An investigation of global HRM practices: are practices converging or diverging in the modern day?

Abstract

Purpose This paper aims to investigate whether patterns of human resource management (HRM) are converging or diverging across the globe. Design/methodology/approach The topic is analysed through a review of existing literature in the space, introducing the drivers for MNCs to seek the global integration of HRM practices, as well as the strategies MNCs may use for practice transfer. The debates of convergence and divergence in relation to HRM practices are then discussed in further detail whilst focusing on two key areas impacting these debates: the cultural factors and the institutional, political and economic factors. Findings This paper suggests that patterns of HRM practices are not converging to one set of best practices approach, and there are numerous other factors which influence convergence, such as local business systems, legal practices and cultural differences. This paper suggests that there is a mix of some HRM practices converging due to MNC influence, whereas others continue to diverge. Originality/value A holistic discussion is held on the theory of convergence and divergence, which will benefit HR professionals in assessing the state of convergence in their own organisation and common pitfalls to be wary of.