Verified Document

Strategy To Manage Human Capital In A MNE Essay

HRM A Strategy to Manage Human Capital in a MNE

Multinational enterprises may face many challenges, one important issue is the way in which human capital is managed and leveraged in order to create value. Most large organizations will have a variety in their employee base in terms of cultural background, native languages, religion and educational backgrounds. As the firm expand internationally the variety of employee differences is likely to increase. Most organizations have strategies that they believe will be fair to the employees, these are often based on the concept of equality. It is argued that if all employees are treated in the same way, there is no difference that could lead to discrimination or bias. This approach to managing employees is based in the requirements of anti-discrimination legislation, where the optimal approach was deemed to be that which would reduce any potential feeling of unfairness as well as meet legislative requirements (Monga, 2008). However, this approach treats all employees the same, and may be argued as limiting the potential for an employer to benefit and leverage the differences which exist in order to gain value from them. It maybe argued that a more valuable approach will be to undertake a proactive diversity management strategy.

Diversity management is based on the idea that employees are different, and that recognizing the differences found within workers, some of which may be visible, and some which may not be easily visible, will be of benefit to both the employees and the employer....

Diversity management may recognize a wide range of differences, including those found across international borders, including, but not limited to, ethnicity, religion, culture, gender, sexual orientation, educational background, and social status (Konrad, Prasad, & Pringle, 2005). Concept of diversity management may also be argued as more than simply a recognition differences, it is a tool for which to implement a policy of cultural pluralism, and go beyond legislative requirements. When it is implemented, it also has the potential to reduce the potential the segregation which may occur between different social groups as a result of the way individuals will gravitate towards others they identify with (Konrad et al., 2005).
Diversity management has the potential to increase the quality of the employment relationship, by recognizing differences, and facilitating management strategies which accommodate the different needs of the individual employees (Bassett-Jones, 2005). However, it has been argued as being "a double-edged sword," as giving employees equal respect and facilitating different treatment due to underlying diversity also has the potential to stimulate the perception of unequal treatment, and potentially create a negative environment (Bassett-Jones, 2005). Diversity management involves providing equal respect for all employees, and their needs, so that employees feel that they have equal respect, opportunity, and consideration of their differences (Bassett-Jones, 2005). The implementation may be undertaken in an international…

Sources used in this document:
References

Konrad, A.M.; Prasad, P; Pringle, J. M, (2005), Handbook of Workplace Diversity, Thousand Oaks, CA, Sage

Loker, J; Franz, J, (2011), The Toyota Way to Continuous Improvement, McGraw-Hill

Monga Manjit, (2008), HRM practices to manage multicultural workforce: do the recommended best practices work for small business? A case study, European Journal of Management 8(2), 168-179

Thomas David A; Ely Robin J, (2006), "Making Diversity Matter; A New Paradigm for Managing Diversity," in Fullan, Michael (eds) (2006), Educational Leadership, John Wiley & Sons
Cite this Document:
Copy Bibliography Citation

Related Documents

People Management to Strategic Human
Words: 3191 Length: 10 Document Type: Essay

In addition, transaction costs may be too high to implement HR practice that is different from the HR policies being practice at the headquarter. Thus, to lower costs, it is critical for MNC to adopt HR standardization. (Dickmann,2008). Despite the argument in support of standardization of HR, there are challenges that a global company may face while implementing standardized HR practice on a global basis. The challenge in practicing standardization is

International and Local Human Resource Management
Words: 2306 Length: 7 Document Type: Research Paper

HRM in an MNE Similarities and differences between domestic and international HRM International Human resource management is a process that involves the procurement, allocation and utilization of human resource within a multinational corporation or for at least three countries. While the HR managers within these organizations are expected to integrate the HR policies as well as the practices across various of their subsidiaries that have spread in several countries in order to

Global HR Management Human Resource
Words: 3280 Length: 10 Document Type: Term Paper

Employee development and training is an alternate zone. In the IT business, training is not simply about recognizing training needs and giving the presupposed training, but anticipating and reckoning the necessities and advancing suitable training to equip employees so that they can handle the challenges. Another serious challenge is the way businesses have the ability to fuse all the sub-systems in HR and help them in accomplishing a definitive objective:

International Human Resources
Words: 3739 Length: 10 Document Type: Essay

International Human Resources Culture, Political, Economic and Social Contexts of Nigeria Under the Subject of International Human Resource Management. This paper is solely related to the International human resources practices, the uses of international human resources aspects as well as implementation within Nigeria. The paper has been explored several positive and negative aspects of Nigeria related to IHRM and whether it is feasible for global companies to operate and use the labor

Costco Wholesale Corporation Costco in India Company
Words: 1704 Length: 5 Document Type: Essay

Costco Wholesale Corporation (Costco) in India Company overview Costco Wholesale Corporation started operations in 1983 in Seattle, Washington. The company is essentially engaged with the operation of membership warehouses in Canada, United States, Mexico, Puerto Rico, Canada, the United Kingdom, Japan, Australia, and via majority owned subsidiaries in Korea and Taiwan. The company's normal stock is trading on the NASDAQ Global Select Market under the image COST (Marchetti & Roy, 2009). The company

Rio Tinto Group Wholly Owns and Operates
Words: 580 Length: 2 Document Type: Essay

Rio Tinto Group wholly owns and operates mining and processing ventures under the holding Rio Tinto Iron Ore Group. This group is largely focused on projects in North America and Australia. Development projects are underway in West Africa and India but are currently uninvolved in the iron ore projects in Mozambique and Tanzania (Rio Tinto Iron Ore 2011). Regarding subsidiary management, the Rio Tinto Group has made clear that

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now