TABLE OF CONTENTS
Tite Page i
Certification Page ii
Dedication iii
Acknowledgement iv
Abstract v
CHAPTER ONE: INTRODUCTION
Background of the study 1
Statement of the
problem 7
Objective of the study 7
Research Hypotheses 8
Significance of study 9
Scope of the study 9
Limitations of the study 10
Definition of Terms 10
CHAPTER TWO: LITERATURE REVIEW
2.0 Nature of Human Resource Management 13
2.1 Human Resource System 16
2.2 Principles of Human Resource Management 22
2.3 Multinational Corporation 29
2.4 Brief History of Multinational Corporation 30
2.5 Multinational Corporation Structure 22
2.6 Foreign Multinational Corporations in Nigeria 40
2.7 Factors influencing Human Resource Management in MNC 48
2.8
Effect of Human Resource Management on (MNC) subsidiary performance 76
CHAPTER THREE: RESEARCH
METHOD
3.0 Research design 82
3.1
Area of study 82
3.2 Procedure for data collection 82
3.3 Population of study 83
3.4 Sample and sampling technique 83
3.5 Data collection Instrument 84
3.6 Validation of Instrument 86
CHAPTER FOUR:
PRESENTATION AND ANALYSES OF RESULTS
4.1 Presentation of Data 89
4.2
Analyses of Data 94
CHAPTER
FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings 108
5.2 Recommendations 111
5.3 Conclusion of findings 112
REFERENCE 114
APPENDIX
1
QUESTIONNAIRE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY.
Globalization is becoming more and more important to
companies all over the world. A major component of the globalization of
business is the field of human resource management. A trend over the past few
years has been to identify the linkage of human resource management with
strategy not only on the national level but also on the international level.
Wikipedia defines Human Resource Management
(HRM) as the management
of an organization’s employees. While human resource management is sometimes
referred to as a “soft” management skill, effective practice within
an organization requires a strategic focus to ensure that people resources can
facilitate the achievement of organizational goals. Effective human resource
management also contains an element of risk management for an organization
which, as a minimum, ensures legislative compliance.
Human
resource management is defined as a strategic and coherent approach to the management
of an organization’s most valued assets – the people working there who individually
and collectively contribute to the achievement of its objectives.
Storey
(1989) believes that (HRM) can be regarded as a ‘set of interrelated policies with
an ideological and philosophical underpinning’. He suggests four aspects that constitute
the meaningful version of (HRM):
- a
particular constellation of beliefs and assumptions;
- a
strategic thrust informing decisions about people management;
- the
central involvement of line managers; and
- Reliance
upon a set of ‘levers’ to shape the employment relationship.
Human
resource management according to Fisher et al (1990: P6) involves all
management decisions and practices that directly affect or influence the people
who work for the organization. According to Ikeagwu (1999) the two terms human
resource management and personnel management are synonymous but personnel
management is the older and more an established name while human resource
management is the more up to date title for the field.
Human
Resource Management (HRM) is a planned approach to managing people effectively
for performance. It aims to establish a more open, flexible and caring
management style so that staff will be motivated, developed and managed in a
way that they can give of their best to support departments* missions. Good (HRM)
practices are instrumental in helping achieve departmental objectives and
enhance productivity.
Susan M. Heathfield
(2011:12), Human Resource Management (HRM) is the function within an
organization that focuses on recruitment of, management of, and providing
direction for the people who work in the organization. Human Resource
Management can also be performed by line managers.
Human
Resource Management is the organizational function that deals with issues
related to people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.
Human
Resource Management is also a strategic and comprehensive approach to managing
people and the workplace culture
and environment. Effective (HRM) enables employees to contribute effectively
and productively to the overall company direction and the accomplishment of the
organization’s goals and objectives.
Human
Resource Management is moving away from traditional personnel, administration,
and transactional roles, which are increasingly outsourced. (HRM) is now
expected to add value
to the strategic utilization of employees and that employee programs impact the
business in measurable ways. The new role of (HRM)
involves strategic direction
and (HRM) metrics and
measurements to demonstrate value.
Gale
(1991:56) sees Human Resource Management (HRM) as a term used to describe
formal systems devised for the management of people within an organization.
These human resources responsibilities are generally divided into three major
areas of management: staffing, employee compensation, and defining/designing
work. Essentially, the purpose of (HRM) is to maximize the productivity of an organization by
optimizing the effectiveness of its employees. This mandate is unlikely to
change in any fundamental way, despite the ever-increasing pace of change in
the business world.
As
Edward L. Gubman observed in the Journal
of Business Strategy, “the basic mission of human resources will
always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the
business. Those three challenges will never change.”
Until
fairly recently, an organization’s human resources department was often
consigned to lower rungs of the corporate hierarchy, despite the fact that its
mandate is to replenish and nourish the company’s work force, which is often cited legitimately
as an organization’s greatest resource. But in recent years recognition of the
importance of human resources management to a company’s overall health has
grown dramatically. This recognition of the importance of (HRM) extends to
small businesses, for while they do not generally have the same volume of human
resources requirements as do larger organizations, they too face personnel
management issues that can have a decisive impact on business health.
Irving
Burstiner (1979:98), hiring the
right people—and training them well—can often mean the difference between
scratching out the barest of livelihoods and steady business growth…. Personnel
problems do not discriminate between small and big business. You find them in
all businesses, regardless of size, be it a small or a multinational corporation
A
multinational corporation (MNC)
or multinational enterprise (MNE)
is a corporation or an enterprise that manages production
or delivers services in more than one
country. It can also be referred to as an international corporation.
The
International Labor Organization
(ILO) has defined an (MNC) as a corporation that has its management
headquarters in one country, known as the home country, and operates in
several other countries, known as host countries.
Malcolm
Tatum (2003), Multinational corporations are business entities that operate in
more than one country. The typical multinational corporation or (MNC) normally
functions with a headquarters that is based in one country, while other
facilities are based in locations in other countries. In some circles, a
multinational corporation is referred to as a multinational enterprise (MNE) or
a transnational corporation (TNC).
The
idea of a multinational corporation has been around for centuries. Some trace
the origins of the concept back to the Dutch East India Company of the 17th
century, as the corporate structure involved a presence in more than one
country. During the 19th and 20th centuries, the idea of a company that
functioned in more than one nation became increasingly common. In the 21st
century, this business model continues to be highly desirable.
There
are several ways that an (MNC) can come into existence. One approach is to
intentionally establish a new company with headquarters in one country while
producing goods and services in facilities located elsewhere. In other
instances, the multinational corporation comes about due to mergers between two
or more companies based in different countries. Acquisitions and hostile
takeovers also sometimes result in the creation of multinational corporations.
In
a world that continues to become more interconnected each day, a multinational
corporation sometimes has a greater ability to adapt to economic and political
shifts those corporations that function in a single nation. Along with
decreasing costs associated with producing core products, this business model
also opens the door for diversification, which often makes it possible for a
company to remain solvent even when one division or subsidiary is posting a
temporary loss.
Possible
advantages of a multinational corporation are:
- Multinational
Companies are able to sell far more than other type of company.
- Multinational
companies can avoid transport costs.
- Multinationals
can take advantage of different wage levels in different countries(as in some
countries only women and children work, so the wages can be low)
- Multinationals
can achieve great economies of scale.
- Multinationals
have less chance of going bankrupt than small companies.
- Multinationals
can carry out a lot of research and development.
The
analysis of the publications in the area of International Human Resource
Management (IHRM) since 1980 reveals an interesting trend. In the 1980s, the
interest was very much focused on the improvement of HRM measures such as
international staffing, repatriation, international compensation, or
cross-cultural training.(1) The only concept that has been used to address the
strategic orientation of (IHRM) was the EPRG-profile developed by Heenan and
Perlmutter (1979).(2) Then, since the beginning of this decade, the focus of (IHRM)
research has become more comprehensive and more context oriented.(3) The result
has been a growing number of papers which address (IHRM) issues.
Costs
are a very important factor when deciding about assigning people to foreign
subsidiaries and about the management of the human resources function in a
multinational corporation.
For
a multinational corporation aiming at efficiency this means that the
international human resource management strategy should match the requirements
of the nature of work. The criterion of efficiency is conceptualized by the sum
of production and transaction costs. An example for production costs in labor
market transactions would be the wage of an expatriate. Transaction costs are
the costs associated with negotiating, monitoring, evaluating, and enforcing
exchanges. They can occur for example when recruiting or controlling employees
in the multinational corporation.
Global
human resource management (GHRM) includes the same functions as domestic HRM,
plus several aspects unique to international management
- “people challenge” the most difficult
for firms becoming international
- most critical to success, acquiring a
competent workforce
1.2 STATEMENT OF PROBLEM
INFLUENCES OF HUMAN RESOURCE MANAGEMENT IN MULTINATIONAL CORPORATION, A STUDY OF MERCEDES-BENZ ANAMMCO
