The Reasons for Transfering the Home-Country Human Resource Management Term Paper

The Reasons for Transfering the Home-Country Human Resource Management Policies to the Overseas Subsidiaries by Organizations - Term Paper sheathThe most common reason for the transfer of home- area human resource perplexity policies to overseas subsidiaries is the need for organizations for promoting undiversified policies in all their sectors so that conflicts and failures are minimized. Such issue is highlighted in the study of Wilton (2010) where reference is do to the example of Japanese firms that had to establish branches and operational units abroad. Japanese firms tend to promote team working and line of work sharing however, after entering the US market the Japanese firm had to align their HRM strategies with the US laws and ethical motive (Wilton 2010). In order to avoid conflicts with local laws and culture, the Japanese firms transformed their HRM policies promoting task demarcation and functional distinctiveness (Wilton 2010, p.141). From a similar point of view, Sparrow (2009) notes that firms may choose to transfer their home-country human resource management policies to their overseas subsidiaries in order to reduce costs related to training of new employees. Such stead can be valuable only if the time during which the home country HRM policies are used in the overseas subsidiary is limited if such practice is continued for a long period of time, therefore the cost involved would be much higher compared to the development of new HRM policies, aligned with the local culture. This meat that expatriates who are sent to work to overseas subsidiaries for supporting the transfer of their firms HRM policies to these units should be attached a time framework for finishing their tasks. On the other hand, it is perceived that the promotion of policies, which have been already tested in the home country, should be preferred (Stahl and Bjorkman 2006). Introducing new policies is always risky, especially if taking into term the physical distance between the mother company and its subsidiaries (Stahl and Bjorkman 2006). Most important, the HRM policies developed in the home country are fully aligned with the organizations mission and values (Stockhammer 2011).