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 goal is to provide a unique competency of a whole instead of sperate business units. This is achieved by hiring managers and staff from the same nationality as the parent company. This is effective in communication between the headquarters and the subsidiary company. The manager also has close operations of the subsidiary company.

• Polycentric is the company hires a manager from the host company and trains them of the operation of the company. The benefit of this is the manager has an understanding of the cultures and traditions of the country the company wants to venture into. In this strategy the company is more interested in sales and service rather than culture and tradition. The subsidiary company runs independent of the parent company and it is up to the manager to perform the goals of the parent company.

• Geocentric is the hiring of management from all over the world regardless of their nationality or origin. Since company are becoming global, some companies understand that there is a pool of educated staff all over the world. Therefore, they do not look for culture or traditions, but instead look for talent and experience from around the

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