are carried out to show the diffusion of the MNCs’ strategies as compared to the HRM strategies and policies (Al et al., 130). It is through the methodological approach that one can have an overview of the transfer of traditional HRM and global trading MNC strategies within the organization (Al et al., 219). Different variables give different approaches to this process. The differences and the pressures experienced in this process are well analyzed and compared with the HRM strategies; then, their subsidiaries are compared with the MNCs’ strategies. In many cases, the method has to forego the HRM strategies since some results try to show that HR transfer may be limited at the initial levels (Al et al., 310). Generally, the approach fails to explain the best alternative for the MNCs to apply. For example, managers and subordinates may neither use the system nor see anything valuable to acquire. This can help them to focus on the most suitable approach so as to have access to the appropriate system.
Major Factors For The Human Resource Management Diffusion
This section gives a clear picture whereby the internal consistency of the HRM forms the MNC’s strategies (Budhwar et al., 200). All the information from subsidiaries and centralized research can indicate that MNCs form a uniform framework that tries to compete with the human resource management system, which has failed to give the relevant results for integration (Budhwar et al., 250). In MNCs, there are some examples that ought to exist so as to provide cooperation to the individual subsidiaries and results depending on the data available.
These are the key factors for the standardization of human resource management globally (Boxall et al. 121-122). However, the type of standardization of the HRM strategies, such as recruitment or training of employees in the organization, tends to reduce an integral part of MNCs and, thus, no effective integration between the two.
Generally, the essay, as mentioned above, gives a clear picture of the roles of corporate HR with the MNCs in business management (Boxall et al. 209). Looking at the internalization strategies, most multinational business organizations tend to possess various reasons to expand globally by increasing their economies of scale (Boxall et al., 329). In a few cases, there are situations whereby the HRM strategies may oppose the working of the MNCs in business administration (Boxall et al., 510). The working range of the MNCs is sometimes widely described and classified in different forms whereby, at first, there are ethnocentric strategies that try to control the subsidiaries in connection with the HRM strategies so as to necessitate an effective business operation.
Secondly, there are polycentric MNC strategies that are always decentralized, and their subsidiaries control the local environments (Brewer et al., 21-22). A geocentric strategy, in many forms, is the cornerstone of international strategies whereby its subsidiaries are adhered to in almost all the spheres of the globe, thus giving appropriate strategies over the HRM strategies within the business administration (Brewer et al., 65). According to the above classifications, most of these subsidiaries in MNCs can have different roles in the evolution of products, provision of various services in different fields, or the mandate of the MNCs to offer various products and services depending on the HRM strategies in the business administration (Brewer et al. 98-99).
To summarize, the standardization of these HRM strategies across the globe in international operations tries to come up with stipulated boundaries between the MNC’s policies and the HRM systems (Brewer et al., 190). There is a proficient alignment of the MNC’s strategies with the HRM policies, and in this manner, the extent of the standardized systems of MNCs dominates over the HRM privileges in any organization. All these factors form the basis that MNCs have strategic corporate structures and systems to dominate over the regulations and diffusion of human resource strategies in all international spheres.
Works Cited
Horwitz, Frank M. “Future HRM challenges for multinational firms in Eastern and Central Europe.” Human Resource Management Journal 21.4 (2011): 432-443.
Heikkilä, Jukka-Pekka. “An institutional theory perspective on e-HRM’s strategic potential in MNC subsidiaries.” The Journal of Strategic Information Systems 22.3 (2013): 238-251.
Minbaeva, Dana B., et al. “A retrospective on MNC knowledge transfer, subsidiary absorptive capacity, and HRM.” Journal of International Business Studies 45.1 (2014): 52-62.
Pudelko, Markus, and Anne-Wil Harzing. “The Golden Triangle for MNCs: Standardization Towards Headquarters Practices, Standardization Towards Global Best Practices and Localization.” Organizational Dynamics 37.4 (2008): 394-404.
Cooke, Fang Lee, and Debi S. Saini. “(How) Does the HR strategy support an innovation-oriented business strategy? An investigation of institutional context and organizational practices in Indian firms.” Human Resource Management 49.3 (2010): 377-400.
Baddar Al-Hasan, Faten Z., Ross Brennan, and Phil James. “Transferring Western HRM practices to developing countries: The case of a privatized utility in Jordan.” Personnel Review 38.2 (2009): 104-123.
Al Ariss, Akram, Wayne F. Cascio, and Jaap Paauwe. “Talent management: Current theories and future research directions.” Journal of World Business 49.2 (2014): 173-179.
Budhwar, Pawan S., and Yaw A. Debrah, eds. Human resource management in developing countries. Routledge, 2013.
Boxall, Peter, and John Purcell. Strategy and human resource management. Palgrave Macmillan, 2011. Hartmann, Evi, Edda Feisel, and Holger Schober. “Talent management of Western MNCs in China: Balancing global integration and local responsiveness.” Journal of World Business 45.2 (2010): 169-178.
Brewer, Peggy D., and Kristen L. Brewer. “Knowledge management, human resource management, and higher education: a theoretical model.” Journal of Education for Business 85.6 (2010): 330-335.
Academic Master Education Team is a group of academic editors and subject specialists responsible for producing structured, research-backed essays across multiple disciplines. Each article is developed following Academic Master’s Editorial Policy and supported by credible academic references. The team ensures clarity, citation accuracy, and adherence to ethical academic writing standards
Content reviewed under Academic Master Editorial Policy.
