Human Resources Discussion RESPONSE: Standardization & Localization Culture of IHRM

June 10, 2024June 10, 2024 Discipline: Business and Management
*****HELLO WRITER, PLEASE RESPOND TO THIS CLASSMATES DISCUSSION POST. I HAVE ATTACHED THE LECTURE NOTES, POWERPOINT, & DISCUSSION POST QUESTIONS USED FOR THIS DISCUSSION POST BYT THE CLASSMATE.**** THE CLASSMATES POST IS DOWN BELOW, UNDER THE DISCUSSION POST QUESTION ***

Welcome to Week 5, Standardization & Localization Culture of IHRM
The international human resource management models developed in the last decade pursue a contextual analysis of the standardization (global integration) of multinational parent companies and subsidiaries’ human resource management policies and practices internationally and localization (local differentiation) of host countries’ practices, to include cultural differences.
Standardization and localization in IHRM are two of the most important processes of global business. Even though there is no connection between the two processes, as one happens independently of the other, they both became a crucial part of business when trade reached a global scale.
In order to survive in the crucial global economic market, a MNC mainly relies on the capability of its international human resource management (IHRM) during the internationalization process. IHRM is the effective utilization of human resources in a corporation in an international environment.
Host country culture and workplace environment are different from the parent company culture. Hence localization would be suitable because the host country employees will find it difficult in adapting to a different culture. Culture determines the standardization in the placement, processes, and practices in the workplace.
Complete the following readings: (hello writer, this powerpoint/lecture is attached)
  • International Human Resource Management, Chapter 3
Week 5 Discussion Questions: 
Please create a new thread and respond to each of the following in a single post answering each question individually:
  1. What are the issues of standardization and localization in general for MNEs and how do they particularly manifest themselves in IHRM activities?
  2. What are the stages a firm typically goes through as it grows internationally and how does each stage affect the HR function?
  3. Country of origin can strongly influence a firm’s approach to organization structure. As MNEs from China and India internationalize, to what extent are they likely to differ from that observed for Japanese, European and US MNEs?
List each heading to you know when the criteria is met in APA Format with 2 references.
Articles from 2009 – present only. Use your online library.  No Wikipedia, BLOGS with Ads from Yahoo, UK Essay Buzzle.com, or sites that challenge as they present a biased opinion. Google Scholar is accepted. Works in APA Format with a minimum of 2 references.

***THE CLASSMATES POST TO RESPOND TO: ***
Hello Professor and class, 

Human Resource Management from a Global Perspective

Understanding and managing human resources in the global market has become crucial in today’s and future business environment, hence the topic of International Human Resource Management (IRHM). Culturally appropriate approaches to handling human resources have emerged as a critical procedure to support organizational growth across national borders. Generally, IHRM is defined as a strategy for managing HR processes, policies, and practices utilized by multinational companies to effectively meet their strategic objectives at the local and international levels.

Standardization involves implementing similar policies, procedures, and laws in various regions. This may enhance cost-saving culture, standardization, and effectiveness. On the other hand, elements from the institutional and local cultural environment facilitate localization. So, coming to the point of argument, it may be asserted that the culture of the visitor country restricts the IHRM (Chung & Sparrow, 2024). Moreover, social standardization of essential operations requires effective standardized processes. However, it significantly varies depending on the cultural environment, a significant issue with MNEs. All this aims to appease a culture that centers on interpersonal and social associations, which balance extrinsic and intrinsic motives.

The business’s success is highly dependent on how the employees are supported. Therefore, shaping HR policies to support cultural needs ensures that the company chooses people with the necessary talents and who mesh nicely with its culture. Besides the cultural aspect, the other issue that has dramatically affected the policies and HR management is an organization’s growth. Before an organization is considered to fit the global market, it goes through various stages. Domestic is the first stage in which every organization starts (Krishnan & Singh, 2011). At this level, the HR functions are simple. HR management is only responsible for a specific citizen.

In most cases, the company is developed by entrepreneurs who are citizens of the country. Therefore, acquiring labor is easier because they know the country’s labor laws. Secondly, there is the export stage, in which HR is concerned with foreign regulatory compliance and staffing for export markets. The transition from the domestic to the export stage can be tricky because HR must comply with the laws of foreign countries. The best approach is to localize the policies to ensure they match the culture. When the business reaches the multinational stage, HR must manage a heterogeneous staff in several nations while emphasizing coordination and integration. HRM must create rules that adhere to every nation’s labour laws and regulations. The final stage is global, with personnel management, leadership development, and fostering a worldwide company culture being the key topics HR prioritizes.

Lastly, the country of origin can significantly influence the organizational structure of multinational companies (MNEs). Consider how cultural elements like deference to authority and hierarchy can affect these arrangements. Due to their domestic business settings and governance systems, MNEs in China and India may choose to adopt centralized structures. However, Japanese multinational enterprises’ constant consensus-oriented behavior and employee engagement resulted in comparatively more decentralized organizational structures. The organizational structure: European MNEs may be more team-oriented, less hierarchical, and creative. However, US MNEs embrace certain essential traits more than others, such as structural flexibility and adaptation and a productivity and performance-focused mindset.

-Marlon

References

Chung, C., & Sparrow, P. (2024). Exploring the configuration of international HRM strategies for global integration and local responsiveness in MNEs. The International Journal of Human Resource Management, 35(11), 1943-1969. https://doi.org/10.1080/09585192.2024.2320768

Krishnan, S. K., & Singh, M. (2011). STRATEGIC HUMAN RESOURCE MANAGEMENT: THREE-STAGE PROCESS AND INFLUENCING ORGANISATIONAL FACTORS. South Asian Journal of Management , 18(1), 60-82. https://www.researchgate.net/publication/5113564_Strategic_Human_Resource_Management_Three-Stage_Process_and_Influencing_Organisational_Factors

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