In general, most of Multinational Corporations (MNCs) with worldwide operations face the same problem of standardisation vs. customisation. On the one hand, MNCs have to meet the need for reaping scale economies and cost reductions and on the other hand they have to be close to the customer and locally responsive to different cultures and tastes which usually raise costs. When it comes to human resource management (HRM), the question arises whether to transfer and apply centrally developed HRM policies and practices in all its operations or to delegate decision making authority to the subsidiaries enabling them to develop entirely decentralised approaches. A hybrid approach can be chosen by implementing central HRM policies that can be applied consistently worldwide and to give responsibility to its subsidiaries in e.g. culture sensitive areas which have to be adjusted to local circumstances.
This assignment focuses on training and development issues of a multinational manufacturing company with subsidiaries in 12 countries worldwide and 3,600 employees. It proposes areas where policies should be developed centrally and explains why it should be the central management’s responsibility (Chapter 2). Chapter 3 recommends a way to introduce and to manage adherence to the principles of a centrally developed training policy.
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 2 Centrally developed HRM policies
- 2.1 Training
- 2.2 Development
- 3 Implementation and Control of a Central Training Policy
- 3.1 Introduction of the Principles
- 3.2 How to Manage Adherence of the Policy
- 3.2.1 Personal Controls
- 3.2.2 Bureaucracy controls
- 3.2.3 Output controls
- 3.2.4 Cultural controls
- 4 Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment aims to address the standardization versus customization dilemma in HRM within multinational corporations (MNCs). It focuses specifically on a manufacturing company with global operations, proposing strategies for centrally developed training and development policies while acknowledging the need for cultural adaptation in implementation. The goal is to outline a balanced approach that leverages economies of scale while remaining responsive to local contexts.
- Balancing standardization and customization in global HRM
- Developing centrally managed training and development policies
- The impact of cultural differences on HRM practices
- Implementing and managing adherence to central policies
- Effective strategies for cross-cultural training and development
Zusammenfassung der Kapitel (Chapter Summaries)
1 Introduction: This introductory chapter sets the stage by highlighting the common challenge faced by MNCs: balancing the need for cost-effective standardization with the necessity of cultural responsiveness. It introduces the central problem of whether to centralize or decentralize HRM policies and practices, proposing a hybrid approach as a potential solution. The chapter focuses on the specific case of a multinational manufacturing company with subsidiaries in 12 countries and 3,600 employees, outlining the scope of the assignment and its subsequent chapters.
2 Centrally developed HRM policies: This chapter delves into the complexities of transferring HRM policies and practices across diverse cultural contexts. It references the work of Trompenaars and Hofstede on cultural dimensions, emphasizing their relevance to cross-cultural HRM. The chapter distinguishes between strategies, policies, and practices, arguing that while strategies and policies are more easily transferable, practices often require adaptation to local conditions. A key example illustrates this point, showing how a single strategy ("increase employee productivity") can lead to differing policies and vastly different practices depending on the cultural context (e.g., individual vs. team-based performance appraisal in the US vs. Japan). The chapter lays the groundwork for the subsequent discussion of central training and development policies.
3 Implementation and Control of a Central Training Policy: This chapter proposes a method for introducing and managing adherence to centrally developed training policies. It explains the importance of creating a cohesive overall education policy applicable across all subsidiaries, encompassing elements such as the company's commitment to supporting employee development, standards for nationally recognized qualifications, and the allocation of training budgets. The chapter discusses the need to customize training practices based on local cultural contexts, using the example of the different training approaches needed in high-power distance cultures (e.g., Malaysia) compared to low-power distance cultures (e.g., the USA). The chapter also introduces the concept of central HRM defining "what needs to be known" while subsidiaries determine "how it will be delivered," which is crucial for bridging the gap between centralized policies and localized implementation.
Schlüsselwörter (Keywords)
Global HRM, Cross-cultural management, Training and development, Standardization vs. Customization, Centrally developed policies, Cultural adaptation, Multinational corporations (MNCs), Performance appraisal, Distance learning, Employee motivation.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this document?
This document is a language preview providing a comprehensive overview of a study addressing the challenges of balancing standardization and customization in Human Resource Management (HRM) within multinational corporations (MNCs). It focuses on developing and implementing centrally developed training and development policies while adapting to varying cultural contexts.
What are the key themes explored in this document?
The key themes include balancing standardization and customization in global HRM, developing centrally managed training and development policies, the impact of cultural differences on HRM practices, implementing and managing adherence to central policies, and effective strategies for cross-cultural training and development.
What is the structure of the document?
The document is structured into four chapters: an introduction setting the context and problem; a chapter on centrally developed HRM policies, highlighting the complexities of transferring practices across cultures; a chapter on implementing and controlling a central training policy, including strategies for managing adherence and cultural adaptation; and a concluding chapter. The preview also includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What specific case study is used?
The document uses a hypothetical case study of a multinational manufacturing company with subsidiaries in 12 countries and 3,600 employees to illustrate the challenges and solutions related to centralizing HRM policies.
How does the document address the standardization vs. customization dilemma?
The document argues for a hybrid approach, recognizing the need for cost-effective standardized policies while acknowledging the importance of adapting practices to local cultural contexts. It proposes that central HRM should define "what needs to be known," while subsidiaries determine "how it will be delivered."
What role does culture play in the document's analysis?
Cultural differences are central to the document's analysis. It draws upon the work of Trompenaars and Hofstede to highlight the impact of cultural dimensions on HRM practices, emphasizing the need for customized training and performance appraisal methods to align with local contexts.
What control mechanisms are discussed for ensuring adherence to central policies?
The document discusses several control mechanisms for ensuring adherence to centrally developed training policies, including personal controls, bureaucracy controls, output controls, and cultural controls.
What are some of the key keywords associated with this document?
Key words include: Global HRM, Cross-cultural management, Training and development, Standardization vs. Customization, Centrally developed policies, Cultural adaptation, Multinational corporations (MNCs), Performance appraisal, Distance learning, Employee motivation.
What are the objectives of the study presented in this preview?
The main objective is to propose strategies for centrally developed training and development policies within a multinational manufacturing company, balancing the need for standardization with the requirement for cultural adaptation in implementation. The goal is to find a balanced approach that maximizes economies of scale while remaining responsive to local contexts.
Where can I find more information about this study?
This is a preview; further details about the full study are not provided here. You would need to consult the full publication to obtain more in-depth information.
- Quote paper
- Matthias Meier (Author), 2006, Transfer of HRM policies, Munich, GRIN Verlag, https://www.grin.com/document/77812