Choose either pay & rewards or recruitment, and critically discuss whether it is best for MNCs (multinational corporations) to globally integrate their (pay & rewards or recruitment)
Question 2: Choose either pay & rewards or recruitment, and critically discuss whether it is best for MNCs (multinational corporations) to globally integrate their (pay & rewards or recruitment) HR strategies for managers or whether it is best to adapt them to local conditions. Provide specific examples and case studies from the literature as support.
Choose ONE out of the following two international HR strategies, focusing on either:
- Pay and Rewards
This essay is placed in the broader debate on global integration versus local adaptation. Global integration requires the transfer of HR practices. According to Ghoshal and Bartlett’s (1998) concept of the ‘transnational’ company, the transfer of practices among the MNC network is the most efficient way to innovate and share best practice. However, not all MNCs engage in diffusion; not all practices are transferred; and not all outcomes are the same.
The answer would benefit from a critical understanding of key IHRM models (Lecture 11). It should carefully weigh pressures of global integration vs. pressures of local adaptation of HR practices (Lecture 12). You should critically weigh different influences on the transfer process: The MNC sector; the organisational structure and corporate strategy of MNC (e.g. the method of affiliate establishment as either greenfield investment or merger); the influence of national institutional and cultural systems of home and host countries; and organisational politics. Do these promote or hinder the transfer of HR practices? You do not need to discuss all of these, but show you are aware of alternative explanations. Focus on what you consider to be the most important influence on the transfer process specifically when it comes to recruitment or pay of managers. Consult the readings from Lectures 14 on Pay, or lecture 13 on recruitment. You can also use examples and readings from Term 1.
This essay could either argue for a strong local adaption of pay/recruitment policies, or for strong global integration. Consider whether global integration necessarily means the direct translation and standardisation of HR policies, or whether global integration and local adaptation can go hand in hand.
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