The Local HR Manager’s Attitudes as a Global HR Professional

When MNC has the decreased integrative mechanisms and the increased autonomy and flexibility for its foreign subsidiaries, the conflicts between the headquarters and the subsidiaries are less likely to occur. The situation allows the local HR managers to develop unique HRM policies and practices in their subsidiaries or to combine the local HRM practices with those of the headquarters.

On the other hand, when MNC emphasizes global integration in HRM aiming to get global efficiencies and uniformity, the centralized approach would lead to the local HR managers lamenting their diminished decision-making autonomy and resources wasted in complying with company-wide planning and control mechanisms.

There is some research which reveals that the integrative mechanisms seldom contribute to the effectiveness of a MNC’s subsidiary, even in the case of low demand for local responsiveness (Brock and Siscovick 2007). However, I suggest that the local HR managers should have greater control over defining their roles and responsibilities within not only the local subsidiary but also the entire organization of the MNC. In terms of the national HRM in different parts of the world, some empirical studies suggest that there are considerable signs of convergence towards accepted best practices and that differences in HR practices are gradually declining (Mendenhall and Oddou 2000).

In terms of the Japanese HRM trend, their traditional HR practices has been changed dramatically and are partially moving from the organization-oriented to the market-oriented systems that is found in the U.S. (Jacoby 2005) Furthermore, the modern global IT and communication technology make it possible for people to share their knowledge, use all their resources, and engage in collaborative innovation across the borders. Talented people within MNCs expect to develop their careers in any places where it create most value for them. The local HR managers should not hinder their career opportunities by persisting to protect the local subsidiary’s vested interest. As global HR professionals, the local HR managers should contribute more to some functions within MNC: deploying the talented people to where they are needed regardless of geographical location, disseminating knowledge and innovation, and identifying and developing talent on a global basis.

On the other hand, the local HR managers should also carefully examine the local needs in their diversified workforces. Even in Japan, some people say that there are no longer differences between the Western and non-Western culture. The others say that there are still disparities of thinking patters and values between them. Both arguments may be right because the evolution of national institution is influenced by national heritage (Jacoby 2005) and therefore exhibit same symptom but different causes and path.

To minimize any conflicts within the organization, the local HR managers should contribute more as an integral “interpreter” partner in the global integration strategy for both the local employees and the headquarters. In order to execute this role, the local HR managers are required to fully understand of the purpose and context of the headquarters’ global business strategy and to carefully examine the national HRM in both the home and host country, which is coming from the local attributes formed by the fusion of historical, legislative, cultural, and social factors.

Moreover, in the corporate headquarters, even when it emphasizes global integration strategy, by involving the local HR managers to the policy-making process, the standardized global policy becomes generated through a more cooperative process and is less likely to be resisted by subsidiaries as a central power.