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Human Resources Practices In Multinational Companies

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1.0 Introduction The case study researches the converging and diverging of human resources practices in multinational companies. The report will analyze the decision making on interrelationships between national and global companies. International and comparative human resources are playing a major part in companies that decide to enter into the multinational global business. As opportunities arise to expand a company globally, CEOs and managers focus on issues associated with the culture, traditions, and training in different countries. In order to survive in the competitive market, human resources play a major part in the company’s success. Jeremy on his article writes “According to HR management expert John Bratton, "Strategic human resource…show more content…
This focus is important in growing the company and staying competitive in the market. The company’s effort on managing human resources when using subsidiary companies and maintaining their core values and goals. As stated in ICMR case study “HRM is a strategic function concerned with recruitment, training and development, performance appraisal, communication and labor relations. HR policies guide the various functions of HRM. The need for a particular type of HRM is determined by the need for standardization or adaptation” (ICMR center for management research, 2011). The standardization fit under three categories. Polycentric tactic is used multinational, Ethnocentric method is used international, and Geocentric staffing approach is…show more content…
The executives find that their upper managers are not qualified to find and recruit staff for their over seas businesses. Bloom and Quelch in their research at the Wharton University claim “The scarcity of qualified managers has become a major constraint on the speed with which multinational companies can expand their international sales. The growth of the knowledge-based society, along with the pressures of opening up emerging markets, has led innovative global companies to recognize now more than ever that human resources and intellectual capital are as significant as financial assets in building sustainable competitive advantage” (Quelch, 1999). Companies that plan to expand into other markets, would benefit extremely by understanding the hiring and training that other companies do to stay profitable. In order to compete in the new market, they are obligated to hire the right people for the job and limit the amount of turnover of staff. The companies must pay their star employees a decent amount or even higher amount if necessary to keep the skilled manager from jumping ship and work for its
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