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.
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
5 Appendices
5.1 Hofstede’s Cultural Dimensions
5.2 Trompenaar’s Cultural Dimensions
6 Bibliography
Objectives & Topics
The paper examines the central challenge multinational corporations face regarding the standardization versus customization of Human Resource Management (HRM) policies. It explores how a hybrid approach, specifically regarding training and development, can be managed effectively to maintain global consistency while remaining locally responsive.
- Strategic centralization of HRM policies in multinational environments.
- The impact of cultural dimensions on training and development practices.
- Implementation frameworks for centrally developed training policies.
- Mechanisms for controlling subsidiary adherence to global policy standards.
- The role of expatriate trainers as internal consultants and culture agents.
Excerpt from the Book
3.1 Introduction of the Principles
The Central Training Policy will be introduced by expatriate trainers who transfer the policy to the subsidiaries and assist local staff.
This approach is similar to McGraw-Hill’s policy. The company developed a fairly centralised approach and appoints trainers from headquarters to deliver training in subsidiaries. However, they aim to adapt centralised instructions as much as possible. The vice-president at McGraw-Hill is in charge of international training and subsidiaries request for special training programs at headquarters which is delivered by a trainer from corporate headquarters. One objective of McGraw-Hill is the development of people in each subsidiary as instructors. Corporate HQ-trainers network extensively with other trainers and with their own managers about the training needs of divisions and how the training should be delivered. (Briscoe and Schuler, 2004: 266) Although this approach has many similarities (appointment of HQ trainers, development of local instructors, adjustment of practices and extensive networking), it differs in one main point. Whereas McGraw-Hill deploys HQ trainers for training local staff, the approach described in this assignment only requires expatriate trainers to transfer and to implement the central policy and to assist local trainers.
The concept of expatriate trainers will be explained by answering questions raised by Briscoe and Schuler (2004). The questions are written in italics.
Summary of Chapters
1 Introduction: This chapter introduces the core dilemma of standardization versus customization in global HRM and sets the scope for examining training and development within a multinational context.
2 Centrally developed HRM policies: This section discusses the theoretical importance of considering cultural dimensions when transferring HRM practices and outlines strategies for centralizing education and management development policies.
3 Implementation and Control of a Central Training Policy: This chapter details the practical introduction of policies via expatriate trainers and evaluates various control mechanisms—personal, bureaucratic, output, and cultural—to ensure local adherence.
4 Conclusion: The concluding chapter emphasizes that there is no single "right" answer for centralization, advocating instead for a flexible, hybrid strategy adapted to specific corporate and cultural contexts.
5 Appendices: These sections provide supplementary theoretical foundations regarding Hofstede’s and Trompenaar’s frameworks for analyzing cultural differences.
6 Bibliography: This section lists all academic sources and references utilized throughout the research paper.
Keywords
Multinational Corporations, HRM, Standardization, Customization, Training Policy, Cultural Dimensions, Expatriate Trainers, Corporate Culture, Management Development, Control Mechanisms, Personal Controls, Bureaucratic Controls, Output Controls, Cultural Controls, Global Strategy.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the management of Human Resource Management policies in Multinational Corporations, specifically analyzing how organizations balance global standardization with the need for local customization.
What are the primary thematic areas explored?
The paper covers centralized training policies, the development of management talents, expatriate management, cultural dimensions, and various mechanisms for controlling international subsidiaries.
What is the central research question?
The research investigates whether and how centrally developed HRM policies can be applied consistently across global subsidiaries without ignoring local cultural requirements.
Which scientific methodology is applied?
The study utilizes a review of academic literature and existing theoretical frameworks—such as those by Hofstede and Trompenaar—to propose a hybrid model for international HRM implementation.
What does the main body of the text address?
It addresses the strategic separation between defining "what has to be known" (centralized) and "how it will be delivered" (localized), as well as the implementation and control of these policies.
What key terms characterize this research?
Key terms include Multinational Corporations (MNCs), HRM, Cultural Dimensions, Standardisation vs. Customisation, and Expatriate Trainers.
Why is the role of the expatriate trainer considered critical in this model?
The expatriate trainer acts as an internal consultant who bridges the gap between global headquarters' standards and local implementation needs, ensuring compliance while adapting to local cultural nuances.
How do cultural controls differ from other control mechanisms like bureaucracy or output controls?
Unlike bureaucratic or output controls, which rely on rules or performance results, cultural controls are based on the internal identification of employees with the company's norms and values, reducing the need for direct external supervision.
- Quote paper
- Matthias Meier (Author), 2006, Transfer of HRM policies, Munich, GRIN Verlag, https://www.grin.com/document/77812
