Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Principles of diversity management in hrm
Multinational corporations and their benefits to globalization
The role of multinational corporations
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Principles of diversity management in hrm
Introduction The Analysis Machines (2004) defined Multinational Corporation as an enterprise operating in two or more countries with headquarters in one country. In today’s world, most of the businesses are getting globalized by setting up there business operations abroad. There are various forces which facilitates globalization like liberalization of international trade, international integration of production, Research and marketing by major MNC’s and emergence of economic regions like European Union enabled companies to invest overseas to gain and maintain competitive advantage. With an MNC having foreign subsidiaries comes the responsibility to transfer the organisational practices of the home country i.e. the headquarters to transfer its …show more content…
Bartlett and Ghoshal (1991) argued that human resource management policies and practices are becoming crucial because these practices can help in controlling international operations and co-ordination within subsidiaries and parent company. The ability to effectively transfer HRM practices that are proven efficient in the parent company to the overseas subsidiaries is a key characteristic of the successful MNC (Nohria and Ghoshal, 1997). HRM constitutes a major constraint when MNC’s implement global strategies due to the complex labour market and cross cultural environment in different countries of operation (Adler and Bartholomew, 1992). The effectiveness of human resource management can be seen as the key to success of MNC’s in the 21st century (Bartlett and Ghoshal, 1994, 1995; Pucik, …show more content…
and Bartholomew, S. (1992) "Managing globally competent people", The Executive, vol. 6, no. 3, pp. 52-65. Bartlett, C.A. and Ghoshal, S. (1991) "Global strategic management: impact on the new frontiers of strategy research", Strategic Management Journal, vol. 12, no. S1, pp. 5-16. Bartlett, C.A., Ghoshal, S., Birkinshaw, J.M., Marcus, J., Allaire, P., Welch, J. and Hardy, B. (1995) Transnational management, McGraw-Hill/Irwin. Björkman, I., Fey, C.F. and Park, H.J. (2007) "Institutional theory and MNC subsidiary HRM practices: evidence from a three-country study", Journal of International Business Studies, vol. 38, no. 3, pp. 430-446. Björkman, I. and Lervik, J.E. (2007) "Transferring HR practices within multinational corporations", Human Resource Management Journal, vol. 17, no. 4, pp. 320-335. Budhwar, P.S. and Sparrow, P.R. (2002) "An integrative framework for understanding cross-national human resource management practices", Human Resource Management Review, vol. 12, no. 3, pp. 377-403. Ferner, A. (1997) "Country of origin effects and HRM in multinational companies", Human Resource Management Journal, vol. 7, no. 1, pp.
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 following:
Noe, Raymond A, et al. Human Resources Management: Gaining A Competitive Advantage. New York: McGraw-Hill, 2010.
Multinational enterprises date back to the era of merchant-adventurers, when the Dutch East India Company and the Massachusetts Bay Company traversed the world to extract resources and agricultural products from colonies (Gilpin 278-79). While contemporary multinational corporations (MNCs) do not command the armies and territories their colonial counterparts did, they are nevertheless highly influential actors in today’s increasingly globalized world.
Multinational enterprise (MNE) is “a company that is headquartered in one country but has operations in one or more other countries” (Rugman and Collinson 2012, p.38) that has at least one office in different countries but centralised home office. These offices coordinate global management in the context of international business. MNEs have increasingly essential influence on the development of the global economy and coordinate with other companies in different business environments. However, there are many issues involved with how MNEs operate well overseas, especially in emerging markets (EMs) (Cavusgil et al., 2013, p.5).
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Ahlstrom, D., & Bruton, G. D. (2010). International Management: Strategy and Culture in the Emerging
The first challenge that confronts managers of multinational corporations is related to the host-country issues. Both the international corporations and the countries that host their overseas operation should mutually share opportunities from any business relationship. Multinational en...
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.
Human Resources Management (HRM) Interventions relates to the idea of improving an organizations overall performance and efficiency by improving the members (individuals and groups) performances, commitment, and flexibility. According to Beer et al. (1984), this is often a relevant intervention technique when organizations are facing increased international competition. They see the value of HR investments as a way to improve organizations competitive advantages. Further, they establish that HRM policies have long-term consequences and immediate organizational outcomes. These policies should include the overall competence of employees, the commitment of employees, the cost effectiveness of HRM practices,
Firstly, multinational corporations are not something new in this 21st century. There are more and more international corporation as people try to boost the process of globalization. The development of these multinational corporations depends on the management of the owners. Transnational strategy is needed in order to operate such a big system of companies. Every nation in this system has to be managed thoroughly in order to help running the corporation, as well as to keep the system as one consistent body of business. Managers also find it important to look for opportunitie...
However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provide a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine in what ways, and to what degree, it has changed over time.
Torrington, D., Hall, L. and Taylor, S. (2008). Human Resource Management, 7th ed. Prentice Hall.
Modern society is dominated by multinational corporations. In the past 30 years there has been unprecedented development of transnational corporations (TNC), which is “any corporation that is registered and operates in more than one country at a time” (Transnational). Now, there are more than 63,000 TNCs, while there were only 7,000 in 1970. That is more than 900% growth in TNCs in only a few decades. Even more startling, 70% of all trade, includes at least one of these TNCs (Basic).
Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.