Multinational corporation management strategies and international human resources practices: bringing IHRM to the bottom line

This paper examined the relationship between multinational corporations' global management strategies and the resulting international human resource practices. Four global strategies, which vary in their extent of global integration and local responsiveness, were examined (ethnocentric, regiocentric, polycentric and geocentric). Data from international human resource professionals in forty-six companies generally supported the hypothesis that HR practices (recruitment, selection, socialization) varied by global strategy. In particular, strategies varied especially between the ethnocentric and geocentric companies. These strategies were further found to be related to a composite Multinational Corporation Success Index of economic variables (return on capital, sales growth, return on equity, profit margin). Companies which had ethnocentric strategies were found to be less successful than companies operating under any of the other three strategies. Findings suggested that local responsiveness should be incorporated into the global strategy of multinational companies. Recommendations for international human resource practices based on these results have been given.     

Vive les différences? Voice in French MNCs' overseas workplaces: a comparative study of voice in French,German and US subsidiaries in the UK

Foreign-owned firms help to disseminate management practices across UK companies; this includes the ability of indigenous firms to learn improved human resource management (HRM) practices from leading foreign companies. Analysing the transfer of HRM policies forms an important strand of the international HRM and comparative capitalisms literatures; however, large-scale, comparative studies of voice patterns in German, US and, in particular, French subsidiaries in the UK are limited. This paper draws on a major survey that includes the, to date, largest sample of French MNC subsidiaries. It does not simply identify the existence of different kinds of voice mechanisms, but examines how these different practices come together in the implementation of subsidiaries' voice policies. This enables the detection of subtle, but important, differences in the subsidiaries' voice practices. French subsidiaries are significantly less likely to pursue a partnership approach to voice than their German and US counterparts. French and US establishments are significantly more likely to adopt a ‘bleak house’ approach than German ones. Importantly, these key differences only emerge at a fine-grained level of analysis that examines how subsidiaries implement voice practices.     

Liability of Asianness? Global talent management challenges of Chinese,Japanese, and Korean multinationals

Within a short time, China, Japan, and Korea have produced worldwide leading multinational enterprises (MNEs). As they expand globally, these companies face major challenges in global talent management (GTM). This article provides a comparative analysis of the major GTM challenges MNEs from these countries experience and the underlying reasons thereof. Our comparative overview reveals similarities in ethnocentric staffing, traditional headquarters-driven organizational cultures, and home-country language policies. While there are striking differences in performance appraisal, reward and compensation, and promotion and career advancement, these GTM practices of Chinese, Japanese, and Korean MNEs are converging to Western style global best practices, though at different levels. Building on and enriching the convergence debate and the distance literature, we identify organizational and country characteristics that help better understand the reasons for these similarities and differences.     

MNC's competitive strategies,experiences, and staffing policies for foreign affiliates

This study investigates the relationship between the strategic role of a multinational corporation's (MNC) foreign affiliates and its international staffing policy. Specifically, this study examines how an MNC's decision on expatriation is affected by strategic roles assigned to foreign affiliates: global integration of activities versus local market seeking. An empirical study is conducted using a sample of 808 foreign affiliates of Japanese firms. The research findings suggest that strategic roles of foreign affiliates alone may not adequately explain the international staffing policies of Japanese MNCs. Rather, we found a significant moderating effect of international as well as host country experience on staffing practices for foreign affiliates. While the staffing policies of MNCs striving for improving global efficiency of their operation are moderated by both international and host country experience, those seeking a specific local market position are influenced only by host country experience.     

A study of the employment system of Japanese multinational retailers in Hong Kong

This study examines the employment system of Japanese multinational retailing corporations in Hong Kong through two case companies - Morioka and Okadaya. The human resource management (HRM) practices- recruitment and selection, remuneration, and training and development - of the companies are studied. The different HRM practices applied to different groups of employees within each case company are compared using an employment systems model. The employment system is structured and multi-layered. The development of the structured employment system is then analysed in relation to the cultural and sectoral factors. It is shown that only the cultural characteristics of the Japanese parent companies can explain the ethnocentric management approach used in which Japanese personnel are employed in the internal labour marker (ILM) and local employees are employed outside the ILM. Economic and labour market conditions in both parent and host countries and sectoral characteristics have also contributed to the stratification of the employment system among the local employees. The implications of this study are that the long-term development of Japanese multinational retailers will be weakened if the structured employment system persists.     

Human resource management and early internationalization: is there a leap-frogging in international staffing?

The present study focuses on the international staffing of early internationalizers by linking the Ethnocentric, Polycentric, Regiocentric, and Geocentric (EPRG) concept with the Process Theories of Internationalization. On a dataset of 116 (N) German medium-sized companies, we test whether the determinants which allow firms to internationalize shortly after their inception, namely prior international experience, technological intensity, and networks, influence the firms' international staffing. We further elaborate whether this influence differs between early and late internationalizers. The empirical results show that prior international experience is not associated with the firms' international staffing at all, and thus, does not allow conclusions. Technological intensity increases the probability of the choice of an ethnocentric staffing policy, especially for early internationalizers. In contrast, networks enable firms, especially early internationalizers, to pursue regiocentric or geocentric staffing policies.     

SIMPLY A QUESTION OF CULTURAL BARRIERS? THE SEARCH FOR NEW PERSPECTIVES IN THE TRANSFER OF JAPANESE MANAGEMENT PRACTICES

This paper discusses the transfer of management practices from parent companies in Japan into the operations of overseas subsidiaries of Japanese enterprises. the literature reviewed as well as the findings of case studies on human resource management practices in Japanese manufacturing firms in Australia suggest that key but rather high-cost practices associated with Japanese management including tenured employment, seniority-based remuneration and the provision of extensive welfare benefits are absent in overseas Japanese firms. On the other hand, relatively low-cost practices such as internal training, internal promotion and job rotation have been generally introduced into the firms researched. It appears, therefore, that the transfer of Japanese management practices is primarily affected by economic considerations rather than socio-cultural constraints as it has frequently been argued in the literature. Thus, the development of new theoretical frameworks explaining the transfer (or its absence) of Japanese management practices is essential. the paper takes a small step in this direction by suggesting that the overseas expansion of Japanese subcontracting networks including large-scale corporations as well as smaller size firms, produces conditions leading to the marginalization of segments of the local labour force and the emergence of the core-peripheral workforce dichotomy at the international level.     

International recruitment and selection practices of South Korean multinationals in China

South Korean multinational enterprises (MNEs) have developed rapidly since the late 1950s. However, there is little research on, and hence little is known about, how South Korean MNEs manage human resources in overseas operations. To fill this gap, in the literature the current study investigates South Korean MNEs' international recruitment and selection policies and practices in their Chinese operations. It reveals that South Korean MNEs tend to adopt the polycentric approach or a mixed approach of being polycentric and ethnocentric to international staffing, with the number of expatriates dropping gradually over time. South Korean MNEs adopt ‘one-way selection’ in recruiting and selecting expatriates, and localise recruitment procedures and selection criteria for host-country nationals. South Korean MNEs have paid inadequate attention to: first, expatriates' career development; and second, personal and family issues emerging from expatriation and repatriation.     

The emergence of the pluralism construct and the inpatriation process

The concept of centric (i.e. ethnocentric, polycentric, regiocentric and geocentric) orientations, applied to strategic international human resource management (SIHRM), has been argued to reflect the corporate top management dominant logic of managing and staffing multinational subsidiaries in hierarchical multinational corporations (MNCs). In this paper, we introduce a new, complementary concept of pluralistic strategic global human resource management (SGHRM) orientation for network-oriented global organizations. Moreover, we develop an integrative framework for SIHRM/SGHRM orientations, which accommodates both centric and pluralistic perspectives. The dimensions used in the framework development include: 1) nature of the headquarters-subsidiary exchange (transactional/relational); and 2) the differentiation of dominant relational norms governing co-operation in the multinational network (obligatory/consensual). By focusing on the interaction between formal and informal contractual and normative dimensions, we derive four distinct SIHRM/SGHRM orientations (exportive, adaptive, integrative and pluralistic). This conceptual framework offers insights into how the innovative global staffing practice of inpatriation may foster the emergence of the unique outcomes of social capital, trust, commitment and legitimacy in global networks.     

Transfer of HRM practices across cultures: An American company in Scotland

This paper reports the findings of a case study into human resource management (HRM) policies and practices of the Scottish subsidiary of an American multinational firm. The study is discussed within the debate on transfer of HRM practices between nations, and on subsidiary - parent company relationships. The paper makes a distinction between HRM policy on the one hand, and HRM practice on the other. It will be argued that whereas companies might find it feasible to have company-wide policies , they might find it unavoidable to be responsive to local conditions when it comes to HRM practices . Further, it will be argued that some practices can be transferred across nations almost without any change from one country to another. Some must be modified to become workable in another setting. And some are more deeply culture-specific and may not always be transferable. The findings of the study support the argument that multinational companies' management practices are more prone to local cultural influences than are their overall policies and strategies. Moreover, some of the practices which the company had imported from abroad had to be modified to make them workable, given its local cultural and non-cultural contexts. These local contexts had at the same time affected the relationship between the Scottish subsidiary and its parent company. The study found four clusters of factors which intervened in this relationship. A dynamic model of subsidiary-parent company is proposed to elaborate such an intervention. On the basis of the study it is argued that HRM in a foreign subsidiary is a complicated matter. The choice between one of three major options, polycentric, ethnocentric, and global, advocated by many scholars, is found to be too simplistic a model for understanding what actually goes on in a subsidiary and between it and its parent organization.     

Human resource management and organizational strategies in German- and US-owned companies

The development of the international economy over the past twenty years has bred considerable diversity in the form and substance of employment relations (labour-management relations, human resource management practices) throughout the world. Cases of ‘social partnership’ are today found in the ‘free market’ United States economy; some companies operating in Germany's ‘social’ market economy are rejecting traditional forms of social partnership in the name of more unilateral strategies.

This paper examines (a) the extent to which ‘strategic diversity’ – variation in human resource strategies and policies – is possible within the heavily institutionalized, co-operative and codeterminative German economy, and (b) how managers perceive the effects of different kinds of HR approaches on organizational change and industrial adjustment. It is based on empirical evidence drawn from seven large chemicals companies operating in Germany – three of them US-owned firms and four German-owned.

The main conclusions are that considerable strategic diversity is possible within the German context, and that managers perceive distinct costs and benefits to specific aspects of the typically American ‘unilateral’ style and the more German ‘negotiated’ approach to structuring the relationship with human resources. The paper concludes with a discussion of the implications of these trade-offs for the transferability of HR strategies across international borders, giving special attention to policies to avoid some of these potential costs.     

A study of HRM and recruitment and selection policies and practices in Taiwan

In this paper, the authors present and discuss the findings of a survey of human resource management (HRM) and recruitment and selection policies and practices in a sample of manufacturing industry in Taiwan. The results indicate that there is a general desire among HR professionals in participant companies that HRM policies are integrated with corporate strategy and that HRM should be involved in decision making at board level. Evidence was also obtained that some HRM decisions are shared between line management and HR specialists and that line managers had a particularly influential role in decisions regarding recruitment and selection, training and development, and workforce expansion/reduction. There was also some evidence supporting an assertion that certain recruitment and selection practices were culturally sensitive and this was supported by evidence of association between recruitment and selection practices and country of ownership.     

Demise of “permanent employment” in Japan

The increasing volatility of industrial business cycles is forcing Japanese companies to institute a variety of human resource management methods which are eroding the principle of permanent employment. The transition from permanent employment to more flexible employment practices reviewed here is an example of how human resources can be managed to maximize a firm's competitiveness and effectiveness.     

A dominant archetype of the HRM system in Russian industrial companies in post-recession times

Russian human resource management (HRM) practices remain durable even with the onslaught of economic change and exposure to global HRM practices and international competition. Based on survey results of 201 CEOs of domestic industrial companies located in central regions of Russia we identify the resilient archetype of Russian HRM system. Even companies that have achieved high levels of profitability or those that engage in innovations continue to practice retrograde HRM techniques left over from an earlier era. We are able to identify strategic misfits that are a direct result of the continuation of rigid HRM system that prevents the development of an organizational climate to support innovative or dynamic firms.     

Managing Human Resources in South Africa: A Guide for Internationals

ABSTRACT

With the political changes that took place during 1994 within South Africa, the country again, after many years of economic isolation, became a full member of the international community. Since then, many South African companies have attempted to become more competitive, and many international companies have shown a keen interest in doing business in the country. As a result of the important role that human resource management practices can play to help companies prosper and become successful, an investigation was undertaken within companies to establish to what extent HR practices were being applied. The results of the study are reported in this article.     

Using human resource management to enhance competitiveness: Lessons from four excellent companies

Recent research has emphasized the strategic focus that human resource management must have in order for an organization to fully utilize its human resources in a competitive market. However, few empirical studies have been done to date regarding how human resource planning should be linked to strategy. An extensive in-depth study of four large, complex, and very successful companies supports the widespread belief that human resource management can be a powerful tool to enhance competitiveness when policies and practices are logically driven by a firm's strategy and by the key environmental factors it faces. This article describes that study and looks at how the areas of selection, appraisal, reward, and development are handled by these firms. Based on both the specific policies and the actual practices as perceived by middle managers (those that implement the policies), the article presents a contingency framework which offers guidelines as to how certain HRM practices should be implemented to gain competitive advantage.     

A theory-based framework for strategic global human resource staffing policies and practices

As multinational enterprises increasingly globalize their operations, managing international human resources strategically becomes a critical factor contributing to overall organizational performance. The strategic management of international human resources has received extensive attention, focusing on staffing issues related to expatriate assignments. However, empirical findings indicate limited success of expatriation as an effective method for managing the breadth of international human resource opportunities. As market opportunities increasingly shift to countries with high cultural distance from the parent organization and as organizations evolve their strategic orientation from multinational to global activities, it appears that an exclusive reliance on expatriation-based staffing will impede effective management of international human resources staffing. The objective of this article is to review and clarify a theory base that can support a range of international human resource staffing systems that might be implemented in a global environment. This discussion uses the combined perspective of agency and expectancy theories and discusses conditions under which specific strategic staffing choices might be most effective.     

Australian expatriates in Thailand: some insights for expatriate management policies

Expatriates are critical to the navigation of an increasingly complex international business world and, as such, the demand for their skills, knowledge and experience, as well as their supply, needs to be better understood. Furthermore, the role of human resource policies is of key concern in ensuring the right people are chosen to represent companies in overseas locations, as is the provision of pertinent support policies, such as preparation for overseas assignments and cross-cultural training. The purpose of this research is to examine these issues with the focus on Australian expatriates in Thailand. A questionnaire survey was conducted of members of the Australian-Thai Business Council in Thailand, an association representing Australian expatriates, in 1999. The findings provide some insights for expatriate management policy, including the notable conclusions that the market for expatriates is changing and becoming more demanding and that the imperatives of the emerging global market for human capital require a much more structured approach to expatriate management development.     

Evaluating levels of strategic integration and devolvement of human resource management in India

This paper analyses the levels of 'integration' of human resource management into corporate strategy and 'devolvement' of responsibility for HRM to line managers in India. The findings are based on a large questionnaire survey run in 137 firms in six manufacturing industries. The survey results are further supplemented by twenty-four in-depth interviews in the same companies. Results show a low level of integration and devolvement practised in Indian organizations. A number of contingent variables and organizational policies were found to determine the levels of integration and devolvement in Indian organizations. India is mapped on the integrationdevolvement matrix of ten European countries, showing similarities with the UK, Italy and Germany.     

我国物流企业人力资源管理实践调查——基于人力资源管理最佳实践

为深入调查了解我国物流行业人力资源管理状况,考察当前我国物流企业人力资源管理实践水平,丰富国内物流行业人力资源管理相关研究,本次调查基于人力资源管理最佳实践理论,收集了133个国内物流企业有效样本进行分析．探讨了当前我国物流企业人力资源管理主要职能的实践情况,对物流企业深化人力资源管理认识,提高物流企业人力资源管理水平具有一定的意义.