Convergence of HRM in Multinational Entities

The given assignment is about the convergence of Human Resource Management (HRM) in multinational entities like TESCO and global firms. It emphasizes the significance of adapting HRM to various cultural, belief, and rule-based settings. The analysis discusses how these entities focus on human resource management and gather talented people, which can lead to a smooth functioning of their entire venture globally. Furthermore, it highlights the importance of increasing profit margins, gaining competitive benefits, and enhancing market share.

CONTEMPORARY
INTERNATIONAL
HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Definition of HRM, IHRM, divergence and convergence...........................................................1
Neo- Institutional theory- ............................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
International Human resource management will be defined as the bunch of functions and
activities. HRM is very essential for business as they help to achieve organizations goals and
objectives and also support to gain competitive advantages over business rivals at international
and national level. In current trends companies required to need Human resource management at
global level is very important as they play vital role in development of firms. The present report
is based on developing trend towards convergence of HRM globally. It explains the importance
of human resource management and define why it is essential for organization internationally.
This essay explains that multinational organisations' convergence only towards HRM globally
which as states as problem.
Main body
Definition of HRM, IHRM, divergence and convergence
(HRM) Human resource management is term used to report formal systems contrive for
management of people within a company. According to Sheehan, (2014) staffing, provide
workers benefits and compensation are the responsibilities of HR manager, designing and
defining work is one of the another responsibility of HRM. In other words, Human Resource
Management is the best strategic approach to effective management of individual in
organization, they help business to gain profit and competitive advantages. This management is
designed to increase employee and employer performance in services of the worker's strategic
objectives. It is also designed as the procedure of managing staff performance and working styles
in firm, it can include hiring, training, inspiring and motivating overall staff.
IHRM is the best activity that helps to manage multinational corporates geographical
decentralized workers in order to develop its effective workforce for competitive advantages,
both globally and locally. As per the view of Bednall, (2014) international Human resource
management hire new candidates in multinational organization from local areas within nation.
They are concerned about managing workers at MNC and International Human resource
management also involves managing three types of workers such as home country employees,
third country employees and host region workers. IHRM work at international level not national,
they considered with organizing staff belonging to many nations.
Divergence define as state of diverging or procedure within businesses, it is flux density,
amount of flux leaving or entering the point. Divergence is rate of flux contraction as negative
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divergence and flux expansion as positive divergence. It generally means moving apart from one
thing to another. It is the tendency of team members to become less like another group members
over time. Discussed by Cania,(2014) Divergence define to extent human resource management
changes follow different directions in two or more nations.
Convergence, it is the process of coming together of two different organisations, in
context of technology and businesses, convergence is integration of two or more different
technologies in individual system or device. In other words convergence is one of the best way
or procedure to enlarge business into global level, is refers to two or more things joining
together, coming together or evolving into single. According to Zhang, (2015) international
Human resource management convergence process extent that HRM practices reach equal point
in two or more nations. IHRM need to understand culture in new market and even in home
country that helps to run business effectively.
According to Al Ariss, (2014) globalization is one of the best processes by which
organizations or other businesses develop international impact or start operating on global scale.
In simple words globalization is the procedure in which companies expand their business and
enlarge from one place to another at global level. Due to globalization, economy around the
world largely integrated. Globalization define as developing trend which moves towards success
and growth of businesses. Workers play main role in this process, as they help to enlarge
corporations into international scale. Skilled workforce hire in company with the helps of HRM,
but at international level IHRM support a lot. It is very clear that effectual international human
resource management of the company is major competitive advantage. It is one of the most
essential part of organisational performance. Globalization or businesses and capitalist expansion
is the reason and considered as current trends in market that put pressure on corporations drive
towards convergence of international human resource management globally.
As discussed by Zhang, (2015) in order to manage workforce and its performance and to
survive crucial global economic market, MNC drive towards IHRM. They consider as one of the
most important and supportive part of whole business. During internationalization procedure
mainly multinational organisations relied on abilities of its international human resource
management. IHRM have many responsibilities in which they have to work hard and helps
MNCs to be powerful and successful globally. Many international organization convergence
IHRM the most, because they want effective human resource or team of talented people who
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helps to survive in competitive business environment. With the help of human resource
management, MNC can hire new and appropriate talent according to requirement, they recruit
skilled and knowledge people within corporations and design training and development session
for existing and new worker.
On the other hand as critique by Brown, (2014) driving towards convergence of human
resource management is not essential and it is not easy to. Focuses on IHRM is not much enough
if multinational corporations working into international level they also need to concentrate on
another functions and activities of businesses that posses as important as other things to do.
Human resource management hire new applicants within new market, that is not enough for
multinational organization success, they need to implement policies and practices according new
market at international level.
Thus, at global scale companies need to maintain their reputation and retain their share in
market, which is very important for them. Beating competitors in another country is very
difficult for new businesses at global level because, existing companies already make their high
market reputation that poses risk as failure. In that situation human resource management work
effectively and find out the best and the most talented workers for multinational companies. It is
one of the second reason that international organization convergence IHRM the most, because
they help entities a lot.
As discuss by Brewster, (2016) talented employees is required in each of the
multinational companies, as they support to run businesses effectively and appropriately. Skilled
workers and strong workforce contribute to gain many advantages and also helps to achieve
organisational desired goals and business objectives. Human resource management hire talented
applicants from pool of talent and qualification which can be simplifies the overall procedure of
achieving organisational aims and support focus on problems that truly matters in interest of
firms. Therefore, the all over purpose of diverging towards convergence IHRM is to maintain
and organize efficient and skilled workforce for MNCs. Training is part of development both
businesses and workers, it is the main concern of multinational corporations at international
level. As per view of Harris, (2015) International human resource management have to manage
whole management of international assignees. They need to develop global workforce which
determined as successful and useful tools that used to beat competitors in marketplace.
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According to O’Neill, (2017) due to some changes into businesses structure after
expansion process, training is one of the best source that makes staff comfortable within new
environment around workplace. It helps to trained workers or workforce according to current
businesses structure, international HRM is the only section support to design the best training
and development session for overall employees. This session develops new confidence among
them and maximize working interest more and more rather than before. Emerging global culture
is one of the current issues that impact on national culture of any regions or nations. Thus, MNCs
face challenges within business due to this reason, in which they move towards convergence
international human resource management.
On the other side according to Brewster, (2016) they think that HRM convergence is
longer term process, which need more time to implement policies. Human resource management
provide training to all the workers but these things cannot make multinational companies
successful, focus and concentrate on another activities such as marketing, expecting accountancy
standards of cross borders. Thus, it does not give any benefits to organization and consumer a lot
of time.
Neo- Institutional theory-
Neo- institutional theory is one of the major theoretical perspectives used to understand
or evaluate organizational behaviour as situated in. this theory helps to understand multinational
organizations influenced by another companies and wider social forces especially broader beliefs
and cultural rules. Each country has their different culture, rules and beliefs which is very
important to understand and work according to that if company wants to succeed in market and
grab the attentions of customers. International human resource management support and help
MNCs to run their businesses effectively, in any situation. Thus, understanding organisation
behaviour drive towards convergence of HRM which helps to understand other country cultural
and beliefs and help all the staff of manage itself within this new culture. The scope of theory is
expanded to account for change and transformation of institutions as well as heterogeneity of
practices in fields. Neo institutional theory closely advised by debates and ideas in management
and sociology, it also reflects from social and cognitive psychology, political science,
anthropology and economics.
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According to Hilbert, (2016) with the help of understanding different culture, policies and
rules MNCs can achieve success but they need to focus on human resource within businesses.
They need to manage their staff appropriately and required for them to work according to new
culture. Human resource management help multinational corporations to manage their broad
level of staff, by understanding their needs, expectations and identify their requirement within
new working environment around workplace. HRM try to understand employees needs and
demand and pass out or inform companies about it, in which they play role as problem solver.
Human resource management discuss any issues of workers with high authority and get the best
outcomes, which helps to make staff happy and satisfy with decision. As elucidated by Bird,
(2016) satisfied team or group of people has been build with the helps of HRM, they efforts a lot
and drive business towards success and growth. Thus, to run entire entity effectively
multinational corporations moves towards convergence of human resource management because
it is important.
TESCO is one of the leading brand within UK, they provide its best goods or services to
customer and make them happy and satisfy. Organisation offer their products into international
market, but for this they need to conduct market research and implement and manage their
culture according to Europe and Asia where they set its reputation as compare to another at
higher place. TESCO run broad level of business within hierarchical businesses structure and
there are many workers working in firm. They need to manage their staff as well as their
performance which help to increase profit and generate high revenue more than before, but
workers management is possible only with the help of HRM. It poses as the biggest reason
behind convergence of Human resource management, diversion towards international human
resource is important for company because they want to manage their staff into global level.
International human resource management need to understand demographic change at
global level on labour market, they try to solve issues as arise in multinational firms such as
TESCO. Company operate their businesses in many countries where international HRM can
enables to give workers all the facilities and understand their needs and expectations towards
organization.
H&M is also known as multinational organisations, who run their business into global
scale by manufacturing the quality products for clients. They try to make some innovation in
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their business procedure with the helps of effective workforce. Organization expand their
business in more than 62 countries where they try to understand local culture and economic
beliefs to offer their products according to their values. They also hire new and skilled people
within residential public which is beneficial to understand new market trends, culture and
behaviour. International human resource management hire worker among local residents that
provide appropriate information about economic culture and customers needs. Firm required to
survive in new market and wants to maximize their profitability and productivity. Thus, IHRM
play vital role in this situation they help H&M to hold their position in international market for
longer term period through hire new people and train present and new applicants within
workplace.
CONCLUSION
It has been concluded that globalization is considered as developing trend which make
pressure on MNCs to drive towards convergence of human resource management. HRM help to
trained workers, hire new candidates for multinational organizations, the purpose of this
department is to make business stronger and successful. It has been concluded understanding
different culture, beliefs and rules is important to set staff according to it, in which most of the
companies move towards convergence of HRM. They mainly focus on human resource and
gather talented people, that posses at some extent risk as failure within businesses. International
firms entire venture can be run smoothly with all the functions together, focusing on one
particular department is too difficult for them that might be create many issues globally.
Furthermore, TESCO and HRM both multinational entities moves towards convergence of
human resource management because they want to increase profit margin, gain competitive
benefits, increased their revenue and market share more than before.
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REFERENCES
Books and Journals
Al Ariss, A., Cascio, W.F. and Paauwe, J., 2014. Talent management: Current theories and
future research directions. Journal of World Business. 49(2). pp.173-179.
Bednall, T.C., Sanders, K. and Runhaar, P., 2014. Stimulating informal learning activities
through perceptions of performance appraisal quality and human resource management
system strength: A two-wave study. Academy of Management Learning & Education.
13(1). pp.45-61.
Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business. 51(1). pp.115-126.
Brewster, C. and et.al., 2016. International human resource management. Kogan Page
Publishers.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management.
Routledge.
Brown, K., 2014. Global environmental change I: A social turn for resilience?. Progress in
human geography. 38(1). pp.107-117.
Cania, L., 2014. The impact of strategic human resource management on organizational
performance. Economia. Seria Management. 17(2). pp.373-383.
Hilbert, M., 2016. Big data for development: A review of promises and challenges. Development
Policy Review. 34(1). pp.135-174.
O’Neill, B.C. and et.al., 2017. The roads ahead: Narratives for shared socioeconomic pathways
describing world futures in the 21st century. Global Environmental Change. 42. pp.169-
180.
Sheehan, M., 2014. Human resource management and performance: Evidence from small and
medium-sized firms. International Small Business Journal. 32(5). pp.545-570.
Zhang, X. and et.al., 2015. Managing nitrogen for sustainable development. Nature. 528(7580).
p.51.
Harris, H. and Holden, L., 2015. Between autonomy and control: Expatriate managers and
strategic IHRM in SMEs. Thunderbird International Business Review. 43(1). pp.77-100.
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Neo- institutional theory. 2016. [Online]. Available through:
<https://www.oxfordbibliographies.com/view/document/obo-9780199846740/obo-
9780199846740-0053.xml>.
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