Continuing With The Mark Anderson Scenario And The Organizat
Continuing With The Mark Anderson Scenario And The Organizational Stru
Continuing with the Mark Anderson scenario and the organizational structure you have designed for your subsidiary, decide to what extent you will utilize a standardization or localization approach to your HRM practices and the factors driving each. Papers should be 2-3 pages in length (not including title and reference pages) and must reflect APA guidelines, including title page, reference page, and in-text citations. A minimum of two references are required.
Paper For Above instruction
Introduction
In the context of international business, human resource management (HRM) practices play a crucial role in shaping organizational effectiveness across different cultural and regulatory landscapes. When expanding a subsidiary, organizations often face the strategic dilemma of whether to standardize HRM practices across borders or to adapt them to local circumstances. Drawing upon the Mark Anderson scenario and the organizational structure designed for the subsidiary, this paper examines the extent to which a standardization or localization approach should be utilized in HRM practices, considering the driving factors behind each approach.
Standardization Approach in HRM Practices
The standardization approach to HRM involves implementing uniform policies and practices across all organizational locations, regardless of geographic or cultural differences. This strategy promotes consistency, brand coherence, and operational efficiency. Standardization can streamline recruitment processes, performance management systems, and compensation structures, leading to economies of scale (Friedman & Barcick, 2017). For example, using shared HR information systems and global leadership development programs can facilitate seamless integration of subsidiary operations into the corporate culture.
The primary factors driving the adoption of standardized HRM practices include the desire for a cohesive corporate identity, efforts to reduce administrative costs, and the need to ensure compliance with corporate policies. In the Mark Anderson scenario, if the subsidiary operates in a highly competitive global market where uniformity in practices enhances customer trust and organizational reputation, standardization becomes particularly advantageous. Moreover, multinational corporations (MNCs) with centralized control systems tend to favor standardization to maintain consistency across their international units (Jackson & Deeg, 2018).
However, standardization may pose challenges when local cultural norms, labor laws, or employment practices conflict with corporate policies. Therefore, organizations must carefully weigh the benefits of uniformity against the potential for cultural disconnect or legal non-compliance.
Localization Approach in HRM Practices
Conversely, the localization approach emphasizes adapting HRM policies and practices to fit the local cultural, legal, and economic context. This approach recognizes that different countries have unique labor market conditions, cultural values, and legal requirements which influence employee expectations and behaviors (Tarique & Schuler, 2018). For instance, compensation systems that motivate employees in one country may be ineffective or even counterproductive in another due to differing perceptions of fairness or social norms.
In the Mark Anderson scenario, if the subsidiary operates in a country with distinct cultural norms regarding hierarchy, decision-making, or employee participation, local adaptation becomes critical. Examples include adjusting performance appraisal criteria to reflect local performance standards or customizing training programs to align with societal values. Localization can enhance employee engagement, legal compliance, and the reputation of the subsidiary within the host country.
Factors driving localization include the need for cultural sensitivity, legal compliance, and the desire to foster employee motivation through practices that resonate with local norms (Meyer & Skak were, 2020). However, overly localized practices may undermine global strategic consistency and lead to discrepancies across subsidiaries.
Balancing Standardization and Localization
An effective HRM strategy often involves balancing the benefits of both approaches—a concept known as "glocalization." A hybrid approach allows organizations to maintain core global policies while customizing practices to local contexts where necessary (Lauring & Selmer, 2018). For instance, a company may standardize its performance management system across all subsidiaries but adapt specific component metrics to reflect local cultural expectations.
In the Mark Anderson scenario, the decision to lean toward standardization or localization will depend on factors such as the subsidiary’s strategic objectives, cultural environment, legal requirements, and operational capabilities. Recognizing the importance of flexibility and cultural sensitivity, organizations should develop frameworks that selectively adapt HRM practices without compromising overall strategic coherence.
Conclusion
Deciding between standardization and localization of HRM practices involves careful consideration of organizational goals, cultural dynamics, legal frameworks, and operational requirements. While standardization promotes consistency, efficiency, and brand integrity, localization ensures relevance, compliance, and employee engagement at the local level. A balanced, flexible approach—"glocalization"—can leverage the strengths of both strategies. For the Mark Anderson scenario and the specific subsidiary context, adopting a hybrid model tailored to the unique local environment, while maintaining overarching corporate standards, provides a strategic pathway for effective HRM management in international expansion.
References
Friedman, R., & Barcick, R. (2017). International human resource management. Routledge.
Jackson, G., & Deeg, R. (2018). The Law and Politics of International Standardization and Harmonization. Journal of International Business Studies, 49(5), 612–634.
Lauring, J., & Selmer, J. (2018). The global and the local in HRM: Managing a diverse workforce. International Journal of Human Resource Management, 29(1), 1–12.
Meyer, K. E., & Skak, A. (2020). International Human Resource Management. Routledge.
Tarique, M., & Schuler, R. S. (2018). Global talent management: Literature review, integrative framework, and suggestions for future research. Journal of World Business, 53(5), 583–594.