IBU5HRM, HRM IN A GLOBAL ECONOMY
Journal Article Analysis
“The International Journal of Human Resource Management, Vol. 23, No. 15, September 2012, 3015-3113”
Are multinational teams more successful?
Maribel Colmenares Martínez
Student I.D. 17338714
Dr. Alice Li
“The love of one's country is a splendid thing. But why should love stop at the border? Pablo Casals (Spanish Cellist, Wrote music for UN Anthem for world peace, 1963 Presidential Medal of Freedom; b. 1876-1973)
“Are multinational teams more successful?” It is a question posed in an article written by Hartmut Haas and Stephan Nüesch, and published in September 2012 by the International Journal of Human Resource Management. It states that after an analysis of panel econometrics of team observations in a globalised sector, such as the Bundesliga, the highest German soccer league, during seven consecutive seasons, a negative relationship between national diversity and team performance exists. Thus, teams composed by multinational members tend to perform worse than teams with less national diversity for factors such as nationality, language and cultural differences.
It is the belief of this author that this article provides an original, forthcoming approach to the subject in dealing with multinational teams. However, the article also displays significant methodological deficiencies. Specifically, the researchers have not evaluated important demographic indicators, which include where the players grew up, which religion they belong to, and which languages they speak. Consequently, these deficits can have a subsequent impact on the results of the data analysed.
On the other hand, it is well known that in the Human Resource Management system actively immersed in the business world, many important multinational companies, such as Proctor and Gamble, embrace diversity:
In P&G we view diversity as a huge asset that generates fresh attitudes, different perspectives and exciting new ideas. We embrace diversity because it's the fair and right thing to do, and because it helps us to successfully mirror the positive changes occurring within our global society. By utilizing a diverse workforce that interacts effectively, we learn from each other and, in doing so, deliver increasingly effective and innovative solutions and products (Proctor & Gamble, 2004)
Proctor and Gamble is not alone. McDonald’s indicates that it has a diversity policy aimed at “understanding, recognizing and valuing the differences that make each person unique” (McDonald´s, 2004).
These industries have offered an alternative worldview, clashing with this current article. Therefore, the role of an international Human Resource Manager is more likely to centre upon achieving the company objectives, while understanding cultural diversity in a globalised world. In this world, multiculturalism is not an option but a necessary function of business practice, and this function shall be explored as a result.
During this article, the authors analyse the controversial impact of national diversity on team performance, in a controlled field environment, such as the German soccer league. Through it, they endeavor to determine whether multinational teams outperform or underperform, posing the two following hypothesis:
·Hypothesis 1: ‘National diversity increases team performance, ceteris paribus’( *Ceteris Paribus, Latin phrase that translates approximately to "holding other things constant".). ·Hypothesis 2: ‘National diversity decreases team performance, ceteris paribus’ (Page 3107).
The context of the study, as the article states, offers an empirical setting using game-level information that is constant for all team observations. Following the belief of these authors, the observations can easily be controlled by team fixed effects, whereby lowering the risk of...