HUMAN RESOURCE MANAGEMENT

Human Resource Management System



Human Resource Management System

Introduction

Management of Multinational has many options/choices, in terms of their strategy. In the first case, it can be in the geographical dispersion of activities. Multinational enterprises play activities, also very different between them (machining, assembly, and marketing) in different countries (Edwards & Colling, 2007: 201). Secondly, it can be on the concentration of ownership, or internalization of these activities. A company is multinational when the foreign activity is not delegated to a local (outsourced), but is simply carried out by a subsidiary undertaking. In relation to Human resource the management of the multinational has choices to choose whether to recruit a person in the host country or they can have expatriates.

This paper will be discussing the constraints on management choice within multi-national companies. It will also discuss whether it is possible or desirable to export favored HR systems developed in the home country (Boussebaa, 2009: 829). It is possible to export favored HR systems developed in the home country by concentrating on international human resource; and sending people from home country to host country after giving them training so that they can further operate the operations of the business in the host country.

Discussion

Being multinational is often the optimal strategy to operate integrated in a global economy. The rise of multinational corporations in the 90s goes hand in hand with the process of regional liberalization and global trade. Because of international competition, firms tend to reduce production costs and look for factors of production at low cost (Cieri & Fenwick, 2007: 281). However, multinational activities can take place only if there are lower costs for the international marketing of commercial or semi-finished products re-imported into the country.

Usually, they become multinational companies to develop intangible assets (brand, reputation, a new technology) that can be disseminated in a non-competitive and cost across the enterprise, among other plants. Thus they create economies of scale in growing firm level and market power (Schuler & Budhwar, 2002: 41). These companies operate in different countries in search of new markets, keeping the inside of the intangible asset so that is resolved (horizontal investments). Other firms can invest abroad to get a cost savings in production and distribution, to acquire specific technologies or exploiting externalities premises. This type of investment can be achieved even by relatively small companies, who develop flexible and productive activities fragmented among different countries (Vertical investment).

The Internationalization of Human Resource Management

Human Resource Management is more complex in international businesses, where management development, staffing, compensation activities, and performance evaluation are complicated by differences between legal systems, cultures, and economic systems within various labor markets, such as (Edwards & Rees, 2006: 25):

Labor laws can prohibit union organization in one nation and mandate it in another.

Compensation types vary from nation to nation.

International human resource management (IHRM) deals with a host of issues. It deals with developing managers to do business in different nations, and how to compensate people in different ...