Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.
The given case study concerns the managerial practices of Chinese multinational corporations (MNCs), particularly the ones based in Africa and Asia. The main issues in the article are centered around the reciprocal relationship between MNCs’ HRM practices and local institutional actors. Namely, they refer to the impact of the legal environment on HRM practices, MNCs’ ethical obligations to local communities, and the way the industry affects respective HRM strategies.
Legal Environment
A whole strand of studies behind HRM strategic practices of MNCs considers the institutional environment and national business systems features as the main driving forces determining the HRM approach. In this context, there are two types of institutional influence – the host country and the country of origin (Cooke, 2014). In addition, the MNC’s country of origin is not necessarily dominant in instilling its practices (Cooke, 2014). However, it does play a critical role in the final decision regarding what source of practice MNC will adopt. Meanwhile, local managers and employees also partake in the decision-making process. Depending on the situation, they can prove to be either the supporters or the opposers of the respective HRM practices transfer from the country of origin to its subsidiary.
Thus, from an institutional perspective, MNCs’ HRM practices mainly focus on the interaction between international, national, and local influences. Nevertheless, it is vital to understand that MNCs, as such, do not tend to be “passive recipients of institutional impositions” (Cooke, 2014). Instead, they should be treated as sophisticated and powerful organizational actors who opt to strengthen their market position by proactively engaging in developing the institutional environment. Specifically, such is the case in developing countries where the institutions and economy are still subject to a dynamic and complex transition process compared to the relatively high institutional stability and firm establishment of institutional norms of developed countries (Cooke, 2014). In the former case, even despite institutional constraints, MNCs’ managers have the space to strategically choose and deliberately take political action.
MNCs’ Ethical Obligations
According to the case study, Chinese MNCs’ success partially depends on their willingness to develop local communities. This relationship applies not only to this particular example but to the MNC matter in general. Analogically to tourists and migrants, MNCs should “behave” well in the host countries. Such a behavior can be viewed from various perspectives; however, its moral connotation is present regardless of the chosen approach (Bevan et al., 2019). Firstly, considering the analogy of a corporate entity and an individual, there is a moral imperative imposed by a social contract to act socially responsibly (Bevan et al., 2019). In other words, MNCs are implicitly expected to act morally decently in the places where they are allowed to do business. In exchange for this opportunity, MNCs are obliged to work on the well-being of the community that accepts them.
Secondly, from the perspective of being a guest in a host country, MNCs might be expected to not only act within a specific custom framework but also proactively contribute to the improvement of society (Bevan et al., 2019). Thirdly, with the rights theory and the sense of justice in mind, MNCs must adhere to fundamental human rights in their operations (Bevan et al., 2019). In particular, as members of the universal community, MNCs should not cause harm and must respect freedoms and legal obligations in their business dealing. This position implies MNCs’ positive obligations to the host community and negative obligations not to cause more harm or violate more rights compared to the existing status quo. Finally, according to the Friedmanesque argument, MNCs have a social responsibility to stay within the framework of law and customs during their operation (Bevan et al., 2019). Even though the latter approach does not imply further commitments to the host community, it still imposes moral obligations, confirming their importance.
HRM Strategies and Industry
Institutional and social factors are not the only issues that MNCs have to consider in their strategic HRM. According to Cooke (2014), the industry of operation additionally limits the freedom of strategic decision-making due to industrial relations system and labor market peculiarities. Regarding the latter’s influence, Diaz‐Carrion et al. (2019) highlight HRM’s significant context‐sensitivity. In light of the previously mentioned institutionalism, companies in the same industry are more likely to develop unique practices because of facing similar cognitive, regulatory, and normative pressures. This so-called isomorphism often leads to similar commitment levels to corporate social responsibility in the same industry and different levels in other sectors (Diaz‐Carrion et al., 2019). In addition, engagement is stronger in high‐risk industries than in low‐risk industries.
Regarding the latter, the difference in priorities inside the industrial labor market consequently alters the HRM approach. For instance, in the context of African construction, manufacturing, and mining industries, a low skill requirement allows for a bigger candidate pool. Cooke (2014) provides evidence of a specific flaw of the local labor force – a “relaxed attitude to work and life” (885). Consequently, a Chinese MNC would instead prefer to import more hardworking Chinese candidates, given the same skill level. Overall, even a small detail might change the HRM strategy, further proving the MNC’s strategic contextual dependability in managing human resources.
References
Bevan, D. J., Wolfe, R. W., & Werhane, P. H. (eds.). (2019). Systems thinking and moral imagination: Rethinking business ethics with Patricia Werhane. Springer.
Cooke, F. L. (2014). Chinese multinational firms in Asia and Africa: Relationships with institutional actors and patterns of HRM practices. Human Resource Management, 53(6), 877-896. Web.
Diaz‐Carrion, R., López‐Fernández, M., & Romero‐Fernandez, P. M. (2019). Evidence of different models of socially responsible HRM in Europe. Business Ethics: A European Review, 28(1), 1-18. Web.
Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.