Internationalisation & HRM Practices of Emerging Economies’ Multinational Corporations Across Subsidiaries

Theory into practice: final report

Project Report , 2013 , 30 Pages , Grade: B

Business economics - Business Management, Corporate Governance

The current era is very often termed as New Geography of Investments. It has also been examined that Developing and Industrialised Economies are listed first in the categories of top five economies from where MNCs come. UNCTAD (2004) has classified developed economies into two two groups: Newer Industrialised (Singapote, Taiwan and South Korea) which are successful in establishing good track record and sometime also known as outward investors and the second group is of Rapidly Developing Economies (China and India). The core objective of this report is to discover how MNCs are forming their HRM strategies within the emerging econimies and how much they are successful in aligning their HRM practices with their main business strategies and also with operational activities. This report will be useful in the identification and the analysis of travel of ideas between MNCs residing in East and West in relation to the their purpose and opportunity in accordance to the Human Resource (HR) practices and policies cross national transfer. The case study on Alpha Services provide some interesting insight about the way in which emerging economies’ MNC strategizing and managing their operations in different regions. It has been understood that Indian MNCs are facing many problems in reorganizing their internationalization strategies. Correspondingly, the company’s corporate coordination and control mechanism are highly influenced by multiple issues that the company is facing as MNC from the emerging economy. The approach of Alpha Services in regard to the adoption of performance indicators from its major US based business solution company and then to make those indicators as an integral part of company’s PMS (Performance Management System is seems to be a clear indication of adaptive approach implication specifically for the purpose of management of its subsidiaries located in developed markets. Similarly, the management of Alpha Services does not reflect ethnocentric or exportive approach in managing its subsidiaries in developing markets. It has been shown the unlike markets of US and UK, the company’s managers remain unfamiliar with the Chinese business & cultural environment and left this responsibility to the local managers (with broad corporate oversight) in supervising the company’s operation in China. In 21st Century (Knowledge Economy) it has been seemed that industries like creative & services are dominating the economic paradigm where the til

Inhaltsverzeichnis (Table of Contents)

• Chapter-1: Aims & Objectives
• 1.1. Background to the Project
• 1.2. Motivation for Tackling Project
• 1.3. Aims & Objectives
• 1.4. Method of Analysis
• 1.5. Summary
• Chapter-2: Literature Review
• 2.1. Effect of Country's Origin on Strategy
• 2.2. Conceptual Framework
• 2.3. Influencing Factors
• 2.4. Subsidiaries' Control in Developed Markets
• 2.5. Subsidiaries Control in Emerging Markets
• 2.6. Indian Multinational Corporations (MNCs)
• 2.7. Summary
• Chapter-3: Case Study & Discussion
• 3.1. Case Study
• 3.1.1. Company Profile
• 3.1.2. Organisational Systems & Structure
• 3.1.3. International Business Strategies
• 3.1.4. Global Staffing & HR Systems
• 3.2. Discussion
• 3.3. Summary
• Chapter-4: Conclusion & Recommendations
• 4.1. Conclusion
• 4.2. Recommendations
• Chapter-5: References

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This report focuses on the international human resource management (IHRM) practices of multinational corporations (MNCs) operating within emerging economies. The main objective is to explore how MNCs from these economies develop their HRM strategies and the degree to which they succeed in aligning these strategies with their overall business objectives and operational activities. The report investigates the transfer of HR practices and policies across national borders, focusing specifically on the transfer of ideas between MNCs based in the East and the West. Key themes explored in this work include:

• The impact of country of origin on MNC strategy
• The role of emerging economies in the global economy
• The challenges and opportunities of managing subsidiaries in developed and emerging markets
• The adaptation of HRM practices in response to different business environments
• The influence of cultural differences on HRM practices

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter-1: Aims & Objectives

This chapter provides background information on the project, outlining the motivation for tackling the chosen topic and the aims and objectives of the report. The chapter introduces the concept of the "New Geography of Investments" and highlights the growing significance of emerging economies in the global economic landscape. It emphasizes the importance of understanding how MNCs from these economies are developing their HRM strategies to succeed in a globalized world.

Chapter-2: Literature Review

This chapter delves into existing research on the topic of international human resource management (IHRM), exploring various theoretical perspectives and frameworks. It examines the influence of a country's origin on MNC strategy, the conceptual framework of IHRM, and the factors influencing the implementation of HR practices across different markets. The chapter also discusses the specific challenges and opportunities faced by MNCs from emerging economies, particularly in the context of managing subsidiaries in both developed and developing markets.

Chapter-3: Case Study & Discussion

This chapter presents a case study of Alpha Services, an Indian multinational corporation, and analyzes its HRM practices. The chapter explores how the company has developed its international business strategies, including its global staffing and HR systems. It examines the company's approach to managing subsidiaries in different regions, highlighting the challenges and opportunities associated with operating in both developed and emerging markets. The chapter also discusses the company's adaptive approach to implementing performance management systems and its use of cultural sensitivity when managing operations in different countries.

Schlüsselwörter (Keywords)

The key terms and concepts central to this report are Multinational Corporations (MNCs), Strategic International Human Resource Management (SIHRM), Internationalization, Developed Economies, Emerging Economies, Human Resources Practices & Policies, Ethnocentric Approach, and Exportive Approach. This report explores the HRM strategies of MNCs from emerging economies, examining their internationalization efforts and the challenges of adapting their practices to different global contexts. The research focuses on the interplay between cultural differences, organizational structures, and performance management systems in a globalized world.

• College: University of Bedfordshire
• Course: MASTER OF BUSINESS ADMINISTRATION
• Grade: B
• Author: Junaid Javaid (Author)
• Publication Year: 2013
• Pages: 30
• Catalog Number: V267426
• ISBN (eBook): 9783656591313
• ISBN (Book): 9783656591320
• Language: English
• Tags: internationalisation, practices, emerging, economies’, multinational, corporations, across, subsidiaries, theory