Essay on Convergence and Divergence Debate over Ihrm Practices

1142 Words Apr 4th, 2016 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 well-balanced strategy which combines global efficiency
…show more content…
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 responsiveness is to respect local cultural values, traditions, legislation or other institutional constraints such as government policy, regarding HRM and work practices. In addition, according to the localisation concept, MNCs need to consider about the features of local affiliate, such as mode of operation and subsidiary role as well. One good example of

Related Documents