Approaches To Hr By Multinational Corporations Management Essay

Approaches To Hr By Multinational Corporations Management Essay For better understanding this is important to discuss what a multinational company is in first place. In short words multinational company can be defined as a company or an organization that serves or produce in more than one country is known as multinational company. Other names use for such kind of organizations is Multinational Corporation (MNC), Transnational Corporation (TNC) or Multinational Enterprise (MNE). Multinational organization can be engaged in manufacturing, services or the exploitation of natural resources in the operating countries. Different writers described different definition of multinational companies. According to Moore & Lewis (1999, P. 21) stated that â€Å"an enterprise that engages in foreign direct investment (FDI) and own or controls value – adding activities in more than one country is known as multinational enterprise†. As Jones (1996, p.4) says â€Å"An MNE is usually defined as firm that controls operations or income generating asset s in more than one country.† There is a long list of multinational firms like Sony, Nestle, Wal-Mart Stores, General Motors, Ford Motor, ConocoPhillips Microsoft, Nokia, Toyota Motors, Intel, Coco-Cola, Sony, IBM, Nike and Citigroup etc. Now the main question is about the multinational companies of different origin adopt different approaches of HRM practices. To discuss this section this is really important to discuss the HRM practices in first place, to define what HRM is and then its practices will be discussed throughout this essay step by step, and then practices of HRM in broader context for the MNCs or MNEs. HRM is modern word use in the businesses, which can be defined as â€Å"a model of personnel management that focuses on the individual rather than taking collective approach†. (www.dictionary.bnet.com). As Pennington & Edwards (2000, P. 4) stated that â€Å"Human Resource Management (HRM) is a new way of thinking about how people should be managed as employee s in the workplace†. It can be classified into two schools of thoughts.i.e. Hard HRM & Soft HRM. Both types of HRM are under studies of different authors in detail. Now to concentrate on the question directly a survey is going to be under studies â€Å"Country of origin effects and HRM in multinational companies† which took place in 2007 by P. Edwards et al. In which he discussed 302 UK based multinational companies, which cover both UK – owned and overseas – owned companies. This study will play an important part in the essay to get the conclusion either multinational companies of different nationalities have different HRM approaches and practices or not. 2- Challenges in multinationals According to Brett, Jeanne & Kristin, 2006, international business’s nature is going under a sea change. The globalisation, multi-nationalisation, and the geographical diversification is pushing companies towards change in their management structure and style. Multi nationals now need to consider regional market conditions and develop strategies to cater to each of the regional markets. 2.1- Culture shock Culture shock is the big challenge for multinationals, the difference brings the different thinking ways and working ways, and it needs time to adjust it. In most cases the expatriate manager prefer to emphasize and require the home office or home country values on the host country’s employees instead of accepting and learning within the new culture. (Adler, 2002)