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
Table of Contents
Chapter-1: Aims & Objectives
1.1. Background to the Ptoject
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
Objectives and Core Topics
This report aims to investigate how multinational corporations (MNCs) from emerging economies formulate their human resource management (HRM) strategies and align these practices with their broader business objectives. The central research focus is to analyze the cross-national transfer of management ideas between MNCs in East and West, specifically evaluating the challenges faced by emerging economy MNCs regarding their internationalization strategies and subsidiary management.
- Analysis of HRM practices in emerging economy MNCs
- Evaluation of corporate coordination and control mechanisms
- Investigation of the "liability of origin" and "liability of foreignness"
- Case study analysis of an Indian IT multinational corporation
- Examination of adaptive versus ethnocentric management approaches
Excerpt from the Book
3.1.1. Company Profile
Alpha Services is determined as the one of top 5 Indian MNCs in the sector of IT consultation and services. The company’s annual turnover is $2.5 blllion and has operations in more than 44 countries and has employed around 45,000 professionals. The company is mainly opeating in three business seegments: IT services, software products and Business Process Outsourcing (BPO). The company has been providing business solution to different industrial segments (Telecommunication, Manufacturing, Infrastructure Development, Retail & Marketing, Banking & Finance, Insurance, Transportation and Healthcare) of world. The company is listed on two famous stock exchanges (New York & Mumbai). The company’s vision is to be listed upon five most valuable corporation in the field of BPO companies and integrated IT services in next five years (Thite et al., 2010).
Summary of Chapters
Chapter-1: Aims & Objectives: Introduces the research scope regarding the internationalization of emerging economy MNCs and the specific focus on HRM practices.
Chapter-2: Literature Review: Provides a theoretical foundation covering institutional theories, the effect of country of origin on strategy, and established models for subsidiary control.
Chapter-3: Case Study & Discussion: Examines a specific Indian IT multinational through a case study, detailing its structure, business strategies, and HRM systems, followed by an analysis of findings.
Chapter-4: Conclusion & Recommendations: Summarizes the key insights derived from the research and offers recommendations for future management strategies and academic research.
Keywords
Multinational Corporations, MNCs, Strategic International Human Resource Management, SIHRM, Internationalisation, Developed Economies, Emerging Economies, Human Resources Practices, Policies, Ethnocentric Approach, Exportive Approach, Adaptive Approach, Global Staffing, Corporate Coordination.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper focuses on the internationalization and human resource management (HRM) practices of multinational corporations originating from emerging economies, specifically examining how they manage their subsidiaries globally.
What are the central themes discussed in the work?
The core themes include the balancing of local adaptation and global integration, the influence of a company's country of origin, the transfer of management practices across borders, and the challenges of talent management.
What is the core research objective?
The core objective is to discover how MNCs from emerging economies form their HRM strategies and determine how successful they are in aligning these practices with their main business strategies and operational activities.
Which research methodology is employed?
The report is based on secondary data, utilizing a case study approach to analyze a major Indian multinational corporation (referred to as Alpha Services) to provide real-world insights.
What topics are covered in the main body?
The main body covers the theoretical framework of SIHRM, an analysis of influencing factors (internal and external), and a detailed case study of the organizational systems, business strategies, and global HR systems of Alpha Services.
Which keywords best characterize the work?
Key terms include Strategic International Human Resource Management (SIHRM), emerging economies, MNCs, internationalization, and various management approaches like the ethnocentric and adaptive models.
How does the company "Alpha Services" manage its subsidiaries in China?
The study notes that the company remains unfamiliar with the Chinese business and cultural environment, thus delegating the responsibility to local managers while maintaining broad corporate oversight.
What is the significance of the "liability of foreignness" for these companies?
The report highlights that MNCs from emerging economies struggle with this liability, alongside the perception of their home country, which often forces them to send expatriates from their headquarters to maintain control.
- Quote paper
- Junaid Javaid (Author), 2013, Internationalisation & HRM Practices of Emerging Economies’ Multinational Corporations Across Subsidiaries, Munich, GRIN Verlag, https://www.grin.com/document/267426
