Strategic and Comparative Human Resource Management

STRATEGIC AND COMPARATIVE HUMAN RESOURCE
MANAGEMENT

Table of Contents
Introduction................................................................................................................................4
Discussion..................................................................................................................................4
Effect of institutional and cultural differences on the dissemination of HRM strategies and
practices by EMNCs...............................................................................................................4
Challenges faced by EMNCs during transfer of HRM practices across the border and
potential approaches for managing subsidiaries in emerging and developed market 800.....6
Conclusion and recommendation...............................................................................................8
Reference list..............................................................................................................................9
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Abstract
In this report, the focus of discussion is about comparison of human resource management in
a developing and developed nation. Various cultural and institutional differences that impacts
on dissemination of HRM policies are discussed in this report. Moreover, the challenges
faced by EMNCs while transferring the HRM practices are discussed. In addition, different
approaches are discussed that EMNCs can adopt for management of their subsidiaries in
developed markets. At last, recommendations are provided that can improve the
dissemination process.
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Introduction
Human resource management (HRM) policies and different practices are disseminated as a
part of knowledge transfer between different organizational units. This covers several stages
that include identification of policies and practices that can be transferred, process of
transferring and utilization of the knowledge by the receiving unit. Cultural and institutional
factors impact in this process of dissemination, which is a major subject of research in current
age. The practices and policies differ between developed and developing countries. Hence,
disseminated policies from developing countries are hard to adopt in developed countries. In
this report, challenges by an EMNC while transferring HRM policies have been discussed.
Discussion
Effect of institutional and cultural differences on the dissemination of HRM strategies
and practices by EMNCs
Cultural and institutional differences impact on the process of knowledge transfer from MNC
in developing country to its subsidiary in developed countries by making it hard to adopt.
Rigid cultural norms and principles in the country of origin are tougher for subsidiaries in
host countries who follow lenient principles or vice versa (Ying Chang et al. 2007). For
example, Taiwan follows the principle of harmony and low in individualism. In addition, they
have a high level of power distance and moderate masculinity. On the other hand, the UK is a
developed country, which follows individualism. Hence, the HRM policies in this developing
country of Taiwan are hard to disseminate in the UK.
Institutional HRM policy differences like recruitment and selection also impact in
transferring the organizational culture from a developing country to a developed host country.
In developed countries, management uses different modern tools of recruitment like
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