Diversity of Bargaining and Negotiation †Free Samples to Students

Question: Discuss about the Diversity of Bargaining and Negotiation. Answer: Introduction The strategic international human resource management is concerned with the management of the human resources which are aligned with the strategic directions of the multinational organizations (Daley 2012). The strategic aspect of the human resources is done in an interconnected, dynamic and competitive global environment. This aspect tends to explore, research, apply and evaluate the human resource activities that are relevant to the internal as well as external aspects of the organization (Daley 2012). The modern organizations are engaging in cross border trade and they are operating in a global marketplace in which it is important to enhance the experience of multiple stakeholders (Daley 2012). There have been research regarding the standardization or localization approach that needs to be taken by the multinational firms. There are possibilities that the increasing presence of the multinational firms would decrease the instances of the localization of practices. In such a scenari o, the dominance effect can be witnessed. This essay would outline the country of origin effect on the different aspects of the strategic international human resource management in the global firms. The organization Toyota Motor Corporation would be used for practical illustrations. There would be various arguments which would measure the extent to which the country of origin effect is the influential factor in the success of the firm. The essay would also strive to discuss the different factors such as cultural, institutional, organizational and the political factors that affect the transfer of the HRM practices and the way this transfer take place. There would be in-depth critical analysis of the various international HRM transfer process by using different literature. The multinational organizations have adopted the strategic international human resource management practices in different degrees. A holistic corporate strategy is not only based on the external as well as internal business factors but acts a reference point regarding each part of the value chain (Tiwari 2013). The functional level type is associated with the maximization of the efficiency of the business process. Research shows that there are reciprocal relationships between the strategic human resource management, objectives of multinational companies and the various organizational factors. As agreed by Tiwari (2013), there is an increasing dominance effect observed in the multinational companies when the managerial practices of the subsidiary firms are neither shaped by localization (host country specifications) nor influenced by country-of-origin effect (specifications of the home country). Instead, the management practices are being affected by the country that sets global best practices. There is great debate on the convergence and divergence approach adopted by the multinational companies (Lozano 2015). The convergence approach is concerned with the fact that the best practices of the management can be explored that are applicable universally, not taking into consideration the institutional context or the organizational culture (Lozano 2015). The efficiency of the HR process and the global competitive environment are forcing the companies to adopt best practices so that they can compete in the global marketplace (Lozano 2015). This follows the cross national convergence of the management practices. On the other hand, the divergence policy focuses on the national management methods in the institutional as well as cultural context and doubt the cross-national learning emerging from the best practices. The organizational culture of Toyota is popular and many organizations try to replicate them. The organization has designed its policies so that a lean organizational culture is created (Edwards et al. 2013). The organization believes in the development of the competencies of the employees such that they have the necessary skills to deal with the cross-border teams (Edwards et al. 2013). These skills include the continuous improvement, communication, motivation, job fit, integrity, attention to quality and others (Edwards et al. 2013). The organization aims to hire people who possess these unique competencies so that the organizational objectives would be fulfilled easily (Edwards et al. 2013). The organization also aims to provide lean systems as well as trainings to all the employees so that they are encouraged for delivering high performances. In fact, Toyota also aims to coach the employees and remove them subsequently if they are not eager to embrace the high performance culture . The employment relations in the multinational companies are governed by a number of factors such as cultural, institutional, political and organizational (Almond et al. 2005). The institutional approach usually focus on both the national as well as international countrys institutions (Festing 2012). It overseas the nature of the employment relations in the country within the foreign based subsidiaries of different multinational companies by measuring the balance of different factors (Almond et al. 2005). There are number of factors that influence the behavior of the MNC such as dominance effects, country of origin effects, host country effects and the different pressures for international integration. The country of origin effects is concerned with the behavior of the MNC that can be traced back to the various features of the national business systems that forms the origin of the MNC (Almond et al. 2005). These refer to the various interlocking relationships that underline the institutional forms such as training and education, industrial relations, intrafirm as well as interfirm coordination, welfare state and others (Osland and Bird 2013). There are other kinds of institutional forms such as corporate finance, management roles and others. The transnational corporations are no longer considered as apex and subordinates, but they are considered as related network affiliates (Poon 2013). In such kinds of networks, the decision-making activity is spread across all organizational entities and the exercise of control is done through normative integration. The controls are usually done by the nationals of the offices belonging to the home country (Almond et al. 2005). Research shows that the US based MNCs are more likely to have formalized as well as centralized human resources than their counterparts (Koschate-Fischer Diamantopoulos and Oldenkotte 2012). They have the tendency of exporting their organizational forms as well as management methods so that they can serve the different countries. This is the reason why they have introduced the multidivisional organizational form so that the discreet business entities can exert strategic central control as well as formulate highly specialized management function (Koschate-Fischer Diamantopoulos and Oldenkotte 2012). Toyota functions in the USA and hence must adhere to the employment trends in USA. There is hostile relationship between the organized as well as capital labor in USA, which have socio-historical roots. The dominance effect of the strategic human resource management function is concerned with the fact that the states which are dominant are able to exert political, organizational and technological influences (Paprzycki 2013). These influences bring dissemination as well as adoption evident across the global systems. This effect can be witnessed in Toyota also where there is high degree of local customization. It increases the local sales as the company engage in customization of both the products as well as operations in each country (Koschate-Fischer Diamantopoulos and Oldenkotte 2012). This strategy has led the company to operate outside Japan ad capture the overseas market. This strategy leads to an increase in the operational complexity, however, it also enhances the creativity of the employees so that they can develop new ways of marketing as well as new technological modes. The dominance effects tend to create incentive from the part of the firm that contribute to the firms suc cess in the various dominant countries (Koschate-Fischer Diamantopoulos and Oldenkotte 2012). One of the most important reasons for the countries receiving the dominant model status is their superior economic performance (McDonnell Lavelle and Gunnigle 2014). The strengths of the successful economy are usually concentrated in the industries which are characterized by strong international competition. This can be viewed in the mass production sectors such as automobiles (Koschate-Fischer Diamantopoulos and Oldenkotte 2012). Japans economy is considered as role models since they offer best practices for the other countries to follow. The multinational companies have several cultural attributes that lead to choose strategic human resource tactics. The global organizations have become more sensitive to the cultural needs of the organizations (Koschate-Fischer Diamantopoulos and Oldenkotte 2012). The employees belonging to the different countries would have diverse group of employees belonging to different caste, creed, race and ethnicity. The management of the cultural differences have become an important matter for getting competitive edge in the foreign countries as well as host countries (Purce 2014). It is the duty of the organizations to create an organizational culture that helps each employee to pursue their individual career aspirations (Purce 2014). The management of the culturally diverse workplace refers to the ability of the employees to give their best performance as they are provided with an equitable work environment (Lewis 2013). The organizations must embrace diversity and should formulate equal po licies for everyone so that the discrimination as well as injustice can be avoided. The organizations who are embracing the strategic human resource management also needs to take care of the different political dimensions, operating a both micro level and macro level (Purce 2014). There is greater need of the collective bargaining process which would affect the transfer of the HRM practice in an intrinsic manner (Terpstra Foley and Sarathy 2012). The process of collective bargaining is concerned negotiations between the unions representatives and the management of the company (Terpstra Foley and Sarathy 2012). The bargaining agreement makes it clear that there are certain aspects of the management that are not negotiable such as right to recruit, right of promotion, right of terminating employees, which are essential rights of controlling business processes. Podsiadlowski et al. (2013) agrees that the global organizations should concentrate on the aspect of the union security and there may be negotiation regarding the check off provision (Rubin and Brown 2013). As commented by Jiang et al. (2012), there are several organizational factors that drive the multinational organizations to engage in global human resource management. The high performance of the employees and the increased productivity drives the employers to engage in cross border trade (Varma and Budhwar 2013). The strategic human resources function help in increasing the productivity of the employees by supporting, enabling and encouraging the employees. This is also done by the act of harnessing potential as well as channeling it in the right direction (Terpstra Foley and Sarathy 2012). The cross-border trade also facilitates increased business prospects by capturing the local market of the foreign countries. It is also helpful in gaining competitive advantage of the firm. As opined by Sparrow (2012), the functions of recruitment, selection and compensation are more likely to be transferred to the foreign countries. This is because these human resource practices need the skills of the local talent in order to achieve business success (Terpstra Foley and Sarathy 2012). On the other hand, the HR functions such as the employee training, development and others. The business organizations, like Toyota, are continuously expanding their international operations for getting sustainable profitability as well as growth. They adopt different kinds of strategies that they use to start the operations in a foreign country. As opined by Grant (2016), in terms of the business operations, there are four kinds of transfer practices taken by the organization such as international strategy, multi domestic strategy, global strategy and transnational strategies (Ferner Edwards and Tempel 2012). The international strategy is concerned with the using of the existing core competencies of the firm for exploiting different kinds of opportunities in the foreign market (Grant 2016). The multi domestic transfer of the HR practices refer to the strategy in which the foreign subsidiaries function as autonomous units so that they can customize the different products as well as services as per local needs (Ferner Edwards and Tempel 2012). For example, Dominos Pizza foll ows this kind of strategy in which they locally hire, train and develop candidates that would help them to serve the local customers. The global strategy is concerned with concentrating on the tight control on the different global operations in order to maintain standardization (Rothaermel 2015). The transnational strategy combines the various policies regarding the expatriate selection, staffing, industrial relations, diversity management and training. For example, Coca Cola follows transnational strategy in transferring of the HR practices between multiple countries (Gong 2015). The Coca Cola company permits the national businesses to conduct their business operations which ensures the rapid transfer of the valuable as well as innovative HRM tools. The corporate HRM of the company has developed HR strategy so that the local businesses are able to develop their personalized HR practices (Ferner Edwards and Tempel 2012). The company has not made a standard compensation policy for all the national operations. Instead, it has formulated a policy in which the total salary package would be competitive as per the close rivals in the local market. the company has also found out that the local business can contribute effectively to the development of superior HR policies that would give the maximum benefits. This strategy has been used by Coca Cola in managing their global operations in more than 25 countries operating in six regional groups namely European Union, North America, Pacific Region, Middle East Group, Latin America and others (Gong 2015). There are primarily three kinds of strategies that are used for the purpose of transfer of HRM practices by the multinational companies as far as staffing requirements are concerned. As opined by Thoo and Kaliannan (2013), the polycentric approach to hiring is concentrated with the hiring as well as promoting the employees who are citizens of the concerned host countries. This approach is concerned with low costs of the recruiting as well as training staffs. There are lesser issues of communication as well as coordination since the employees belong to the same geographical region. As defined by Thoo and Kaliannan (2013), the ethnocentric approach is being used by the multinational companies that possess international strategic orientation. The employees ae being sent from the home country to the host countries for carrying out the job duties in the foreign location. This kind of approach is being used by Toyota for commencing operations in a foreign country Thoo and Kaliannan (2013). The company believes that the experienced employees in the parent company would be necessary in effectively setting up of the business operations in foreign countries. The geocentric staffing approach is concerned with the fact that the recruitment decisions are done irrespective of their nationality. This kind of transfer of the HRM practices is concerned with the evaluation of the skills as well as experiences of the candidates. It is important to determine the role and function of international HRM mechanisms at different stages of transfer of HRM practices. There are different stages in the development of the global human resource practices. The HR is actively engaged in the development as well as formulation of cross border polices concerning recruitment and compensation. The dissemination of the information sharing is done through the improved communication techniques. The human resource department also helps in the dissemination of information to all the employees so that they are aware of the varied rules and regulations (Ferner Edwards and Tempel 2012). They are also actively engaged in knowledge sharing and the shared learning mechanisms. The HR department is likely to foster change management tactics for effectively using the human capital for the purpose of organizational development. Conclusion The multinational companies are increasingly adopting the different kinds of cross border trade for increased business prospects. They are increasingly using the different international human resource management systems for greater business efficiency. This essay covered Different strategy international human resource practices that are relevant in the global marketplace. The essay discussed the important dimensions of convergence and divergence approach that are increasing becoming HR practices in global management. The organizational culture of Toyota is discussed in detail. There are significant factors affecting employment relations that are discussed. A special emphasis is being laid on the country of origin effects and the interlocking relationships that determine the institutional forms. The US based MNCs are more likely to have formalized as well as centralized human resources than their counterparts, which is discussed in detail. The dominance effect of the strategic human r esource management function is elaborated that have different types of influences such as organizational, political and technological influences. The economic and the political factors that influence the international strategic human resource management are discussed. The global organizations have become more sensitive to the cultural diversity in the workplace. They have also engaged in greater collective bargaining process that engages in bargaining process between the management and the union members. 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