MNC lr structure Lecture outline 5.3.10

MNC lr structure Lecture outline 5.3.10 - 1 A. Country...

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ILR205 – H. Katz May 3, 2010 International IR/HR Issues for MNC’s I. The Various Ways Corporations Benefit from Multi- national Expansion A. Access to cheaper (and possibly well skilled) labor and other resources and in some cases more relaxed government regulations B. Increased bargaining leverage with labor due to substitution alternatives C. Other economic benefits: access to markets, tax advantages, currency diversification etc. II. MNC Internal IR/HR: For MNC’s the key issue is the degree of centralization in their internal IR/HR function A. Traditional decentralization—IR/HR has traditionally been the most decentralized of corporate functions i.e. IR/HR decisions are left to local or country managers B. There are, however , some noteworthy recent examples of more regionalization and globalization within MNCs’ IR/HR function C. In most countries there is not the sharp separation in how IR and HR matters are handled (they don’t have our system’s legal distinctions and traditions) III. Why Were HR and IR Originally Decentralized within MNC’s?
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Unformatted text preview: 1 A. Country legal, cultural, and historical differences B. Production was decentralized given limited trade C. Contrast to other corporate functions such as finance and marketing 2 IV. Factors Promoting more Centrally Coordinated and Regional Structures A. Regional trade pactsEU, NAFTA, Mercosur, ASEAN B. Expansion of global trade and MNCs C. Production consolidationregional centers of excellence V. MNC Steps at Cross-National IR/HR A. Regional IR/HR staffs are being created in some MNCs B. More cross-country coordination of corporate policies C. More frequent cross-country comparisons of IR/HR performance, and this is affecting investments and plant closings (labors fear) D. Local manager concerns with the above E. Colgate-Palmolive example F. Balancing the virtues of central coordination and control with the advantages of local flexibility and responsiveness to culture, law, history, politics etc. 3...
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This note was uploaded on 05/11/2010 for the course ILRCB 2050 taught by Professor Givanr during the Spring '06 term at Cornell University (Engineering School).

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MNC lr structure Lecture outline 5.3.10 - 1 A. Country...

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