To What Extent Are Human Resource Managers in a Multinational Company Restricted by Cultural and Institutional Factors in Implementing Policies and Practices Across Their Subsidiaries? Discuss Your Answer Giving Examples.

This report examines cultural and institutional factors of Mexico and how they can impact global HR management and practices. Specifically, by analyzing Mexican culture based on Hofstede’s dimensions, economy, labor legislation, union and employment tradition we reached the conclusion that the features of Mexican culture (high power distance, strong collectivism, high level of masculinity and uncertainty avoidance) and institutional factors have a strong impact on management styles and HR practices of business in Mexico and may arouse some challenges for global company and their expatriates, especially those from countries that bear different cultural features and institutional conditions. In order to minimize the potential conflict between Mexican local employees and expatriates, parent companies need to provide trainings (culture assimilation, country condition, etc.) before sending anybody to Mexico. Also, whether the expatriates should put more effort to disseminate home country (headquarter) culture or to adjust to local culture depends on the company’s strategy in terms of being localized or standardized around the globe.

The HRM policy of a firm is looked as a most important strength which needs to be taken care of all the time to have a competitive advantage within the industry they operating in. Multinational corporations (MNCs) seek to transfer their home-country human resource management (HRM) practices to their overseas subsidiary as to them it is just another approach towards globalisation. It can be an element of success for MNCs if they manage to transfer these HRM practices across their subsidiaries in an effective manner. An effective transition of these policies depends on the organisational, cultural, social and relational factors (Bartlett & Ghoshal 1998; Evans, Pucik & Barsoux 2002; Poedenphant 2002). The transition of these policies

They need to build integration among HR practices and strategies of its auxiliary firms in distinctive region with a specific end goal to accomplish general organizational targets. Then again, these associations additionally guarantee a critical level of adaptability in their IHRM procedure on the grounds that representatives from distinctive nations are sponsored by diverse cultures and social qualities. Adaptability impacts the workers' execution. Due to the strengths of globalization and the associations' interest to create and implement a worldwide methodology, International Human Resource Management (IHRM) is turning into an essential to accomplishment of the organizational. The essential distinction between domestic and global human resource administration is the knowledge and obligations

While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the

This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.

Human resource management functions in multinational companies are incredibly complicated by the need to adapt policies and procedures related to personnel, to differences between the countries, which is one of the branches. In particular, the countries cultural differences, differences in economic development and legal systems may require an international company adaptation programs of hiring, firing, training and remuneration for

[3] Bartlett and Ghoshal (1989, p. 71) advocate mechanisms to build transnational human resource management (THRM), "[A] fundamental prerequisite for the normative integration a transnational seeks is a sophisticated HRM system. The transnational uses systems of recruitment, training and development and career path management to help individuals to cope with its diversity and complexity". Accordingly, they argue that the role of THRM policies and

Increased business globalization, emergence of new economic hubs like BRIC countries (Brazil, Russia, India and China) as well as more intense competition among organizations at the domestic and international level alike over the past two decades, have necessitated the need for studies in the comparative Human Resource Management (HRM) (Budhwar & Sparrow, 2002a). As a result, a growing number of conceptual (Aycan, 2005; Edwards & Kuruvilla, 2005) and empirical studies (Bae, Chen, & Lawler, 1998; Budhwar & Sparrow, 2002b; Easterby-Smith, Malina, & Yuan, 1995) have addressed the configuration of HRM in different

Abstract: Human Resource Management is fast gaining popularity and its importance is becoming unavoidable, this is due to the fact that Human Resource Management plays a huge role in the growth of any company irrespective of its size. Unfortunately it is yet to achieve global standards or strategy of operation; this can be attributed to the various differences between environmental factors, employment attitudes, cultural

Briscoe D., Schuler R., Tarique I., (2011). Internatonal Human Resource Management : Policies and Practices for Multinational Entreprise.

There are human resource issues that are impacting the company on a global level. These issues range from change management, leadership development, HR effectiveness measurement, organizational effectiveness, compensation, staffing: recruitment and availability of skilled local labor, succession planning, learning and development, staffing: retention, and benefits costs: health & welfare (University Alliance, 2016). Many of these issues arise from cultural differences during expansion into new foreign markets or when the currently targeted markets shift. To rectify these issues the company currently addresses each situation on a case-by-case basis. In the past, this has addressed the issues at hand. Due to cultural

In the current age of globalization that is characterized by the intense competition among world corporations, strategic Human Resource Management (HRM) has become vital for the success of organizations. As a growing number of corporations around the world are turning into being multinational in nature, the workforce in such multinational corporations (MNCs) are increasingly becoming diverse, in regard to its cultural, economic, social, and personal attributes. As such, implementing a strategic approach in managing such diverse workforce is one of the pivotal roles of managers and administrators, in an attempt to put the interests of both employees and employers in the same direction (Kuo,

Although the multinational is separated in several nations, it remains as a single enterprise and therefore must consider how to balance competitive pressures for differentiation and integration (Lawrence and Lorsch, 1967). Multinationals must decide how to be sensitive to the unique demands of the indigenous environment without inhibiting their ability to coordinate the internal operations of local units in search of global strategies. As these issues of differentiation and integration are often facilitated by HRM activities, they represent a critical component in the IHRM. An example of this dual focus is found in most multinational corporations based on international business, which tend to assign primary responsibility to their subsidiaries for local compensation and benefits, training and labour relations, with regional units assuming secondary responsibility (Reynolds 1992). Productive globalization occurred with the growth and expansion of multinationals. They are present in all the countries of the world and currently undergo mergers and acquisitions, with the expansion of its branch of activity.

It is a competitive and dynamic place, viewed as the strategic gateway to the vast Chinese market (Enright, Scott & Dodwell, 1997). Some MNCs from Western countries use Hong Kong as their Asian base to coordinate their business in the region (Meyer, 2008). Thus, it represents an ideal research site to examine the major considerations of MNCs regarding the implementation of HRM system in their overseas subsidiaries. Our paper is structured as follows. The next section provides a review of relevant literature on HRM in general and HPWS in particular within the MNCs context. The paper then advances some hypotheses about the determinants of the adoption of HPWS in foreign subsidiaries of MNCs. The method section describes the sample and the study variables, followed by the section on statistical analyses and results. In the last section, the implications of our findings are discussed and directions for future research are suggested. LITERATURE REVIEW HRM in MNCs MNCs are playing an indispensable role in the globalisation process, particularly in the dissemination of management practices and diffusion of international standards (Bartlett & Ghoshal, 1998; Edwards & Ferner, 2005; Rubery & Grimshaw, 2003). The management of their overseas subsidiaries is challenging for MNCs, given the complex and changing environment they face (Bartlett & Ghoshal, 1989; Geppert & Matten, 2006). A central issue in managing foreign subsidiaries for MNCs is the

Multinational companies (MNCs) gradually more control the world’s markets, and are playing an essential role in the globalization of economic movement. In sequence, the need for develop new forms of trans-national management organization is very much necessary where MNCs manage their employees on an international standard and this is viewed as important to the achievement of globalizing strategies (Bartlett and Ghoshal, 1989). A considerable body of literature investigate that transfer of “best practice” in Multinational Companies have been made, dazzling the importance emotionally concerned to the effective management of people from corner to corner national boundaries for Multinational Companies performance (Hofstede, 1980, 1997; Bartlett and Ghoshal, 1989; Adler, 1986; Adler and Ghadar, 1990; Yuen and Kee, 1993; Guest et al., 1996; Ferner, 1997; Edwards and Ferner, 2000). HRM practice from the home country to abroad subsidiary may be hampered by constraints set by the culture and tradition of the host country (Jain et al., 1998). In compare to, home country variation are more likely to create complexity for the “reverse” distribution of practice back from foreign subsidiaries. For trans-national business organization trying to develop “global” best practice, national limitations could be resulting from both the home and host country (Ferner, 1997; Edwards, 1998; Edwards and Ferner, 2000; Zhang, 2001). Dissimilarity in national business systems has influence HRM practice