Page 64 - DMGT548_GLOBAL_HRM

Unit 3: Global Status and Control Mechanism in MNCs

Notes
Figure 3.10: Strategy Optimising Factors in Developing People Management Policies

Parent
International

Global
Multi-domestic
Responsible to and
Respond to and
encourage local encourage global
differentiation integration
Mediated by
Cultural differences
Regulatory and legislative
factors
Economic power
ideological hegemony
Nature of industry
s Resource dependencies s
Strategic choice

Prevalence Flows Prevalence
of local of HQ
HRM Communication, resources HRM
practices and know-how practices

Required interaction
low between subsidiaries high

 Acquisition
 Greenfield investment
 Local dependencies s
 High presence of
 Unionization
expatriates
 Regulatory pressures
Local
embededness
subsidiaries

Source: International Journal of Human Resource Management 4 (4), 1993
3.3.3 Management and Organisation in Europe

There is a need to develop the appropriate management skills to meet the needs of the individual
and need to develop attitudes and flexibility towards managing change, and managing across
cultures.
Thurely and Widenius characterise these differences between Japanese and American
management theory and practice as: work security versus individual freedom; organisational

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