Introduction The study of HRM evolves from the personnel management since from the industrial revolution age. During that time two types of perspectives are widely prevalent one is Pluralist and the other is Unitarist. There lies a significant difference between the two. As per Pluralist a multinational organization basically consists of large no. of subgroups where loyalty lies in each subgroup, whereas as per Unitarist it is a single entity which flourishes in harmony. In pluralist, the two important subgroups are trade union and management, whereas as per Unitarist it is unique. Analoui, 1999) Over the year the same thoughts prevail, but with the emergence of HRM and modern business strategies, many changes occurred in the field of HRM and can be explained with the help of various models. Multinational organizational structure, Multinational organizational strategy and HRM are interrelated. A large no. of models has been derived to discuss this and one such model is the beer Model . This model acts as a map or guide to develop strategy pertaining to relationships among all the employees. It basically concentrates on the soft aspects of HRM.
It basically gives importance to the employee commitment rather than control. It is also based on the premise that employees needed to be congruent, cost effective and competent. This model is very successful in explaining various strategies adopted by the multinational organization as reward system leads to better job performance. However it is criticized on the resource based perspective that it disrupts the business focus of the multinational organization and also distorts the cost minimization and the profit maximization. ( Beer (1984))
Significant of HRM and Multinational organizational behavior as per various Models HRM and organizational behavior plays an important role in devising strategy to increase efficiency and effectiveness of the multinational organization. Various models are there which are helping the multinational organization to achieve their goals. The various problem faced by a multinational organization during following phases are given below. Scholars of HR suggested various models which is widely used by multinational companies as given in the following sections:- Problem to select right candidates during recruitment can be better explained by self efficacy model. ? LMX Model to define relationship between Manager and subordinates ? Job Characteristics Model to solve the problem of the characteristic of ideal job ? Goal Setting Model to prepare performance appraisal. Self Efficacy Model The term self-efficacy is used to describe an individual’s perception of how competent they find themselves and their abilities to achieve complex tasks. People with strong self-efficacy are more likely to accept more responsibility and accept more challenging tasks.
They also believe that no obstacles can get in the way from stopping them achieve their goals. Individuals with low self-efficacy are more apt to looking as difficult tasks as intimidating and do not believe they that are capable of achieving personal success. Self-efficacy is something that is important in any multinational organization. However, it is more important at any multinational organization to hire individuals who have a High level of self-efficacy so that employee perceives themselves capable of achieving many complex tasks.
This could prove to be an issue within the multinational organization because individuals could become bored or feel not challenged by the tasks designated in their position, which could lead to frustration for the employees and employer. Hence, Challenging tasks should be given to such individuals. An individual with moderate level of self-efficacy provides opportunity for the multinational organization to designate tasks to that are challenging, but also still attainable. It is good to hire large no. of employees of this category.
Hence, multinational organization is using it to compare the self efficacy of the person with job requirements so that right person will be put at right place. This can be done in the following ways:- 1) An individual with moderate level of self-efficacy provides opportunity for the organization to designate tasks to that are challenging, but also still attainable. It is good to hire large no. of employees of this category. 2) The individuals with low self-efficacy can pose a problem for any multinational organization as they might hinder the productivity and success of the organization.
Hence, in order to ensure more confident and driven individuals, it could moderately delegate more difficult tasks to these individuals in order to boost their confidence and the way they perceive themselves. Also, they could provide more positive feedback in their jobs and reinforce that the individual is doing well at their job. Leadership Model It is a model that suggests that leaders develop different relationships with each of their subordinates only through work related activities.
There are two important groups to consider that a subordinate may fall under depending on which phase they fit into. The in group is defined as a low number of subordinates with high LMX relationships. The second group is known as the out group in which the number of subordinates is large and contains relatively low level LMX relationships (Hellriegel 323). Employees who find themselves in the out-group are likely to face high job turnover. This should be important to all management because high turnover is a very large investment for the multinational organization.
The level of LMX has a significant relationship to subordinates satisfaction with their manager. Employees with lower LMX are more dissatisfied, less motivated, and more prone to quit whereas employees with higher LMX are likely to be satisfied with their work, more motivated, and committed to staying and contributing to the multinational organization (Hellriegel 323). LMX has three critical components which are mutual affection, contribution to work activities, and professional respect.
When a subordinate has high mutual affection for a superior, the subordinate likes the superior as a person and will often come to the superior’s defense if attacked. High contribution to work activities comes into play when a subordinate goes above and beyond their job description to help the superior out. High Professional Respect is when the superior admires the subordinate’s knowledge and competence of the job (Hellriegel 323). Multinational companies are widely using it in the following ways for the betterment of relationship between manager and subordinates in the following ways:- ) It explains that generally if an organization doesn’t take steps to increase the mutual affection score of its staff then they will likely to enter the realm of the out group which could potentially lead to the employee leaving the organization because Why stay at an organization if you’re not happy with your manager? 2) One way management can increase the mutual affection is to take a more active role and listen to the complaints of the employees and to take the time to establish supportive and trusting relationships with the employees. ) Another suggestion as per this model might be to engage the staff in team building activities and icebreakers. It can be concluded that if the superiors and managers of any organization are not providing proper support to their staff and then there is need to make a drastic change soon because the organization as a whole could be affected. 4) Some possible solutions from this external factor might include taking the time to reassess what kind of support is needed for staff. One way to do this is anonymous comment cards.
Have all the employees fill out comment cards anonymously and identify specific instances where an employee failed to receive support. This must be down anonymously by the employer because the employee might be unwilling to respond for fear of termination. 5) The manager may have a tendency to interact with other employees in an unprofessional manner. The manager can decrease this perception by keeping to policy or by adjusting his/her interactions in front of employees. 6) Management needs to do a better job of developing better relationships with its employees.
Some improvement strategies include the use of assertive communication, appropriate communication openness, and constructive feedback with all of the subordinates. Job Characteristics Model The job characteristics model has to do with the idea of increasing the amounts of five job characteristics: skill variety, task identity, task significance, autonomy and feedback in a job. This model can be related to any multinational organization and its HRM strategy building since it looks into how well an employee has the opportunity to be motivated to work in the restaurant.
It highlights the areas that need work in the restaurant and what the employees enjoy or dislike about working there. It also demonstrates which employees are content with working there for a while and which view it as a stepping stone towards another opportunity that has not yet befallen upon them. The model demonstrates a need for change in the structure of a multinational organization in case it wants to increase their employee’s motivation to continue their work there. Generally, there are two main approaches recommended to superiors for designing/redesigning jobs which are vertical loading and the formation of natural work teams.
Vertical loading is when tasks that were considered reserved for management level staff are delegated to all employees. It includes the power to set schedules, decide work methods, breaks, and seek solutions to their own problems. Goal Setting Model Goal setting is a very integral part of any job. Whether you are attempting to better yourself or complete a project, setting goals is one of the most helpful tools to assist you throughout the process. Goal setting can definitely help a business in raising their standards for employees which will end up helping the bottom line.
The goal setting model that we used for our survey seems to have a big impact on job performance. According to the model, if employees felt good about the goals they set, they were better at their jobs. It basically consists of five essential pieces must come together in order for the managers to gain benefits of a goal setting program. The first piece is that the person must be knowledgeable about the topic of the specified goal and have the sufficient capacity to attain the goal.
The second step is that the person must be committed to the goal, especially if the goal is difficult. The third step is that people need feedback on their goals. According to the text, employees will raise their performance because they are afraid they will have past performance. The forth step is that complex tasks must be broken up into simpler more short term goals so that the goals can be attained. It is stated in the text that employees are more responsive when they know about their progress. The fifth and final piece is to have a situation constraint.
One of the most important aspects of a leader is to ensure that employees have the resources to attain their goals and to help eliminate any troubles that may lie in the way. Now to discuss some of the benefits that goal setting can have on performance. According to the Don Hellreigel text, Goal setting motivates individuals to achieve high performance. Some of the benefits stem from developing difficult goals. When it comes to an multinational organization for example a restaurant, such goal setting can be setting goals for a certain dollar amount each table waited on per person.
The benefits is that it will motivate people to develop aim to reach goals. It also helps people to focus their attention on goal-relevant action, and encouraging people to develop action plans to reach these goals. Conclusion From the discussion mentioned above by using various models of HRM, it is clear that HRM plays an important role in designing strategy of an multinational organization in all three levels i. e. corporate level, SBU level and operational level. It is clearly shown that how strategy can be derived in all these levels using these models.
In the similar way the bath models also give importance to external factors of AMO i. e Ability, Motivation and Opportunity to devise the various strategies of the HRM. (John Purcell,2004) The seven principles filling the strategic gap of HR are as follows:- 1) It tells there must be sufficient employees with desired skill which is also mentioned by Self efficacy model to carry task at multinational organization. 2) There must be enough motivation as explained through job characteristic model to give desired performance. ) There must be opportunities given which is also explained through job characteristic model to perform job. 4) Responsibilities of line manager as explain by the Leadership theory to develop those qualities in their subordinates. 5) Distinction between policies and practices as per job characteristic model is the heart of bath model for better performance. 6) Job enrichment needs to maintain better performance 7) Consistencies in policies for efficiency and effectiveness. References ? Analoui, F. 1999), Strategic Human Resource Management: Towards Constructing a Choice Model. ? Bagshaw M (2004) “Is diversity divisive? A positive training approach”, Industrial and Commercial Training 36, 4, 153-157 ? Beer, M. , Spector, B. , Lawrence, P. R. , Mills, D. Q. , Walton, R. E. (1984), A Conceptual View of HRM ? Hellriegel, Don, John W. Slocum. Multinational organizational Behavior. Ohio: South-Western Cengage Learning, 3rd edition, 2009. ? John Purcell, Bath Model , University of Bath, 2004