Examine Why Multinational Corporations Seek to Transfer Their Home-Country Human Resource Management Policies to Their Overseas Subsidiaries. Use Examples to Explain the Difficulties That Firms Might Encounter in the Transfer Process.

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.

HR Policies and Strategies are the backbone of the HR Department. When the company is looking for internationalisation and starting up a strategic alliance, Joint venture, or Merger it is mandatory to carefully look into the HR practices of the host countries and diligently map the home country practices into the host country practice and find the gaps between two and rectify the flaws and making the Good practice and Good fit is the main task in international HR management.

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.

In the context of International HR (IHR), managers take on the same responsibilities as their local based colleagues but the area of activity and difficulty of these duties is based on the extent of internationalisation of the organisation. As they move towards a more global economy, organisations are supposed to revise their HR strategies. From one country to another, for example, external factors (e.g. politics) or internal factors (e.g. practice) would be vastly different. As a result of this, normal decisions can be really complex in an organisation operating around the world in multiple countries, particularly since for international organisations,

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

Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,

[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

This Model shows how every multinational company can develop and implement human resources strategies and policies at a level of daughter companies in a host country.

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.

In response to the question, global corporations should outsource transactional HR functions but not the whole HR department, and still it depends on the organization’s core competencies in the business environment. HR outsourcing has been a prevalent topic since 1980’s, MNC’s have been outsourcing various HR functions such as legal activity, recruitment, pension, benefits, payroll etc. as a means to cut costs and shift it to the expertise service providers. The literature on HR outsourcing consists of ample evidence that shows the importance of maintaining an in-house strategic function, despite HR outsourcing according to the firm’s activities in the value chain (Heikkala and Cordon,2002), However, with the change in business strategy

MNCs set up subsidiaries or joint ventures in different countries. MNCs should mainly consider the legal practices, minimum wages, Labour market regulations, the culture, industrial relations systems, the character of country’s welfare system and the cross- country differences for framing the policies. MNCs may choose to adapt the environment in the host country or develop policies based on the customs and practices of the home countries. The challenge for the HRM will be to consider all these while framing the policies and helping the company to achieve profits in that country. Even though HRM considers all these factors, MNCs are so powerful, that they bargain for the investment decisions in the country and also actively participate in lobbying for institutional changes according to their preference.(Anne -Wil Harzing 2011).For example, MNCs in Europe take parts in lobbying at European Union Level so that it will be favourable for MNCs in regard with changes made in EU regulations. (Coen 1997).