Blog 2 : Transnational Human Resource Systems

            

               From this topic, I have learnt about the globalization in human resources information system. So, what is the globalization? According to Stonehouse et al, (2004), the word globalization is referring to the global development or worldwide business activities, competition among business and also national economics global independence.

             Human Resource Information System (HRIS) gives the companies benefits in their operations. However, organization operations are in different way because they are several types of organizations. This type of organization also has different size, goal, operation, networking and so on.

            How HRIS organize and the companies and systems? In fact, transnational model in HRIS is the combination of three models which are Multinational, Global, International and Transnational. According to Beaman (2000), Multinational can be labelled as ‘Multiheaded Moster” approach. This is because this type of company is the one that manages a portfolio of multiple, national system, allowing local operations. It also an independent organization which is distinct organizations is national boundaries. In addition, multinational is the localization and customization type. It suitable for the large company likes IBM, Oracle, Nintendo, and Wal-Mart.

            This model suggests that all power and authority are extremely centralized.  This type also takes an efficiency approach to manage HRIS. According to Barlett and Goshal (1989), the global company centralize key functions including marketing and finance. For instance Japanese firm which is Kao and NEC, they create the new technology products and spread it to their subsidiaries.  Next model is international model which is takes a learning and sharing approach to implementing HRIS with transferring the knowledge and skills to local organization. This model has many advantages to the organization. There are centralized control and process and at the same time sharing the best practice across the local business.

            The last model is Transnational model; combination of earlier three model. This model basically implemented in large companies with various in term of cultures. This model provides a product that designed to be globally competitive and adapted by local subsidiaries and market demands. However, transnational strategy is the combination of global configuration and coordination of business activities. The strategies consist:

•          Global knowledge is based on competence access to global markets.
•          Extensive participation in world market
•          Activities of global coordination and integration
•          Requirement of local responsiveness
•          Structure and organization differentiation

References:

1) Barlett C.A and Ghosal S. (1998) Managing Across the Border: The Transnational Solution. Hutchinson, Business Books.

2) Karen Beaman and Alfed J. Walker, (2000) Globalizing HRIS: The New Transnational Model.

Yip, G.S. (1992) Total Global Strategy – Managing for Worldwide Competitive Advantages. Englewood Cliffs, NJ: Prentice Hall.

3) George Stonehouse, David Campbell, Jim Hamill and Tony Purdie, (2004) Global and Transnational Business, Strategy and Management. John Wiley & Sons Ltd. England.