The factors are put into consideration before implementing any HRM strategies (Dickmann, Sparrow & Brewster, 2008). Identifying best HRM processes for the rest of the organization is not the MNC’s goal, but instead finding the best fit between the company’s overall strategy and the firm’s external environment and HRM policies.
I learned that the transitional scope guide on having the HRM decisions based on international scope. Following international HRM strategy, decisions considers every employee needs in every nation where the firm operates. The issue is the ability to initiate standards fair to every employee, regardless of their location or country they operate.
Additionally, transnational representation refers to the multinational compositions of the company’s executives and managers. Ideally, the MNC processes should base on transnational approach. The approach means that the multicultural understanding is into consideration, instead of trying to have the international employees fit within the domestic market scope, a more HRM holistic method get used. Thus, using a transnational approach shows that the HRM practices and policies are a significant part of the successful business as they act as mechanisms for control and coordination of the international operations.
Culture is the key factor to managing HRM on the global scale. I reckon that understanding culture and also appreciating different cultures can help the HRM strategies be successful in any nation. There are different cultural dimension considered in HRM strategies. The first culture dimension is individualism-collectivism. The cultural dimension describes the individuals degree integrated into groups. MNC’s should focus on the person’s accomplishments instead of group accomplishments. Society base on cohesive groups in the collective society, thus, it is significant of focus on the group instead of the individual.