Country of Origin Effects on Subsidiaries Management and Human Resources Practices

How can the country of solution of a multi subject field flowerpot impact on management practice in their alien subsidiaries and what other factors may impact on the performance of HRM and IR practices in MNC subsidiaries? Regarding the country of origin (coo) rear, I have cogitate on the strong impact that multinational corporations have on management practices in their foreign subsidiaries, through their ethnocentric or national systems strategy. According to Van Tulder (1995; cited by Harzing and Noorderhaven) even the some global MNCs in many respects still turn up to be strongly rooted in their country of origin. The ethnocentric approach by MNCs is an example of cross national isomorphism (Ferner, 1997), which occurs when MNCs successfully transfer COO management practices into soldiery country operations. Despite the impact of the globalization process, which increases the connectivity and interdependence of the universe of discourses markets and businesses ( Scholte, 2000), the ethnocentric strategy is still used nowadays by MNCs. Another detactable COO effect is the use of expatriates by the erect company. The continued hiring of office country nationals for key management positions aid in preserving the COO effect.

According to Ferner (1997; cited by Harzing and Niels, 2003) the management preferences of the home country nationals will become embedded in organizational cultures, procedures and processes in their foreign subsidiaries. The standardization of management policies is another COO effect. According to Kopp (1994; cited by Ferner, 1997) American MNCs can measure and return managers perfomance in their foreign subsidiaries. Other than COO effect there are other factors which may impact the implementation of human resource management (HRM) and industrial relations (IR) practices in MNC subsidiaries. My focus was on local institutional pressures, cultural distance, backing unions and geographical distance. Concerning local institutional pressures,... If you want to get a full essay, order it on our website: Orderessay

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