Hrm Strategy In Chinese Mnc’S In The Uk
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Hrm Strategy In Chinese Mnc’S In The Uk

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Hrm Strategy In Chinese Mnc’S In The Uk Hrm Strategy In Chinese Mnc’S In The Uk Presentation Transcript

  • HRM Strategy in Chinese MNC’s in the UK BY: Nadeem Ahmed Awan MS - Management
  • Purpose of Study
    • The purpose of this study was to know that how MNCs from developing countries struggle to compete in developed countries.
    • This was observed by focusing upon the strategies used by these MNCs.
  • Nature of Research
    • Descriptive & Qualitative Research.
  • Methodology
    • Participants
    • Six Subsidiaries of Chinese MNCs doing business in UK.
    • Procedure
    • Interviews method. Open ended & Semi structure
  • Localization Strategy
    • Applying the management practices of host country to compete in their market.
  • Need & Scope of Localization Strategy
    • Strong Global Competition
    • Internationalization of Markets
  • Reasons for Localizing Management Practice
    • Negative impact of imported policies in the host Country.
    • MNCs absorb local advanced international management experience as part of their internationalization process.
    • Recruitment of local staff for competitive advantage in local markets as they can apply the policies and practices of host country to use local labor resources
    • Cont….
  • Reasons for Localizing Management Practice
    • Local constraints in the areas of High regulation.
    • Cultural Conflict between the country of origin and host country.
    • Economic Conditions may not support practices of country of origin.
  • Chinese MNCs, Internationalization and HRM Strategy
    • Chinese government policy to encourage internationalization.
    • HRM Strategy, a critical factor to meet requirement of localization Strategy.
    • Changing HRM Practices following economic reforms designed to move china from a command economy to more responsive to market.
    • Due to increasing adoption, number of factors, strongly suggest that a localization Strategy in HRM would be adopted by Chinese MNCs in UK.
  • Results Localization Strategy
    • All managers stated that their companies wish to learn and use UK management practices although the reasons they gave for doing so varied. Reasons to apply this strategy given by the CEO’s of these companies are as follow;
    • One of the CEO told that they have to depend on local expertise if they want to extend their markets into the UK and they could not attract and retain local talent if they did not follow local labor management practices.
    • CEO from another company says “It was formed to establish an international business and viewed learning modern techniques on how to manage people as integral to its success”.
  • Results Adoption of UK HR Practices
    • Responses from all senior managers indicated that UK HRM policies and practices are extensively used in their companies.
    • The data showed that a market-led managerial structure has been established in all six companies. Moreover, business is no longer certainly planned by parent companies.
    • A single-line decision-making system has replaced the traditional dual-line system in all the companies, and the chief executive is responsible for both business and personnel.
    • (Cont..)
  • Results Adoption of UK HR Practices
    • Five of the six companies recruited largely from the local market. Companies also adopted local remuneration structure.
    • All six companies have moved towards flatter organizational structures with some delegation to line managers, and for individuals there are clear descriptions of jobs and responsibilities.
  • Results Cross Organizational Learning Activities
    • For the purpose of internationalization, four main diffusion
    • (transmission) activities identified by the Chinese
    • subsidiaries.
    • Providing formal training programmers for the managers from home firms and other subsidiaries.
    • Training home firm managers in the subsidiaries.
    • Sending local staff to parent companies in China to train the managers there.
    • Introducing and exchanging ‘best practice’ though conferences or management meetings.
  • Discussion
    • Important structural factor promoting localization in these six companies is government ownership.
    • Results showed that market position and business integration also affect the extent and nature of localization and diffusion. The more the company depends on a local market for its services, the more localization in HR practice is apparent
    • The scope of localization and diffusion also reflects the extent
    • to which they are dependent on local or international markets.
    • A staff composed of both expatriates and locals could provide opportunities for the learning and diffusion of local practices (Edwards 1998).
    • (Cont…)
    • Thanks