Resource Management In Multinational Enterprises Management Essay

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The human resource management is one of the important tasks encountering organizations of the century, particularly when it comes to multinational companies functioning in various markets and countries. To be an "international player", enterprises should adjust HR applications to new ways of working. Managers of multinational companies face significant challenges in order to achieve a balance between the often conflicting pressures for global integration and local responsiveness (Paauwe and Famdale, 2006). In connection with these problems occurred a growing awareness that the management staff worldwide, through a system of global management of human resources, is an essential dimension of the international companies.

Aim of the Project

The aim of this research is to examine issues of multicultural management while focusing on human resource management in multinational enterprises.

Objectives of the Project

The research will focus on achieving the following objectives:

To develop an understanding of the international management strategies of HR

To Identify the problems faced by HR Managers in Multinational Corporations

To analyse the qualities required in HR managers in MNCs

To examine issues of multicultural management

Chapter 2 - Literature Review

This chapter aims to review the literature related to human resource management, multicultural management, and other related topics.

2.1. Human Resource Management in a Global Context: The value of Vertical Integration

The term "human resources" implies that individuals have skills that enforce organizational performance (with other technological, financial, etc). In recent years, people have been instrumental in the creation of competitive advantages, for example, in software companies: success depends on the knowledge, skills and abilities possessed by each employee (Beardwell, Holden, and Claydon, 2004). Vertical integration of the human resources function provides an important key to achieving this shared understanding within a multinational company.

Vertical integration has two directions, i.e. upwards and downwards. "Towards up" refers to the strategic integration of human resources, or the participation of human resource management in the establishment and implementation of organizational plans and the alignment of human resource management demands strategic institution. Contribution of senior director of HR at the senior management team of a company is an important source for flow of information and communication. Traditionally, "down" refers to the delegation or transfer of resources and operational practices of human resource managers and human section chiefs locally, thus decentralizing the responsibility for implementing and managing human resource practices such as performance evaluation, selection and training (Camen, 2004).

2.2. International HR Management Strategies

In recent years, people have witnessed a considerable improvement in different organizations functioning globally. In few matters, the growth into other markets pose a human, as, for instance, when the organistion achieves a block of shares of another overseas institution but is not related in its management. But in most cases, internationalization leads to the need to address human resource issues, such as: deciding the personnel system locally or should be the plant itself which it determined (Pointon and Ryan, 2004). From the point of view of the host country, the increasing internationalization makes a good number of employees working for companies not of their nationality.

The basic theoretical framework: They all take theoretical reference pressure and argue that the key challenge that multinationals must respond to the configuration HR system of its subsidiaries is reconcile the pressures that lead to coordinate the various units together (integration) with the demands of each unit to operate efficiently in their local environment (differentiation). The function: International human resource management adopts a macro perspective that includes the human resources system of the subsidiary as a mechanism can help achieving its strategic objectives (Erbel, Reyes and Gomnez, 2007).

2.3. Determinants of Configuration Strategy

Beardwell, Holden, and Claydon (2004) suggested that this is depending on the developmental stage of the subsidiary, which starts at step which called Domestic (export), wherein the practices are very similar to those in the central International following the (adaptive), with very practices locally adapted and concluding with the global (integrated), with a very comprehensive set of standardized practices. However, this analysis has been criticized for involving a development along a series of stages which does not occur in all cases assuming without appropriate empirical evidence that the early stages are less efficient, and grant equal weight to the various stages when in reality few organizations like Tesco that follow an overall strategy (Camen, 2004).

2.4. International Human Resource Strategy and Efficiency

Compared with the U.S., European organizations like Sainsbury have restricted levels of autonomy in decisions of hiring, firing and training; have historically been less revealed to market and free struggle, and unions suppose an important responsibility in the policy of job. These models revealed that there was no better way (the one best way) to manage human resources in organizations, but many efficient ways managing staff. At the same time, showed that some of those that were considered as "American management practices" not working properly in certain countries (Guillen, 2006).

2.5. Problems Faced by HR Managers in Multinational Corporations

The problems faced by human resource managers in multinational corporations are issues of fairness, honesty, self-discipline, and the consequences of the behaviour. Since the human resources department (dealing with the problems of employees) assumes an important role in the company, can be a tremendous burden on human resources managers who walk a fine line between what is morally and legal important for the staffs, and what is financially helpful for the organization. Human resources management as a profession chance has ensued in the formation of the Society of Human Resource Management (SHRM). It is this system that established a code of ethics for HR managers (Pointon and Ryan, 2004).

Chapter 3 - Methodology

3.1. Research Methodology

Research methodology is the outline of the overall research and methods involving in it. Below is the research methodology which has been adapted for this research.

3.2. Data Collection

This study has been performed with the support of two approaches of assessment prepared to show a comprehensive definition of the companies, the change and organizational approach: contestant assessment and an interview with top managers of human resources in multinational organization.

3.3. Participants

This research has been performed through relating a focused group of eleven large multinational organizations, each of which had an office corporate HRM (at headquarters) and Regional Directors and / or national HRM. Nine contestants were multinationals between 14,000 and 356,000 staffs globally, the remaining multinational is a joint venture between an Indian organization and a global organization of Japan, and is a world leader in its brands. The sample firms operate in a wide range of sectors, including mining services, medical insurance and health care services, transportation and logistics, information technology, finance, automotive, manufacturing and retail.

In each of the multinational companies, a senior human resources executive at headquarters has been interviewed and up three HR managers at regional or national level. Key informants were selected within the organization based on his official position and his knowledge. The sample of key informants was chosen because participants were more likely to be knowledgeable about the investigated issues and it could and wanted to discuss them.

3.4. Procedure

There were 23 semi-structured interviews as many managers of the following nine countries: Australia, Brazil, China, England, Hong Kong, India, Malaysia, Sweden and the United States. Most interviews were conducted in person, although some are conducted by telephone because of the geographical dispersion sample, the interviews lasted between 45 minutes and two hours.

3.5. Data Analysis

Program implemented a computer supported qualitative assessment (NVIVO) to decrease, organize and group interview information and acquire the main concern with structure under Boselie, Dietz and Boon (2005) performed a procedure to make the thematic data. In the presentation of the interview, data indicated the name of the job, the company or sector, and the location of the source.

3.6. Ethical Implications of the Problems and Solutions

The human resource management is a task which is related with the management of connections between groups of individuals on their ability as employers and employees. Necessarily, this procedure assists to raising questions about the duties and rights to every group in this connection, particularly, managers in managing their staffs fairly. The ethical implications of the issues that have been defined in this research along with the solutions manage considerably with how the managers of human resource recognise the values, standards, and ethics of the staffs functioning in a multinational company as their decisions essentially impact the works of those staffs.

Chapter 4 - Results and Discussion

It has been analysed that if employees of multinational companies often move from country, then there needs to be greater consistency between policies offered. If the multinational company has a strong and unwavering commitment to overall management of the balance between work and personal life, then it is easier to dictate global policy of conciliation. From the perspective of the company, customers are changing. People need to ensure they meet the needs of these customers, but there are also pressures on the customers who go against the set policies and objectives (Guillen, 2006).

Even within a multinational company was no difference between the perspectives of humans resource professionals globally and locally. While interviewed on headquarters with worldwide responsibility discussed a "rule 80/20 ", none of the local or regional directors interviewed in this multinational were aware of this "rule". Different opinions expressed by human resource managers may indicate deficiencies in human resource management in multinational corporations system regarding the transfer of knowledge and a shared vision of politics. These deficiencies can be important if companies behave misunderstandings within, and outside, the HR function (Camen, 2004).

Boselie, Dietz and Boon (2005) have argued that the system of a multinational human resource management is a key factor of knowledge management, and therefore, it is essential for success in international business. For a multinational company to operate effectively as a social community that creates, integrates and transfers knowledge across its various locations, must understand well and international human resource management support system and related policies, such as policies for reconciling work and family life (Erbel, Reyes and Gomnez, 2007).

Chapter 5 - Conclusion

This project has examined the multicultural management in the context of human resource management in international companies. In this project, research including case studies and interviews of multinational HR professionals has been done to explore the impact of globalization on human resource management. Managers who participated in this study no doubt seek to resolve the tensions and challenges associated with international management. Global initiatives for human resource management and multicultural management must be aligned with strategic objectives such as diversity management and performance. Globalization has changed the ways of business competition.