GHRM Practices in Some MNCs

7/31/2019 GHRM Practices in Some MNCs

1/19

GHRM practices in some MNCs

Presentation by

Rafshad MahamoodRoll No.: 15

S4 MBA (IB)


2/19

GHRM practices in 2 MNCs


3/19

IBM

IBM has had robust discussions around how to

make their HR managers to be more

consultative more strategic.

To develop successful global HR practices they

focused on two areas:

1. Through leadership from countries, regions,

and divisions, and

2. Buy-in


4/19

IBM corporate supplies support for their localHR units through various means

1) One form of support comes from creatingprograms that can be adapted locally to shifts inthe environment. This enables HR subunits

ability to develop custom systems and practiceswith an ever-watchful eye on the constantchanging needs of IBM clients


5/19

2) Another example is the corporate allowing

the definition of employee performance to be

relative. This allowed regional leaders to base

performance ratings for their employees offpeers within the region rather than corporate-

wide.


6/19

3) A final illustration of increased autonomy is

IBM corporate turning the distribution of

compensation over to regional managers.

Corporate understands that empowering localautonomy can be very complex and requires

extensive creativity and innovation.


7/19

Training in IBM

IBM places a strong emphasis on training as a strong

driver of knowledge sharing. Currently IBM budgets

$700 million annually towards formal classroom

training and online learning. They have created an OnDemand learning strategy that, according to Nancy

Lewis, Vice President, IBM On Demand Learning, allows

IBM to bring, the learning to work,-- an exciting new

era of learning that promises to leverage the collectiveexpertise of employees, teams, and organizations

throughout its enterprise.


8/19

Challenges

Internationally, IBM has faced unique challengesFor instance, in Europe the branches are highly

integrated in knowledge sharing within their

region but run into difficultly extracting relevantknowledge from the U.S. or other outside

regions. They also recognize that different

geographies and even different business unitsmay require varied levels of HR expertise.


9/19

Solutions

To combat these challenges IBM focuses on

three things:

1. Eighteen to twenty-four month job rotations

2. Numerous training opportunities

3. Five-minute Drill.


10/19

Training focuses on doing HR in countriesoutside of their own and can be in the form offormal training, paid school, workshops, as

well as other options The Five-minute Drill refers to checking in

periodically on key employees and is usedexclusively in Europe (Executives are expectedat any moment to be able to discuss about anyhigh-potential manager)


11/19

Conclusion IBMs Asia-Pacific divisions incorporate a

tremendous amount of new practicedevelopment and knowledge sharing among

their HR groups.

It is typically thought that almost all HRinnovation has its roots in IBMs corporate U.S.

office but this is not the case always. There are

times when practices formed in the U.S. aresimply deemed unacceptable in other countries


12/19

TOYOTA

Toyota maintains high profile in its HRM policies

and practices too. Ian Winfied of university of

Derby, UK who conducted a detailed field study

on Toyotas HRM, strongly believes that humanresource practices of this company can serve as

a model, particularly in manufacturing and

production oriented organizations


13/19

HR framework of Toyota

Toyotas HRM framework broadly comprises of

four goals as described below:

1. The goal of organizational integration

2. The goal of commitment

3. The goal of flexibility and adaptability4. The goal of quality


14/19

1. The goal of organizational integration:-

The integration of employees at individual andcollective level with organization is seen as the

primary goal of Toyota HRM strategy. This goal

has been achieved through extensive use ofteams that are subordinate to organizational

goals. Welfare of employees also received wide

attention as a part of this goal.


15/19

2. The goal of commitment:-

In order to achieve this goal, a two-prongedstrategy was followed. Firstly, Toyota preferredsemi-rural workforce for induction in their plants.

They believe that people who are not contaminatedby industrial culture and influences tend to retainwith them a kind of feudal value of loyalty, whichcan be converted into organizational commitment.

Secondly, measures such as suggestion schemes,quality circles and employee involvement methodsare used to gain commitment.


16/19

3. The goal of flexibility and adaptability

Team authority in place of single individual

holding paved way for realizing flexibility in the

organization. These teams are task-based and

can be dismantled or restructured, dependingupon the situation. The adaptability trait is

institutionalized through the approach of multi-

skilling and job rotations.


17/19

4. The goal of quality

Self, peer and teams surveillance techniques are

used to ensure quality of products. Further, a

series of measures employed, such as time and

motion study, benchmarking, continuousprocess improvement and employee

involvement contributed in the achievement of

this goal.


18/19

Managerial Implication

This model has two prime practical implications.Firstly, it serves as an ideal model in terms ofhow an HRM strategy must be made. In other

words, a sound HRM strategy should have superordinate goals linked to organizational goals andthese goals must be rendered to core HRMpractices. Secondly, the mix of local ethos with

international practices to obtain commitmentand organizational integration of workforceserves as a great learning tool.


19/19

Documents

GHRM Practices in Some MNCs