This essay explores the extent to which human resource patterns around the world are becoming more similar and the forces and factors that push for convergence or prevent it from taking place. It also discusses the role of international companies in the convergence process and the ethical considerations embedded in the debate.
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Table of Contents INTRODUCTION...........................................................................................................................2 MAIN BODY..................................................................................................................................2 Extent to which human resource patterns around the world are becoming more similar............2 Forces that could possibly push for convergence and factors that prevent it from taking place.4 Role of international companies play and ethical considerations that are embedded in debate. .7 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Globalization is term utilize to describe growing interdependence of world’s cultures, populations, economies, brought about by cross border trade in products & services, technology, flow of investment, information and individual. Nations have builds economic partnerships to facilitates these movements over many years. The huge ranging affects of globalization are difficult and also politically charged. As with major technological advances this concept benefits society or economy as whole. The current study will describe what extent to which Human resource patterns around the world are becoming more similar or whether particular HR pattern will be associated with specific nations due to many factors. Furthermore, this report also clarify forces that push for convergence and factors that can secure it from taking place as well as support path dependency view. It define role of multinational corporations play in convergence procedure and ethical considerations that are entrenched in debate by using specific examples. MAIN BODY Extent to which human resource patterns around the world are becoming more similar Human resource management is strategic method to effective management of individual in a organization or company such that they help their business gain competitive benefits. HR purpose within organizations is to assure that companies are able to achieve success through individual. Function of HR is in their broadest conception generic activity of motivating, acquiring and coordinating workers inside business companies. Human resource management handles businesses situations and workers issues within corporate and other sectors all around the world in effective manner. They contribute in development and success of business rather than before. According toBrunec and et.al., (2018)HR pattern is becoming more similar at high extent in all around the world. Human resource department deal with many problems related to staff working in multinational companies, they work towards enhancing motivational and productivity level rather than before. Due to globalization organizations face various issues that
directly impact on its staff abilities and productivity. At that situation HR pattern work similar at different nations and contribute towards building strong workforce. Human resource department at national and international level work similarly and effectively for multinational companies. They play vital role as they motivate individual and inspire them to work better than before. HR specialists are accountable for screening, hiring, placing and interviewing applicants in firms where they had to perform specific role according to their job and accomplish accountabilities in effective manner (Farndale and et.al., 2017). All over the world the functions and responsibilities of HRM is similar there was no differences between national and international patter of HRM they conduct their practices efficiently and effectively that is quite beneficial for growth as well as success of organizations. They also handle employee retention, training, development, benefitsandpayrollactivities.Withinnationaland internationallevelCompanieshuman resource management and their team work hard without any differences, they recruit skilled and talented candidates who are able to contribute in achieving set business aims and objectives. Theymakeplan,coordinateanddirectadministrativefunctionsofenterprisesin systematic manner. Global and international character of Human resource management is similar. HRM is not simply a unitarist administrative philosophy but it focused at work areas through informal and formal means (Farndale, Mayrhofer and Brewster, 2018). At workplace they offer comprehensive, systematic and analytical text to provide for needs of workers. It became a fashionable term from 1980s in United Kingdom and began to replace other term such as personnel management. National and international HRM focuses on staff as a important resource in enhancing performances of companies, their practices are linked to increasing competitiveness and productivity of companies by assuring businesses acquires applicants with capability and motivation to work via selection and hiring methods and builds abilities by training and development as well as performance management. It is a combination of human resource practices that is really very important for companies operating at all around the world. It is s distinctive method to employment management which seeks to gain competitive benefits through strategic deployment of highly capable & committed workforce utilizing an array of structural and cultural. On the other hand,Cooke and et.al., (2019)highlight that human resource management contribute in growth and success of companies. But there are differences between HR patterns
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that affects business performance may be positively or negatively. HRM at national level work according to the situation and rules of specific country. It can said that domestic HR patter is different from international HR patter in number of ways. One difference is that IHRM manage complexities of managing and employing individual from varied cultures and nations. They consider a wide range of activities and practices more than national HRM. There are some differences in domestic and IHRM practices, especially in areas like HR selection, planning, recruitment, staffing, development, appraisal etc. The main distinctions however lie in fact that while national HRM is included with staff within only one national boundary on the other hand IHRM deal with three country or national categories such as parent nation where companies is actually operated and headquartered, second it host national where subsidiary is designed and other nations from where firms may source workers, finance or research & development. IHRM defined as human resource management problems, policies, functions and practice that outcome from strategic activities of MNES. On the side, comparative HRM is systematic approach of research that wants to explain variations and patterns encountered in cross national humanresourcemanagementmorethansimplydescribepracticesinvariedsocieties. International HRM deals principally with conflicts and issue associated with globalization of businesses. It includes same components as domestic but it is more difficult to manage and handles in term of diversity of national context as well as kinds of employees. Emphasis is on MNCs capability to develop, attract and deploy skilled applicants in multinational setting and to obtain them to perform effectively despite differences in language, locations and culture. …. argue that IHRM seeks to mitigate impact of national employment as well as culture activities against corporate practices. It analyzed from varied investigation that COE on Human resource management activities of European MNEs have handled and treated European companies as a homogenous unit. Policies and functions of these firms were affected by relatively long term methods to business outcome in long term connections with staff moderated by loyalty & trust. Myloni, (2017)contradict that though there is not such elements as a individual European pattern of HRM and defined differences exist between nations in term of their practices. Forces that could possibly push for convergence and factors that prevent it from taking place Convergence refers to two or more companies or people coming together, evolving into one or joining together. For example, when crowd of individual all take step towards into a
unified team. It is tendency of unit members to become more alike over period. In context of business, this concept is sometimes called a organizational culture in sense that people who perform there seek to have similar behaviors, natures, characteristics and philosophies as well. High level of convergence affects HRM practices and performance rather than before. The globalization of Human resource management implied that to some extent, certain HR policies are deemed specifically effective or efficient and are indeed must be able of utilize regardless of any specific domestic context. There are varied types of convergence assessable that affects business and HRM practices rather than past few years or month ago. Here, four types of convergence identified such as economic, global, business and technological convergence. Forces that push for convergence- High Competition level- Business rivalry among existing players within every sector forces companies towards business convergence. It is really very important force that could push for convergence and enhance firms’ performance as well as productivity level rather than before. Many companies in the world move towards convergence they feel more pressure from competitors to make changes within existing operations and HRM activities as well which make them able to manage skilled and diverse workforce in effective manner (Lai and Chou, 2019). When one company accept functional superiority of for structuring their business according to trend another firm also the same because they seek to gain competitive advantages. It put pressure upon organizations to change overall businesses practices and activities for gaining many benefits that may be beneficial in every term. Rise of international class of shareholders- Another force that could force for convergence is rise or increase of international class of stakeholders included consumers, workers and managers. Increase in share ownership in huge segments of community in developed world combined with maximizing influence of big institutional shareholders has formed coherent interest unit with strength to push government legislative agenda. The cross border behavior of their diversified investments which in return
mean that these member can and do bring impact to law making procedure in nations in which they invest especially where those places are eager to attract such profits. It can be said that shareholder class actions put force in companies or people to move towards convergence which may be beneficial for them. Diffusion of knowledge- Along with the above forces knowledge diffusion also driver toward convergence. It also play vital role in this action because spread of knowledge about specific thing can induce productivity level and increase performance in workplace that are falling behind increasing more economic growth. Diffusion of knowledge is considered as main force for convergence, the law of supply & demand and mobility of labor which is variant of that regulations may be tend towards this action but the affect of this economic law is less stronger than knowledge diffusion. It is a key element of overall productivity and profitability as well as elimination of inequality within & between nations. It enhances business performances and increase sales rather than past few eras which in return increase profit margin. Factors that prevent convergence from taking place- Organizational culture- It is one of the most effective and powerful factors that may be prevent companies or HRM for convergence. It impact current organizational culture and decrease productivity which is not suitable for human resource department and firms as well. It increase high employee turnover because some people in workplace are unable to except new working environment, they are unable to feel comfortable and then decided to switch from another job opportunity where organizationalcultureisappropriateforthem.Ineverynationwhileoperatingbusiness companies adopt culture which is suitable for their staff, it is impossible for new people who came for another culture to except the new one. So it can be said that this factor is the one that prevent convergence from taking place. Technology differences- Another factor is differences in technology it also play role in effective manner to prevent firms drive towards convergence, it consider as barrier that occur while taking place. This factor
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impact on productivity and operational efficiency more than the others which is not suitable. It preventsconvergencefromtakingplacethatmaybebeneficialforworkersaswellas management. To match the differences and compare existing technologies with new one is quite difficult as it require more efforts and investment to make people able for working with advanced features devices. It was essential but could be impacted business functions negatively. Nevertheless,theseelementsstilleffectivelyimposedarationallogicofcompaniesand management and by implication, human resource department. It implicitly supports views that there it still on best method within variables. Government policies relate to tax- There are few more factors that prevent convergence from taking place that has been mentioned above, but still another component are available that me work same like other. Government rules and policies considered as factor that prevent or stop this global act from taking effective move. Without following rules and legislations of government people or firms was unable to taking any action towards this activity because it directly impact on their further functions negatively. Local and national authority create many rules for businesses sector which is quite essential for them to follow to run and conduct practices for longer within specific market place. Tax policy is one of the key components that occur in procedure of convergence. Role of international companies play and ethical considerations that are embedded in debate Multinationalorganizationsplayvitalroleinconvergenceprocedurewherethey converge their business with another one to strengthen brand image and enhance business performance more than its exiting rivals (Bhaumik and et.al., 2019). Convergence is simple term thatmeanscomingtogetherofseparateanddistinctelementsorphenomenonsuchas technologies or businesses. MNcs aid developing host nation by income, increasing investment and employment in their economy. With convergence process they contribute in effective manner to rapid procedure of development of nation through selling products or services to consumers within new market place where convergences take place. European international companies were considered as one of the key influencer or influential interest team in shaping development as well as implementation of single market system (Brewster and et.al., 2016). Government sometimes lower trade barriers which allow companies to trade their goods within new market place that is profitable for host nation.
ERT implement a strategy of powerful cooperation with European commission president in developing standards while also affecting European administration and their members states with threats to relocate their facilities when SMP was not reached comprehensively and effectively as well as rapidly. This example define that increasing essential of transactional networks comprising multinational corporations and other firms and their affect on companies policy development & cross national convergence. Organizations emerged as principal concept in global business and international administrative research, first shows in investigation on political risk and MNC host authority bargaining and later as an implication of institutional isomorphism method to firm’s attempts to overcome liabilities of foreignness and except to local companies conditions (Phang and Mahzan, 2017). They are playing an effective and increasing role in procedure of convergence in organizational systems. This procedure give many benefits of multinational corporations like interact with many people and nongovernmental companies as well as governmental firms. Its impact on businesses development often organized as networks of individual companies and frequently in conjunction with other players operating in same sector. This procedure shows a important part of overall cost saving method as it aids to remove barriers between networks, process, people and knowledge (Chapman and Meliciani, 2017). When these obstacles are removed, MNCs business functions and decision making speed increase which saves money and time as well. Multinational corporations to strengthen their business and build strong brand image all around the world adopt and follow convergence process in effective manner that is beneficial for increasing profitability, productivity and enhance operational efficiencies rather than before. It can be said that it just not beneficial for business sector but also good for economic development when two companies work together they can cater high amount of employment opportunities to local people. Moreover, multinational corporation’s attempts to share their global institutional environment increasingly reflect difficult multi actor relationships and multi level. With the help of convergence MNCs reduce gap between two nations they also reduce inequality concept at workplace through hiring new applicants who are free to take part in decision making procedure without facing any issues which impact on its working.
On the other side, it analyzed that when Multinational Corporation take step towards convergence procedure they can improve economic situation more than the others as it create connections with high profile firms who are able to enhance sales in effective manner. It increase GDP rate of specific economy and make lives easy for people who cannot manage their living standards. Convergence procedure brings many benefits and with the contribution of MNCs it really works appropriately. It enhances consumer satisfaction level, employees performance and productivity. It examine that two years ago, multinational corporations subsidiaries tended to be reduce replicas of home nation operations with most of value chain being undertaken in each host country. It is now few case in some investment tasks reflecting significance changes in international economic milieu connected with increasing interdependences between two nations, firms and sectors. While focusing towards convergence process multinational corporations also focused on ethical considerations that play crucial role in success and growth of business. It includes emotions when regulations and law is unemotional in their delivery. It is ethical to do not break rules, without comply with ethical activities within business MNCs and other companies are unable to move convergence process effectively. While operating business with new firms or business partners organization must show transparency in decision making activity it create positive work environment around workplace and build trust between management and workers. Administration caters equal and fair chance to their staff for sharing their opinion with seniors without facing any issues such as workplace discrimination and gender inequality. Further, regulations and laws governing certain companies within individual nations could have their inconsistencies and variances nevertheless when other nations are globally concerned intensity of inconsistency is every more diverse. Firms that have made cautions attempts to be truly ethical should measure and examine rules and regulations governing nations in which operations are carried out. To gain success in convergence procedure MNCs must conduct ethical practices and follow all the rules of host nations where they being to work with other companies that is beneficial for overall businesses in term of sustaining for longer period of time.
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CONCLUSION From above analysis it has been concluded that Human resource management play important role in companies both national and international level, they recruit, hire and retain skilled as well talented applicants in order to strengthen brand image and enhance productivity level rather than by following rules according to government in different nations. Furthermore, it has been summarized that there are varied factors and forces available that affect convergence procedure negatively and in its support.
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