Global Human Resource Management (HRM)

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Global Human Resource Management(HRM)

Due to globalization, the economy around the world has been largely integrated.
Many corporations are expanding their markets into regions or other countries
they have never touched before. These corporations are experiencing an
evolutionary stage: internationalization. It is clear that effective human resource
management of an organization is the major competitive advantage and may
even be the most important determinant of organizational performance. Thus, in
order to survive in the crucial global economic market, a multinational
corporation (MNC) mainly relies on the capability of its international human
resource management (IHRM) during the internationalization process. In other
words, it is the IHRM’s responsibility to enable the MNCs to be successful globally.

What is IHRM? Actually, it is not easy to provide a precise definition of


international human resource management (IHRM) because the responsibility of
an HR manger in a multinational corporation (MNC) varies from one firm to
another. Generally speaking, IHRM is the effective utilization of human resources
in a corporation in an international environment. IHRM is defined as “the HRM
issues and problems arising from the internationalization of business, and the
HRM strategies, policies and practices which firms pursue in response to the
internationalization of business .

Due to the development of globalization, new challenges occur and increase the
complexity of managing MNCs. IHRM is seen as a key role to balance the need for
coordinating and controlling oversea subsidiaries, and the need to adapt to local
environments. Therefore, the definition of IHRM has extended to management
localization, international coordination, and the development of global
leadership, etc.

If it is to build a cadre of managers capable of managing a multinational enterprise,


the HRM function must deal with a host of issues. It must decide how to staff key
management posts in the company, how to develop managers so that they are
familiar with the nuances of doing business in different countries, how to
compensate people in different nations, and how to evaluate the performance of
managers based in different countries. HRM must also deal with a host of issues
related to expatriate managers. (An expatriate manager is a citizen of one country
who is working abroad in one of the firm's subsidiaries.) It must decide when to
use expatriates, determine whom to send on expatriate postings, be clear about
why they are doing it, compensate expatriates appropriately, and make sure that
they are adequately debriefed and reoriented once they return home.

In order to explore the field of IHRM, it is important to understand why there is


gradual increase of interest in International Human Resource Management. IHRM
is of great importance at present for a number of reasons:

 Recent years have witnessed the rapid growth of globalization and


international competition. The multinational corporations (MNCs) have
increased in number and significance, which contributing to the growing
importance of the international role of human resource management.
 It has been increasingly recognized that the effectiveness of human resource
management is one of the major factors to determine the success or failure of
international business. There is also recognition that the quality of
management in international operations seems to be more critical than in
domestic operations.
 A growing shortage of managers with international exposure and experience
is becoming an increasing deficiency which affects a company’s corporate
efforts to expand abroad. Meanwhile, the emerging markets require
managers with distinctive competence and context-specific knowledge of
how to do business successfully in countries which are both culturally and
economically distantly. Thus, a larger role for IHRM activities in
multinational corporations is assigned.
 The failure in international business arena is often costly both in human and
financial terms, and is proved to be more severe than that in domestic
business. Companies need to take precautionary measures to train and
compensate human resources. This makes a full-fledged IHRM necessary.
 HR strategy plays a significant role in the control and implementation in
MNCs. It is not difficult to determine which strategy to pursue for a MNC in
an internationalizing environment. What challenges is how to implement
these strategies to be successful. Developing unique organizational cultures
is of far more importance than structural innovations in any global or
transnational strategy. To this extent, IHRM strategy becomes the crucial
determinant of the implementation and success of the MNC strategy.
 The complex nature of HRM problems involving in global environment is
underestimated by some companies. Poor management of human resource
often results in business failures in international business. Expatriate
performance failure or underperformance continues to be problematic for
IHRM in many international corporations.
The Strategic Role of International HRM
The HRM function, through its staffing, training, compensation, and performance
appraisal activities, has a critical impact upon the people, culture, incentive, and
control system elements of the firm's organization architecture (performance
appraisal systems are part of the control systems in an enterprise). Thus, HRM
professionals have a critically important strategic role. It is incumbent upon them
to shape these elements of a firm's organization architecture in a manner that is
consistent with the strategy of the enterprise, so that the firm can effectively
implement its strategy.

Table (1)

We examined four strategies pursued by international businesses: localization


strategy, international strategy, global standardization strategy, and transnational
strategy. Firms that emphasize localization try to create value by emphasizing local
responsiveness; international firms, by transferring products and competencies
overseas; global firms, by realizing experience curve and location economies; and
transnational firms, by doing all these things simultaneously. In this chapter, we
will see that success also requires HRM policies to be congruent with the firm's
strategy. For example, a transnational strategy imposes different requirements for
staffing, management development, and compensation practices than a localization
strategy. Firms pursuing a transnational strategy need to build a strong corporate
culture and an informal management network for transmitting information and
knowledge within the organization. Through its employee selection, management
development, performance appraisal, and compensation policies, the HRM
function can help develop these things. Thus, as we have noted, HRM has a critical
role to play in implementing strategy. In each section that follows, we will review
the strategic role of HRM in some detail.

Staffing Policy
Human resource management in international business presents issues that are
different from those in domestic or local business. The nature and characteristics
of international business are more complicated than domestic or local business.
As such, it is necessary to account for different types of human resource
management issues in international business. HR managers must also choose the
right staffing policy approach based on the needs of the organization. Effectively
addressing the various types of human resource management issues and deciding
on the most suitable staffing policy approach leads to success in HRM in
international business.

In staffing in international business, HR managers must determine when or where


to expatriation. Expatriate workers are frequently assigned to key positions in
overseas operations. Human resource managers must also decide on the issue of
compensation. The compensation of expatriate workers must be examined along
with compensation of local workers and the compensation of workers in the
home country. Differences in compensation packages have significant implications
on staffing success, expatriate performance and business performance. HR
managers must also address the issue of repatriation. Repatriation happens when
the worker needs to come back to the home country, usually to continue working
for the company. Repatriation also happens when the expatriate worker retires.
These issues have significant effects on the perspectives and performance of
expatriate workers and local workers, and the effectiveness of HRM in staffing.

TYPES OF STAFFING POLICY


In international human resource management, the types of staffing policy
approaches are as follows:

Ethnocentric staffing

Polycentric staffing

Geocentric staffing

The ethnocentric policy approach to staffing designates home country nationals


as top ranking employees in global operations. For instance, executive positions
are given to Americans in an office of an American company located in Indonesia.
The main benefit of this staffing policy approach is that it allows the organization
to ensure that the people in the top positions are experienced in the business of
the firm. This is especially the case where the host country does not have enough
qualified workers for staffing top positions in the organization. The ethnocentric
staffing policy approach is also used to ensure that the culture of the entire
organization is unified rather than diversified. However, the problem with the
ethnocentric policy approach is that it does not fully support the transfer of local
knowledge to the company. Also, this staffing policy approach could block locals
from promotion in the organization.

The polycentric policy approach to staffing assigns home country workers to top
positions in the central offices or headquarters, and overseas local workers to
other positions. The main advantage of this policy approach is that it facilitates
organizational learning on local markets. This staffing policy approach also
provides better opportunities for locals to improve their careers through
promotion. However, this promotion is limited to key positions in the local
operations, and does not include central or corporate top positions. This staffing
policy approach is disadvantageous because it could create knowledge and
performance gaps between overseas managers and managers in the home
country.

The geocentric policy approach to staffing assigns job positions to any person
best suited for the position, regardless of the employee’s background, culture or
country of origin. The main advantage of this staffing policy approach is that it is
highly flexible. It can increase the firm’s cultural knowledge about the different
markets and countries. However, a disadvantage of this staffing policy approach is
that it could be difficult to apply. Immigration policies, costs of worker relocation
and diversity management create pressure on HR management.

Case Example: UAE Expatriate Management Policy in HRM

In the UAE, expatriate management policy in HRM is on how to manage


expatriate workers to succeed in staffing operations in the country. A firm’s
expatriate management policy would consider the needs of expatriate workers in
relation to the needs of other workers in the organization, who may be locals in
the UAE or the region. In staffing, HR managers would be concerned about how to
bring expatriates to the UAE and how to ensure that these expatriates perform as
expected in the context of operations in the UAE.

The expatriate management policy in the UAE would also limit expatriate workers
to staffing key positions in the organization. The UAE government supports
expatriate workers and allows expatriate management policies that require
expatriate workers in top ranking positions. However, a firm’s expatriate
management policy and staffing policy in the UAE must support local workers in
the organization to ensure that the regulations of the country are satisfied. These
regulations cover local employment in addition to expatriate employment in the
firm’s staffing policy. The involvement of local workers also has the benefit of
organizational learning based on workers’ local knowledge of the UAE market.

The staffing policy approach suitable for the UAE is either polycentric or
ethnocentric. The final choice depends on the specific needs of the organization
at the time of the implementation of the staffing policy approach. Overall, the
expatriate management policy in the UAE is comparable to those of the US and
other countries in the Middle East.

The advantages and disadvantages of the three approaches to staffing policy are
summarized in Table (2). Broadly speaking, an ethnocentric approach is
compatible with an international strategy, a polycentric approach is compatible
with a localization strategy, and a geocentric approach is compatible with both
global standardization and transnational strategies. While the staffing policies
described here are well known and widely used among both practitioners and
scholars of international businesses, some critics have claimed that the typology is
too simplistic and that it obscures the internal differentiation of management
practices within international businesses. The critics claim that within some
international businesses, staffing policies vary significantly from national
subsidiary to national subsidiary; while some are managed on an ethnocentric
basis, others are managed in a polycentric or geocentric manner. Other critics note
that the staffing policy adopted by a firm is primarily driven by its geographic
scope, as opposed to its strategic orientation. Firms that have a broad geographic
scope are the most likely to have a geocentric mind-set.

Table (2)

EXPATRIATE MANAGERS
Expatriate Failure Rates
Two of the three staffing policies we have discussed-the ethnocentric and the
geocentric-rely on extensive use of expatriate managers. As defined earlier,
expatriates are citizens of one country who are working in another country.
Sometimes the term inpatriates is used to identify a subset of expatriates who are
citizens of a foreign country working in the home country of their multinational
employer. Thus, a citizen of Japan who moves to the United States to work at
Microsoft would be classified as an inpatriate (Microsoft has large numbers of
inpatriates working at its main U.S. location near Seattle). With an ethnocentric
policy, the expatriates are all home-country nationals who are transferred abroad.
With a geocentric approach, the expatriates need not be home-country nationals;
the firm does not base transfer decisions on nationality. A prominent issue in the
international staffing literature is expatriate failure-the premature return of an
expatriate manager to his or her home country. Here we briefly review the
evidence on expatriate failure before discussing a number of ways to minimize
the failure rate.
Expatriate Failure Rates
According to Gary Lloyd, director of the Business Council for International
Understanding, the failure rate of American expatriates in London is 10%; in
Tokyo, 36%; and in Saudi Arabia, 68%, at a cost to the company of anywhere
between $250,000 to $1,000,000 per failure (Caudron, 1992, p. 36). A separate
study estimated the expatriate failure rate to fluctuate between 25 and 40
percent at an average cost per failure of $55,000 to n$150,000 (Hogan &
Goodson, 1990, p. 50).
In addition, even among those 60% to 84% of expatriates that do not return early,
approximately half are considered ineffective by their firms (Black & Gregersen,
1991, p. 462). Because the costs of maintaining a manager in an overseas post
averages about $300,000 per year, the costs for ineffective expatriates may well
be higher than the costs of "failed" expatriates.
However, the real cost of failure of international executives extends beyond the
cost of moving personnel since it almost invariably has a negative impact on
future interactions between the multi-national corporations (MNCs) and the host
countries (Zeira &Banai, 1985, p. 34).
The tangible and intangible consequences of poor cross-cultural adjustment of
expatriate managers are significant. They include the unmeasured costs of
damaged company reputations, lost business opportunities, and/or weakened
abilities to attract top candidates to overseas assignments (Black & Gregersen,
1991, p. 498).
Since it is almost universally acknowledged that American business firms must
"globalize" their business efforts, three questions emerge from the
aforementioned statistics; they are:
1. Why does a technically competent employee fail in an overseas assignment?
2. What can be done by management to reduce this failure rate of expatriates and
improve their success rate?
3. Why doesn't management do what they know they should do?
The answers to these three questions will be the focus of this paper.
A much more detailed analysis of expatriate failure is delineated by Rosalie Tung.
In a survey of U.S. MNCs, respondents were asked to indicate the most important
reasons for expatriate failure. The reasons given in descending order of
importance were:
1. Inability of the manager's spouse to adjust to a different physical or cultural
environment.
2. The manager's inability to adjust to a different physical or cultural environment.
3. Other family related problems.
4. The manager's personality or emotional immaturity.
5. The manager's inability to cope with the responsibilities posed by overseas
work.
6. The manager's lack of technical competence.
7. The manager's lack of motivation to work overseas (Tung, 1986,
p. 117).

Expatriate Selection
One way to reduce expatriate failure rates is by improving selection procedures to
screen out inappropriate candidates. In a review of the research on this issue,
Mendenhall and Oddou state that a major problem in many firms is that HRM
managers tend to equate domestic performance with overseas performance
potential.34 Domestic performance and overseas performance potential are not
the same thing. An executive who performs well in a domestic setting may not be
able to adapt to managing in a different cultural setting. From their review of the
research, Mendenhall and Oddou identified four dimensions that seem to
predict success in a foreign posting: self-orientation, others-orientation,
perceptual ability, and cultural toughness.
• Self-Orientation: possessing high self-esteem, self-confidence and mental well-
being
• Others-Orientation: ability to develop relationships and communicate
• Perceptual Ability: ability to understand why people of other countries behave
the way they do (being nonjudgmental and flexible)
• Cultural Toughness: relationship between country of assignment and the
expatriate’s adjustment to it (India, Southeast Asia and Middle East are much
tougher… reduced healthcare and housing standards, inhospitable climate, lack of
Western entertainment, language difficulties)

THE GLOBAL MIND-SET


1.A meta-capability that permits an individual to function in new and unknown
situation and to integrate this new understanding with other existing skills and
knowledge. Learn more in: New Trends in Leveraging Workforce Diversity through
Human Resource Management Initiatives
2.This is an informed and expansive appreciation of the inherent diversity and
culturally mediated forces that characterize international markets, organizations,
and strategies. A global mindset allows participants in international contexts to
move beyond the limits of their pre-existing behavior and ethnocentric thinking
and to function effectively with the difference and diversity that they encounter.
Learn more in: Utilizing Learner Knowledge in Cross-Culture Management
Education: Beneath the Visible Teaching Pyramid
3.Cognitive ability characterized by an openness to articulation of multiple
cultural and strategic realities and ability to integrate across this multiplicity.
Learn more in: Developing Global Mindset Through Experiential Learning in Global
Virtual Teams
4.The informed and expansive appreciation of the inherent diversity and
culturally-mediated forces that characterize international markets, organizations,
and strategies. A global mindset allows participants in international contexts to
move beyond the limits of their pre-existing behavior and ethnocentric thinking
and to function effectively with the difference and diversity that they encounter.
Learn more in: Repositioning Study Abroad as a Rite of Passage: Impact,
Implications, and Implementation
5.Ability to search for unexpected trends and opportunities that expand and
refine a person’s points of view. It is a combination of self-awareness, openness
to different cultures, and an appreciation of the existence of differences. Learn
more in: Developing Educators' Global Leadership Competencies through
Intercultural Immersion Experiences: Theory and Practice
6.The informed and expansive appreciation of the inherent diversity and culturally
mediated forces that characterize international markets, organizations, and
strategies. A global mindset allows us to move beyond the limits of our pre-
existing behavior and ethnocentric thinking and to function effectively with the
difference and diversity that we encounter. Learn more in: Strategic Leadership
through the Prism of National Culture: Differences in Understandings
7.The wide range of psychological value on social transmission in the individual
qualities attributed in the diversity. It is the cognitive complexity enhancement in
fostering the maturity reflected into the intercultural competence with the
responsive quality in accepting and working into sustaining the cultural divergent
awareness. Learn more in: Between the Global Mindset and an Open Mind:
Practical Insights Into Intercultural Competence in CBHE
8.Psychological traits and multicultural orientations that make global leaders
influence their followers. Learn more in: Interpersonal Relationship and Global
Leadership Mindset
9.It combines an openness to and awareness of diversity across cultures and
markets with an ability to see and seize the global opportunities, to adopt
sustainable and ethical good managerial practices wherever they come from,
cooperating globally with a view to benefit of all stakeholders accepting
philosophy of integrity in their actions Learn more in: Innovative Methods of
Teaching Integrity and Ethics in Management Education

Training and Management Development


Training is defined as the systematic development of the knowledge, skills and
attitudes required by an individual to perform a given task or job successfully.
Training aims at improving the organization's performance through the enhanced
performance of its employees. While training helps employees do their current
jobs, development prepares individuals to handle future responsibilities.

The major purposes of training are improving employee performance, updating


employee skills, avoiding managerial obsolescence, preparing for promotion and
managerial succession, and satisfying personal growth needs. Training needs are
determined based on the organization's and the employee's needs.

Organizations provide training to employees in the areas of company policies and


procedures, specific skills, human relations, and managerial skills. Some
organizations also provide apprentice training. There are two types of training
methods - on-the-job and off-the-job. In on-the-job training methods, an
employee is given training in the actual work situation, where he learns by doing
and through direct experience. Some of the on-the-job methods of training are
job instruction training, apprenticeship and coaching, job rotation, and committee
assignments. Off-the-job training refers to the training given to an employee away
from the immediate work area. Here the employee focuses his attention upon
learning from the trainer's lectures or through simulated exercises. Off-the-job
training methods include classroom lectures; various simulation exercises like
case exercises, experiential exercises, computer modeling, vestibule training and
role playing; and programmed instruction. Systematic evaluation of training
activities helps in evaluating the success of the training program. Training
increases productivity, reduces the level of supervision required, reduces
accidents related to work and increases organizational stability.

Apart from training, an organization should also concentrate on management


development. Management development is a systematic process of growth and
development by which employees develop their skills and abilities to manage. It is
future oriented and is concerned with education of the employees. Management
development improves a manager's ability to understand problems and arrive at
solutions. It helps the manager in effective handling of his different work roles like
planning, monitoring performance, communication and development.
Management development programs are designed to meet specific objectives,
which contribute to both employee and organizational effectiveness.

There are several steps in the process of management development. These


include reviewing organizational objectives, evaluating the organization's current
management resources, determining individual development needs, designing
and implementing development programs, and finally, evaluating the
effectiveness of these programs.

The two categories of development methods are on-the-job development, and


off-the-job development. Some of the widely used on-the-job development
methods are: coaching, job rotation, under study assignments and multiple
management. Off-the-job development methods include simulation exercises,
sensitivity training, transactional analysis, conferences and lectures. To ensure the
success of the management development programs, they have to be evaluated
from time to time.
TRAINING FOR EXPATRIATE MANAGERS
Training can help the manager and spouse cope with both of these problems.
Cultural training, language training, and practical training all seem to reduce
expatriate failure. We discuss each of these kinds of training here. Despite the
usefulness of these kinds of training, evidence suggests that many managers receive
no training before they are sent on foreign postings. One study found that only
about 30 percent of managers sent on one- to five-year expatriate assignments
received training before their departure

Cultural Training
The belief is that understanding a host country's culture will help the manager
empathize with the culture, which will enhance his or her effectiveness in dealing
with host-country nationals. It has been suggested that expatriates should receive
training in the host country's culture, history, politics, economy, religion, and
social and business practices.

Language Training
Those firms that did offer foreign language training for expatriates believed it
improved their employees' effectiveness and enabled them to relate more easily
to a foreign culture, which fostered a better image of the firm in the host country.

Practical Training
Where an expatriate community exists, firms often devote considerable effort to
ensuring the new expatriate family is quickly integrated into that group. The
expatriate community can be a useful source of support and information and can
be invaluable in helping the family adapt to a foreign culture.

MANAGEMENT DEVELOPMENT AND STRATEGY


Management development programs are designed to increase the overall skill
levels of managers through a mix of ongoing management education and
rotations of managers through a number of jobs within the firm to give them
varied experiences. They are attempts to improve the overall productivity and
quality of the firm's management resources.
Management development programs help build a unifying corporate culture by
socializing new managers into the norms and value systems of the firm. In-house
company training programs and intense interaction during off-site training can
foster esprit de corps-shared experiences, informal networks, perhaps a company
language or jargon as well as develop technical competencies. Bringing managers
together in one location for extended periods and rotating them through different
jobs in several countries helps the firm build an informal management
network.

Performance Appraisal
Performance appraisals are comprised of preset standards which are used to
measure employees’ work behavior and the results are provided as feedback for
the employee. An appraisal system helps employers with the decision-making
process involved in employee promotion and compensation, or perhaps in an
unfortunate situation, termination. A performance appraisal system falls under
the umbrella of performance management software and these platforms are
typically used in conjunction with each other.

PERFORMANCE APPRAISAL PROBLEMS


Home-country managers' appraisals may be biased by distance and by their own
lack of experience working abroad. Home-office managers are often not aware of
what is going on in a foreign operation. Accordingly, they tend to rely on hard
data in evaluating an expatriate's performance, such as the subunit's productivity,
profitability, or market share. Such criteria may reflect factors outside the
expatriate manager's control (e.g., adverse changes in exchange rates, economic
downturns). Also, hard data do not take into account many less-visible soft
variables that are also important, such as an expatriate's ability to develop cross-
cultural awareness and to work productively with local managers. Due to such
biases, many expatriate managers believe that headquarters management
evaluates them unfairly and does not fully appreciate the value of their skills
and experience.
Compensation
Two issues are raised in every discussion of compensation practices in an
international business. One is how compensation should be adjusted to reflect
national differences in economic circumstances and compensation practices. The
other issue is how expatriate managers should be paid. From a strategic
perspective, the important point is that whatever compensation system is used, it
should reward managers for taking actions that are consistent with the strategy of
the enterprise.

NATIONAL DIFFERENCES IN COMPENSATION


T he figures include both base compensation and performance-related pay
bonuses, but they do not include stock options. As can be seen, wide variations
exist across countries. The average compensation for a top HR executive
in the United States was $306,181, compared with $235,536 in Japan and
$102,1 in Taiwan.

EXPATRIATE PAY
The components of the typical expatriate compensation package are a base
salary, a foreign service premium, allowances of various types, tax differentials,
and benefits. We shall briefly review each of these components.64 An expatriate's
total compensation package may amount to three times what he or she would
cost the firm in a home country posting. Because of the high cost of expatriates,
many firms have reduced their use of them in recent years. However, a firm's
ability to reduce its use of expatriates may be limited, particularly if it is pursuing
an ethnocentric or geocentric staffing policy.

Base Salary
An expatriate's base salary is normally in the same range as the base salary for a
similar position in the home country. The base salary is normally paid in either the
homecountry currency or in the local currency.

Foreign Service Premium


A foreign service premium is extra pay the expatriate receives for working outside
his or her country of origin. It is offered as an inducement to accept foreign
postings. It compensates the expatriate for having to live in an unfamiliar country
isolated from family and friends, having to deal with a new culture and language,
and having to adapt to new work habits and practices.

Allowances
Four types of allowances are often included in an expatriate's compensation
package: hardship allowances, housing allowances, cost-of-living allowances, and
education allowances. A hardship allowance is paid when the expatriate is being
sent to a difficult location, usually defined as one where such basic amenities as
health care, schools, and retail stores are grossly deficient by the standards of the
expatriate's home country.

Taxation
Unless a host country has a reciprocal tax treaty with the expatriate's home
country, the expatriate may have to pay income tax to both the home- and host-
country governments. When a reciprocal tax treaty is not in force, the firm
typically pay s the expatriate's income tax in the host country. In addition, firms
normally make up the difference when a higher income tax rate in a host country
reduces an expatriate's take-home pay.
Benefits
Many firms also ensure that their expatriates receive the same level of medical
and pension benefits abroad that they received at home. This can be costly for
the firm, since many benefits that are tax deductible for the firm in the home
country (e.g., medical and pension benefits) may not be deductible out of the
country.

THE STRATEGY OF ORGANIZED LABOR


Organized labor has responded to the increased bargaining power of
multinational
corporations by taking three actions:
( 1) trying to establish international labor organizations,
(2) lobbying for national legislation to restrict multinationals
(3) trying to achieve international regulations on multinationals through such
organizations as the United Nations.
These efforts have not been very successful.
In the 1960s, organized labor began to establish international trade secretariats
(ITSs) to provide worldwide links for national unions in particular industries. The
long-term goal was to be able to bargain transnationally with multinational firms.
Organized labor believed that by coordinating union action across countries
through an ITS
Organized labor has also met with only limited success in its efforts to get national
and international bodies to regulate multinationals. Such international
organizations as the International Labor Organization (ILO) and the Organization
for Economic Cooperation and Development (OECD) have adopted codes of
conduct for multinational firms to follow in labor relations. However, these
guidelines are not as far reaching as many unions would like. They also do not
provide any enforcement mechanisms. Many researchers report that such
guidelines are of only limited effectiveness.
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