Nowadays,
globalization affects every industry. To cope with the challenges of increasing
globalization, many multinational enterprises (MNCs) are developing
transnational strategies and structures, which mean that they create strategies
within the interplay between global standardization and local adaptation. The
increasing of the transnationality also reflected in the transnational
orientation of their human resource management system (HRMS) as HRM is often
interpreted as a support function which can help to transfer the strategic
orientation of the firm to the level of employees in an organization. Transnational
HRMS can be defined as the sum of HRM policies and practices that MNCs uses to
attract, develop and maintain its human resources including globally
standardized and locally adapted structures and processes. There are some
reasons why an organization especially the multinational transfer the HR
practices. The reasons are international competition pressure, international
integration and strategies, and organizational politics.
For the purposes of efficiency and the effectiveness
of their system, organizations often engage in cross-unit transfers of business
practices that reflect their core competencies and superior knowledge and that,
they believe to be a source of competitive advantage. HR policies and practices
are often considered by top management to be one of those sources. Its need to
be address that transfers of HR practices can occur in various directions
within the MNC, including transfers from main companies to foreign subsidiaries,
from subsidiaries to main companies, or from one subsidiary to another. Firms
may look to 'reverse-transfer' policies associated with companies and countries
that are dominant in the global economic system, since such policies are likely
to be seen to be linked with international competitive advantage. A second
reason for transfer is that the degree of international integration and the
corresponding strategies of MNCs largely determine the extent to which MCs are
likely to transfer their HR practices. The transfer of HR practices is often
linked to certain industry sectors. For example, those sectors such as automobiles,
IT services and pharmaceuticals, with a high degree of international
integration, are easy to transfer HR practices across borders. The third reason is at political
relationships within organizations. The political approach, indicating that
actors in organizations can be willing to engage in the process of transfer as
a way of obtaining legitimacy and to advance their own interests. So,
this transnational should transfer effectively especially by the top
management in order to get the positive outcome.
(397 words)
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