Transfer of HRM practices by MNCs Essay Example | Topics and Well Written Essays - 3000 words

Transfer of HRM practices by MNCs - Essay Example As Multi National Companies (MNCs) come into the picture, the scenario gets a little different. MNCs typically misjudge the effect that disparities in Industrial relations methods, workplace settings, and defiance from local people to several HRM practices can all have on their workings and operations. In addition, Unions also time and again, weaken to establish effectual transnational strategies to provide their memberships and associations in other countries in an improved manner. A question therefore arises that whether the MNCs can effectively transfer their HRM practices abroad, particularly when the notions that lie beneath these practices do not coincide with the norms, values, and cultures of the host-countries. The U.S. MNCs into the Chinese market have been taken into account in this paper Under the HRM practices, it is also important that one administers their approach toward the assistance and recompense for the employees, employee accounts and programs. However it is also critical that they make sure that their staff has, and is informed about, the personnel policies that coincide with the existing code of practice. Drivers of Change The world is moving on the path of change, with two significant drivers, i.e. globalization and technological revolution. The two influences actually pose as the foundation for a new way of sharing out the workforce concerning countries and organizations that has come to light throughout the preceding few decades. Different attitudes and opinions about globalization, divide countries and corporations, and also their volume and capability to transform or update themselves with new technologies. Basically the search for new markets and the means for resources has been the driving force toward globalization. As competition gets highly international, and in fact in some businesses, completely global, new production processes and organizational practices are seen to have emerged. (Competitiveness in Developing Asia, pp.58, 2003) The method, by which production at a transnational level is embarked on at current time, varies a lot from the way it was done some years ago. The argument remains in the intricacy of the production procedure, accompanied by the pace and extent of the transnational movements of goods and information. A large variety of highly innovative products, these days, are manufactured by Multi National Corporations (MNCs) in significantly competitive markets. Although MNCs have been there for quite a while now, their existence is very much sensed at current time. The uniqueness of MNCs nowadays is that they have production plants positioned worldwide, with the concern that production consists of planning, management, and coordination of innumerable operations. This lets MNCs to cut up the sequence of their