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Globalisation By Their Nature, Multinational Companies Have Essay

Globalisation By their nature, multinational companies have culturally diverse social capital, and need to adopt strategies to maximize the benefit that this capital has to the business. The field of human resource management plays a significant role in unlocking this social capital. Job descriptions and benefits programs provide motivation for employees that fits with their individual and cultural needs, in addition to meeting the needs of the organization. This paper will outline some of the issues with respect to unlocking social capital within the multinational corporation.

Social Capital

Taylor (2007) notes that social capital can be created within organizations. In particular, the relationships within the organization and the relationships that the organization has with external groups and individuals can be critical to success. There are many cultures where social capital is critical to success. The human resources department should be able to understand when crafting job descriptions where social capital is most valuable, and ensure that adequate social capital is part of the hiring process. This could help the organization choose between the talented individual with no social capital, and someone with great connections. The human resources department should strive to include social capital as a skill or asset in a candidate if it wants to improve the overall social capital of the organization.

In a multinational organization, there are many channels by which communication flows. Within those channels, if there is an emphasis on the development of social capital, the organization can foster increased social capital simply by making connections within the organization. Given the importance of social capital in a wide range of cultures, especially those with high power distance and collectivist mindsets, the company should prioritize the development of social capital in HRM in order to equip itself with the tools needed to succeed in a wide range of markets.
Globalisation, localisation

Social capital is likely more important under a globalisation or even a glocalisation paradigm. As Merz & Alden (2008) note, globalisation emphasizes the development of a global culture. There is to some extent a global business culture, in particular at higher levels. The key to globalisation for the organization is that at lower levels there is a lot more interaction than there has been in the past. As a result, the globalisation of business culture is beginning to occur throughout all levels of organizations. The idea of glocalisation is that globalisation takes local forms around the world. Applied to business, the natural implication is that there while there…

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Works Cited:

Taylor, Sully. (2007). Creating social capital in MNCs: The international human resource management challenge. Human Resource Management Journal. Vol. 17 (4) 336-354.

Merz, M., He, Y. & Alden, D. (2008). A categorization approach to analyzing the global consumer culture debate. International Marketing Review. Vol. 25 (2) 166-182.
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