In a global economic environment where competition changes rapidly, HR decisions have a crucial role to play in influencing the MNC’s performance, by improving efficiency and contributing to revenue growth. Personnel Management (PM) has always been considered a vital function, a function that was mainly dealing with routine administrative activities such as hiring employees and maintaining records. The extensive competition, mainly due to technology change, deregulation and globalisation, increased the PM’s operations and upgraded the concept and perspective over it.
By moving on and replacing PM with Human Resource Management (HRM), organisations started recognising people as an important asset and as a business partner. This changed the role of the HR department, engaging more activities and practices such as communication, recruiting, training, development, motivation, etc. making HRM a more dynamic operation, designed to maximise personnel’s performance. According to Mello (2014), Strategic Human Resource Management (SHRM) refers to the strategic concept of HR that gives the opportunity to HR professionals to play a more substantial role in the success of the organisation by developing systems and policies aligned with the MNC’s targets and goals. Obviously, SHRM does not replace HRM, but it empowers its role.
Table of Contents
1. Introduction
2. Recruitment and selection
3. Training and development
4. Limitations
5. Conclusion
6. References
Objectives and Topics
The primary objective of this report is to critically analyze how multinational corporations (MNCs) can effectively utilize recruitment, selection, training, and development as strategic intervention tools to overcome cross-cultural challenges and improve organizational performance in a global context.
- Strategic Human Resource Management (SHRM) in global environments
- Theoretical models including "Best Practice", "Best Fit", and "Resource-based view"
- Cross-cultural complexities in recruitment and selection processes
- The role of training and development in mitigating cultural diversity drawbacks
- Alignment of HR strategies with organizational culture and competitive goals
Excerpt from the Book
Recruitment and selection
Barber (1998) defined recruitment as the procedure which includes those practices and activities having as primary purpose to identify, attract and select the correct personnel, which according to Bach, 2005, can respond effectively and increase the organisation’s performance. Therefore, it is obvious that the orientation of a MNC towards recruiting and selecting has a vital role in the overall performance and that is why HR management should always be involved and introduce different policies within the organisation (Bonache et al., 2001). According to Taylor (2005), various techniques are used to decide which candidate is the best for each position and evidence show that during recruitment the MNC’s strategies and performance goals should always been taken into consideration (Wilk and Cappelli, 2003).
In the early recruitment stages, a detailed job description analysis should be prepared, which, according to Mader-Clark (2013), should mirroring on the MNC’s performance goals and objectives and describe in a clear and concise way the job duties and requirements. Boyatzis (1982) believes that based on the job description and on the required information, the MNC will be able to approach the best individuals and recruit them. Wilton (2011) however, insists that this kind of job analysis is static and far too insufficient. He also believes that a job description analysis should contain a variety of competencies rather than information regarding skills, behaviour and knowledge. This is the point where the selection perspective is aiming to ensure that candidates not only fit the MNC’s culture and strategy, but the strategy and culture also fit with the candidate’s characteristics (Wilton, 2011).
Summary of Chapters
Introduction: Provides an overview of the transition from Personnel Management to Strategic Human Resource Management and discusses theoretical frameworks like "Best Practice," "Best Fit," and the "Resource-based view" in the context of MNC performance.
Recruitment and selection: Examines the critical role of recruitment and selection practices in MNCs, focusing on the importance of job analysis, cultural fit, and the challenges of internal versus external hiring.
Training and development: Discusses training and development as essential tools for minimizing the negative impacts of cultural diversity and enhancing competitive advantage through continuous learning.
Limitations: Critically reviews the limitations of Hofstede’s cultural dimensions research, suggesting that cultural complexities require broader interpretive models.
Conclusion: Synthesizes the need for HR to act as a strategic business partner that understands cross-cultural complexities to drive organizational success.
References: Lists the academic sources and theoretical literature used to support the report's arguments.
Keywords
Strategic Human Resource Management, MNC, Cross-cultural challenges, Recruitment, Selection, Training and Development, Best Practice, Best Fit, Resource-based view, Human Capital, Organizational Performance, Cultural Diversity, Expatriate assignment, Competencies, Global context.
Frequently Asked Questions
What is the core focus of this work?
The work investigates the cross-cultural challenges that multinational corporations face when attempting to implement human resource best practices as a means to improve organizational performance.
What are the primary thematic areas explored?
The key themes include the evolution of HR management, the influence of culture on recruitment and selection, the strategic importance of training and development, and the necessity of aligning HR policies with global organizational goals.
What is the main research objective?
The objective is to critically analyze how recruitment, selection, training, and development can function as strategic interventions to overcome cross-cultural barriers in a multinational environment.
Which scientific methods are applied?
The report utilizes a critical analysis of existing academic literature and theoretical frameworks, such as the "Best Fit" and "Resource-based view" models, to evaluate HR interventions.
What topics are covered in the main section?
The main sections cover the strategic importance of human resource management, the complexities involved in international recruitment and selection, and the role of ongoing training in leveraging cultural diversity.
Which keywords characterize this report?
Essential keywords include Strategic HRM, Cross-cultural challenges, MNC, Recruitment, Selection, Training and Development, and Organizational Performance.
How does cultural background affect the recruitment process in MNCs?
The report highlights that cultural differences, such as power distance and individualism, influence how managers view candidates and that ignoring these factors can lead to unsuccessful expatriate assignments and poor performance.
Why does the author discuss the limitations of Hofstede’s research?
The author notes that while foundational, Hofstede's work is limited by its reliance on a single company (IBM) and static dimensions, necessitating a more nuanced approach to cross-cultural understanding in modern business.
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- George Yiapanas (Autor:in), 2015, Human Resources Best Practice as a Performance Intervention in a Global Context. Facing Cross-cultural Challenges, München, GRIN Verlag, https://www.grin.com/document/506282
