In a World of Pay - Case Study
HRM Strategy of a Multinational Company
A key feature of multinational companies (MNCs) as employers is their ability to transfer HR practices across borders. The impact of such transfer has the potential to influence the performance of MNCs, while it can also lead the change in the HQ as new practices become established.
International environment requires HR department to undertake more HR activities such as international taxation, international relocation and orientation, administrative services for expatriates.
A truly international conception of HRM would require to recognize that the assumptions and values of the HQ should be adapted to the culture of the host country. HR managers working for MNCs should understand the importance of cultural awareness. Each country has its own way of managing people, which is a direct result of its cultural dimensions. In the US for example “Time is Money”, therefore meetings have to be hold on time, where as in Asia “Time is a river”. Deadlines have a relative importance. Culturally insensitive attitudes are not only improper but cause business failures. All these differences should be made discussable, since only with cross-cultural learning HRM practices will produce effective ways of managing people.
The real challenge to internationalize the HR function is to change the attitudes of the senior management, since they might assume that what is practiced in the domestic HRM is easily transferable to international HRM. Therefore HR managers have no other way than working closely (and as smooth as possible) with the top management.
Expatriate Employee Management
Expatriation is the most expensive staffing strategy for multinational organizations, but still it is a viable method for increasing the organizations’ understanding of international operations.
Going abroad for a number of years to live and work in a different country and culture is a major change for most people. To make this easier and minimize the risks of
A key feature of multinational companies (MNCs) as employers is their ability to transfer HR practices across borders. The impact of such transfer has the potential to influence the performance of MNCs, while it can also lead the change in the HQ as new practices become established.
International environment requires HR department to undertake more HR activities such as international taxation, international relocation and orientation, administrative services for expatriates.
A truly international conception of HRM would require to recognize that the assumptions and values of the HQ should be adapted to the culture of the host country. HR managers working for MNCs should understand the importance of cultural awareness. Each country has its own way of managing people, which is a direct result of its cultural dimensions. In the US for example “Time is Money”, therefore meetings have to be hold on time, where as in Asia “Time is a river”. Deadlines have a relative importance. Culturally insensitive attitudes are not only improper but cause business failures. All these differences should be made discussable, since only with cross-cultural learning HRM practices will produce effective ways of managing people.
The real challenge to internationalize the HR function is to change the attitudes of the senior management, since they might assume that what is practiced in the domestic HRM is easily transferable to international HRM. Therefore HR managers have no other way than working closely (and as smooth as possible) with the top management.
Expatriate Employee Management
Expatriation is the most expensive staffing strategy for multinational organizations, but still it is a viable method for increasing the organizations’ understanding of international operations.
Going abroad for a number of years to live and work in a different country and culture is a major change for most people. To make this easier and minimize the risks of