BEST PRACTICE IN HUMAN

RESOURCE OPERATIONS FOR

MULTINATIONALS

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In the current era of globalization, there is a very important role of human resource operations in
the success of every local as well as multinational business organization (McSweeney, 2002).
HR operations refer to all the services provided by human resource department to the business
operations including recruitment, job analysis, training, pay determination, performance
appraisal, employee relationship management, administrative services, etc. The current research
essay is on the topic of best practices in human resource operations for multinationals. In the
subsequent research essay, it will be discussed that whether pursuing of best practices in HR
operations makes sense for multinational companies.
A multinational business organization, also known as an international company, can be
defined as an organization that is registered in more than one nation or has operations in more
than one nation. They are large corporations that produce as well as sell goods and services in
various countries. A variety of practices are required to be performed by the HR department for
to effectively contribute in the success of the multinational company such as recruitment and
selection, training, relationship management, communication with and motivation of employees,
pay determination, performance appraisal, etc. All these HR practices play very important roles
in supporting management and staff members for effectively performing various day to day
business activities as well as significantly help to achieve organizational goals and objectives of
a multinational business organization (Faulkner, Pitkethly and Child, 2002).
There are a variety of Multinational Corporations headquartered in UK such as Vodafone
Group Plc, Tribal Group, River Island, Tesco group plc, BT Group, Unilever, Standard
Chartered, BP plc, IBM, etc. All these MNCs get a wide variety of benefits from their HR
practices. There are a variety of changes made in the international business environment that has
significantly affected the Multinational Corporations and increased the role of human resource
management in MNCs such as increase in competition, takeovers and mergers, changes in labor
market, increased mobility of employees, etc (Bartlett and Ghoshal, 2002). He has given the
solution for managing various changes in global business environments, but its research is not
covering only some type of changes like innovations in different countries. It has not focused on
the role of HRM during changes like takeovers and mergers, changes in labor market, etc. Due to
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all these changes, the requirement of managing human resources of the companies has been
increased significantly and it led to increase in demand of HR departments and operations in the
business organizations, especially in MNCs. For example, Vodafone Group Plc operates in over
30 countries and employs more than 85000 people. Hence there is a very high requirement of HR
departments for the purpose of managing the large numbers of employees in all over the world.

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The talent acquisition is also one of the best practices in human resource operations in
Multinational Corporations, as most of MNCs are focused on recruiting and hiring best and
talented individuals, which significantly helps them to improve the performance level of the
company and to successfully achieve various organizational goals and objectives. Furthermore
providing effective training by the international business organizations to the employees is
another best practice which is achieved with the help of use of effective techniques and
procedures according to requirements of employees, which lead to effective development of the
employees (Hollon, 2011) and improves their skills and abilities. For example, Tesco group Plc
uses a flexible and structured approach for trailing and development that adapts according to
individual employee requirements. It significantly helps the company to develop its employees
as well as to meet the objective of expand and diversify the needs of people in the business at
right time and on right place. Tesco group plc has separate training program for every major as
well as minor career at Tesco.
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The Multinational Corporations are providing healthcare benefits to the employees, which is also a
good practice in human resource operations in Multinational Corporations, as it significantly
improves the morale and satisfaction of employees at the company and greatly enhances their
performance and productivity level (Kang and Moon, 2012). The companies are providing
various paid leave incentives to the employees as well as retirements benefits to the people who
worked previously for the firm. It is also one of the best practices of HR in Multinational
Corporations as it enhances the loyalty of the employees towards the MNCs and lead to provide
best contribution in the achievement of organizational goals. For example, Unilever is providing
various types of on job rewards as well as retirement benefits like Unilever UK Pension fund and
other incentives to its employees.
Implementing right HR philosophies is also one of the best practices in human resource
operations in Multinational Corporations, as MNCs wants to create an effective work
environment that enables the employees to prosper as individuals as well as to the contributors of
the business. For example, The HR policy of IBM is about making a holistic approach to HR,
including talent advisors, actionable analytics, strong governance, integrated processes and
technology solutions. They want to develop a positive employee environment and communicate
these in their HR philosophy and mission. Most effective philosophies focus on promoting
innovation and collaboration as well as on creating best workplace in the organization, on the
other hand, least effective philosophies focus on efficiency and cost cutting efforts (Gunnigle,
Lavelle and McDonnell, 2007). Furthermore the best practices in human resource operations in
Multinational Corporations include development of internal HR skills also (Romani, 2011). It
significantly helps in improving skills and abilities of the employees as well as leads to enhance
the productivity of employees as well as of the international business organization.
Use of latest technologies is also an effective practice in HR operations for MNCs, as it
significantly helps in improving communication and accessibility in the organizations, which in
turn lead to improve the productivity of the employees and save time and money in the
organization (Hilb and Brewster, 2007). For example, Standard Chartered is using HR
management system software, electronic applicant tracking and Internet based payroll. Use of
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these new technologies and electronic systems results in saving time and money as well as
improve the accuracy and efficiency of the organization. Furthermore effective motivation of the
employees is also one of the major practices in human resource operations in Multinational
Corporations, as it significantly help in improving satisfaction level of the employees as well as
their contribution in success of business organizations. For example, MNCs like River Island is
effectively motivating its employees through use of various types of monetary and non-monetary
incentives as well as effectively fulfilling their needs and requirements. It leads to improve the
morale and motivation level of the employees and improves their contribution in the
achievement of the objectives of providing best and latest looks to the customers (Bamber,
Lansbury and Wailes, 2011).

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Tesco evaluates the performance of every employee, and on the basis of their
performance improvements in the salaries are made and other incentives are provided to the
employees. It leads to improve the performance of the employees as well as help to achieve
organizational objectives of Tesco.
Efforts for maintaining good relations in the business organizations is also an effective
practices in human resource operations in MNCs. Various MNCs like BT Group, Vodafone
Group Plc, River Island, Tribal Group, Tesco group plc, BP plc, Standard Chartered, Unilever,
etc. are using various techniques for improving employment relations in the business
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organizations, which in turn lead to improve the efficiency and performance level of the
employees and the companies as well as lead to get competitive advantages and achievement of
organizational objectives (Harzing and Pinnington, 2011). For example, Vodafone Group Plc is
providing incentives to its employees on good performance, which in turn not only improve the
performance but also the employment relation in the organization.
It can be said that there are a variety of best practices in human resource operations in
Multinational Corporations, which help them to effectively achieve various competitive
advantages as well as to meet organizational goals and objectives (Edwards and Rees, 2011).
Recruitment and selection, training, relationship management, communication and motivation,
pay determination, incentives, etc are some of the best practices HR operations in Multinationals.

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REFERENCES
Booksandjournals
Bamber, G. J., Lansbury, R. D. and Wailes, N., 2011. International and Comparative
Employment Relations: Globalisation and Change. London: Sage Publications.
Bartlett, C.A. and Ghoshal, S., 2002. Managing across Borders: The Transnational Solution.
London: Random House.
Edwards, T. and Rees, C., 2011. International Human Resource Management: Globalization,
National Systems and Multinational Companies. London: FT/ Prentice Hall.
Faulkner, D., Pitkethly, R. and Child, J., 2002. International acquisitions and mergers in the UK
1985-94. International Journal of Human Resource Management. 13(1). pp.106-22.
Harzing, A. W. and Pinnington, A. H., 2011. International Human Resource Management,
London: Sage Publications.
Hofstede, G., 2001. Cultures Consequences: Comparing Values, Behaviors, Institutions and
Organizations Across Nations. CA: Sage.
Kang, N. and Moon, J., 2012. Institutional complementarily between corporate governance and
corporate social responsibility: a comparative institutional analysis of three capitalisms.
Socio-Economic Review. 10 (1). pp.85108.
McSweeney, B., 2002. Hofstedes Model of National Cultural Differences and their
Consequences: A Triumph of Faith A Failure of Analysis. Human Relations. 55(1).
pp.89-118
Romani, L., 2011. Culture in International Human Resource Management, in: A.-W. Harzing
and A.H. Pinnington. International Human Resource Management. London: Sage.
Tayeb, M. H., 2005. International Human Resource Management: a Multinational Company
Perspective. Oxford University Press.
Online
Bruce, S., 2013. Top 10 Best Practices in HR Management for 2013. [online]. Available through:
<http://www1.unisg.ch/www/edis.nsf/wwwDisplayIdentifier/2840/$FILE/dis2840.pdf>.
[Accessed on 30th December 2013].
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