The Complexities of Implementing Global HRM Systems: A Case Study on the Subsidiary Perspective

Abstract

In this paper, we provide a qualitative analysis of the complexities involved during global e-HRM (Electronic Human Resource Management) implementation. While many studies rely on theory embedded in the Change and International Management literatures, we add relevant Strategic Information Systems literature to enrich the localization- standardization debate. We present findings from a case study in which we zoom in on the particular challenge of global integration versus local responsiveness of e-HRM systems. We consciously eschew the most common, headquarters’ perspective, and take a local site lens, analyzing the experiences of a local IT department in charge of implementing a global e-HRM strategy. We find that although this implementation was staged as a success by the organization, there were many unexpected and negative outcomes at the local level. These appeared to arise from a non-participative approach by global IT, with inadequate consideration of changes in the role, relationships and relative power of the local IT and HR teams. We suggest that desired corporate IT outcomes such as consolidation, cost reduction, improved data sharing and business intelligence should not be pushed on the local units at the expense of flexibility in equally important local HR initiatives. However, balancing the requirements of flexibility and standardization in a large-size, multinational firm is non-trivial, and cannot be achieved without seriously enabling the engagement of the multiple stakeholder perspectives involved.