Quantifying factors affecting MNE's Human Resource Management: Evidence from an emerging economy and implications for HR managers

Chris I Enyinda,Maria Jade Catalan Opulencia,Mervyn Misajon,Gurumurthy Kalyanaran

doi:10.15549/jeecar.v6i1.289

Chris I Enyinda, Maria Jade Catalan Opulencia + Show 2 more

Open Access

https://doi.org/10.15549/jeecar.v6i1.289

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Abstract

Multinational enterprises (MNEs) conduct international business operations around the globe. For the MNEs, operating in today’s global business environment demands human resource departments to be engaged in a variety of activities, including attracting talents, training and development, relocation, repatriation, among others. To contend with the increasing number of issues and challenges in international business environment, MNEs’ must strive to improve their international HRM strategies. As organizations manage subsidiaries across different countries, the approach to human resource management functions must consider the dictate of the local environment where the subsidiary has to operate in order to survive and prosper. The researchers applied a multi-criteria decision making algorithm known as the analytic hierarchy process (AHP) to model the challenges and issues that MNCs’ face as well as the factors impacting the HRM practices. The study explore the challenges by way of literature review and interview of some of the MNEs’ C-level executives.

Highlights

Scullion (2005) attests that International Human Resource Management (IHRM) definitions have broadly concentrated on examining the HRM issues, problems, strategies, policies/practices in which Multinational enterprises (MNEs) pursue in relation to the internationalization of their business operations
It has been argued that IHRM implications that the process of internationalization has for the activities and policies of HRM (e.g. Dowling et al, 2008)
Research made on IHRM has mainly focused on western thinking rather than cross-pollination (Wright, Snell, & Dyer, 2005)

Summary

INTRODUCTION

Scullion (2005) attests that International Human Resource Management (IHRM) definitions have broadly concentrated on examining the HRM issues, problems, strategies, policies/practices in which MNEs pursue in relation to the internationalization of their business operations. The politicallegal environment affects MNC-’s because of the diverse employees and their national employment laws and legislation systems that impact the multinational organization directly (Gustaffson, 1990; Pieper, 1990); for instance, work councils/ employment contracts, and employee protection laws like maternity leave and tax systems These factors influence the way employees are motivated, type of compensations given and personal development (Scherm, 1999). According to Schuler et al (2002), MNEs should go through certain strategies and specific functions to lower the effects of diversity when they operates globally They further states that these functions are mainly the staffing policies, compensation policies, human resource planning, training and development, performance appraisal and a standardized international human resource management. The framework shows that internal operations are important, there must be an inter-unit linkage of HR practices globally to connect the different subsidiaries of an MNE operating in different countries to gain efficiencies of scale and have a standardized strategy

METHODOLOGY

RESULTS

CONCLUSION