TENSIONS FOR HR: WHO TAKES RESPONSIBILITY FOR WORK-LIFE

MANAGEMENT IN MULTINATIONAL CORPORATIONS?

Helen De Cieri
Monash University
Department of Management
Faculty of Business and Economics
PO Box 197 Caulfield East
Victoria Australia 3145
Telephone: + 61 3 9903 2013
Facsimile: + 61 3 9903 2718
E-mail: helen.decieri@buseco.monash.edu.au

E. Anne Bardoel
Monash University
Department of Management
Faculty of Business and Economics
PO Box 197 Caulfield East
Victoria Australia 3145
Telephone: + 61 3 9903 2675
Facsimile: + 61 3 9903 2718
E-mail: anne.bardoel@buseco.monash.edu.au

Final Report to SHRM Foundation June 2008.

This report is based on a paper presented to the Academy of International Business

Annual Conference, June 30 – July 4, Milan Italy.

This research was funded by the Society for Human Resource Management Research

Foundation and by Monash University. We thank Clarice Santos and Trisha Pettit for

their research assistance.

 ABSTRACT

Balancing demands for global co-ordination with the need for responsiveness to

local conditions presents challenges in many areas of international business. Managing

work-life issues is emerging as a substantial concern for HR managers in many

multinational corporations (MNCs). While work-life management issues are recognized

as important strategic matters, it is well recognized that tensions exist between the parties

involved in implementation of work-life policies and practices. Our study of 13 MNCs

utilizes interviews with 28 HR managers, including both corporate HQ and local

perspectives, to explore the management of work-life issues. In this paper, we apply a

tension-centered approach to understand work-life management. We identify the

responsibilities and strategies for work-life management in MNCs. Our research shows

that there are numerous emerging challenges for researchers and practitioners related to

global work-life management.

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 INTRODUCTION

Globalisation has brought numerous, noteworthy developments in the diversity

and complexity of international business and forms of multinational corporations

(MNCs). Managers in MNCs face substantial challenges in balancing the often

competing pressures for global integration and local responsiveness. Connected with

these developments and challenges has been increasing awareness that the management

of a global workforce, via an international human resource management (IHRM) system,

is a crucial dimension of international business.

The IHRM system can be a key driver in a firm’s ability to attract, retain and

manage talent in global, competitive labour markets. In this paper, we examine the roles

and responsibilities for IHRM in MNCs, with particular focus on work-life management.

We define work-life initiatives as those strategies, policies, programs and practices

initiated and maintained in workplaces to address flexibility, quality of work and life, and

work-family conflict. We argue that global talent management relies on effective IHRM

systems, including a shared understanding of the roles and responsibilities of all

managers. The work-life management area is increasingly recognized as an important

aspect of IHRM in practice and a major factor in talent management (Poelmans, 2005;

Spinks, 2005).

Although there is no uniform definition of work-life initiatives, three primary

categorizations are generally applied when examining work-life initiatives: dependent

care, family leave, and flexible scheduling (Arthur & Cook, 2003). We define work-life

initiatives as those strategies, policies, programs and practices initiated and maintained in

workplaces to address flexibility, quality of work and life, and work-family conflict. The

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work-life concept was first identified and developed in the USA and in developed

economies (Hein, 2005). It is recognised as an issue across the workforce, from

managerial and professional levels to workers at all levels and across occupational

groups. However, most work-life studies have been conducted in western developed

countries (Spector et al., 2004) and several researchers have debated whether the concept

transfers, or translates, to less Asian countries (Bowes, 2005; Lewis, Gambles &

Rapoport, 2007).

Linked to the discussion of the priority of work-life initiatives in Asia is the

ongoing debate amongst scholars in the broader research field of HRM about the extent

to which HRM practices in MNCs can or should be standardized across global operations

or localized to meet the context of the local unit. As Brewster, Wood and Brookes

(2007) explain, there are three schools of theoretical thought on these issues. First,

globalization theories (which includes universalist views) suggest that MNCs will seek to

implement standardized, or common, HRM practices across their worldwide operations

either to obtain global efficiencies (see, for example, Kostova & Roth, 2002) or because

of ethnocentricity (see Heenan & Perlmutter, 1979). Second, and in contrast, theories of

local isomorphism (or contextualism) argue that MNCs will adapt, and even create, HRM

practices that have the ‘best fit’ with the local political, institutional, social and economic

contexts in which units of the firm are located.

The third school of thought is based in duality theory and suggests that MNCs

“face conflicting pressures both towards and away from the local practices, which may be

exacerbated by regulatory issues or rational determinants such as size, structure, market

conditions and/or the strategic choices made by managers” (Brewster et al., 2007: 1).

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Balancing the often competing global and local demands presents a substantial challenge

for the HRM function with regard to issues such as work-life management. To think

globally does not preclude attention to local environments and it is important that HR

policy makers give attention to identifying and understanding strategic policy

development at the national, or local, level as well as within a wider global context. In

many developed and developing societies, there has been burgeoning interest in work-life

issues, driven by substantial changes in workforce demography and by increasing

recognition that work-life issues present significant challenges for many people (Hein,

2005; Lewis et al., 2007).

The authors developed a conceptual framework that articulates the antecedents

and consequences of work-life management strategies in a global context (Bardoel & De

Cieri, in press; see Figure 1). However, this framework requires testing and generally

research appears to lag behind practice with respect to global work-life management. We

are not aware of any empirical study that examines management perspectives of work-life

management in a global context. While leading scholars in IHRM have raised awareness

of the constraints and challenges related to managing a global workforce (e.g., Scullion,

Collings & Gunnigle, 2007), there has been little discussion amongst researchers

regarding the roles and responsibilities of managers in MNCs (Brewster, Sparrow &

Harris, 2005), and even less attention given to work-life management in the global

context (Lewis et al., 2007). By bringing together these important yet neglected areas,

we aim to demonstrate that work-life management is an emerging aspect of IHRM and

diversity management programs that contributes to organizational and individual

performance.

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 [Insert Figure 1 here]

In the ‘western’ literature there is an abundance of research in the area of work–

family conflict and work-life issues (Byron, 2005; Greenhaus & Powell, 2006) which has

been largely driven by substantial changes in workforce demography and by increasing

recognition that work-life issues are highly salient for many people (Spector et al., 2004).

In North America, Australia, and Europe there is increasing interest by organizations and

employees to seek ways to better manage the tensions between work and other life

demands (Rapoport, Lewis, Bailyn & Gambles, 2005). However, less is understood about

how these tensions are experienced in Asia and developing nations, let alone how MNCs

could develop a corporate work-life policy where global consistency is likely to be

difficult to implement.

TENSIONS IN GLOBAL WORK-LIFE MANAGEMENT

Extending duality theory (Brewster et al., 2007) by not only recognizing different

pressures but also addressing the dynamics between those pressures, a theoretical

perspective that has strong potential for applicability to the work-life field is the tension-

centered approach. As Trethewey and Ashcraft (2004: 82) explain, ‘a tension-centered

approach begins with the premise that organizations are conflicted sites of human

activity’. Dallimore and Mickel (2006) have suggested that there are inherent tensions in

the pursuit of quality of life, and much of the research in this area has explored tensions

experienced by individuals in this pursuit.

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 Organizational tensions have been broadly defined by Stohl and Cheney (2001:

353-54) as a ‘clash of ideas or principles or actions and the discomfort that may arise as a

result’; such tensions are viewed as ‘inescapable, normal and, in some cases, to be

embraced’ (Tracy, 2004: 121). From this standpoint, an understanding of organizational

tensions may be used in to develop insights into organizational phenomena and change.

Tensions in organizational life have been explored in several studies, identifying tensions

at both micro- and macro-levels (Dallimore & Mickel, 2006; Stohl & Cheney, 2001;

Tracy, 2004). We suggest that tensions will arise in an organization’s pursuit of work-

life management initiatives, such as those that strive to meet both economic and social

goals, or both global and local concerns.

Drawing from the tension-centred research, we propose that tensions exist in

individual-organizational interactions such as negotiation of roles and responsibilities

related to work-life matters in MNCs. We favor Grzywacz and Carlson’s (2007) approach

to conceptualizing work-family balance which focuses on the accomplishment of role-

related expectations that are negotiated and shared between an individual’s role-related

responsibilities at work and with their family. However we argue that this understanding

of role-related responsibilities can also be extended to include not only family

responsibilities but also include responsibilities to oneself, one’s community, and the

many priorities that may or may not have to do with family (Bardoel, 2006). The shift in

terminology from labeling organizational initiatives as work-life instead of work-family

reflects a broadening of quality of life issues and career issues for both men and women.

Its also reflects a call for HR practitioners to play a significant role in shifting thinking

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beyond merely providing programs to viewing work-life issues more systemically, so

they are included in work process redesign and cultural change processes.

The tension-centered approach informs our understanding of work-life

management in MNCs in several ways. As shown in Figure 2, numerous tensions can be

identified in the management of work-life in a global context. While we do not claim that

this represents a conclusive list of all tensions possible for an MNC, this list presents

examples of the most prevalent and important tensions likely to arise in global work-life

management. As has been well-documented in international business research, there are

inherent tensions between priorities and concerns upheld by various stakeholders and

drivers in MNCs. Managers in MNCs need to balance the often conflicting needs of

global efficiencies and co-ordination (integration) with responsiveness to factors such as

political pressures in each local market (differentiation) (Doz & Prahalad, 1991). The

paradox of ‘think globally, act locally’ is a dilemma facing HR professionals working in

MNCs facing unprecedented levels of global mergers, acquisitions and international

growth. We postulate that these tensions may be expressed as different priorities and

concerns at different levels (e.g. strategy/policy vs. operational); in different

organizational units (e.g., headquarters vs. subsidiary); in different functions (e.g., HR vs.

line management); and between management and employees. Further, we envisage

potential tensions that permeate the organizational boundaries of an MNC, such as

tensions between economic and social/moral concerns, institutional requirements and

organizational needs, or between collective and individual concerns (e.g., organizational

performance and gender equity).

[Insert Figure 2 here]

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 In addition, we acknowledge that there is tension between academic and practical

priorities and concerns with respect to managing global work-life. Concern about tension

between academic research and management practice is not new; as research technology

has become more sophisticated, it has been seen by practitioners as less useful for solving

their organizational problems. Rynes, Bartunek and Daft (2001) note evidence of the

pervasiveness of a management research-practice gap and comment that managers

typically do not use academic research or academic research findings when developing

their management practices. Scholars have recently argued for evidence-based

approaches to HRM and the establishment of better links between research and practice

(Rousseau, 2006; Rynes, Giluk, & Brown, 2007), particularly with regard to

understanding how HR practices affect performance and organizational outcomes (Rynes

et al., 2007). Hence, we encourage conversations between scholars and practitioners in

developing research and practice in work-life management.

Moving beyond identification of tensions, we propose that managers in MNCs

need to understand and develop ways and means to resolve these tensions. According to

Bird (2006), the demand for work-life solutions by employees and managers is expanding

and it will be one of the issues that executives and HR professionals will be expected to

manage over the next decade. Drawing from the literature on managing paradox (Poole

& Van De Ven, 1989), we note four potential strategies that may be applicable to tensions

in global work-life management:

• Opposition – Accept that paradox exists and use it constructively;

• Spatial separation – clarify level of analysis and connections between them;

• Temporal separation – take time into account; and

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 • Synthesis – develop new terms to resolve paradox.

It is likely that combinations of the above could be found in practice. While research has

begun to explore tensions in work-life management (Dallimore & Mickel, 2006), our

research on tensions in global work-life management, and in exploring resolutions of

tensions, breaks new ground.

As our research is exploratory, we focus on the roles and responsibilities within

the HR function in MNCs; namely, the management of a global work-life strategy that

will support a global workforce. Despite the potential benefits associated with global

work-life strategies, the specific challenges associated with the development of effective

work-life strategies that balance global and local demands need to be identified and

understood. Global work-life efforts need to be strategically connected to strategic

objectives such as diversity and performance management, recognizing the need for

MNCs is to achieve competitive advantage, but not at the expense of human health, well-

being and personal lives. In addition, there are specific and unique challenges for

managers seeking to attract, retain and manage the talent required to implement a global

strategy which is of critical importance to the organization’s long-term survival.

THE VALUE OF VERTICAL INTEGRATION FOR HRM IN A GLOBAL

CONTEXT

Human resource management (HRM) is widely practised in many economies

worldwide and is an important function in many MNCs (see, for example, Brewster et al.,

2005). There is now considerable evidence that characteristics of the HRM function,

including the manner in which HRM roles and responsibilities are ascribed, vary in

10
significant ways across countries and firms (Larsen & Brewster, 2003). Several

researchers (e.g., Brewster et al., 2005; De Cieri & Dowling, 2006) have discussed the

need for MNCs to develop an IHRM strategy to establish shared global guidelines, while

allowing for local differences. However, balancing the often competing global and local

demands presents a substantial challenge for IHRM. To think globally does not preclude

attention to local environments and it is important that HR policy makers give attention to

identifying and understanding strategic policy development at the national, or local, level

as well as within a wider global context. For example, the business case for adopting

work-life initiatives is both powerful and convincing (Kossek & Lambert, 2005; Masi &

Jacobsen, 2003). In many developed and developing societies, there has been burgeoning

interest in work-life issues, driven by substantial changes in workforce demography and

by increasing recognition that work-life issues present significant challenges for many

people (Lewis et al., 2007). Many HR policies and practices, including work-life

management, may work well in developed, ‘Western’, countries but less well in

developing and transitional economies, such as in Asian cultural contexts (Lewis et al.,

2007).

Further, it can be argued that it is the overall understanding and support for HRM

within the organization, rather than HRM policy design, that has the potential to add real

value to an organization (Pfeffer, 2005). Bowen and Ostroff (2004) emphasize the

importance of a shared view of HRM, and argue that the impact of the HRM system on

performance outcomes will not be determined by the content of HRM practices and

policies but rather by the processes that signal to employees desired and appropriate HR

responses to form a collective sense of what is expected. This highlights the value of a

11
shared understanding of responsibilities related to HRM amongst managers in a

transnational firm.

Vertical integration of the HR function provides an important key to achieving

this shared understanding. Vertical integration has two directions, namely upward and

downward. ‘Upward’ refers to strategic HR integration, or the involvement of HRM in

the formulation and implementation of organizational strategies and the alignment of

HRM with the strategic needs of an organization (Budhwar, 2000; Farndale, 2005). The

involvement of the senior HR manager in a firm’s senior management team provides an

important channel for information flow and communication. Traditionally, ‘downward’

refers to the delegation or devolvement of HR practices to local HR operational managers

and to line managers by de-centralizing responsibility for the execution and

administration of HR practices such as performance assessment, selection and training

(Budhwar, 2000; Currie & Proctor, 2001). In global firms, there are layers of vertical

integration within the HR function which involve how the global headquarters’ HR

function devolves global HR strategies to the regional HR managers (who can be

conceptualized as a form of HR ‘line manager’ in an MNC) before HR policy cascades to

the traditional operational line manager (see Novicevic & Harvey, 2001).

Several writers who have contributed to the debate on the future of the HRM field

have argued that it is not enough for HR to simply partner top management; it has to

actually drive business success (Cascio, 2005; Welbourne, 2005). It has been argued that,

to make HR managers more available for participation in strategic decision-making

processes, the responsibility of day-to-day HR practices should be delegated to local HR

and line managers as they have direct and frequent contact with employees and a capacity

12
to understand, motivate, control, and respond quickly to employees (see Budhwar &

Khatri, 2001; Currie & Proctor, 2001). However, for the benefits of devolvement to be

realized, there first needs to be effective management within the HR function, providing

training, resources, incentive and a communication channel between HQ and local units,

to ensure HR practices are carried out in accordance with HRM policy (Budhwar, 2000;

Budhwar & Khatri, 2001).

The opportunities and the difficulties of vertical integration are obviously

magnified across international boundaries. There are many unresolved questions about

how HR work is conducted: responsibilities at the different levels will vary considerably;

further, there are likely to be differences between headquarters and subsidiaries in MNCs,

within the HR function. It is inevitable that tensions will arise as all managers across

MNCs strive to negotiate their roles and responsibilities. In this paper, we focus on the

area of work-life management as a lens through which to explore the tensions related to

the vertical integration of IHRM in MNCs.

A FRAMEWORK FOR GLOBAL WORK-LIFE MANAGEMENT

We propose that a viable approach to managing global work-life would be to

view it as one aspect of a global diversity management agenda, under the rubric of the

IHRM strategy (Childs, 2005). We note that practitioners such as Childs (2005) seem to

be ahead of researchers in recognizing the importance of work-life as an aspect of global

diversity management (Nishii & Özbilgin, 2007). The tensions identified earlier in

Figure 2 are implicit throughout this framework of global work-life management. The

matrix presented in Figure 3 depicts the influences on the IHRM system, and specifically

13
the components of global diversity, including work-life management, and the anticipated

outcomes for individuals and MNCs.

[Insert Figure 3 here]

Korabik, Lero and Ayman (2003) distinguish two different approaches to work-

family research that has been carried out globally: micro- and macro-level approaches.

First, the micro-level approach emanating mostly from North America has focused

mainly on workplaces and the business case for developing more effective management

approaches to reducing work-family conflict. Second, the macro-level approach has

derived mainly from Europe and has identified the critical importance of public policies

in relation to expectations about men and women’s roles and employment supportive

policies such as paid parental leave and benefits. We suggest that, for researchers and

managers, it is important to consider the potential interactions between micro-and macro-

level approaches to work-family issues, and so we seek to integrate these two approaches.

Hence, we draw on both micro- and macro-level work-family approaches, to develop a

comprehensive framework of work-life issues from a global perspective.

Michaels (1995) noted that, although many US corporations have been leaders in

developing work-life programs, there is much to be gained by comparing how other

countries’ values, policies and programs address work-life issues; in particular the role of

additional change agents such as unions, agencies and governments. Hence, we note in

our framework that there are numerous global and local factors influences that are

important to recognize as potential influences on global work-life management. As noted

earlier, managers in MNCs need to balance the often conflicting global influences (such

as industry characteristics and global market factors) with local influences (such as

14
(institutional frameworks, local culture, and the stage of local economic development)

(Doz & Prahalad, 1991). In addition to this global/local dilemma, there are numerous

MNC characteristics that should be recognized as influences on the IHRM system and

therefore on global work-life management; these include the age and international

experience of the MNC, strategic orientation, organizational culture, structure and

strategy, and available resources (De Cieri & Dowling, 2006). We also suggest that the

roles and responsibilities adopted by all managers across the MNC will be important

influences on the way in which the IHRM system, including work-life initiatives, is

developed and implemented (Novicevic & Harvey, 2001). Welbourne (2005) has argued

that the support of top management for HRM initiatives is critical for successful talent

management; further, HRM should be recognized as a priority for all managers. IHRM

initiatives, including work-life initiatives, will be most effective when led by senior

leaders and supported and understood throughout the organization. An implication of

these ideas is that HR professionals may have to proactively assist the organization in

understanding and adjusting its mindset, so that human resource practices become a

source of competitive advantage. Part of the strategy to achieve this is to attract and

retain individuals who possess higher quality human capital.

Hence, the IHRM system needs to deliver a strategic approach to HR, as

attracting and retaining the people required to implement a global strategy is of critical

importance to the organization’s long-term survival (Stroh & Caligiuri, 1998). Scholars

and practitioners have used the phrase ‘talent management’ to describe a long-term and

integrated approach to managing employees, attracting them into the organization,

providing development and engagement opportunities utilizing a sophisticated system of

15
HR practices, and retaining valued employees in the organization.

Central to a global work-life management strategy in an MNC is the

acknowledgement that, although there are a number of common issues faced by working

women and men and their families, the global work-life strategy needs to balance shared

concerns with a course of action that is appropriate to each local environment. Global

work-life needs assessments conducted by work-life consultants Shapiro and Noble

(2001) have identified three surprisingly consistent themes in what employees from

around the world identify as being important barriers to reconciling their work and

personal lives. The three issues identified included a lack of flexible work policies and

practices, the availability and affordability of dependent care, and the negative impact of

work overload and long working hours; hence, we place these at the core of the IHRM

system for global work-life management.

With regard to outcomes of global work-life management, Haas, Hwang and

Russell (2000) have identified a range of benefits that may accrue to employees and

organizations that implement work-life practices and policies. First, work-life practices

can provide an incentive to increase motivation, job satisfaction and commitment and

thus achieve higher levels of engagement and productivity from the current labour pool.

Second, these practices can be part of strategy that supports attracting, managing and

retaining the talent. For example, global diversity management and work-life initiatives

can provide a means for knowledge sharing across an MNC, leading to reduction of

tensions and better understanding of the priorities and concerns of various parties. Third,

an effective work-life strategy can enable the best quality people to advance in the

organization. For example, it has been recognized that barriers to women include having

16
to take time out for dependent care responsibilities and a lack of flexibility in career

structures. Finally, companies can obtain community recognition and reputation by being

seen as a ‘good’ corporate citizen or caring organization. As Childs (2005: 113) has

stated, ‘Leaders must help all people with their business understand that workforce

diversity [including work-life management] can be the bridge between the workplace and

the marketplace’. Western researchers have reported on a range of potential benefits

including acknowledgement of being a ‘good’ corporate citizen (Russell & Bourke,

1999); improved organizational commitment (Allen, 2001); increased job satisfaction

(Bedeian, Burke & Moffett, 1988); improved organizational performance (Perry-Smith &

Blum, 2000); increased organizational productivity (Konrad & Mangel, 2000); and,

improved staff morale (McCampbell, 1996). Furthermore, both HRM and management

consultants suggest that WLB strategies can enhance the employer brand that will lead to

other associated benefits including a broader and better quality labour pool available,

improved employee retention and reduced turnover (Barrow & Moseley, 2006).

Overall, the complexities and ongoing developments related to the global work-

life management present many important challenges and opportunities for managers in

MNCs, and for the researchers who seek to study these firms. Several of these

challenges, demands and opportunities are directly related to vertical integration of the

HRM function in MNCs. However, to date, little research has endeavored to integrate the

micro- and macro-level approaches; nor has there been much attention given by

researchers to the strategic role of work-life management as part of IHRM. In this

research, we explore three broad research questions:

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1. Who has the responsibility, authority and accountability for work-life management,

and at what level?

2. Who is responsible for carrying the work-life policies through into practice?

3. How can tensions related to global work-life management be resolved?

Our research project aimed to identify and explore the antecedents and

consequences of work/life balance in a global context, so that organizations that operate

internationally can have specific strategies in responding to individual work/life balance

needs, taking into account local and global influences.

RESEARCH METHOD

As this is a new area of research, the central research objective is exploratory in

nature, and that this research project focuses exclusively on organizations, the research

was suited to a case study approach (Patton, 2002).

Von Glinow, Drost and Teagarden (2002) note that much of IHRM has been

parochially focused (mainly on the U.S. and occasionally on Europe and at a stretch

Japan), and has used quantitative research methods. According to Von Glinow et al.

(2002) there is a place for the precision of valid and reliable scales but quantitative

methodologies run the risk of masking anomalies and counterintuitive findings in

different cultural contexts. They encouraged future researchers to use broad research

lenses with multiple embedded contexts when conducting globally distributed IHRM

research; our study follows their advice.

Similarly, work-life scholars have called for future research to incorporate a focus

on how global organizations can be inclusive of work-life issues in multiple cultural

contexts (Poelmans, 2005; Poster & Prasad, 2005). As Poelmans (2005) concludes, there

18
is a need for more qualitative research that involves case studies of international

companies to explore the impact of globalization on work-family policy development in

companies.

Hence, we have purposefully selected a methodology that allows us to gather

insights of significant global or converging trends in work-life management strategies

across cultures, industries, and organizations we examined. The methodology allows us

to unearth issues involving the key tensions and derived etics related to global work-life

management by having a ‘…heightened awareness of the polycontextuality that

surrounds all of our IHRM practices’ (Von Glinow et al., 2002, p.137).

Participants

This research involved a select group of 12 large MNCs; each MNC had a

corporate (HQ) HRM office and regional and/or national HRM managers (see Table 1).

In each MNC, we interviewed a senior HR executive at headquarters and 1 to 3 HR

managers in a regional or national role. Participants’ demographic data are shown in

Table 2. Key informants were chosen within the organization based on their formal

position and their knowledge (Marschan-Piekkari, Welch, Penttinen & Tahvanainen,

2004). Key informant sampling was chosen because the participants were most likely to

be knowledgeable about the issues being researched and able and willing to communicate

about them (Kumar, Stern & Anderson, 1993). The research required knowledge of the

work-life initiatives in each organization; Formal positions of interviewees include global

managers or directors responsible for HR or diversity and work-life management at a

national or regional level.

[Insert Tables 1 and 2 here]

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 Ten of the participating MNCs had between 25,000 and 209,000 employees

worldwide; one of the remaining MNCs is a joint venture between an Indian firm and a

Japanese global firm, and is the world-leader in its products. The sample firms operated

across a range of industries, including mining and mining services, health insurance and

care services, transport and logistics; information technology; finance; automotive;

manufacturing and retail.

Assurances of confidentiality were given to the participants and as such none of

the firms or managers is identified in this paper. As is characteristic of many qualitative

studies, our aim was to obtain richness of understanding of our participants’ views, rather

than generalizability.

Procedure

Twenty-eight semi-structured interviews were conducted with managers in 9

countries, namely Australia, Brazil, China, England, Hong Kong, India, Malaysia,

Sweden and the U.S.A. Twenty-seven interviews were in English and 1 in Portuguese.

Interviews were recorded and transcribed (interview in Portuguese was transcribed and

then translated into English). Most of the interviews were conducted in person, although

a few were conducted by telephone due to the geographic spread of the sample;

interviews ranged in length from 45 minutes to two hours.

The semi-structured interviews focused on each manager’s understanding of

diversity and work-life initiatives in their region and the global organization. Prior to the

conduct of each interview, the interviewee was provided with details outlining the intent

of the research (Daniels & Cannice, 2004).

20
 In addition to interview data, company documents were collected primarily to

provide background for the researchers to better understand the operations and culture of

each MNC. Company documents included strategy documents, HRM policy and

procedures, organizational charts, and MNC websites.

Data Analysis

We used computer-aided qualitative analysis software (NVIVO) to reduce, sort

and cluster the interview data and derive key themes (Richards & Richards, 1995). In

line with Lee, Mitchell and Sablynski’s (1999) framework, we undertook a process of

agreeing on thematic content. In presenting our interview data, we show the job title,

company/industry, and location of the source.

FINDINGS AND DISCUSSION

Responsibility for Global Work-Life Policy

Our first broad research question asked: Who has the responsibility, authority and

accountability to set work-life policies, and at what level? Our findings showed that,

consistently across the MNCs in our research, policies are designed at global

headquarters, although in some MNCs, participants described processes of consultation

and involvement in decision-making leading to policy formulation.

Global – local tensions. We identified numerous examples of tensions between

global policy-makers and local managers, reflecting the well-known global-local

dilemma (Doz & Prahalad, 1991). Several of our participating MNCs reported that they

had acknowledged problems related to poor relationships between global and local units,

and were now working to overcome those:

21
 … it was very ethnocentric … and they had an operation in [local unit country]

that … had never really been effectively integrated into the company, it was just a

satellite. There’s probably fault on both sides. [Global HR Head, Transport &

logistics, UK]

As has been documented with respect to other areas of IHRM (Brewster et al.,

2007), global work-life policies are often adapted for local conditions. We found

consistent evidence of the need for a comprehensive understanding of local institutional

and contextual conditions:

… under the global principles various operating countries will form their own

policies for work life balance. … Like in Malaysia we provide child care centre,

but in China we don’t do that, we do other things. But basically following what

the law says and the locations that you operate and following the local market

practice. … we focus a lot on …initially setting up flexible working hours, part-

time working policies, and … 50% of the job be filled with women, minority

etcetera. but in the end the exact policy in China will be different from even

policies in Malaysia. [HR General Manager, Oil-B, Hong Kong]

Local influences on global work-life policies and practices include legislation, customer

characteristics, market factors, and labour market changes, such as:

…from a business perspective our clients are changing… we need to make sure

that we meet the needs of those clients, but there are also pressures from clients

that go against the policies and the objectives that we set. [HR Manager, Finance,

Hong Kong]

22
 Even within one MNC, we found differences between the perspectives of HR

practitioners at global and local levels. Whilst the interviewee at headquarters with

global responsibility discussed an ‘80/20 rule’, none of the local or regional managers

interviewed in this MNC were aware of this ‘rule’:

We want to make sure that what we develop at a corporate level can be

implemented at the geography level and those individuals are actually a part of

[our] team. So we use what we call the 80/20 rule. Eighty percent is standard

and can be implemented across [MNC]. We want to have some consistency of

approach that’s based on being able to manage a culture, affordability and

implementation for all, so employees do not get conflicting messages. So that is

the 80%. Twenty percent is driven based on the business needs, local legislations

and the culture of the geography. [Global Diversity Manager, IT, USA]

The strategy is a common strategy... The initiatives and policies are followed too.

… Sometimes there is an initiative that is not adequate for our reality, then we

have to say, look, we are not going to implement it because it won’t be effective.

Then we go back in a structured manner showing why it doesn’t make sense.

[National Diversity Manager, IT, Brazil]

They’re trying to standardise flexible work options… So for a lot of the Asia

region they don’t have a lot of these workplace practices, so irrelevant of their

culture they actually have to try and implement them and make them part of it.

23
 … [MNC] globally says ‘we will become a flexible workforce and you’re not

and but we’re going to help you to do that, it doesn’t matter about your culture,

you’re going to have to sort that out as well’. [National Diversity Manager, IT,

Australia]

The different views expressed by HR managers at global HQ and in local units

may indicate that, even in an MNE that is well-advanced in terms of managing diversity

and work-life issues, there may be deficiencies in the IHRM system with regard to

knowledge transfer and shared understanding of the policy. Such deficiencies may

become significant if they lead to mis-understandings within, and outside, the HR

function. Minbaeva (2005) has argued that the IHRM system of an MNE will be a key

driver of its knowledge management, and hence essential to its success in international

business. Her argument reflects Kogut and Zander’s (1993) proposal that an MNE could

be viewed as a social community that creates, transfers, and integrates knowledge across

its different locations. In order for the MNE to operate effectively in this way, the IHRM

system, and the related policies such as work-life policies, need to be well understood and

supported by those within the HR function. However, in all of the MNCs, we found

evidence that policies planned at global HQ were not being implemented, and HQ were

unaware that their policies were not being followed in local units:

I’ve said that we have regional policies it doesn’t mean that they’re necessarily

being taken up. [Diversity Manager, Finance, Hong Kong]

24
 … to give you an example of our diversity … the gay, lesbian, bi-sexual and

transgender [GLBT] constituency … is also a group where we look into ensuring

that the workplace is conducive for employees. So yes we have these challenges

… trying to introduce the same kind of initiatives that we have in US...

International Womens Day is celebrated 8 March every year … in all the

countries we have posters put up, communication note going out to employees ....

But the GLBT is not celebrated in the same way. In fact the posters are not put

up in all locations, it’s definitely not in Malaysia or Indonesia because they’re

Muslim countries or rather the majority of the place is Muslim… [Diversity

Manager, IT, Singapore]

We also found evidence of feedback from local units informing or changing

global policy, and examples of local initiatives adopted globally or in other regions.

Given that several of our local managers were located in large emerging markets of

China, Brazil and India (Economist Intelligence Unit, 2007), it is imperative that HQ

listen and respond to local needs, and are prepared to adapt.

Implementing Global Work-Life Policies

Our second broad research question asked: Who is responsible for carrying out

the work-life policies through into practice? In addition to the evidence showing

tensions between those responsible for global and local HR, we found that

implementation of work-life policy is frequently a source of tension between the HR

function and line managers. Decisions related to employee access to work-life practices

were often at the discretion of direct supervisors and depends on the employee’s function.

25
There were often informal arrangements that depend on job/function (such as whether

there is interaction with client), and require negotiation with one’s supervisor or manager.

HR – line manager tensions. We found ample evidence of tensions between HR

(at global or local levels) and line managers when participants talked about

implementation of policies. For example:

If anyone tells us we don’t have female candidates, suitable candidates then the

managers are also taken to task, what are you doing in development of the next

group below you. So there are questions that they need to answer at every point.

[Global Diversity Advisor, Oil-A, Malaysia]

We have argued earlier that, to make HR managers more available for

participation in strategic decision-making processes, responsibility of day-to-day HR

practices should be delegated to local HR and line managers (Budhwar & Khatri, 2001).

However, line managers need to possess appropriate skills to execute HR practices

competently and effectively (Budhwar, 2000). The role and responsibility of the line

manager has been debated, although not in the context of MNCs. We suggest that the

HR- line manager relationship needs more investigation for scholars and managers to

better understand how devolvement of the HR function in MNCs can contribute to

organizational performance.

MNC – employee tensions. It is evident that the priorities and concerns for an

individual employee will not always match those of the MNC overall. Work-life policies

and practices can form an important aspect of relationships with employees, to facilitate

26
individual outcomes such as engagement, commitment and satisfaction (Haas et al.,

2000).

We understand that when you have a relationship with an employee you know the

organisation-employee relationship that it doesn’t just stop at the office for them.

And it doesn’t just stop at work for them it’s a whole package. [National

Diversity Manager, IT, Australia]

Resolving Tensions

With regard to our third broad research question, the resolution of tensions and

development of effective ways of management work-life were emphasized by our

participants (shown in Table 3, with examples of evidentiary statements). Our

participants were able to identify ways and means of resolving tension, which were

consistent with the four reactions to paradox identified by Poole and Van De Ven (1989).

Most of the reported resolutions fell into the category of synthesis (develop new terms to

resolve paradox), with some evidence also of opposition (accept that paradox exists and

use it constructively), although it is possible that these efforts may include some

combination of the other reactions to paradox identified by Poole and Van De Ven

(1989).

[Insert Table 3 here]

Evidence of opposition included refusal by the local HR managers to adopt global

policy designed at HQ, or some discussion followed by ‘agreeing to disagree’. Managers

in all of the MNCs reported that there is scope to negotiate between global and local

concerns.

We identified 11 categories of synergistic strategies, techniques or MNC features

27
that managers are using to resolve tensions, although this is not a conclusive list. These

include strategies that require attention and support at global HQ, such as development of

clear policies and expectations, resourcing for work-life initiatives, and HQ respect for

local knowledge. Our participants recognized that work-life management should be

integrated with other HR practices in the IHRM system. There are also several strategies

to be led by the HR function, such as communication, awareness and support and

gathering information, measurement and feedback on work-life initiatives. There are

numerous ways in which our participants sought to resolve tensions with line managers,

including engagement in decision making, building HR competencies, and providing

training, education and advice (for all levels of managers, employees and colleagues).

Participants also offered suggestions for all employees, such as developing rapport with

one’s manager, and respecting and accepting diversity in the workplace.

An Emerging Issue: Work-Life in Asia

Human Resource Management (HRM) and Diversity and Inclusion managers

working for MNCs and based in China and other parts of Southeast Asia (e.g. Singapore,

Malaysia, Indonesia) increasingly have to deal with the concept of work-life management

where the push often emanates from a western based head office to how this actually

translates in an Asian workplace context.

The difficulties of attracting and retaining talent are particularly evident in

dynamic economies, such as in China and Southeast Asia (Howard, Liu, Wellins. &

Williams, 2007; Russell, 2008; Sankaran, 2008). Particular themes/issues that emerged

as important in the Asian context were: Asian culture and work-life; the war for talent;

28
the need for local responsiveness; flexible work arrangements; equity; gender and care

issues, and overall diversity management.

Implications for Global Work-Life Management Practice

Overall, our analysis of global work-life management demonstrates that there

needs to be a stronger understanding of the tensions between various drivers, and the

possible responsibilities to resolve tensions and manage work-life in MNCs. Table 4

summarizes the key responsibilities for work-life management at the global, HR and line

management levels. These responsibilities can be adopted by managers as

accountabilities for the various elements of our matrix of global work-life management

(shown in Figure 3).

[Insert Table 4 here]

There are several global responsibilities for work-life management. For senior

executives, responsibilities include endorsement of work-life initiatives and provision of

adequate resourcing (Enns & McFarlin, 2005). The corporate HQ HR professionals will

have global responsibility for formulating global policy, yet also need to be responsive to

local concerns (Novicevic & Harvey, 2001). Conversely, implementation relies to a large

extent on the engagement, knowledge and competencies of local HR. We anticipate that

global work-life management raises several challenges, particularly for MNCs seeking to

operate in developing and growing markets, such as the large emerging markets of Brazil,

Russia, India and China. First, recruiting and selecting candidates for local HR positions

can be difficult, as many employers report difficulty in recruiting people with HR

experience and knowledge in emerging markets. A second challenge is to develop talent

in the HR function; HR professionals in dynamic markets such as China require

29
competencies such as communication and networking skills, to build strong relationships

with line managers; as well as a strong understanding of the IHRM system. Resolving

the global-local tensions within the HR function depends to some extent on the ability to

develop a shared view of the IHRM system and to build synergies across levels of the HR

function (Bowen & Ostroff, 2004). Building these competencies will help to build the

credibility of HR managers with senior and line managers (Enns & McFarlin, 2005;

Farndale, 2005). A third challenge is that HR professionals need to form networks in the

HRM community outside their own organization. Knowledge sharing amongst the HRM

community can be an important mechanism for designing and managing improvements in

HRM policies and practices; for example, in China, the importance of networks or guanxi

has been widely recognized. Finally, HR practitioners must address the challenge of

working with line managers and employees to build their competencies; training

programs, and the provision of advice, support and resources are examples of the ways in

which work-life initiatives can become embedded in an MNC.

Limitations of this Research

We acknowledge that there are limitations in our study. First, we acknowledge that

this research is limited to firms that are well-established and large. We have, however,

improved on previous research in the HRM field, as our interview data include more than

one informant from each organization. Much of the previous research has provided only a

single-rater response. Second, we have suggested that achieving a link between

organizational strategy and HR practices will be an important antecedent of effective

global work-life management. However, it is important to note that factors such as

culture, environmental, and institutional forces, as well as resource allocation, may

30
influence the success (and outcomes) of global work-life management (Brewster et al.,

2007); the factors external to the organization would be worthwhile areas for future

research. We also recognize that, given that organizational-level analysis has tended to

dominate much of the HRM literature (Paauwe & Boselie, 2005), factors at other levels

in the firm (e.g. individual level) or external to the firm need to be investigated. Future

research could also explore the views of line managers and employees.

CONCLUSION

This project addresses several limitations of previous work-family research by

investigating work-family issues in MNCs and across different socio-cultural contexts,

and by utilizing an exploratory, qualitative research method to identify issues hitherto not

on the research agenda (Poelmans, 2005). We identified numerous tensions to be

resolved in order for global work-life management to be managed effectively. The

managers in our study clearly are seeking to address ongoing tensions by adopting

synergistic strategies to manage work-life issues.

As Childs has noted, ‘The business of workforce diversity is constantly evolving

and presents us with new and different challenges, especially as businesses become more

global’ (2005: 117). A consistent emerging theme identified by many of the HR and

diversity managers interviewed was that work-life balance is important for talent

management and for developing a high performing workforce. Employees around the

world are becoming increasingly vocal about their work and family needs and the issue of

managing work-life needs is likely to grow. Managers and employees are beginning to

recognize the strategic role of global work-life policies and practices in managing a

global workforce; this presents several challenges for the HR function in MNCs.

31
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 Business Objectives and Priorities

Strategic Development of Human Capital

Diversity Focus

Global Work/life Strategy

National (parent &
subsidiary)
Culture Flexibility Dependent care
Organizational

Local Influences on Work/life Strategies

Culture & Stakeholders Public Policies Community Demography
traditions Infrastructure

High Performing Workforce

FIGURE 1. Conceptual Framework for Global Work/Life Strategy in MNCs (Bardoel &

De Cieri, in press).

40
Global Integration Local Responsiveness

Strategic/Policy Operational

Headquarters Subsidiary

HR Line manager

Manager Employee

Economic/Business Social/Ethical/Moral

Contextual/Institutional Organizational

Collective Individual

Research Practice

FIGURE 2.

TENSIONS BETWEEN DRIVERS IN GLOBAL WORK-LIFE MANAGEMENT

41

Global Influences
• Industry characteristics
• Global market factors
MNC Influences
• MNC age
• MNC IB experience.
• MNC strategic
orientation
• MNC culture
• MNC strategy
• MNC structure
• Extent of global
integration or local
responsiveness
• Resources
• Management roles and
responsibilities
Local Influences
• Location factors
• Institutional frameworks
• National/local culture
• Political context
• Stage of national
economic development
FIGURE 3. The Global Work-life Matrix
IHRM System Outcomes
Individual
IHRM roles and responsibilities for talent
• Positive employee
attraction, development, retention and
attitudes towards
management
employer
• Employee
IHRM policies and practices (global policy
engagement
development, local implementation)
• Job satisfaction
• Global diversity management and work-life
• Quality of work-life
policies and practices
• Organizational definition of work-life
Organizational
• Planning for work-life management:
• MNC reputation in
• Flexible work policies and practices;
local market
• Availability and affordability of
• Flexibility
dependent care;
• Knowledge sharing
• Management of workloads and
• Talent attraction,
working hours.
development,
• Resource allocation for work-life
retention and
management.
management
• Organizational communication about
• MNC reputation
work-life issues.
• Organizational and
• Measurement and feedback on work-life
local unit
outcomes.
performance (e.g.
health and safety,
financial
performance)
42
 TABLE 1.

COMPANY CHARACTERISTICS

Company (Main Revenue Employees Year

Countries Headquarters
Industry) (USD) (worldwide) Founded

Information 91.4 North

355,766 170 1889
technology billion America
1998
47.2
FinanceA 81,577 >50 Europe (following
billion
merger)
8,336 North
FinanceB 27,800 26 1792
million America

Health insurance and

8.3 billion 46,000 192 Europe 1947
care services

274.3
OilA 115,000 >100 Europe 1908
billion

318.9
OilB 108,000 >130 Europe 1907
billion

Transport &
4.7 billion 25,061 27 Europe 1837
logistics

Manufacturing $53.51 North

46,000 >50 1897
(chemicals) billion America

Manufacturing 14.6
70,000 >29 Europe 1905
(food) billion

Manufacturing and 28.6

110,000 30 Europe 1945
retail billion

Automotive 2.8 billion 4,322 4 Asia 1956

38,637
Mining 209,000 24 Europe 1917
million

Mining services 4.2 billion 13,348 50 Australia 1928

43
 TABLE 2.

PARTICIPANT DEMOGRAPHICS

Participants by Country
Australia 6
Brazil 2
China 4
Hong Kong 2
India 1
Malaysia 1
Singapore 2
Sweden 1
Vietnam 2
UK 4
USA 3

Participants by Company
Information Technology 5
FinanceA 3
FinanceB 1
Health insurance and care services 2
OilA 2
OilB 4
Transport and logistics 3
Manufacturing (chemicals) 1
Manufacturing (food) 1
Manufacturing and retail 2
Automotive 1
Mining 1
Mining services 2

Participants by Position Title

Diversity Manager 2
Global HR Manager 3
Group Inclusiveness Manager 1
HR Director 8
HR General Manager 1
HR Manager 6
HR Policy Manager 1
International HR Consultant 1
Manager - Work, Life, Flexibility and Mobility 1
Managing Director & Regional Head HR 1
Organisational Development Manager 1
Staffing and Workforce Diversity 1
Talent Manager 1
Vice President - Human Resources 1

44
 TABLE 3.

THEMATIC ANALYSIS OF STRATEGIES TO RESOLVE WORK-LIFE MANAGEMENT TENSIONS

Strategy Evidence

Resolving global – local [The local unit typically says] … here is a standard we aim for, here is why we are aiming for it, put it up for
tension: Opposition debate and consideration and in some instances it will be adopted, in other instances we’ll agree to disagree, and
the likely outcome of the disagree would be ‘we’ll park there, and that will be a long-term goal, and if ever comes
an opportunity to move the international business closer to the head office view of the world then we’ll take it.
[National HR Manager, Health insurance and care services, Australia]

Resolving global – local

tension: Synergistic
strategies
[Our MNC] policies are so clear, but it gives you the right to adapt. [National Diversity Manager, IT, Brazil]
1. Clear policies and
expectations

…it is a recognition of the business always comes first even though what we are doing will support the business,
2. Resourcing
understanding the timing, timing may be a problem. We run into issues regarding cost. We run out of money.
[Global Diversity Manager, IT, USA]

Our ideas here are very well accepted, and what comes from overseas we adapt to be effective. This is what [our
3. HQ respect for local
MNC] wants. … we respect the concept, the idea, we adapt to the needs of each country. [National Diversity
knowledge
Manager, IT, Brazil]
It was a male dominated culture and we were having problems with implementing flexibility. So we started in
2001 and realised that we needed to understand and accept the culture. It wasn’t something that was going to
happen in 2001. So we worked with the local team and we used their input to tell us what we could and could not
do. [Global Diversity Manager, IT, USA]

4. Integrate work-life Work life balance is a very personal thing to different people. And one of the things that we want to do is to try to
management with other encourage managers to have these sorts of conversations around their kind of career development review
HR practices discussions and … end of the year performance reviews, try and open up a dialogue around work life balance, to

45
 see, see what you know what we can do to better accommodate this. [Diversity Manager, Finance, Hong Kong]

Actually in communications and support, employees need to know what [the MNC will] support and what the
5. Communication, awareness
companies do not. [Global Diversity Manager, IT, USA]
and support
We have a specific dedicated website to diversity inclusion as well [Global Diversity Advisor, Oil-A, Malaysia]

… in Asia, I’ve been working in the region, one of the things often people don’t understand what diversity is, you
know they’re so hung up on awareness. … as an organization there are people who are different, we all need to be
nurtured very differently. [Global Diversity Advisor, Oil-A, Malaysia]

We do a lot of focus groups and we have done focus groups in the past and now we use this survey as a key
6. Gathering information,
information source. . [Global Diversity Manager, IT, USA]
Measurement and feedback
We measure based on the diversity score card and the diversity score card is now a part of our overall human
resources score card. [Global Diversity Manager, IT, USA]

We believe if we make decision without people’s involvement and commitment behind the decision we can never
7. Engagement in decision-
implement that decision to the maximum level. And that’s why it’s better that we involve the people at the
making
beginning when we are making the decision then many people are standing behind the decision, they have a high
commitment level to the decision. [HR Manager, Manufacturing and retail, Sweden]

The HR managers need to have the time and ability to coach the other managers in doing that sort of work. I
8. Building HR competencies
guess there’s also a sort of a mindset that that’s HR work. In reality managing people is the responsibility of all
managers. [National HR Manager, Transport & logistics, Australia]

… we educate all our leaders as well. We have spent the last 2 years working with our top 1000 leaders to help
9. Provide management and
them understand the cultural dimensions. [Global Diversity Advisor, Oil-A, Malaysia]
employee training and
education
It’s pretty much across the board. I think it, clearly there needs to be the senior level endorsement. I think equally
it’s education of people who wish to participate within that, you know, their role, responsibilities, the impact on
the rest of the teams. … it’s broad education so I think we all probably have a role in some way or another to, you
know to make it work. It’s not just the manager and the employees, it will all be a knock on effect on other

46
 members within the team as well. [National HR Manager, Finance, USA]

We strongly encourage managers to be open minded and you know reward people accordingly. We support
flexible work arrangements to the extent that it makes sense. And [HQ] for the last two years have been a huge
push on flexible work arrangements… a lot of the managers said ‘well we’ve offered a lot of our employees
flexible work arrangements but we need the bank to support us in return’. And we said ‘what do you need’ and
they said ‘we need field training. Because it is a lot tougher to manage someone who is on a flex schedule than to
manage someone who is in front of you’. So we’ve actually run a whole lot of workshops and training programs
for managers. [Diversity Manager, Finance, Hong Kong]

What we are doing now though is putting in, in place flexible work arrangement advisors… we think a more
helpful strategy is to have flexible work arrangement advisors who are there to support both the employee and the
managers…. Because that way we can help, you know better educate the managers of the employees so that we
can find a solution that best fit for everybody.
[Diversity Manager, Finance, Hong Kong]

10. Build a rapport One of the assumptions is if you have got a rapport and a relationship with your manager then you will be able to
negotiate things that are, will work for both of you. [National HR Manager, Health insurance and care services,
Australia]

So rather than trying to fight this doomed battle of fixing people’s personal lives we tend to focus more on their
11. Respect and accept
work life so that we make work place more of an attractive and joyful place so that when people spend their 8 or
diversity
10 or 12 or 14 hours in the office they actually enjoy it. [Diversity Manager, OilB, Singapore]

47

RESPONSIBILITIES FOR WORK-LIFE MANAGEMENT
Global Responsibilities:
• Senior level endorsement
• Engagement in decision-making
• Adapt to the needs of each
country
• Resourcing
• Gather information (e.g. focus
groups)
• Measurement and feedback
TABLE 4.
Line Manager Responsibilities:
• Make work place more of an
attractive and joyful place
• Management at all levels must
understand, accept and support
flexibility
• Have conversations with
employees around career
development and performance
reviews, try and open up a
dialogue around work life
balance
HR Responsibilities:
• Build HR competencies: HR
managers need to have the time
and ability to coach line
managers
• HR provide formal management
training program and implement
flexible work options.
• HR to communicate success
stories
• Placement of flexible work
arrangement advisors
• Communication and support
• Provide a tool kit for employees
• Develop network in HRM
community
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