7/31/2019 GHRM Practices in Some MNCs
1/19
GHRM practices in some MNCs
Presentation by
Rafshad MahamoodRoll No.: 15
S4 MBA (IB)
7/31/2019 GHRM Practices in Some MNCs
2/19
GHRM practices in 2 MNCs
7/31/2019 GHRM Practices in Some 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
7/31/2019 GHRM Practices in Some MNCs
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
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
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)
7/31/2019 GHRM Practices in Some MNCs
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
7/31/2019 GHRM Practices in Some MNCs
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
7/31/2019 GHRM Practices in Some MNCs
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
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
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.
7/31/2019 GHRM Practices in Some MNCs
19/19