MANAGING EMPLOYEES 4
Managingemployees of a multinational in other countries has become achallenge because there are different aspects that need to beconsidered. For instance, due to cultural differences, it may becomea challenge to manage employees. Therefore, when managing employeesin a multinational, it is important to consider three approaches. Oneof the approaches that can be used entails ethnocentric approach.According to this approach, the home country management practices ofthe multinational are used in managing employees (Leonard,2013). In this case, headquarters of the parent company make keydecisions. When using this approach, most individuals in themanagement of the company are from the home country of themultinational. This makes the subsidiary company to follow theresource management practices of the home country. Multinationalcompanies that employ the ethnocentric approach usually assume thatthe management practices of the home country are the best andemployees from other countries should follow these managementpractices. In order to ensure consistency in the managementpractices, managers from the headquarters hold key positions insubsidiaries (Tayeb,2005).
Anothermanagement approach used in managing employees in multinationals ispolycentric approach. When using this approach, an employee in thelocal country of the subsidiary are used in leading the subsidiary inthe management of employees since managers from the headquarters ofthe parent company are considered to lack sufficient local knowledge.In this case, the management practices are usually developed inaccordance to the local management practices. Multinationals that usethe polycentric approach in managing its employees assume that everycountry is different from another and subsidiaries need to havelocally developed management practices, which should be supervised bya local manager. On the other hand, geocentric approach may also beused in the management of employees of a multinational in othercountries. According to this approach, managers from differentcountries are used in managing employees. This implies thatmanagement practices from different countries that is managementpractices of the subsidiaries and those of the headquarters of theparent company are applied in the management of employees. Therefore,global practices are used in the management of employees, when thegeocentric approach is applied.
Inthe process of recruitment and selection of employees, multinationalsmust consider the practices of the headquarters of the parent companyand practices that are prevalent in the country of the subsidiary.Local culture will always have an influence in the selection andrecruitment practices (Cooke,2003). Besides, local laws are also important during this processsince different countries have differing laws that guide the process.For example, in Hungary, a company desiring to hire an expatriatemust get authority from the Labor Ministry prior to hiring (Tayeb,2005). In addition, when choosing the appropriate employee, amultinational company must keep a balance amid local labor practicesand internal corporate practices.
Whilemanaging employees, in a multinational company, it is critical for anorganization to consider the different labor laws in the differentcountries since different countries have varied labor laws. Besides,when managing employees of a multinational company, it is importantto consider the approach that the company will use in its differentsubsidiaries in the management of employees. A multinational companymay use ethnocentric, polycentric, or geocentric approaches in themanagement of employees. In addition, the multinationals mustconsider local culture in the management of employees.
Cooke,W. N. (2003). Multinationalcompanies and global human resource strategies.Westport, Conn: Quorum Books.
Leonard,E. C. (2013). Supervision:Concepts and practices of management.Mason, OH: South-Western Cengage Learning.
Tayeb,M. H. (2005). Internationalhuman resource management: A multinational company perspective.Oxford: Oxford University Press.