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Convergence And Divergence Debate Over Ihrm Practices

1132 words - 5 pages

Convergence and Divergence Debate over IHRM Practices
By : Anggun M.B

Nowadays, there is an increasingly concern about convergence and divergence debate over Human Resource Management practices of MNCs that operate expandly accross the globe. With regard to convergence approach, it is generally accepted that the universality of sound management practices would lead to societies and countries becoming more and more alike and interlink. On the other hand, according to divergence approach, companies will try to adapt its strategies with different host-country context in order to sustain its business continually in different countries. However, in my point of view, MNCs need to have a ...view middle of the document...

In addition, at a particular level, we cannot argue that the world is become more and more similar as some countries are still adopting different political and regulation system at all. These factors have strived MNCs to adapt its multinational strategies with local (host-country) requirements.
Extending beyond the debate over convergence and divergence approaches, they are also related to standarisation and localisation of HR practices. The standardisation-localisation choice that confronts the multinational business in an area of operation such as marketing, applies to the management of the global workforce as well. This is due to the fact that HRM carries out a strategic support function within the firm. Firstly, the idea of global standardisation strives a company to adopt one single set of HR practices in its different subsidiaries around the world. The multinational company may have certain global requirements, thus they want to implement the same global strategy, have a similar global structure and also have one single corporate culture regardless of where they are operate in terms of geographical location. For instance, as a giant global fast-food restaurant, Mc Donald had opened its fast-food chain in many countries, including in India. As we all know, McDonald’s success is built on the highest global standards of quality, quick service/delivery, cleanliness delivered to customers in each of its restaurants. Therefore, in term of training and development practices, many well-trained crew and managers are the first step to achieving these standards through McDonald University in USA or learning center in India. In its training practice, all Indians employees learn how to operate state-of-the-art food service equipment, gaining knowledge of McDonald’s standard operational procedures (SOP), provide McD’s common menus (meals, burger and beverages), etc. Besides, it is company policy to provide career opportunities that allow Indian employees to develop their full potential. This includes a comprehensive training programme for crew and operations management and career progression that enable a ‘first job’ employee to progress through to a senior management position through merit-based promotions. In accordance with the convergence approach, the idea of global standarisation will be beneficial, effective, and useful for MNC’s headquater (McD USA) and its subsidiaries (e.g McD India and all its franchisees) to have the same corporate strategy, vision and mission, and the same organisation culture that emphasizing operation excellent in its business.
Secondly, at certain Human Resource Management level, companies need to respond to the local situation and host-country context, as in line with divergence concept. The aim of realising local...

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