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Question: Explain the five modes of global integration and local responsiveness in MNEs’ human resource management function. Illustrate your answer with examples.

06 Oct 2022,12:24 AM

 

1. Multinational enterprises (MNEs) can have three different approaches to Global Talent Management. Critically evaluate the
advantages and disadvantages of each approach. Explain how they can co-exist in the same MNE and provide examples.

2. The Covid-19 pandemic has led to changes in the way people work. These changes can influence international human resource
management practices in MNEs currently and in the future. Explain the growth of remote work and how it can challenge Perlmutter’s
(1969) model of IHRM orientations.

3. Perlmutter’s (1969) model of IHRM orientations can be strongly related to Prahalad and Doz’s (1987) model. Explain how each type
of MNE strategy from Prahalad and Doz’s (1987) model is associated with Perlmutter’s (1969) model.

4. Explain the five modes of global integration and local responsiveness in MNEs’ human resource management function. Illustrate your answer with examples.

5. The universalist paradigm in human resource management has been frequently criticised. Explain the reasons behind such criticism
by addressing the notion of contextualism and linking it with the concepts of national and organisational culture.
 

Expert answer

 

There are five modes of global integration and local responsiveness in MNEs’ human resource management (HRM) function: centralization, decentralization, internationalization, localization, and global standardization.

 

Centralization occurs when decisions about HRM are made by corporate headquarters and then imposed on all foreign subsidiaries. Decentralization happens when individual foreign subsidiaries are given a high degree of autonomy to make their own decisions about HRM. Internationalization occurs when the functions of HRM are standardized across different countries. Localization occurs when decisions about HRM are made at the local level, in close consultation with managers and employees in that country. Global standardization occurs when a single set of global rules and procedures is applied to all countries.

 

Each mode of global integration and local responsiveness has its own advantages and disadvantages. Centralization can ensure uniformity across all subsidiaries, but it can also lead to inflexibility and resistance to change. Decentralization can promote creativity and innovation, but it can also lead to inconsistency and confusion. Internationalization can increase efficiency and consistency, but it can also lead to cultural imperialism. Localization can be responsive to local needs and cultures, but it can also lead to duplication and inefficiency. Global standardization can ensure harmonization across different countries, but it can also lead to uniformity at the expense of cultural diversity.

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