International Perspectives on Organizational Behavior and Human Resource Management - Case Study Example

INTERNATIONAL AND COMPARATIVE HUMAN RESOURCE MANAGEMENT Student’s name Code & Course Professor’s Name University City Date Human Resource Policies Human resource policies involve organizational systems entailing codified decisions aimed at supporting management of performance, employee relations, resource allocations and planning and generally supporting personnel functions (Snell, Morris & Bohlander, 2015). Wilson (2014) describes these policies as a set of formal organizational guidelines formulated to control or govern hiring, training, assessing and rewarding procedures of organizational workforce. The formulation of these policies is key in managing the external and internal business environments. When strategically and effectively organized, these policies could preempt potential misunderstandings between employers and employees about their organizational obligations and rights (Stredwick, 2013). Several factors contribute to controlling the formulation of HR policies. Most significantly is the nature of organizational functions, operations and organization objectives and goals. As such, different organizations will have different HR policies formulated based on their operational interests and HR expectations. The most important considerations given in articulation of the policies in this case are the organizational needs, goals and objectives in relation to the HR requirements to fulfilling these purposes through recruitment, training and performance evaluations. However, organizational factors are not the only shapers of Human resource policies. The national contexts of various companies and organizations impart significantly on the processes of organizational policy formulation. In relation to this, several factors ranging from economic, political, social-cultural, language and environmental factors are all significant influencers to policy making and formulation. Multinational companies have frequently been forced to adjust operational policies with regards to the national contexts of their hosting countries. This paper first analyses the extents to which various factors implicate on HR policies within global, national and organization contexts. Consequently, this is used to examine the extents to which the Human Resource policies of multinational companies are affected by the national contexts of the countries they operate in. The discussion subcategorizes this entities based on the various factors that directly or indirectly implicate on the policies and the various implications. In particular, using relevant examples from different multinational companies the paper examines the national political, economic, socio-cultural contexts and their effects on HR policies. Global Effects Global trends have diverse implications on HR strategies and policies of multinational companies. Several similarities and differences trends are common on the global scale in terms of social, technological, political, economic and cultural trends. Such trends are common and affect global operation of business entities. For example, it is a global trend that international airports would have employees with the abilities to communicate in more than their native language but in several other languages of the world (Wilson, 2014). Such trend has impacts on the recruitment policies and strategies of international airport with recruitment priorities given to employees able to meet this global expectations in order to improve services offered. Various global expectations are controlling in the strategic formulation of HR policies for various multinational companies with the aim of using these HR strategies to improve on service delivered and attract customer or consumer preference in highly competitive sectors. National Effects Different nations have different requirements and regulations on company policies and strategies. These are governed by various national expectations based on political, cultural, social, technological contexts of the nation. As such, national contexts control the formulation of strategies and policies of not only local companies but also inter and multinational companies hosted in the countries (Budhwar & Debrah, 2013). In the UK, for example, national regulations on recruitment encourage employment of UK natives while discouraging recruitment of expatriate labour unless under extremely unavoidable circumstances (Stredwick, 2013). This creates more job opportunities, encourages economic growth and improves the lives of the UK citizens. As such, UK known for hosting a number of well performing and top multinational companies in the world in the banking, insurance, manufacturing and services sectors among others, directly and indirectly controls the HR policies of these companies. Organizational Effects Different companies or business entities have various operational needs, goals and targets and procedures of operations. These factors regard the cultures and practices of these organizations, including their operational structures that significantly control the requirements. As a result of such requirements, various strategies and policies are affected. Consequently, different companies whether local within a national context or international have different resource requirements in terms of personnel which influences their HR policies and strategies. PWC Company for example, has long been known for its strategic annual graduate recruitment program. This program strategically aims at getting fresh graduates with adequate skills that are trainable and capable of being perfected to meet the companies’ operational requirements. With this program being effective for over the past six years, the company has been able to achieve successful recruitments of employees capable to propel the company towards its goals (Punnet, 2015). Organizational contexts are therefore controlling in HR policy strategies and policies formulations. Political Factors Political structures and factors have impacts on policy formulation of various companies operating within national contexts (Purce, 2014). These implications are not only evident with multinational companies but also local companies. Strategically, most companies or business entities observe these political factors and make necessary adjustments to their operational policies to go in line with various political expectations and standards (Punnett, 2015). In terms of HR, political implications in the formulation of policies are inevitable. The politics of a nation affect various HR policies in different and diverse way through varied stipulations. Political implications could range from legal demands to regional politics. For instance, in the United States, the political structures have several impositions of various recruitment measures on various states (Budhwar & Debrah, 2013). For example, a company established in Florida State, by various regional political stipulations, will be forced to meet a certain percentage of recruited workforce from the state. Similar political effects apply to the Emirates of United Arab Emirates, where recruitment procedures give first priorities to the locals of a particular Emirate before moving outside (Mello, 2014). Additionally, political alignments have various implications on recruitment policies. In various companies, for example, there is always the strategic alignment towards political rule in order to acquire various political favours that would advantage their operations. These force compromises and adjustments to HR policies, in most cases, involving the recruitment procedures (Langford et al, 2014; Mello, 2014). Following existing political expectations and demands, multinational companies launching operations or already operating within various hosting national contexts are unable to escape the implications on HR policies (Tyson, 2014). The China Wu Yi Company, for example, that has established firm existence in several African countries has been forced to recruit most of its employees (60%) from the among the natives of the host country (Langford et al, 2014). This is to ensure, while the company is making profits within the host country and significantly contributing to the economic and infrastructure developments of the countries, the citizens are also able to benefit in terms of job opportunities from the company. Barrick Gold Corporation is yet another multinational company whose HR policies have been significantly affected by the political structures, events and expectations of the hosting nations (Beechler & Taylor, 2013). For example, despite harbouring adequate staff personnel with experience in gold mining, the company has always been forced to accommodate a particular percentage of local employees. In order to win over public acceptations, the company has strategically introduced training programs for locals in order to indulge them in the mining processes. In the Pascua Lama Project of Argentina and Chile (which is still facing various oppositions due to environmental concerns), Barrick - under political pressure - initiated training programs in both countries in order to disseminate knowledge and skills to the local people needed in gold-mining. In addition, the Chinese Shanghai Greenland Group Company has also been victim to HR policy adjustments as a result of various political considerations. In Australia, the company had to adjust its recruitment policy to accommodate 65% of Australian staff (Cavusgil et al, 2014). Evidently, political factors have various impacts on HR policies. Most importantly, they affect the recruitment procedures of multinational companies which are forced to adhere to political interests for the sake of successful operations. Arguably, political factors influences on the HR policies are usually in the best interest of the development of the nation with regards to economic improvements, infrastructure development and improvements of living standards of the people in the host country (Bamberger, Biron & Meshoulam, 2014). While these political factors may be contributing to adjustments in HR policies, understanding and interpreting these politics, the public has adjusted its expectations in line with these political stipulations. As such, public attitudes and acceptations towards multinational companies are shaped by these nation politics which has direct impacts on the multinational organizations and companies operations. In most cases, HR policies are therefore adjusted to win public and political trusts (Purce, 2014). Economic Factors Different nations have different economic policies. These economic policies are controlled by the economic statuses and positions of the nation. Mostly, the policies are concerned with measures for economic development and provide various indicators or measures of economic performance (Stredwick, 2013). The standards of living, employment opportunities, infrastructure development and growth of industries and companies are all potential indicators of the position of the economy. As such, all nations are always geared towards improving these conditions for the sake of economic growth (Cavusgil et al, 2014). To do this, national governments are usually inclined to supporting projects that facilitate economic development. These include projects that contribute to creation of job opportunities and subsequently improve the standards of living, projects that contribute to infrastructure development and generally project developments that would benefit the country through provision of local resources, profitability and income generation (Cavusgil et al, 2014). Most countries tend to rely on tax generated by companies, both local and multinational companies. As a result, companies are mandated to adjust their policies based on various national economic factors (Beechler & Taylor, 2013; Tyson, 2014). For example, in terms of policies regarding taxation, most multinational companies in high-tax countries have a tendency of developing legally acceptable tax avoidance strategies to cut down on costs and maximize on profits. This indicates that the impacts of national economy on organizations’ policies are evidently strong (Delahaye, 2015). HR policies, in this case, are neither left ‘unscathed’. National economic factors impact on HR policies in a number of ways (Purce, 2014). For example, with the expectations of improving the standards of living of the locals, organizations are expected to create a number of employment opportunities for the locals. Consequently, companies align their recruitment procedures to favour the local communities in order to meet these expectations. Additionally, companies operations are expected to meet certain economic demands. This entails engagement in sustainable operations that improve the economy of the countries. As such the implications of operations on the economy form the governing principles or procedures of organizational training of the employees, impacting on HR policies. Moreover, adherence to economic standards and expectations or economic performance of the companies becomes a major consideration in assessment or evaluating of organizations’ performance. In so doing, it is also a bench mark through which personnels’ performance in meeting the economic targets and goals is evaluated (Budhwar & Debrah, 2013). As a result, the national economy is seen to force changes in HR policies in recruitment procedures, training procedures and evaluation processes. While these implications mostly apply for local companies, multinational companies establishing in other host nations are also forced to make relevant adjustments to their HR policies in respect to these economic considerations. Several multinational companies have made changes and effected compromises in their HR policies based on economic expectations of various host countries (Hoque, 2013). In Australia, Holden Company, a subsidiary of the General Motors Company that is involved in car manufacturing (though planning to stop before the end of 2017) faced numerous government pressure to improve the living standards of the people of Melbourne area (Hill, Cronk & Wickramasekera, 2013). To do this, the company was mandated to create a number of local job opportunities for the local residences. Consequently, the company had to make changes to the HR policies and create departmental areas in their manufacturing plant in Melbourne Port to allow employment of locals. In addition, the Japanese Toyota Company and American Ford Company were also firmly establishing and penetrating the Australian market economy. This enhanced competition between the car manufacturing companies, forcing strategic plans to maintain competitive advantage within the country. Holden Subsidiary, for some time had to adjust their policies in terms of training of personnel in order to specialize in simple car models for the Australian population that would be affordable but profitable for the company. Following the economic benefits of the company to Australia, the government accorded funding support to operations of Holden Subsidiary, which following various economic setbacks has so far ceased. As consequence, Holden Subsidiary is in the process of closing down the manufacturing plant and instead focus on importation of cars for the local market. This has come with significant reduction in staffing in form of lay-offs and retrenchment. Moreover, the technical manufacturing staff is growing less significant and diverting the company’s attention to recruiting more expert personnel in the fields of sales and marketing, accounting and importations (Hill, Cronk & Wickramasekera, 2013). Economic expectations are varied. The economic statuses of the nations determine these variations and lay various impositions on organizations’ operations and performance (Jackson, Schuler & Jiang, 2014). These impositions come with significant implications on policies including recruitment procedures, training processes and evaluation measures which are directly related to HR. As a result, multinational companies, in consideration of the national economic contexts, are forced to adjust HR policies at different levels to meet these economic standards and contribute towards substantial economic development. Socio-Cultural Factor Different nations have different socio-cultural settings. These socio-cultural factors relate to the living traditions of the people, language of communication, ways of living and various other aspects. In terms of national operations in various entities, these socio-cultural factors are tantamount (Jackson, Schuler & Jiang, 2014). As such, they control various processes and operations within the national contexts. For example, the language of communication is effective in understanding each other and sending relevant and understandable information to a wider range of people within the national context who understand the language. On the other hand, using a foreign language within a different national context may lead to misunderstandings and failure to achieve communication objectives. This failure as a result to communication breakdown may eventually affect the entire operations leading to dismal performance and in most cases, failures. Additionally, different localities have different working hours and timings that are governed by the socio-cultural contexts (Hill, Cronk & Wickramasekera, 2013). For example in Islamic nations, significant changes are made in the working schedules over the periods of Ramadhan when most of the Islamic workers are fasting and praying in observation of the Holy month. As such, consideration of socio-cultural contexts is necessary in the formulation of policies for all companies and organizations. HR policies regulate and control recruitments, training and assessment or evaluation of working personnel in different organizations (Delahaye, 2015; Hoque, 2013). Under different national settings, these requirements may vary based on various socio-cultural aspects. For example, a company started in the US to serve the Americans would most likely consider English as the main language of communication. As such, in the HR policies governing recruitment, the workers will be expected to be able to fluently communicate in English language. In addition, training given to the staff within this contexts will related to the Americans way of living and expectations in order to ensure strict adherence to the socio-cultural behaviour and expectations of the people. This is strategic to achieving operational success in this context. Finally, the assessment and evaluation of performance will also be controlled by the socio-cultural context of the organization. Consider an American restaurant for example, specialized in preparation of American dishes for the American population. If a complaint is launched by a Japanese native about poor service and lacking Japanese dishes in the restaurant, will it be right for the employees to be blamed for this? In business, customer is king. However, under these circumstances, the evaluation of performance of the workers would be majorly controlled by their adherence to the mode of operations, which was governed by the socio-cultural contexts. Ideally, businesses tend to make various adjustments to operations to fit into various socio-cultural changes due to the dynamism of culture and changes (Snell, Morris & Bohlander, 2015). With regards to the socio-cultural factors, multinational companies attend to adjust their HR policies (Debroux, 2013). Benihana of Tokyo, a multinational restaurant with its roots in Japan had it HR policies stipulating recruitment of Japanese natives to work in the chains of restaurants which specialize in the Tepannyaki style of food preparation. However, setting up in America, the company was forced to significantly make adjustments to these policies, especially in recruitment and training. Japanese natives were taken through training that involved learning English language and understanding the American culture and social behaviour. In addition, the company adjusted changes to recruitment procedures and allowed recruitment of American natives who understood communicating with the Americans and the general American culture. This bolstered their operations and significantly improved their competitive advantage. Besides, the training of chefs was adjusted to include the American natives. This is an example, of how socio-cultural factors could incur changes to HR policies. Conclusion While HR policies are effective in the management of personnel in terms of recruitment, training and evaluation, they policies can be adjusted as a result of various factors (Budhwar & Debrah, 2013). For multinational companies, these policies are mainly changed to suit the national contexts. As a strategic decision to adjust these policies, most MNCs are seen to accept these changes in order to gain public acceptations in the hosting nations. As such, MNCs adjust their recruitment policies, training policies and evaluation procedures due to various national contexts. These policies changes vary with variations in different national contexts. Reference List Bamberger, P. A., Biron, M., & Meshoulam, I. (2014). Human resource strategy: Formulation, implementation, and impact. Routledge. Beechler, S., & Taylor, S. (2013). The transfer of human resource management systems overseas. Japanese Multinationals (RLE International Business): Strategies and Management in the Global Kaisha, 157. Budhwar, P. S., & Debrah, Y. A. (Eds.). (2013). Human resource management in developing countries. Routledge. Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia. Debroux, P. (2013). Human Resource Management in Japan. 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