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International HRM

Diffusing best practices in multinational firms:


prospect, practice and contestation

ABB Introduction
Asea Brown Boveri
European based.
Subsidery in Singapore.

Discussion Area (Summary)


Cultural convergence assumptions underlying the HRM
aspects of lean production model and the cultural
divergence.
empirical part of the paper: by reviewing the positive and
negative responses of host-country managers regarding to
the mechanism of coercive comparison.

Introduction (Extensiveness of
study)
Introduction of one best way to management and HRM
Support
Mechanism
Limitations

Diffusion of Best Practice


Lean Production Literature
Criticism

Cultural Context
Overstatement of productivity
HRM aspects of model
Focus on success and failure

Homogenous Vs Heterogeneous

Methodology
Qualitative Research
Sample Size
Interviews were conducted with the UK personnel manager, senior business
area managers and internal consultants from ABB.

Variables:

Benchmarking
Nature of the industry
The immediate context of the firm or division
Cultural card
Performance-related pay
Control power

Pros and Cons of the


methodology
Small sample size
Less variables
Only qualitative methods were used

Evaluation of Discussion
Internal benchmarking demonstrates, knowledge transfers
and learning from parent companies and other subsidiaries
in multinational firms is possible, despite the negative
aspects of discipline evident in benchmarking techniques.
Cultural heritage & industrial relations
Combination of global and local responsiveness
Good Parent-subsidiary relationship
High cost (High incentives)

Evaluation of Discussion
Credibility
our arguments and evidence may lack wide application, they can serve as a reference point for 'rich'
comparison and contrast, in a way that more conventional methods of undertaking research cannot.

Reliability
Validity of Data
During the interview stage by re-presenting what respondents had
said for their verification

By allowing key respondents to read and comment on the report of the


study.

Future Implications
Research can become more beneficial if quantitative and qualitative tools
are used in combination to each other to make the results more valid and
reliable.
To minimize the cultural, behavioral, attitudinal and psychological
differences the company should form certain divisions (on the basis of
similarities under the mentioned variables) that help broaden the researchs
horizons and also will help make the research more generalization: This can
serve beneficial for companies to standardize their practices.
This research can serve as a purpose of comparison and contrast for future
researchers.

Thank You

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