Hence, it may be more difficult to achieve a high degree of strategic HRM fit in the subsidiary" (Budhwar, 2004, p.254).
The Nike Inc. international organizations are primarily faced with the tasks of manufacturing, whereas the marketing, managerial and design operations are completed within the United States of America. In light of the similar functions they have to complete, it would be argued that several human resource practices could be standardized. Still, given the fact that the plants are located in different regions, it is also important to adapt to the local features. A relevant example in this sense is offered by the need to adjust to the minimum wage requirements in each different country.
In terms of the human resource practices which would be standardized, these include the following:
The recruitment and selection processes
The training of the personnel, including both the base line workers as well as the line manager
The compensation packages including the base salary (as legally required) and additional incentives
The organizational culture.
3.2. Different approaches
As it has been mentioned throughout the previous sections, Nike would have to pay increased attention to the operations which it would standardize and the ones it would localize. In terms of the strategic global management of the human resources, the practices would be similar in all plants the corporation has opened in the outsourcing regions. Differences would however exist when these are legally required and one example in this sense is represented by minimum wage requirements. Other labor force regulations which would force Nike to allow localization of its human resource practices include working conditions, working hours, paid vacation regulations or other stipulations in the local legislations.
While the company would integrate and standardize most of its human resource practices in its management of the international plants, different human resource practices would be implemented within the United States. The operations completed in the North American country are pegged to creation and administration, rather than actual execution. The employees in the U.S. are as such knowledge workers and they would be subjected to different HR practices. For instance:
They would be selected based on different criteria, with focus on expertise, education and intellectual capital
They would be rewarded using different wage scales and they would be offered different incentives. The people in the international plants would work in order to get the paycheck, but the employees in the United States would have to be more motivated and engaged in their professional responsibilities
They would be offered different and more comprehensive and stimulating rewards and incentives
They would be subjected to different training programs.
3.3. Global application of HR practices
As the organizational managers decide on the human resource practices to be implemented and the nature of the strategies, it is necessary to ensure that they would be integrated and implemented accordingly by each of the international subsidiaries. In attaining this objective, the following seven step plan is proposed:
1. The comprehensive understanding of the strategies and functions which can be integrated and standardized, as opposed to those which would be adapted to the local features (localized).
2. The understanding of the employees in the different global regions. Even if the decision has been made to standardize the human resource functions, the company managers could consider local differences as elements in the standardization process.
3. The training of managers in the United States to manage the integration processes in various global regions, in the Nike plants.
4. The training of local managers in the culture and business practices of Nike, coupled with the gradual transition from foreign management to local management.
5. The construction of internal documents to guide the processes and policies of Nike in its international locations.
6. The training of the line manager to ensure that he promotes the principles and practices as established by the executives in the U.S.
7. The promotion and strengthening of the corporate culture in all of the Nike plants.
3.4. Impact of strategic HRM decisions
The recommendations so far made for Nike Inc. center on three specific directions -- the standardization of human resource practices, the localization of human resource practices and the steps to be taken in the actual implementation processes. The actual business model for the application of human resource management practices varies across companies and is pegged to variances in resource availabilities, knowledge possessed, local features and so on. The current recommendations were formulated in light of the assessed literature review, coupled...
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