Evaluating HR Effectiveness in MNEs: Theories and Practical Examples

This essay provides an in-depth analysis of the role and effectiveness of Human Resource (HR) practices within Multinational Enterprises (MNEs). It begins by defining HRM and its strategic importance in achieving competitive advantages, emphasizing core functions such as employee recruitment, training, performance appraisal, and benefits design. The discussion highlights two critical HR practices: recruitment and selection, and training and development, illustrating their significance in fostering organizational growth and employee potential. Case studies of General Electric (GE) and Apple Inc. are presented to demonstrate how these companies implement HR practices to enhance employee efficiency and achieve organizational goals. The essay also explores relevant HR theories, including Frederick Herzberg’s Motivation Hygiene Theory, Adam’s Equity Theory, and Expectancy Theory, to explain how motivation, fairness, and expected outcomes influence employee performance. The conclusion underscores the importance of HR professionals in managing human capital and implementing effective policies to ensure the success of MNEs.

Running head: HR IN MNE
Does HR really work in Multinational Enterprises (MNEs)?
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Two HR Practices for Understanding Importance of HR in MNEs.......................................2
Two Examples of MNEs for Understanding Importance of HR............................................5
Theories and Models of Human Resources...........................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
Human resource management or HRM can be stated as a planned approach to an
effective management of individuals within any organization, so that they could help the
business in obtaining competitive advantages (Noe et al. 2017). This human resource
management is being designed for the core purpose of maximizing the overall employee
performances within the services of the employer’s strategic goals. It is mainly concerned
with people management in companies only after emphasizing on few policies as well as
several systems. The respective HRD oversees the entire employee-benefits designing,
rewarding, employee recruitment, employee performance appraisal, and finally training and
development (Cascio 2015).
The various organizational changes are also concerned here only after balancing the
organizational practices with various requirements from governmental laws and collective
bargaining (Wright 2018). The presence of HR is extremely important and significant for all
types of multinational enterprises or MNEs. The following report outlines a brief discussion
on the importance of HR in two most popular organizations of Apple Inc and General
Electric. Relevant theories and models will be applied for understanding that whether HR
works in MNEs.
Discussion
Two HR Practices for Understanding Importance of HR in MNEs
The human resource management is a significant procedure to recruit, select,
inducting employees, performance appraisal of employees, imparting training and
development, motivating employees, ensuring safety of the employees, maintenance of
proper relations, providing orientation, health and welfare measure in compliance with the
labour laws and many more (Bratton and Gold 2017). It is vital to maintain effective HR

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practices in a multinational enterprise for proper management of human resources and
employees in the organization. The HR practices help in creation of opportunities, providing
facilities and even providing required motivation to each and every organizational member
for the growth of organization (DeCenzo, Robbins and Verhulst 2016). Skills as well as the
ability of working efficiently are also employed to bring major success in the company.
Moreover, job satisfaction and self actualization are also incremented and hence tries to
stimulate and prompt all employees in realizing his or her potential. Organizational change
management is also properly executed by these practices for ensuring that such changes are
responsible for bringing major success and changing trends in the organization (Chelladurai
and Kerwin 2018). Two of such human resources practices that are emphasize on the point
that HR is required in the multinational companies are as follows:
i) Recruitment and Selection: The first and the foremost HR practice that is
extremely important and significant for any organization is recruitment and selection.
Recruitment can be stated as the entire procedure to attract, shortlist select and finally appoint
most suitable candidates for jobs in any specific organization (Budhwar and Debrah 2013).
This recruitment could even refer to several processes that are include in selection of
individuals for the unpaid roles. The recruitment specialists, human resource generalists and
managers of a company are providing the core responsibility of carrying out recruitment for
their business. It is core process to find as well as hire the best skilled candidate for any job
opening within the most cost effective manner.
This process involves analysis of requirements of job, only after attracting the
employees towards job, screening as well as selection of candidates, recruiting and
integrating new employees to the company (Brewster and Hegewisch 2017). The sourcing
step is the utilization of one and more strategies for attracting as well as identifying
candidates for filling up of job vacancies. It even involves internal and external advertisement

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of recruitment with the help of correct media like job portals, national or local newspapers,
window advertisements, professional publications, social media, business media and many
more (Brewster, Chung and Sparrow 2016). Recruitment is termed as positive process since it
shortlists a couple of candidates for any specific position and motivates maximum candidates.
Selection, on the other hand, refers to the activity or the process of selecting
candidates after recruitment process is completed. It is the major process to interview as well
as evaluate the candidates for the specific job and then selecting the most suitable person for
employment on the basis of a certain criteria (Aswathappa 2013). This employee selection
could eventually range from various complexities as per the organizational hiring policies and
importance of position. It is extremely important to complete the selection process for
selecting the most promising candidate for the job position.
ii) Training and Development: The second distinctive practice of HR that is
extremely important and significant for any organization and organizational members to
become more effective and efficient in comparison to others is training and development.
This particular practice eventually includes improvement of effectiveness in the company
(Storey 2014). Training is viewed after relating to the immediate changes in organizational
effectiveness through organized instruction and development is solely related to the overall
progress of long term employee and organizational objectives. Training and development
includes three major activities of training, education and development.
Each and every organization should comprise of their unique training and
development department for the core purpose of identifying the strengths, weaknesses,
opportunities and threats of their organizational members (Jackson, Schuler and Jiang 2014).
The most significant benefits of this specific practice of HR include increasing productivity
as well as job performances, development of skills, development of teams, decreasing the

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safety related accidents. However, when the training and development is not strategic and
pointed at the specific objectives, it could lead to provide more harm.
Two Examples of MNEs for Understanding Importance of HR
Two popular examples of MNEs are General Electric and Apple Inc. Both of these
organizations are quite popular for their unique products and services (Alfes et al. 2013).
General Electric or GE is an American multinational conglomerate that operates through
several segments of aviation, finance, manufacturing, renewable energy, lighting, oil and gas,
health care and many more. The headquarters is in Boston, Massachusetts, United States and
is being considered one of the major and the most significant organizations (Purce 2014).
Numerous talented employees are working in this organization and General Electric ensures
that every employee is working efficiently after getting proper training and development.
i) Recruitment and Selection and Training and Development in GE: General
Electric has always focused on their unique and distinctive human resource practices. They
recruit their employees after following all types of recruitment processes and by ensuring that
only best and the most suitable employees are being selected in their organization (Brewster
et al. 2016). This is required for bringing the best talents in their work. Regarding training
and development, the management of General Electric has made a separate department. This
particular department is responsible for providing hands on experience of the type of work
that is being done in the company. Moreover, the strengths and weaknesses of recruited
employees are also checked with this department. This has helped them in fulfilling the
organizational goals and objectives only after prioritizing the human resources functionality
(Nickson 2013). GE even values their employees after investing heavily on them and
developing top quality human resources professionals.

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Apple Inc is an American multinational technology based organization that has
headquarters in Cupertino, California, which eventually designs, develops as well as sells
computer software and consumer electronics. The various hardware products of this company
majorly involve iPhone smart phone, Apple TV, portable media player known as iPod, iPad
tablet computer, smart watch or Apple Watch and many more. The internal environment of
this particular organization is extremely effective since the employees and staff are working
with better efficiency. Apple Inc makes sure that they are hiring the most effective and
efficient employees and technical analysts within their government (DeCenzo, Robbins and
Verhulst 2016). They have undertaken some of the major human resources strategies.
ii) Recruitment and Selection and Training and Development in Apple Inc: Apple
Inc has invested their resources within recruitment process for the core objective to get the
correct talents, who could eventually fit into the respective organizational culture (Budhwar
and Debrah 2013). This organization needs staff, who are extremely diligent and can commit
to the various organizational activities. Apple has been utilizing a different recruitment
strategy from others. The work force of Apple Inc is expected to seek subsequent
information, who concern about the jobs (Brewster, Chung and Sparrow 2016). This
recruitment process is being designed in such a manner that only suitable employees are
hired. They select their employees by interviewing. Regarding training and development,
Apple allows its employees to do things on their own for the core purpose of encouraging
them in developing stronger self reliance. The employees could pick up from their own errors
and this specific strategy has eventually improved the overall development of skills (Jackson,
Schuler and Jiang 2014). Moreover, in this phase of training and development, employees are
encouraged for developing innovative and creative skills.

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Theories and Models of Human Resources
The HR management can specialize in recruiting, employee relations or benefits,
training, finding and recruiting top talent. The training and development professionals
majorly ensure that the staff are provided training and they consist of unceasing development.
It is done by proper training programs, reward programs and evaluation of performances. The
employee relations deal with the several issues of employees as soon as policies are being
broken. The theories and models of human resources that ensure that HR is important for
every organization are as follows:
i) Frederick Herzberg’s Motivation Hygiene Theory: The first and the foremost
theory that is suitable for understanding the importance of HR in multinational enterprises is
Frederick Herzberg’s Motivation Hygiene Theory (Chelladurai and Kerwin 2018). As per this
particular theory, each and every employee should be motivated enough for completing their
work assigned to them. Demotivation can lead to unproductivity and loss of the company,
where employee is working. The human resource management department of this
organization ensures that all the employees are motivated and they are getting job security in
a better manner (Bratton and Gold 2017). Moreover, while, recruiting the candidates, the HR
manager is responsible for providing the candidates with the major potential for promotion
and hence enhancing his potential for personal growth and development.
ii) Adam’s Equity Theory: The second important and significant HR management
theory is the Adam’s equity theory. This particular theory is applicable in the HR practice of
training and development in the company (Brewster and Hegewisch 2017). Adam’s Equity
Theory eventually acknowledges that variable and subtle factors are major affecting the
perception as well as assessment of the employees of their distinctive relationships with the
employer and work. The training and development period can motivate the employee for

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working in the organization in a better manner and also having a proper relation with the
employer.
iii) Expectancy Theory: Another suitable theory for understanding the importance of
HR practices in any organization is expectancy theory. An employee should be motivated
enough for exerting a higher level of efforts (Wright 2018). This type of motivation is
provided by the HR and they make the employee understand that effort would lead to a better
performance appraisal and organizational rewards.
Conclusion
Therefore, from this above discussion, it could be concluded that the entire purpose of
human resource is to eventually ensure that the respective organization comprises of the
ability of achieving major success from employees. The professionals of human resources are
responsible for managing the human capital of any company and even for focusing on the
proper implementation of processes and policies. A multinational enterprise will not be able
to build an efficient team of the working professionals without proper human resources. The
major functionalities of this human resource management team substantially includes hiring
people, training them, also motivating the employee and hence improving work place
communications, performance appraisals, work place safety and many more. It is highly
required to maintain a proper human resources in every multinational company for securing
integration of individuals and organizational effectiveness, employing skills and ability of
workforce efficiently after using HR effectively. The above provided report has clearly
outlined the importance of HR in two most popular and significant MNEs of Apple Inc and
General Electric. Various theories and models are also applied in this report.

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References
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DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of Human Resource
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