HRM in Global Context: Strategic Roles, Impact of Culture and Institutions on Policies and Practices for MNCs

RUNNING HEAD: HRM IN GLOBAL CONTEXT 0
Human Resource Management

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Introduction
The role of HRM become more important when it comes to the Global context, as the
national culture of the parent company was varies intensely from the culture of its foreign
subsidiaries. It may be harder for the parent company to portion technology, innovation and
information with their overseas subsidiaries it also becomes difficult to for parent company to
encourage needed administrative changes and to manage any conflicts that arise between
employees in different country (Collings, 2014). To overcome these challenges the
international human resources management strategies are formed. The International human
resource management can help the top executives to understand the different cultures within
the company workforce and around the world. This essay is designed to answer the three
question which is been asked in the given assessment. The questions are related to the
strategic roles of the HRM in global context and about impact of culture and institutional on
the HRM policies and practices for MNCs. Further, in this essay different approaches of
global staffing and performance management approaches are discussed.
Strategic role of HRM in MNCs
There are various strategic roles played by the HRM in MNCs some for them are discussed
below. It is the responsibility of Human resource management at national level as well as
international level. It is the duty of HRM professional to maintain the productive environment
by ensuring that employees should consist of knowledge and skills to accomplish job task. At
multinational companies the HR professional, arrange proper course of training for
employees that will help them in getting proper credentials for performing their functions
(Minbaeva, et.al. 2014). The HR also confirms that companies follow to all government

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regulations. The HR should ensure that the employees should follow the standards set by the
company for employees at their subsidiaries offices.
As the business of company become more international, the responsibilities of Human
resource professional become more generalist. They start focusing on the internal operation
to make sure the personnel will work more effectively together as a team, in place of just
focusing on day-to-day functions (Minbaeva, et.al. 2014). Human resource professional in
Global context focus more on competitive advantage, profitability, and economic survival
during hard times. Previously the role of HRM professionals restrict to hiring employees,
handling disciplinary action and managing benefits, But in current context at Multinational
level they deals with controlling health care cost, participating in the community and
reducing employees attrition (Bjorkman, et.al. 2014).
In past, the traditional role of human resource professional at Multinational companies just
focusing on administrative task like hiring and recruiting personnel, deprived of any input
from department managers (Williams and Lee, 2016). However, in present scenario, the
companies are becoming more international and the human resource professionals have
become start acting as corporate partners to interview and position new personnel to the
office. In composite international market, business process requires specialised employees, so
the human resource manager starts working supportively with manager on the production
lines.
The HR professionals who are engage in activities to upkeep international business processes
must need to safeguard that varied teams will work together. The human resources at
international level conduct a team building workshops, promote and accept the cultural
diversity and motivate employees to achieve strategic goals (Jackson, et.al. 2014). The human
resource manager will ensure the company build a strong team. It is been found recognised

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that in some nations that individual recognition plays a large part than other, to overcame that
situation HR professional can create awareness about how team need to task efficiently
across borders to preserve the organisational productivity and profitability (Jackson, et.al.
2014).
Employee’s selection and placement is a part of employee’s relations but it is a separate
discipline. Therefore, the HRM strategic role at international level is considered combine
elements of employee’s relation with employee’s selection strategy and their placement. The
HR professional has, integrated employee’s recognition programs with policies, employee
motivation that combines the employee relations and selection areas of human resources
(Farndale, Scullion and Sparrow, 2010). It is import for the companies who are going
international or placed in global market to hire new and prospective employees who are
appropriate with the nature of job and the responsibility is lies with HR. Nature of job of
Human resource professional at international business operation, includes technological
competencies and behavioural competencies. A behavioural competency includes customer’s
focus, ability to show support and empathy towards customers feeling, work management,
ability to complete task efficiently.
Employee’s compensation and benefits structure represents the company’s business
reputation and image. To boost the employee’s satisfaction as well as states the organisational
ability to recruit talented employees the Human resource professionals at global level decide
a pay scale and benefits as per the rules and regulation made by the particular country
government. The strategic role of Human resource manager of multinational companies
includes evaluating the performance of employees and on the bases of their performance and
then they will decide their paying amount (Jackson, et.al. 2014). For every company it is
important to offer rewards for organisational performance, emphasising teamwork, skill
development, collaboration and responsibility for performance. When it comes to