Discuss about the Human Resource Management.
Role that MNCs play in comparative approaches
Multinational Corporation is a corporate organization that performs the business activities in two or more than two countries. Human resource and all related activities are managed by the HR team in MNCs. Operations of the HRM include the managerial functions that help the companies in identifying the certain practices which include rewards, flow of human resource, selection and training, and development. HRM practices and policies along with the strategies are considered as a paradigm. MNCs play a vital role in comparative paradigms approaches.
A conceptual paradigm is used by many MNCs as the HRM is conceptualized in various ways across different countries. The HRM team hires the candidates from different countries across the world. Most of the MNCs like Amazon, IBM, Microsoft Company make use of this theory (Collings, and Wood, 2009). These companies operates its business in different countries that are imbibed with different cultures which shows that organization believes that talent is not bounded by cultural values. Therefore, these companies hire the suitable candidates from diverse cultures. By doing so the companies are taking maximum benefits and trying to acquire talented and skilled employees.
Another paradigm is interpretative paradigms. This paradigm is also used by the MNCs with the purpose of action research, observations, interviews, and the questionnaires. These companies conduct research to identify the number of employees required in the organization along with the required skills and capabilities. HR department of the companies makes use of this approach to identify the statistics (Strohmeier, 2014). According to the research and observations, the HR team of the company conduct the interviews and the questionnaires for the candidates. This questionnaire includes various questions that help in identifying the motive, objective and skills of employees. This is used by the organization in determining the opinion or views of candidate towards culture and environment of the organization. Most of the MNCs are becoming perfect in analyzing the attitude of candidates towards work with the help of interview, which is an essential part of interpretative paradigms approach (Bjorkman, et.al, 2017).
The functionalistic paradigm is associated with the universalistic approach as it shows the functional activities of the MNCs. This paradigm is one of the most important paradigms for the company. Most of the HRM practice theories are based on this approach of paradigms such as selection, training, and promotion. The HRM of the MNCs makes use of this approach for examining the skills and knowledge which employees possess (Edwards, et.al, 2016). Though, this approach neglects the personalities, perceptions and the instincts of the candidate. The personalities, perceptions and the instincts of the candidate are important for the multinational company. This approach helps the managers of the companies to select the candidates suitable for the business projects. Some of the MNCs get the benefit of this approach but some MNCs don’t get the best result with the implementation of this approach.
Bjorkman, I., Ehrnrooth, M., Mäkelä, K., Smale, A. and Sumelius, J., 2017. Talent management in multinational corporations. The Oxford Handbook of Talent Management, p.461.
Collings, D.G. and Wood, G. eds., 2009. Human resource management: A critical approach. Routledge.
Edwards, T., Sánchez-Mangas, R., Jalette, P., Lavelle, J. and Minbaeva, D., 2016. Global standardization or national differentiation of HRM practices in multinational companies? A comparison of multinationals in five countries. Journal of International Business Studies, 47(8), pp.997-1021.
Strohmeier, S., 2014. Research approaches in e-HRM: categorisation and analysis. In Handbook of Strategic e-Business Management (pp. 605-632). Springer Berlin Heidelberg.