One of the major challenges facing organisations in the 21st century is managing a human resource strategy in the workplace. It is a much talked about subject area both academically and practically and whilst this has generated areas of best practice it has also fueled a broad range of perceptions especially in respect of organisations operating in an international environment.
The strategic approach of an organization operating internationally in respect of it’s approach to managing and staffing subsidiaries can be characterized by the following: ethnocentrism, polycentrism geocentrism and regiocentrism (Perlmjutter (1969); Wind, Douglas and Perlmutter (1973). Otherwise known as the EPRG model, sometimes called also EPG model as regiocentrism was added a little later. The model aims to identify the orientation of the organization and it’s attitude towards building a multinational enterprise. The identification of the right orientation is essential for any organisation. For example, it is important that the different activities of an organization are consistent with each other for example, the culture of the organisation and its recruitment process. Only then, the organization can operate efficiently.
As future managers, HR specialists and employees you have been set the following;
Case Study Question
Choose a multinational corporation (MNC) of your choice from a country with which you are familiar. You should discuss and explain the factors that may determine the approach of the organisation and their international HR department in managing their subsidiaries. You should then choose three HR policies from that organization and explain them both in terms of the ERPG model and their effectiveness.
Assessment:
You are required to write a 3000 word (+/- 10%) report that analyses and evaluates the application of the ERPG model and its relevance to the chosen case study organization. Demonstrating your ability to meet the learning outcomes for this assessment in the module:
K1. The ability consider, examine and determine the strategic principles required when managing a diverse workforce
S1. The ability to comprehend and critically analyse the range of HR strategic interventions within a global workplace
S2. How to critically evaluate the potential HR issues with managing a diverse workforce
In producing the assessment, you should ensure you have:
1. Analysed i.e., compared and contrasted the organizations approach against a range of models and frameworks covered within the module
2. Based on your analysis, identify the strengths and weaknesses within the MNC’s chosen policy.
3. Made recommendations, identifying what the organization could possibly do to improve its practice.
SOLUTION
Internalisation concept has become a common concept in several industries today, with firms expanding their business activities to international scenes, especially in the emerging economies. An emerging economy refers to that economy that has not yet become fully developed but has, macro-economically, outpaced its developing counterparts (Morrison, 2011). Business and cultural factors affect Multi-National Enterprise differently depending on the country of operation. China is an emerging economy that has gained a lot of interests from MNCs in the last decade (Zhang et al., 2014). One of the most crucial drivers of this emerging economy is its automobile industry. Volkswagen Group, a German MNC is an example of a multinational company that has operations in China (Wei, 2014). This essay analyses the level to which business factors influence the operations of Volkswagen Group in China. Additionally, an assessment of how cultural factors affect the company’s activities in China will help to shed more light into the operations that occur in the international business environment.
The ability to effectively manage diverse workforce calls for a comprehensive understanding of diverse cultures. Cultural factors refer to a set of values, beliefs, and traditions held by a certain group in a society, and are usually passed on from one generation to another (MCAdam et al., 2012). The globalisation aspect has interfered with the cultural environment in several countries, as people from diverse areas interact and exchange their values. However, Asian countries, specifically China, hold various cultural beliefs that even the international businesses have to observe to enhance successful operations in the country (Kwon, 2012). Please click the purchase button to access the entire copy at $20