The following report discusses the fact how multinational enterprises manage their HRM strategies considering all stakeholders’ benefit involved. Some multinational firms have been observed to be leveraging their HRM practices to gain a competitive edge. The international HRM helps in organizational redesign because it plays a big role of innovator. International HRM consists of people-related functions as hiring, training & development, compensation, safety, performance appraisal and other significant elements. The current report effectively discusses HRM the nature of multinational firms and the techniques they are applying to design and implement HRM strategies.
The international HRM includes the functions such as hiring, training and development, performance appraisal, compensation, safety and welfare and other significant elements. As put forward by Brewster et al. (2016), international HRM differs from domestic HRM management in many ways such as unlike domestic HRM strategies, international HRM places an emphasis on functions and activities such as relocation, orientation as well as translation service to guide employee to deal with new and different environment outside their own nation.
Moreover, the selection process for an international assignment provides a real picture of life, work and culture, to which, the staffs may be sent. However, in this context, Jiang et al. (2012) mentioned that HRM professionals of MNEs not only just face the increasing pressure to exemplify their areas shareholders worth through enhanced employee performance, they are increasingly being stressed by the shareholders as well as the general public alike to make sure their corporations operate in an ethically and socially responsible manner. For example, the large MNE Unilever has initiated several campaigns internationally that reinforces their HRM strategy and improves the motivation of employees (Unilever UK 2017).
Unilever largely focuses on human rights and make sure that compliance with the human right is implemented throughout its positive assurance techniques. Employee or stakeholders’ needs of could be different; thereby, to understand the perspective of its employees, Unilever performs self-assessments of employees, external audits and training. When it comes to nature of international HRM of multinational enterprises, large electronics giant Samsung has been observed to be following a principle “A company is Its People”, which means attracting and enhancing the talented people is the key to Samsung (Samsung.com 2017). All new staffs in Samsung attend a comprehensive one-month orientation and education programs to learn and understand the fundamental values of its group, strategic direction and management and the vision that company following (Horwitz 2012). The following are some of the elements that fall under the nature of international HRM.
Similar to domestic organizations, the roles for HR department working for an international organization consisting five different functions but how they differ when they are being applied on an international scale has been discussed in the following.
Recruitment and Hiring: The major objective of finding a talented and qualified candidate that can fulfill the roles and duties of the position (Dessler 2017). The process could involve understanding the job description and interviewing. For example, one of Samsung’s human resources strategies is to recruit the highest –quality personnel from around the globe, irrespective of the nationality. Moreover, Samsung is persistently reinforcing the global competences of core personnel emphasizing on foreign language proficiency as well as the capability to acclimatize to foreign culture. However, Edwards and Rees (2017) argued that when the firm runs the operation in a global environment, the HR department should understand the tasks for the position in that particular region of the world and the skills required to be successful. To implement this understanding, the FMCG giant (Fast moving consumer goods), Unilever especially focuses on different talent- acquisition programs; in 2013, the firm held a “Winning with integrity” programs which consists of surveys and interviews about human rights and HRM department of Unilever encourages the suppliers to operate to the standards set by the organization itself (unilever.co.uk).
Training: Once the staffs have been selected, they should be trained. Certainly, most of the employees need training to learn the way companies perform the operation. However, Sparrow, Brewster and Chung (2016) argued that when the organization is global, it is crucial that techniques and policies are similar from one global area to the next to properly communicate to use the resource and materials in different places. For example, at Unilever, through persistent enhancement assessment initiatives, HRM department of Unilever designs and applies strong programmes to develop an agile, diverse and flexible organization (unilever.co.uk). Each a new employee of Unilever has to go through a one-year training program, where she/he learns organizational strategic management process and ways of performing the duties.
Development and administration: Most of the MNEs provide opportunities for additional training to enhance the skills sets of their employees. Thus, when it occurs in a global level, the worker might have an opportunity to visit another nation to receive valuable training. Such practice certainly increases the value of the employees, as they could become successful in a variety of locations. For example, at Unilever, UL2020 is developed and designed to enhance the leaders with the insight to predict the challenges the firm might face in the future operation of 2020 (unilever.co.uk).
Salary and benefits: As put forward by Sparrow, Brewster and Dickmann (2016), when the organization is running the operation, the policies of compensation might not be same as domestic. Apart from the compulsory compensation, the organizations could offer some sort of benefit packages, which may include insurance, sick days and vacation. For example, Unilever provides medical coverage to the employees and their family members (unilever.co.uk).
HRM flow:
HRM planning: International HRM planning could include a vast range of activities right from identifying the manpower requirements, which helps to identify the most appropriate sources attracting the best talent available from the cost effective locations (Almond 2011). For example, the large retail organization Wal-Mart is successful in meeting its manpower requirement. Human Resource management objective of Wal-Mart is to ensure that all departments of the firm have appropriate employees based on HR needs (Walmart.com 2017). Thereby, Wal-Mart uses bottom-up approaches and with the help of this approach, human resource needs are analyzed at the lowest level of the organizational structure.
Process of selecting international managers: As put forward by Dessler (2017), selecting or determining the purpose and goals for an international assignment could help to guide the selection process. For example, an individual from a technological background could effectively be suited for transferring technology; similarly, a sales executive could be effective for launching a new product or service. However, expatriates have limited opportunity to learn as they go and they need to be prepared for before taking the international assignment. Three different areas are usually observed or analyzed at the time of selecting the international managers such as intellectual capital, psychological capital and the social capital. For example, the global IT organization Microsoft focuses on knowledge skills, understanding as well as cognitive complexity when it comes to hiring people from the intellectual capital (microsoft.com. 2017). Likewise, when analyzing the psychological capital, the firm focuses on the ability of the individual to function effectively in the internal acceptance of different culture.
Diversity in HRM policies: It is certain that training and development are significant stages of human resource management because they can include historically excluded groups and particularly women in different training and development programs (Sparrow, Brewster and Dickmann 2016). Multinational firms teat the female employees with equal opportunities; for example, Siemens, the large IT firm provides leadership skills training as a significant step in career development of employees with leadership potential and development of top management on the basis of diversity principles (Siemens.com 2017).
As put forward by Almond (2011), best fit or the strategic involves the contingent view that human resources policies need to be internally consistent and linked to organizational strategy or purpose with a clear implication that HR policies should vary with organizational context. According to Jiang et al. (2012), in multinational firms where business units follow different strategies, HR policies could vary within the firm to fit the needs of each business department. For example, the large IT firm IBM, which has several department such finance, operational, marketing and information technology but when it comes to hiring employees in internal operation, software analysts employed at the respective information technology department (Www-03.ibm.com 2017). Likewise, financial analysts are positioned financial department of the firm. On the contrary, the “best practice” practice remains more universal and there is a particular set of human resource practices that if are implemented together could enhance productivity and performance in any context (Huselid and Becker 2011).
Conclusion
The above-mentioned discussion helps to observe that when an organization runs the operation in a global environment, they have to adapt to industrial practices and policies of HRM in that particular regions. However, some particular multinational organizations treat their employees with a large set of benefits for the receiving desired inputs from the workforce.
References
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Dessler, G., 2017., Human Resource management, 15th edition. Harlow: Pearson Education. ISBN-13: 9781292152103,
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