Multinational Human Resource Management Essay Example | Topics and Well Written Essays - 1750 words

Multinational Human Resource Management - Essay Example However, many HR managers in multinational companies face complex issues in business operation because culture changes from one business environment to another. One of the cultural frameworks that remain widely used across the global is Hofstede’s cultural framework. This framework is significant for multinational companies, but it also creates complex issues to managers in the process of policy implementations and practices. Culture impacts the role of HR managers when they attempt to address the issue of cultural differences on HR system change. 3Ghemawat and Reiche argue that the greater cultural distances among host and home companies, the complexity in the change process. Many companies employ the approach of Hofstede of national cultural differences, which include power distance, individualism, masculinity, uncertainty and Confucian dynamism in establishing a relationship and various outcomes. Managers use high performance work system practices in relation to Hofstede cu ltural dimensions in various ways in order to create organizational transformation. However, the national cultural differences vary from one country to another; hence, they impact effective organizational performance from multinational companies. The legal and regulatory environment varies from one state to another in which these multinational companies are situated. Labor union is one of the institutional factors that impact beliefs and organizational norms within the associate companies. Many countries have varied laws that protect employees who participate in unions in order to support employment stability and compensation practices. For instance,... This paper stresses that foreign corporations seeking to execute policies and practices of western management approaches often face diverse personal issues . This results due to a different context of institutional regulations and cultural aspects where companies operate. Companies employ conceptual framework that emphasizes on HR management practices and the main issue related to adaptation of diverse policies at the national context. For instance, China is one of the countries that face varied issues in an attempt of using western managerial approach especially in recruiting are training employees with suitable or professional qualifications. Companies in varied nations differ with respect to their human resource management policies and practices. This essay makes a conclusion that cultural difference is one of the critical elements that have restricted HR managers in multinational companies from achieving their stated objectives. They force multinational companies to alter their trade practices and strategies in environment they operate. Labor union is one of the institutional factors that impact beliefs and organizational norms within the associate companies. The determinant of human resource transfer by multinational companies is high rooted to a larger extent in current institutional theory. Managerial values, leadership roles and managerial behaviors vary across nation cultures and institutions; thus, they can impact the performance for multinational companies.