Hrm assignment on IHRM policies and practices in the multinational context

Question

Task: Discuss how multinational companies, operating across borders, can ensure that their human resource policies and practices are applied equitably throughout the organisation in order to generate company-wide thinking Use relevant industry examples to illustrate your hrm assignment.

Answer

Introduction to the hrm assignment
HRM refers to the process of finding, hiring, and managing a company's personnel (Otoo, 2019). This hrm assignmentaims to discuss the key areas of HRM practices including standardisation and localisation of HRM, standardisation, and localization of HRM practices in MNCs as well as their subsidiaries. Human resource management (HRM) includes more than just the organisation of a working system and the practice of hiring.HRM is the strategic approach to the effectiveness as well as efficient management of employees in an organisation, which helps to gain a competitive advantage in the market (Przytua et al. 2020). “International Human Resource Management (IHRM)” is concerned with the human resource problems of multinational firms in foreign subsidiaries, which is based on better strategic management and more broadly, with the unfolding HRM issues that are associated with the various stages of the internationalisation process (Researchgate, 2019).

Discussion
Figuring out the standardisation along with localisation of human resource practices in the hrm assignment
Standards and localization of HR practices are important themes in the HR management of subsidiaries of “multinational corporations (MNCs)”.According to Dickmann, (2021), the experience those firms have in the host nations confronts them with a paradox addressing whether the companies should standardise or localise HRM methods globally. The main host country as per the hrm assignmentis the United States and the United Kingdom; on the other hand, along with the host country, the third country is the Asia Pacific countries like China and Japan. Here the parent countries national is US and UK. MNC subsidiaries will eventually choose between a high degree of HRM practices standardisation and localisation. The term "standardisation of HRM practices" refers to the process of centralised decision-making at the headquarters of MNCs about HRM practices at subsidiaries, as well as the practice of performing these activities in the same manner as the parent country of the subsidiaries (Anderssonet al. 2020).

As per the hrm assignmentit is possible to put it into practice by transferring HRM procedures from the company's headquarters to subsidiaries running in the host country (Tien, 2019). ViewedHRMpractices moving from headquarters to subsidiaries were seen as a convergence of HRM practices between the main firm and its subsidiaries, however it was noticed in the hrm assignment, the terms "standardisation" and "HRM practices moving from headquarters to subsidiaries" were used interchangeably (Smereket al., 2018). HR practices that should have been harmonised or localised by MNC subsidiaries could be revealed by the “AMO framework” (Al-Tit, 2020; Garcia-Marin and Tomas, 2016).

Hrm assignmentstudies on standardisation and localisation of HRM practices have been undertaken extensively in Europe, the United States and Asia-Pacific countries like China and Japan. As a part of this, MNCs try to comprehend the concepts of standardisation, localisation, and HRM practices. 450 MNC subsidiaries in Ireland and Spain were found to have a high degree of standardisation in HRM practices like salary, fringe benefits, performance evaluation, and succession planning, For example, in Australia, multinational Indian information technology companies standardised elements of compensation but also altered compensation to reflect host country practices (Kyurova, 2019). Identical findings have been found in hrm assignmentin other nations as well, namely, Taiwan-based subsidiaries Quanta Computers in the United Kingdom (UK) have standardised their workforce by employing top-level Taiwan-based executives (quantatw.com, 2022).Even though MNC subsidiaries have been working to standardise and localise HRM practices, little is known about the factors that influence this process in the literature from the rest of the developing world. Because of what we learned from the hrm assignment, we set out to find out what factors determine how much an MNC's subsidiaries standardise or localise their HR practices (Nahar and Zayed, 2019). Findings on determinants associated with standardization and localization of hrm practices in MNCs subsidiaries Institutional pressure on multinational corporations operating in their countries of jurisdiction has been seen in countries including the UK, Canada, Spain, Denmark, and Norway. Culture has a strong influence on this study's findings (Edwards et al., 2016). Findings from Ayentimi et al.(2018) in the hrmassignment, show that 3 distinct aspects make up an institution's institutional pressure. Regulatory pressure was first, followed by cognitive and normative aspects of it. According to the statement of Gooderhamet al., (2019) in the hrm assignmentfound that multinational firms were unable to implement global HR practices because of institutional differences between countries. MNCs operating in countries whose local institutions differed from those of the MNCs operating elsewhere tended to have different policies.

Farndale et al., (2017) state in thehrm assignmentthat the types of capitalism, primarily "Liberal Market Economies (LMEs)" and "Coordinated Market Economies (CMEs)", also influence standardisation and localization in HRM practice, in an article on the effects of the market economy and foreign subsidiaries of multinational corporations. "Coordinated Market Economies" refer to both types of market economies. However, LMEs allowed corporations to strategy for the greatest potential profit for shareholders by giving them more freedom to operate (Vrontiset al. 2022). Deregulation of labour markets, improved competitiveness, and reduced government meddling were all crucial in achieving this goal of hrm assignment. In contrast to the United States, the United Kingdom (UK), and Australia, which are examples of liberal market economies, “Germany, Belgium, the Netherlands, Austria, and Sweden”, are CMEs. This indicates that HRM practices including financial engagement, employee voice; business knowledge exchange, worker agreements, and attention to training are more locally tailored in these countries (Sposato and Rumens, 2021).

International HRM approaches regarding the MNC companies
Phathakul, (2019) in hrm assignment, found that MNC subsidiaries in the “US, Japan, and Germany” were adopting HRM practices similar to those in the US. According to Jiang and Yahiaoui (2018), it was found that 16 French companies were standardising their HR practices in China as a result of a country-of-origin dominance in industrial and HRM experience.

Analyse the operation strategy that the international companies utilise across the border
It was the international approaches to HRM that multinational corporations chose for the countries in which they operate that dictated the level of standardisation and localization in HRM procedures. According to Azungah (2017) in hrm assignment, Western multinational businesses operating in Ghana employ an ethnocentric approach to business practices. In the Republic of Slovakia, MNCs' subsidiaries either standardised or localised their HRM practices as a result of the ethnocentric and polycentric strategies that companies employed to manage HRM in their subsidiaries (Chiang et al., 2017).

MNC company's HRM strategies beyond the border
The foreign investment market in Vietnam's consumer goods sector is dominated by multinational businesses, and they are also aggressively seeking to enhance their position in the market (Gozman and Willcocks, 2019).As per the hrm assignmentmost people are familiar with Unilever and P&G as global leaders in the "FMCG" (Fast Moving Consumer Goods)industry.The aim of the companies is Clear and specific, yet flexible enough to meet the changing conditions. On the other hand, Compliance with all proper laws along with the regulation helps to implicate the HRM policies in a proper way to increase business beyond the border. Figuring out all the factors under the HRM policies of the organisation, which is in an operating stage for the continuation of the business in a proper way. They own a large number of well-known brands that are well-known not only in Vietnam but also in many other countries. In the fast-moving consumer goods (FMCG) industry as per the hrm assignment, these two firms collaborate and have several direct brands that compete with one another in the market (Tien, 2019). Watching the competition in the global cosmetics business between Procter & Gamble, Unilever, and L'Oréalis always fascinating. For the past ten years, Unilever and P&G have been battling it out in Vietnam, and it appears that the battle will continue to grow (Tien, 2019).

The key area which is affecting the MNC companies across the borders
Multinational businesses (MNCs) have been studied extensively for their labour management practices. A wide range of themes has been examined in this hrm assignment, including whether and how MNCs spread their practices across their foreign operations, the impact of MNCs on labour standards, and the nature of "global leadership" (Mendenhall et al. 2017).According to some hrm assignmentexperts in the field of international human resource management (IHRM), MNCs from emerging economies now account for roughly a third of all foreign direct investment (FDI), up from less than 10% in 1990 (United Nations, 2017).

Multinational corporations (MNCs) frequently transfer HR policies and practices "forward," and "reverse," implying that the transfer may be compensating for what the MNC perceives as deficiencies in the home country's HR policies and practices. It is possible to find examples of both of these in the written hrm assignment. Lastly, and perhaps most importantly, global firms often come from places where institutions are often viewed as inadequate (Fainshmidtet al., 2017). Research on how companies' roots in home country institutional configurations influence their motivation and capability to engage in either one or the other is few, and there is almost no hrm assignmentresearch on how this relates to “multinational corporations (MNCs)” (Khan et al. 2018).

Recruitment and selection
EPRG Framework in hrm assignment
Ethnocentric Orientation
According to this hrm assignment, the management of the MNC Company believes in the practice of the markets in the home country, which will help to secure it in the international markets. On the other hand, this also required no adoption policies for creating a new business in foreign countries (SZABÓ, 2022). In the terms of the orientation of the foreign markets is based on the arms according to the excitement of the domestic markets in the third country (Otoo, 2019).For example, at Walmart which is an MNC company in the foreign market strategy is to start from the home country (Govindarajan and Gupta, 2002). On the other hand, according to this hrm assignment, there are no differences or little in the products and the services of the company, price and also the promotion is measured according to the international markets.

This helps to create better coordination between the home and the international markets. This also helps to save the cost of hiring employees in the foreign markets as the officials can migrate from the home country whenever required. As per the hrm assignmentthe parent company have a better observation of the operation along with effective control of the subsidiary.

Example:Nissan is one of the biggest automobile companies' earliest exports from Japan and was designed for the mild Japanese winter (IANS, 2022). On the other hand, when the products are exported to the country USA the automobile country gets difficult to perform its service.

Polycentric Orientation
This type of orientation in the hrm assignmentis different from the ideologies of the ethnocentric orientation. The management of the company under the approach believes that all the market strategies are different from each other, according to the nature of the markets and there needs of the consumers. On the other hand, this orientation has complete autonomy based on the subsidiary for formulating its own markets (Sherry, 2021). Along with the execution plan based on operational strategy in the international markets mentioned in thehrm assignment, the executives from the host countries carry out the proper decision-making.

This helps the management of the company by lowering the manpower cost, which does not require specialised manpower from the home country. On the other hand, local official knowledge will help the MNC Company about the local markets, which helps the management of the company carry out the decision-making in a proper way (Alonet al. 2020).

Example: MC Donald in the hrm assignmentis one of the prominent examples of the polycentric orientation strategic business, as the company set the menu according to the preferable menu in the home country and provides the changes of the menu according to the international markets (Hafet al. 2019). The company is also provided vegetarian meals with the preference of the customers.

Regio-centric orientation of EPRG frameworks
In this approach, the management is of the mindset that similar countries that happen to exist in the identical region are self-same in identity. This means that strategies that are highly constructed and developed for the home country can work very well manners in these regional countries also (Meyer et al. 2019).As per the hrm assignment the management of the MNC Company determines the economic, social and political similarities between the native along with the overseas region and satisfies similar needs and demands of the consumers.
Culture fit is the biggest advantage for recognising the manager of the particular area of the setup of the company. On the other hand, the customers from the same region have similar likeability and hence it is easy to communicate and deliver to them according to the hrm assignment.
Example: Coca-Cola has been using a Regiocentric approach in formulating its messages for a basket of countries which includes India, Pakistan along with Bangladesh (Sherry, 2021).

Geocentric Orientation in EPRG Framework
Geocentric orientation is a truly global orientation. The management with this mindset observes the whole world as a potential market for thehrm assignment. The management considers that there is minimal non-similarity in terms of marketing environment amongst different international countries. On the other hand, it is most recommended for a company to keep a ‘world Oriented’ view rather than a centric specific nation, multi-domestic approach (Alugbuoet al. 2022).As per the hrm assignmentthe management figures out the similarities as well as differences between markets along with the countries and seeks to create a global strategy responsive to local needs. A geocentric approach makes it possible for the business orientation to be competitive wherever the MNC companies are launched. On the other hand,

Example:KFC has a ‘vegetarian thali’ and a Chanasnacker to cater to vegetarians in India (Prabhakar, 2012). Viacom’s MTV channels are branded regarding the country they are operated in namely MTV India, MTC China, MTV Korea and many more.

A single hrm assignmentof a French multinational corporation such as Total indicated that the company might increase its efficiency by converting from an ethnocentric model to a geocentric model and filling its top managerial positions with foreign candidates from wherever such individuals could be found (totalenergies.com, 2022). Due to cultural differences mentioned in the hrm assignment, MNC subsidiaries operating in foreign countries will have to adjust numerous HRM practices, such as staffing, training and development; compensation; industrial relations; employee engagement; health and safety; and employee communication. Standardisation along with the transfer of human resources management practices to foreign subsidiaries has been hampered by cultural differences in its native nation as well as its foreign subsidiaries (Sposato and Rumens, 2021).

Respondents of the hrm assignmentare requested for their permission to conduct an interview, and they are kindly told to omit any personal questions they are uncomfortable answering. A job offer will be forthcoming in the form of an offer letter for those applicants who were shortlisted after the department gave its final clearance through the executive responsible for the matter. If applicable, the letter will also include information such as the employee's title, grade, and date of hire. ASDA-Walmart, a well-known American retail grocery chain, was one of the companies taking part in this field study in the UK (Alamet al., 2018). As a result of the company's need to fill four hundred open positions (from Southgate to North London and from ASDA in hrm assignment), it advertised the opening of a new store online and through the job Plus Centre (Kirby, 2000).

Training and development of employees
McDonald’s give focuses to attract and hire the best in the work environment needed to thrive. As per the hrm assignmentall businesses experience staff attrition along with turnover, and this is all the more in the world of retail and fast food. Recruiting as well as training staff is very expensive and one way of keeping this to a minimum is to choose people wisely and treat them well (McDonald, 2019).To ensure the company recruits the right people along with delivering a better service, it has the same essential skills as well as behaviours that applicants should be able to provide a proper demonstration. For each position, there is a job description outlining typical duties along with the responsibilities as well as a personnel specification defining personal skills and competence. To fulfil a customer's order as per thehrm assignment, a product must first be packaged, then shipped to the customer's location, and finally, payment must be processed (Phathakul, 2019).

Rewards system
There are various unique components to Unilever's payment plans, such as fixed pay, part-time pay, and so forth. The pay is set as per the hrm assignment, and the goal is to support employees based on their abilities, performance, experience, and roles within the company. Monthly cash payments are the norm for the fixed payout. Perks-Unilever provides a wide range of benefits to its employees, all of which are designed to assist them both financially and practically. Medical and disability insurance, as well as death and directors' liability insurance, are included in these benefits (Nahar and Zayed, 2019). Based on a company's annual business strategy and ability to adjust costs, an annual bonus may be granted. Other executive directors according to the hrm assignmentreceive a bonus of 120 per cent of their annual salary, but the CEO gets a bonus of 150 per cent. Executive directors will be able to participate in the “Management Co-Investment Plan (MCIP)”, which is commonly known as a matching share plan (Nahar and Zayed, 2019). The various fringe benefits provided by the company mentioned in the hrm assignmentare different across the borders as vary from one company to another. On the other hand, MNC companies provide the opportunity to the employees to utilise the benefits that will be provided to the employees during a certain period of time (Modisane, 2019). Hence, this will provide a better opportunity for the employees to get retained in the organisation for a long time for the betterment of the company.

On the other hand, the salary structure of the employees is determined by the management of the companies according to the work outputs of the employees. Similarly, the salary structure is sated by the way of the expenditure ratio of the country (Akpuruku and Onuoha, 2019). As per the hrm assignmentwhenever a company is set a business in a foreign land; they usually use the local currency to maintain the proper cash flow in the markets. This will also help the company to retain employees in large numbers and also helps to increase the potential of the work.

Performance management
In the literature on hrm assignment, it is often recognised that the presence of cultural diversity among the members of an alliance can have a detrimental effect on the partners' ability to innovate. MNCs claim that innovation is considerably more difficult in partnerships involving subsidiaries of "multinational companies (MNCs)" because these subsidiaries have a dual heritage that encompasses the cultures of both their home country and the place in which they are now operating (Pananondet al., 2020). According to EPRG frameworks mentioned in the hrm assignment, performance management changes according to the diverse culture and the needs of the customers.

Conclusion
The above hrm assignmentessay discusses that Human resources management includes more than just the organisation of a working system and the practice of hiring. However, human resource management (HRM) takes into account both the individual and group management aspects of managing people. On the other hand, the hrm assignmentessay also concludes that Managers from all levels of an organisation must work together to ensure that the right message is delivered to all employees, regardless of their role or position. Technology had recently impacted physical or mental health services when the industrial revolution was a factor in human resource management's development. The strategic management of MNCs is also critically discussed in the report, which concludes the several criteria such as performance management, rewards system, and many more. The hrm assignmentessay shows that multinational corporations (MNCs) sometimes engage in "forward" diffusion of HR policies and practices, which suggest that institutions in the home country constrain transfer, and sometimes engage in "reverse" diffusion, which suggests that transfer may be compensating for what the MNC sees as deficiencies in the context of the home country.

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