HRM Best Practices in Multinational Corporations: A Report

This report provides a comprehensive overview of HRM best practices within multinational corporations (MNCs). It begins by tracing the evolution from personal management to strategic human resource management (SHRM), differentiating between hard and soft HRM models, and exploring the best-fit and best-practices approaches. The report emphasizes the significance of HRM best practices, particularly in recruitment and selection, detailing key strategies such as updating applicant information, protecting employee data, leveraging social media, and adopting agile hiring methods. It then addresses the cross-cultural challenges inherent in MNC recruitment, including communication gaps, behavioral differences, and the impact of regional cultures, offering strategies to overcome these hurdles. Finally, the report examines the influence of cultural dimensions such as power distance, uncertainty avoidance, individualism/collectivism, and masculinity/femininity on the implementation of HRM best practices, concluding with insights into effective leadership and employee commitment within a global context.

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Student Number 2057132 Email [e-mail]
Module name Leadership and Human
Resource Practice
in Organization
Module Code 7HR024
For the attention of Prof. Prasadini Gamage
Due date 6th May, 2021 Dr. Paschal Anosike
(Module Leader)
Assignment title Individual Coursework

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Contents
1 Introduction ......................................................................................................................................... 3
2 The theoretical and changing HRM landscape ................................................................................... 4
2.0 Personal management to HRM and Strategic Human Resource Management (SHRM) ........................... 5
2.1 Hard HRM and Soft HRM models ............................................................................................................ 5
2.2 Best fit model ............................................................................................................................................. 7
2.3 Best practices model .................................................................................................................................. 8
2.4 RBV Model ................................................................................................................................................ 8
3 Significance of HRM best practices in MNC based on recruitment and selection. ............................ 9
3.1 The below HR practices are done when recruiting and selecting in MNC’s ............................................. 9
3.1.1 Always track and update the applicants information ........................................................................... 9
3.1.2 Protect the information of the employee. ............................................................................................. 9
3.1.3 Use Social Media Platforms ............................................................................................................... 10
3.1.4 Adopt Agile Hiring Methods ............................................................................................................. 10
4 Cross cultural challenges of recruitment and selection in MNC ....................................................... 11
4.1 Possible Challenges that a company may face ......................................................................................... 11
4.1.1 Communication Gap .......................................................................................................................... 11
4.1.2 Cross cultural management has to be dynamic in nature: .................................................................. 11
4.1.3 Different pattern of behavior .............................................................................................................. 11
4.1.4 Impact of regional culture .................................................................................................................. 11
4.1.5 Diversified habits and Etiquettes ....................................................................................................... 11
4.2 Possible strategies to overcome Cross cultural challenges ...................................................................... 12
4.2.1 Broader scope of leaning: ................................................................................................................... 12
4.2.2 Globalization in work force ............................................................................................................... 12
4.2.3 Upgraded Ethical values .................................................................................................................... 12
4.2.4 Employee commitment ...................................................................................................................... 12
4.2.5 Proper selection of employee ............................................................................................................. 12
4.2.6 Orientation and induction ................................................................................................................... 12
4.2.7 Well defined organizational rules ...................................................................................................... 12
5 Influences of cultural differences in implementing HRM best practices. ......................................... 13
5.1 Power Distance: ....................................................................................................................................... 13
5.2 Uncertainty Avoidance: ........................................................................................................................... 13
5.3 Individualism/Collectivism: ..................................................................................................................... 13
5.4 Masculinity/Femininity: ........................................................................................................................... 13
6 Conclusion ......................................................................................................................................... 14
7 References ......................................................................................................................................... 15

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1 Introduction
Humans are the most important asset in an organization. “Managing the human resource” is a very
Challenging because humans are dynamically changing due to their thinking nature different from one
on each other. As no two humans which their capabilities, tacticians, emotions, and behaviors; they varies
widely, then as a team and are changed according to many changing factors. Human resource in a
company are responsive, have feelings, thinking before they act therefore they cannot be managed as a
machinery item or change place and make suggestions like a template in a room layout. Therefore for
the HRM the management personals should be tactful.
Human Resource in a company functions base on factors that are varies on management, psychology,
sociology and economics. As we cannot find a best theory to manage people or no person is formulated
how to mage HRM in an organization more efficiently, because humans have complicated needs and its
very unpredictable how they change due to their feelings.
.
Effective Human resource management highly varies on the purpose and conditions that any company
settings that provide. Today most managers in all private and public sector company’s agrees that more
than assets and resources humans are the most important asset in any organization. It does not guarantee
that having a suitable qualified employees on payroll will be a resource of any competitive advantage.
Somehow to survive in the competition , to development and diversify the firm must ensure all employees
are fulfilled with their qualifications and positioned in suitable job rolls , properly trained and handle
them efficiently and commitment for a success of any company goal.
Finally the target of human resource management is to improve productivity and effectiveness, while
helping the employees to achieve their individual, social goals objectives (Like give an challenging job
and recognition also regal compliance and presenting social responsibility). (Aswathapa, 2007)

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2 The theoretical and changing HRM landscape
For many employees in HR department, they see HR as the backbone of the organization. Therefore they
consider passive role also at least enticing area to work. But as the HRM has revolutionized and the
modification of goal objectives of companies has changed in 21 century. Changing from the traditional
brick and mortar formula of employee hiring and firing, Today HRM is considering of developing the
experience that they required and interact with employees for quality Human resource practices. They
work friendly with senior management for identify and fulfill the organizations goals and objectives. This
help to unlock the employee’s hidden talents and motivation towards the job scope. As they need on
focus on employee outcome and by creating dynamic workforce while achieving revenue generation unit
for company.
In previous days the HRM was playing the role of ‘low enforces’ for the company by punishing and
scaring the HR by let them know what work should do. Now a days the HRM is professional and armed
with Humans resources with skills, mentors also guidance in their industry. They are the leaders for career
development benefits and counselling for the required task. Past days the Human resource management
does not need the technologies for management. But today as the new analytical tools are developed new
tools like big data analysis has embraced to analyze the performance of employee productivity. Therefore
no ‘longer bench warmer’ in an organization HRM changed to a playing role in many forms. So every
position in the organization has played a major role for company development to work with.
(Anon., 2018 )

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2.0 Personal management to HRM and Strategic Human Resource
Management (SHRM)
In HRM theories it is defined that employees are not a cost. But it is considered that they are a resource.
In a company the resources are categorized based on productive factors. Typically there are 4 production
factors. They are Raw Materials, HR, Assets also knowledge
Generally company expects to increase the efficiency by the above factors. But in human resource
management the efficiency is expected to increase by the employee contribution. Therefor the practices
like staffing, training, performance appraisal, reward, career planning, compensation, job health and
security, industrial relations and personnel management (PM) are considered, (Uysal, 2013)
So this is measured by individual performances. The good HR practices help to develop the Humans
Recourses capabilities skills and motivation. If an individual’s performance is increased, the productivity
of company also goes up. This relation is the base of SHRM (Strategic Human Resource Management)
today. Strategic Human Relationship Management can be defined as the individual performance and the
company business performance.
2.1 Hard HRM and Soft HRM models
The target of a HRM practice is driving the employees towards company goal. The Hard HRM identifies
humans as a resource therefore they are used to fulfill company’s goals and objectives, because it is treated
as other resources The SHRM structures are introduced by by Beer, Spector, Lawrence, Mills and
Walton(1985) in University of Harvard. They always think HR must be prioritize than the other resources
in an organization. They believe a single performance of an employee can highly impact on company’s
performances. (Henderson, 2011).

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The below table has summarized the key differences of hard HRM and Soft HRM
Hard HR Management Soft HR Management
Always consider humans as a resource (Ex -
Machines & assets )
always connected with business plan – Also
measurable like how much cost ,and Quantity also
workload
Prioritize the human resource as the most important
asset.
Treated individually and helps to achieve their
targets also
Focus of HRM: identify workforce needs of the
business and recruit & manage accordingly (hiring,
moving and firing)
Focus of HRM: Focus on the need of the
employees – their job roles, benefits, inspiration etc.
Key features Key features
Short-term changes in employee numbers
(recruitment, redundancy)
Strategic focus on longer-term workforce planning
Mainly focus on long term job , Scope planning
Lack of communication from management to staff Strong communication with each other
Always pay as minimum to reduce the cost (e.g.
humans are treated as items so try to operate in
minimum wage)
Always employee benefit structure for employee
welfare (e.g. profit share, share options)
Lack of empowerment and delegation Employees are empowered and motivated to look
for delegation and hold the responsibility
Appraisal systems are concerned to make decisions
on staff weather good or bad
Appraisal systems focused on identifying and
addressing training and other employee
development needs
Management hierarchy has a higher depth Depth of the management hierarchy is low – like
flatten
Suits autocratic leadership style Suits democratic leadership style
Based on the nature of the company the better one is different (Tuts, 2018)

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2.2 Best fit model
Best fit model is different from Harvard, Michigan models. It is also called as ‘matching model’ for human
resource management. Basically it is aligned with business strategy of the company
Business strategy includes planning corporative activities, evaluating performance and policies towards
organizations objectives. The strategies defined by HRM must support the company stretgy amgo the best
fit questions the capability of the best practices perspectives
It describes the matching fit for HR programs and companies’ stage of developing its stakeholders like
clients, suppliers, also competition and labor market. Aligning the HR strategy with the company strategy
can benefit potential competitive advantages.
Even the best fit models are good for HRM practices it has some drawbacks.
In some situations the company have to change the business environments and strategies. Then the entire
HR process have to be change frequently. Secondly when surfing the HR lifecycle the activities and
practices must have an alternative remedy of employees which can cause a demotivating effect and create
inconsistency in company culture.
Figure 2-1

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2.3 Best practices model
Best practice model indicate close link to the company key performances and its practices which is linked
with the dedication of management. It claims the group of HRM activities which globally help companies
to reach the competitive strategies with the existing setting.
Best practice set of procedures that are grouped as mutually capable HRM activities which leads to upper
level workforce competence, inspiration, and introduce a job scope design and employee engaging.
Referring to the fundamentals theories of HRM best practice will outcome high quality of work,
productivity and less absenteeism and wastage.
Somehow the best practice method also have drawbacks. When traducing best practice standards risks
mutually combinations like working as a team and based on individual performances resulting a
deterioration of the employee engagement through over exaggerated competition.
Secondly having a high commitment management usually it’s complicated taking the wanted large inputs
when planning from top level management commitment (UKEssays, 2017)
2.4 RBV Model
Resource based view (RBV) model basically stands at the point where an organization’s
competitiveness is measured by its abilities and resources, precisely by their mix.
RBV model is mostly defined as implying regress and has the ability to be change only the large
companies with a significant market power. As the blue-chip companies that has the higher innovation
and it has higher procurement capacities they are advised to seek for superior capabilities.
When a big company have a unique culture it is very had to transfer or acquire it. Basically larger
company have prolonged learning curve based on their unique identifications. They are more difficult to
replicate by the competitors.
The core concept of the RBV is, if a firm to achieve their targets it must sustain and manage important
unique and capabilities plus the company must absorb and used them. (Gaiya, 2014)

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3 Significance of HRM best practices in MNC based on recruitment and
selection.
An ultimate objective of recruitment and interview process is to hire, in the most efficient way, the
amount and nature of individuals needed to satisfy the human asset needs of the organization
Mainly there are three stages when it comes to recruitment and selection. At the first stage it defined the
required outcome of the job role. In includes job description (JD) and its specifications, then applying
the boundaries for term and conditions. For the employment.
Second stage is getting applicants with suitable qualifications experience for the designed job. For this
the designed job have to be promoted. This can be done by referrals, agencies and advertising.
Third stage is selecting applied applicants through application procedure. For this assessments,
interviews also testing’s must be done.
3.1 The below HR practices are done when recruiting and selecting in MNC’s
1. Adopt to the current culture of the company
When recruiting an employee it’s to make sure that the person has the ability to adopt to the company
culture. It would be easier to get employee comfortable in the company.
3.1.1 Always track and update the applicants information
When an applicant is applied to the job position it’s always good to keep them on database. Therefore
we can reduce the next time costs and save money to the company. Even at a job selection process the
previous data can be used
3.1.2 Protect the information of the employee.
When an employee is applied to the job position it’s to be make sure that the data of the applicant must
be protected and secure.

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3.1.3 Use Social Media Platforms
By using social media the HR managers can attract so many talented applicants for the job.
3.1.4 Adopt Agile Hiring Methods
It’s always good to recruit all-rounder. Therefore for any work an applicant can be adopt and work in the
job scope. This applicant can change the job role even with the nature of the job activity which can benefit
the company.
In MNC’s the above methods are used when selecting and recruitment.

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4 Cross cultural challenges of recruitment and selection in MNC
4.1 Possible Challenges that a company may face
The below issues can be face by the company when recruiting cross cultural persons.
4.1.1 Communication Gap
This is an unavoidable gap in the company. It is not because mainly in the company. But with their
backgrounds. Two employees with different regions and backgrounds may have the difficulties facing
this problem
4.1.2 Cross cultural management has to be dynamic in nature:
Culture is something to be share with each other. But when a same company relocates from region to
another the person is in cultural shock. At that situation the mangers have to use sensitive generalize
methods to the newcomer.
4.1.3 Different pattern of behavior
According to the different behavior pattern from each other the attitudes are different from each other.
So when dealing with the members of the other multicultural employees the likes of each other’s may be
different. It can cause issues in the company.
4.1.4 Impact of regional culture
Even the company culture is similar the regional culture may be totally different. So employees can face
difficulties due to this variance.
4.1.5 Diversified habits and Etiquettes
Even the organization ethics are acceptable in the company, still the employees have a gap between their
personal ethics. Personal habits are huge problem when dealing with the other mangers/employees of the
company

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4.2 Possible strategies to overcome Cross cultural challenges
Multicultural might be an issue for a company if not properly handled. It is acceptable that
multicultural diversified companies’ may meet number of conflicts and misunderstandings. But
there are some good side also to look at the management in appositive way. Few features can be
used as an advantage for a company to achieve their targets. The below factors can consider to
overcome them
4.2.1 Broader scope of leaning:
The scope for learning can be broad by the employees by giving learning activities. Therefor the
differences can be eliminated by using the mentioned practices.
4.2.2 Globalization in work force
Recruiting members from globally can benefit the company. The negotiations can be done smoothly
with the multicultural people.
4.2.3 Upgraded Ethical values
The employees must be trailed by providing them personal development trainings and other ethical
discipline development programs.
4.2.4 Employee commitment
Getting love to the company culture must done by HR by giving valuable goals and making them
comfortable.
4.2.5 Proper selection of employee
At the selection process the HR has the responsibility to select the employee who matches to the
company.
4.2.6 Orientation and induction
Proper orientation and induction must be given to the candidate. The background of the company
and the objectives must be define at the very beginning
4.2.7 Well defined organizational rules
The Company rules must be align with the cultural activities. Therefore the difficulties faced by the
employees can be reduced. (Maity, 2018)