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Global Hr Integration

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Submitted By jimvl71
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Global integration and international HRM

The case of global HRM integration Global integration can be said to be about the achievement of at least one of three key objectives:

The control of foreign subsidiaries.

Global integration from a control perspective is thus both about control and co-ordination with these being used in combination to achieve consistency of international business activities across borders.

The transfer of practices to those subsidiaries

The transfer of firm-specific practices for the purposes of achieving consistency and alignment amongst foreign subsidiaries also addresses the need to intergrade dispersed knowledge and practices, which is argued to be an important basis for competitive advantage firm.

The appropriate adaptation of activities that requires both an understanding of parent practices and local conditions.

Drivers of Global integration 1. Environmental drivers

The novelty and limits of globalization notwithstanding, there are many features of globalization that are making global integration more feasible, more desirable and even more necessary. Few of them are the diminishing significance of national borders, supernational integration, the dismantling of trade and investment barriers etc.

Environmental drivers of global integration put pressure on MNCs to take a course of action regarding their international strategy and structure.

2. Strategic drivers

capture the business advantages that are realizable by pursuing global integration. Evans (2002) list a number of such strategic drivers that they see as supporting the adoption of a globally integrated approach to managing the MNC.

Economies of scale

Value chain linkages

Serving global customers

Global branding

Leveraging capabilities

World-class standardization

Competitive platforms

Information advantages

Business process outsourcing

3. Structural drivers

These characteristics can act as either facilitators or inhibitors of global integration.

Country of origin

Dominance effect

International management structures

Model of establishment

Drivers of global HRM integration

Five ''organizational drivers'' behind the globalisation and functional re-alignment of HRM.

Effieciency orientation

The creation of core business processes

Building rapid global presence

Information exchange

Localization of decision-making (Sparrow et al. , 2004)

A further driver of global HRM inegration relates to the belief by top management that HRM is a key source of competitive advantage (Beechler & Yang, 1994).

Another HRM-specific driver concerns perceptions of internal equity. The argument is that if HRM policies and practices are carried out in much the same way in all MNC locations, subject to some minor local adjustments, then MNC employees will feel as though they are being treated equally and thus fairly.

For some MNCs, the global integration of HMR, partly facilitated by integrative technology and the creation of one global HR system, has been a necessary step prior to the transfer to certain HR processes to shared service centres.

Control ''control based'' benefits :

Bureaucratic control

Output control

Control via centralization.

Types of global integration mechanisms

The control-based classification can be managed so that it achieves its objectives. The control-based classifications of integration mechanisms that have followed generally acknowledge thare to be two fundamental target of control – output or behaviour – and two different means of controlling them- directly or indirectly.

Harzing & Sorge(2003) present four major types of corporate control mechanisms based on combinations of whether tha mechanism is direct/ explicit or indirect/ implicit, and personal/cultural or impersonal/ bureaucratic.

Kim et al. (2003) present four global integration mode : Centralization, Formalization, Information and People based modes

Patterns of HRM integration mechanism usage

MNCs can and do make use of very wide range of global integration mechanisms, which they use in combination to differing extents. HQ management's tasks is to try and find the most effective configuration of mechanismsin order to achieve the desired degree of consistency across foreign operations. We are still unsure precisely which criteria HQ management use when assembling these configurations, but evidence suggests that one size rarely fits all in terms of when to use certain mechanisms. If the process of integration is as complex and political then explaining patterns of HRM integration mechanism usage in MNCs is likely remain elusive for some time to come.

Achieving global HRM integration

Stricter definitions of ''global integration'' that include ''internalization'' and ''integration''.

Methodological considerations into what we ask to whom.

More sophisticated modelling techniques.

More cross-cultural researcher collaboration

''Richer'' qualitative case-study methods.…...

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