Best Practice in Human Resource Operations for Multinationals Assignment Sample

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Email: [email protected] Phone: ( +44 ) 203 3555 345 Website: http://www.instantassignmenthelp.com/ BEST PRACTICE IN HUMAN RESOURCE OPERATIONS FOR MULTINATIONALS

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Page 1: Best Practice in Human Resource Operations for Multinationals Assignment Sample

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BEST PRACTICE IN HUMAN

RESOURCE OPERATIONS FOR

MULTINATIONALS

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In the current era of globalization, there is a very important role of human resource operations in

the success of every local as well as multinational business organization (McSweeney, 2002).

HR operations refer to all the services provided by human resource department to the business

operations including recruitment, job analysis, training, pay determination, performance

appraisal, employee relationship management, administrative services, etc. The current research

essay is on the topic of best practices in human resource operations for multinationals. In the

subsequent research essay, it will be discussed that whether pursuing of best practices in HR

operations makes sense for multinational companies.

A multinational business organization, also known as an international company, can be

defined as an organization that is registered in more than one nation or has operations in more

than one nation. They are large corporations that produce as well as sell goods and services in

various countries. A variety of practices are required to be performed by the HR department for

to effectively contribute in the success of the multinational company such as recruitment and

selection, training, relationship management, communication with and motivation of employees,

pay determination, performance appraisal, etc. All these HR practices play very important roles

in supporting management and staff members for effectively performing various day to day

business activities as well as significantly help to achieve organizational goals and objectives of

a multinational business organization (Faulkner, Pitkethly and Child, 2002).

There are a variety of Multinational Corporations headquartered in UK such as Vodafone

Group Plc, Tribal Group, River Island, Tesco group plc, BT Group, Unilever, Standard

Chartered, BP plc, IBM, etc. All these MNCs get a wide variety of benefits from their HR

practices. There are a variety of changes made in the international business environment that has

significantly affected the Multinational Corporations and increased the role of human resource

management in MNCs such as increase in competition, takeovers and mergers, changes in labor

market, increased mobility of employees, etc (Bartlett and Ghoshal, 2002). He has given the

solution for managing various changes in global business environments, but its research is not

covering only some type of changes like innovations in different countries. It has not focused on

the role of HRM during changes like takeovers and mergers, changes in labor market, etc. Due to

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all these changes, the requirement of managing human resources of the companies has been

increased significantly and it led to increase in demand of HR departments and operations in the

business organizations, especially in MNCs. For example, Vodafone Group Plc operates in over

30 countries and employs more than 85000 people. Hence there is a very high requirement of HR

departments for the purpose of managing the large numbers of employees in all over the world.

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[email protected] The talent acquisition is also one of the best practices in human resource operations in

Multinational Corporations, as most of MNCs are focused on recruiting and hiring best and

talented individuals, which significantly helps them to improve the performance level of the

company and to successfully achieve various organizational goals and objectives. Furthermore

providing effective training by the international business organizations to the employees is

another best practice which is achieved with the help of use of effective techniques and

procedures according to requirements of employees, which lead to effective development of the

employees (Hollon, 2011) and improves their skills and abilities. For example, Tesco group Plc

uses a flexible and structured approach for trailing and development that adapts according to

individual employee requirements. It significantly helps the company to develop its employees

as well as to meet the objective of expand and diversify the needs of people in the business at

right time and on right place. Tesco group plc has separate training program for every major as

well as minor career at Tesco.

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The Multinational Corporations are providing healthcare benefits to the employees, which is also

a good practice in human resource operations in Multinational Corporations, as it significantly

improves the morale and satisfaction of employees at the company and greatly enhances their

performance and productivity level (Kang and Moon, 2012). The companies are providing

various paid leave incentives to the employees as well as retirements benefits to the people who

worked previously for the firm. It is also one of the best practices of HR in Multinational

Corporations as it enhances the loyalty of the employees towards the MNCs and lead to provide

best contribution in the achievement of organizational goals. For example, Unilever is providing

various types of on job rewards as well as retirement benefits like Unilever UK Pension fund and

other incentives to its employees.

Implementing right HR philosophies is also one of the best practices in human resource

operations in Multinational Corporations, as MNCs wants to create an effective work

environment that enables the employees to prosper as individuals as well as to the contributors of

the business. For example, The HR policy of IBM is about making a holistic approach to HR,

including talent advisors, actionable analytics, strong governance, integrated processes and

technology solutions. They want to develop a positive employee environment and communicate

these in their HR philosophy and mission. Most effective philosophies focus on promoting

innovation and collaboration as well as on creating best workplace in the organization, on the

other hand, least effective philosophies focus on efficiency and cost cutting efforts (Gunnigle,

Lavelle and McDonnell, 2007). Furthermore the best practices in human resource operations in

Multinational Corporations include development of internal HR skills also (Romani, 2011). It

significantly helps in improving skills and abilities of the employees as well as leads to enhance

the productivity of employees as well as of the international business organization.

Use of latest technologies is also an effective practice in HR operations for MNCs, as it

significantly helps in improving communication and accessibility in the organizations, which in

turn lead to improve the productivity of the employees and save time and money in the

organization (Hilb and Brewster, 2007). For example, Standard Chartered is using HR

management system software, electronic applicant tracking and Internet based payroll. Use of

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these new technologies and electronic systems results in saving time and money as well as

improve the accuracy and efficiency of the organization. Furthermore effective motivation of the

employees is also one of the major practices in human resource operations in Multinational

Corporations, as it significantly help in improving satisfaction level of the employees as well as

their contribution in success of business organizations. For example, MNCs like River Island is

effectively motivating its employees through use of various types of monetary and non-monetary

incentives as well as effectively fulfilling their needs and requirements. It leads to improve the

morale and motivation level of the employees and improves their contribution in the

achievement of the objectives of providing best and latest looks to the customers (Bamber,

Lansbury and Wailes, 2011).

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[email protected] Tesco evaluates the performance of every employee, and on the basis of their

performance improvements in the salaries are made and other incentives are provided to the

employees. It leads to improve the performance of the employees as well as help to achieve

organizational objectives of Tesco.

Efforts for maintaining good relations in the business organizations is also an effective

practices in human resource operations in MNCs. Various MNCs like BT Group, Vodafone

Group Plc, River Island, Tribal Group, Tesco group plc, BP plc, Standard Chartered, Unilever,

etc. are using various techniques for improving employment relations in the business

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organizations, which in turn lead to improve the efficiency and performance level of the

employees and the companies as well as lead to get competitive advantages and achievement of

organizational objectives (Harzing and Pinnington, 2011). For example, Vodafone Group Plc is

providing incentives to its employees on good performance, which in turn not only improve the

performance but also the employment relation in the organization.

It can be said that there are a variety of best practices in human resource operations in

Multinational Corporations, which help them to effectively achieve various competitive

advantages as well as to meet organizational goals and objectives (Edwards and Rees, 2011).

Recruitment and selection, training, relationship management, communication and motivation,

pay determination, incentives, etc are some of the best practices HR operations in Multinationals.

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REFERENCES

Books and journals

Bamber, G. J., Lansbury, R. D. and Wailes, N., 2011. International and Comparative

Employment Relations: Globalisation and Change. London: Sage Publications.

Bartlett, C.A. and Ghoshal, S., 2002. Managing across Borders: The Transnational Solution.

London: Random House.

Edwards, T. and Rees, C., 2011. International Human Resource Management: Globalization,

National Systems and Multinational Companies. London: FT/ Prentice Hall.

Faulkner, D., Pitkethly, R. and Child, J., 2002. International acquisitions and mergers in the UK

1985-94. International Journal of Human Resource Management. 13(1). pp.106-22.

Harzing, A. W. and Pinnington, A. H., 2011. International Human Resource Management,

London: Sage Publications.

Hofstede, G., 2001. Culture’s Consequences: Comparing Values, Behaviors, Institutions and

Organizations Across Nations. CA: Sage.

Kang, N. and Moon, J., 2012. Institutional complementarily between corporate governance and

corporate social responsibility: a comparative institutional analysis of three capitalisms.

Socio-Economic Review. 10 (1). pp.85–108.

McSweeney, B., 2002. Hofstede’s Model of National Cultural Differences and their

Consequences: A Triumph of Faith – A Failure of Analysis. Human Relations. 55(1).

pp.89-118

Romani, L., 2011. Culture in International Human Resource Management’, in: A.-W. Harzing

and A.H. Pinnington. International Human Resource Management. London: Sage.

Tayeb, M. H., 2005. International Human Resource Management: a Multinational Company

Perspective. Oxford University Press.

Online

Bruce, S., 2013. Top 10 Best Practices in HR Management for 2013. [online]. Available through:

<http://www1.unisg.ch/www/edis.nsf/wwwDisplayIdentifier/2840/$FILE/dis2840.pdf>.

[Accessed on 30th December 2013].

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