THE CHALLENGES OF REPLICATING HUMAN RESOURCE (HR)

PRACTICES IN A GLOBAL ENVIRONMENT: A QUALITATIVE STUDY OF

HR LEADERS IN A MANUFACTURING COMPANY

by

Julia A. Metcalf

BARBARA BAILEY, PhD, Faculty Mentor and Chair

SANDRA HARRIS, PhD, Committee Member

ROBERT BIGELOW, JD, Committee Member

BARBARA BUTTS WILLIAMS, PhD, Dean, School of Business and Technology

A Dissertation Proposal Presented in Partial Fulfillment

Of the Requirements for the Degree

Doctor of Philosophy

Capella University

September 2013
 UMI Number: 3602346

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© Julia Metcalf, 2013
 Abstract

Human resource (HR) leaders of multi-national companies (MNCs) face challenges to

replicate HR processes and systems that can be detrimental to the MNC’s viability.

Commonly, geographic and cultural differences cause the greatest challenges to

replicating HR processes and systems in a global environment. The leaders of MNCs

need to understand the replication challenges for three areas: formal mechanisms,

informal mechanisms, and the interaction between the two. The purpose of this study is

to investigate the challenges that HR leaders of MNCs encounter when attempting to

replicate informal and formal HR mechanisms in a global work environment. The

theoretical perspective providing a conceptual framework for this research is Frederick

Herzberg’s two-factor theory, also known as the motivation-hygiene theory. The two-

factor theory identified factors related to individual motivation and satisfaction, which

parallel the areas of informal and formal indicators. The primary research question for

the study addresses HR leaders’ perception of the challenges associated with replicating

HR processes in the global environment. A non-random sampling scheme known as

purposeful sampling was used to recruit participants for the study. The sample for this

study consisted of 14 participants who were full-time HR leaders at Manufacturing MNC.

The study will include use of a qualitative research method: specifically, a case study of

HR leaders working in an MNC. The data will be collected through interviews with each

research participant. Data were analyzed using Glaser and Strauss’ constant comparison

method. Themes from constant comparison emerged through inductive analysis or

deductive analysis. The conducted research study supported existing research that
identified culture as the primary challenge to replicating HR mechanisms experienced by

HR professionals who support MNCs. The study proved to support the known cultural

challenges of replicating both formal and informal mechanisms in a global environment,

but also brought to light the continued need to understand the implementation challenges

resulting from diverse legal/regulator concerns.

 Dedication

I dedicate this work to my wonderfully supportive husband, Brian, and to my two

beautiful children, Ellesyn and Kenneth James. You are the greatest gifts that God could

have ever bestowed upon such an undeserving person. All that I am is because of you

and you are the best of what I have to offer to this world. Thank you for believing in me,

when I did not have the strength to believe in myself. Thank you for pushing me to move

forward, when I felt paralyzed in place. I am nothing without you.

iii
 Acknowledgments

First, I would like to acknowledge the committee members for all of their

time and commitment to provide support throughout the dissertation process. Thank you

for the encouragement and refusal to let me give up.

Thank you to the organizational leadership of the Manufacturing MNC and to all

of the research participants within the company. I truly appreciate your flexibility to

incorporate my research study into your busy schedules. You were all committed

professionals and it was a pleasure to work with each of you.

I would like to extend a very special thank you to my military mothers, whose

support was unwavering throughout this entire journey. You two are the reason that I

started on this path and I could not have accomplished anything without your love and

encouragement.

iv
 Table of Contents

Acknowledgments iv

List of Tables viii

List of Figures ix

CHAPTER 1. INTRODUCTION 1

Introduction 1

Background of the Study 2

Statement of the Problem 6

Purpose of the Study 8

Research Question 8

Significance of the Study 10

Role of the Researcher 11

Nature of the Study 14

Conceptual Framework 15

Definition of Terms 19

Assumptions and Limitations 21

Organization of the Remainder of the Study 25

CHAPTER 2. LITERATURE REVIEW 27

Introduction 27

Global Operations 28

The Significance of a Holistic Strategy 36

Implementing Best Practices 39

Summary 41

v
CHAPTER 3. METHODOLOGY 43

Introduction 43

Research Questions 44

Research Design 45

Population and Sampling 48

Instrumentation 51

Validating the Findings 53

Data Collection Procedures 57

Approval to Conduct Research 58

Ethical Considerations 59

Summary 60

CHAPTER 4. DATA ANALYSIS 61

Introduction 61

The Study and the Researcher 61

Description of the Population and Sample 63

Data Collection 64

Research Methodology Applied to Data Analysis 67

Presentation of Data & Results of Analysis 69

Summary 78

CHAPTER 5. DISCUSSIONS, IMPLICATIONS & RECOMMENDATIONS 80

Introduction 80

Summary of the Results 80

Discussion of the Results 81

vi
 Discussion of the Conclusions in Relation to the Literature and 89
The Field

Limitations 95

Recommendations for Further Research 97

Significance of the Study 98

Conclusion 99

REFERENCES 101

vii
 List of Tables

Table 1. Research Participants’ Demographics 65

Table 2. Research Participants’ Demographics for Experience with

Manufacturing MNC 66

Table 3. Research Participant Demographics for Total Work Experience

Internal and External to Manufacturing MNC 67

viii
 List of Figures

Figure 1. Herzberg’s two-factor theory. 26

ix
 CHAPTER 1. INTRODUCTION

Introduction

As the modern work environment continues to evolve, globalized operations have

become a necessity for manufacturing companies to maintain a viable presence within

respective markets (Begley & Boyd, 2003; Razi, 2006). To achieve competitive

advantages within their industry, multinational companies (MNCs) must find approaches

for executing operations in the most efficient methods possible. One such approach is for

companies to replicate successful HR processes and systems among their international

subsidiaries (Morris et al., 2009; Pudelko, 2005; Von Glinow, Drost, & Teagarden,

2002). The objective of this qualitative study was to explore HR leaders’ perceptions of

the challenges of replicating HR processes and systems on the global work environment.

An MNC that is able to replicate and deploy home-based practices to its

international subsidiaries gains a competitive advantage over industry rivals (Begley &

Boyd, 2003; Von Glinow et al., 2002)). Replication refers to an organization’s ability to

transplant an existing process into another area with the expectation that the executed

process will yield outcomes similar to those of the process replicated. Replicating

standard practices in international subsidiaries minimizes deployment time and

contributes to an MNC’s competitive edge (Morris et al., 2009). However, not all

organizational processes, particularly human resources (HR) processes, can be replicated

in diverse subsidiaries (Von Glinow et al., 2002). Frequently, the unique cultural and

geographical factors of international subsidiaries presents challenges to HR leaders who

1
attempt to replicate HR processes and systems with global subsidiaries (Von Glinow et

al., 2002).

Researchers have identified three potential benefits for an MNC that is able to

successfully replicate HR processes in a cross-cultural environment (Morris et al., 2009;

Pudelko, 2005). The first benefit includes shorter start-up times for processes and

systems. Second, organizations can benefit from reduced operational costs associated

with removing non-value added steps of vetted processes and retaining only beneficial

steps. The third benefit is related to the increased knowledge sharing that develops

organization connectivity across global subsidiaries, by sharing information and

practices.

Replication of successful formal and informal HR mechanisms can aid an MNC

in securing a foothold within a specific industry by maximizing resources and minimizing

expenditures. To effectively recruit and retain qualified personnel HR leaders who

support MNCs need to understand how formal mechanisms, informal mechanisms, and

the interactions between the two mechanisms present challenges to replicating HR

processes in the global environment (Pudelko, 2005).

Background of the Study

Morris et al. (2009) emphasized the importance of understanding the formal

systematic processes and the informal people-focused practices that comprise the

comprehensive human resource system used by companies with global subsidiaries.

Formal mechanisms can be thought of as the tangible variables associated with HR

processes (Herzberg, 1966). The formal mechanisms consist of factors related to the

2
established HR processes and systems used to align organizational operations and

provide platforms for communication (Grant, 1996). Formal systems have a specific set

of guidelines and procedures for entering data across all subsidiaries in a company.

Formal mechanisms provide standardized processes and systems that can be replicated in

any environment, regardless of cultural or geographical limitations. Past research has

revealed that “Integrated information systems offer established databases and technology

conduits that provide an appropriate structural mechanism to replicate practices” (Morris

et al, 2009, pg 977).

On the other hand, informal mechanisms refer to individual motivators that

encourage employees to align with the HR processes and systems (Morris et al., 2009).

Informal mechanisms also motivate employees to support organizational objectives.

Some examples of informal mechanisms include position titles and compensation

packages. Other examples of informal mechanisms include things such as time off,

flexible work schedules, or use of company vehicles (Schuler & Rogocsky, 1998).

The HR leaders of MNCs must be cognizant of the impact that informal

mechanisms have on the operation and fulfillment of formal mechanisms HR processes,

particularly in the areas of recruitment and retention (Herzberg, 1966. M). Informal HR

mechanisms and processes that motivate members of one cultural group may not

motivate members of another cultural group (Pudelko, 2005; Von Glinow et al., 2002).

For example, research has shown that monetary compensation may not be enough to

recruit or retain engineers in countries such as Asia. Potential employees in some Asian

countries may expect opportunities to telecommute or to have flexible work schedules

(Harvey, 1993; Schuler & Rogocksy, 1998). Past research has revealed that companies

3
that did not offer those opportunities were somewhat disadvantaged when recruiting

engineers, especially if they competed against companies that did offer flexible work

options (Harvey, 1993).

In addition, incentive programs based on cultural norms may have a strong impact

on employee recruiting and retention efforts. Consequently, HR leaders must determine

the similarities and differences among cross-cultural subsidiaries when they work to

determine which HR processes to replicate internationally (Pudelko, 2005). Companies

with multinational subsidiaries needed to find a balance between replicating formal and

informal mechanisms in order to maximize the productivity of human resources. HR

leaders must develop a working understanding of how formal and informal mechanisms

work independently and interactively to influence recruiting and retention efforts.

Although the literature addresses how formal and informal mechanisms affect HR

practices, there is a gap in the literature regarding the interaction between formal and

informal HR mechanisms. Few, if any researchers have examined the relationship, or

interaction, between the formal and informal mechanisms associated with recruiting and

retention (Morris et al., 2009). Although understanding how formal and informal

mechanisms function independently is important, understanding the interaction between

the mechanisms that create a comprehensive system of HR processes is equally

important. Again, such understanding requires that HR leaders fully assess how their

existing objective, formalized processes and their subjective, culturally based subjective,

informal approaches affect HR processes in global subsidiaries.

The goal of most MNCs is to deploy a unified corporate strategy in the

geographically and culturally diverse subsidiaries (Begley & Boyd, 2003). Replicating

4
standard HR processes and systems becomes exponentially more difficult to replicate and

apply in the diverse and subjective resource of human capital (Pudelko, 2005). Procter

and Gamble (P&G) documented the challenges the company faced when the company

attempted to replicate formal HR mechanisms to accommodate knowledge sharing in the

global work environment (Grant, 1996). The P&G organization established successful

HR practices that some existing parts of the organization could utilize; however, the new

acquisitions and subsidiaries encountered difficulties in using the existing formal and

informal mechanisms (Grant, 1996).

Grant (1996) indicated the primary challenge of replication for P&G was the lack

of common knowledge of the formal HR processes used throughout the organization.

Common knowledge was defined as the compilation of “those elements of knowledge

common to all organizational members: the intersection of their individual knowledge

sets” (Grant, 1996, p. 115). The company failed to implement written guidelines or to

deploy a universal HR system that was applicable to all subsidiaries of the organization.

Past research has indicated that most MNCs do not fail capitalize on opportunities for

sharing knowledge within the organization. Frequently companies neglect to fully utilize

the on the knowledge and the career experience of existing organizational talent (Von

Glinow et al., 2002).

The P&G organization overcame the HR replication challenge by instituting

organization-wide, web-based interfaces that created knowledge-sharing communities

that fostered greater collaboration and potentially impacted the retention of employees.

The communities were established to explore both existing and new HR practices. The

result was both new acquisitions and existing organizational branches of P&G had a

5
common platform to drive the communication necessary to determine the best practices

that would work in the best interest of the entire organization. The company faced other

challenges to replication, such as physical distance among subsidiaries, also stifled a

company’s ability to maintain the execution of a common strategy.

Human resource leaders of MNCs must implement synergistic formal and

informal mechanisms when attempting to retain existing talent. One example of a

replication challenge requiring synergy between formal and informal mechanisms is the

retention of qualified employee talent. Qualified talent with career experience in

localized regions has a unique opportunity to share organizational HR best practices

throughout components of the parent company.

Statement of the Problem

In a global manufacturing industry, companies that fail to fully comprehend the

geographical and cultural differences of their regionalized markets struggled to maximize

operations. The HR professionals of MNCs that do not create complementary formal and

informal HR mechanisms to integrate operations among international subsidiaries cannot

maintain an adequate level of organizational oversight to effectively achieve strategic

objectives (Pfizer, 2011). Failing to implement standardized operations, specifically for

recruiting and retention, could result in failed mergers, failed recruiting strategies,

plummeting share prices, plant closures, and a significant number of employee

terminations (Badrtalei & Bates, 2007; Finkelstein, 2002). Universal HR processes and

systems created exclusively from a host-nation perspective rarely meet the diverse needs

of culturally and geographically diverse subsidiaries (Razi, 2006). In most cases,

6
geographic and cultural variations presented the most common challenges to replicating

HR processes and systems globally (Von Glinow et al., 2002). Those replication

challenges caused substantial complexity when HRM processes and systems were

deployed in diverse environments. Attempts to execute a single, universal HR process or

system in a MNC that has global practices could result in processes and systems that do

not adequately address the needs of diverse subsidiaries, but instead only the specific

needs of an organizational component (Razi, 2006). According to Badrtalei and Bates

(2007) any attempt to integrate multiple locations of an organizations must “ work with

all facets of a company that have any bearing on why people behave the way they do on

the job from day to day” (p. 304). The primary facet to which Badrtalei and Bates

referred is that of people issues that are directly associated with cultural identification.

Although organizations attempt to prepare for the integration of formal mechanisms, the

informal mechanisms directly influenced by people needs are often overlooked or

undermined (Badrtalei & Bates, 2007; Finkelstein, 2002).

Instituting HR processes and systems that provide standardized methods for

directing employees to achieve organizational strategic initiatives is an important element

of organizational success (Sturman, Trevor, Boudreau, & Gerhart, 2003). Again, the

challenge lies with providing enough flexibility in the processes and systems to

accommodate for regional and cultural differences. As Fink (2009) noted, much like

organizations with multigenerational challenges, MNCs with multicultural challenges

cannot always rely upon a single method of communicating processes with the

expectation of a shared understanding among all the culturally diverse employees.

7
 Past researchers have investigated how MNCs utilized formal or informal

mechanisms to replicate HR processes in the global work environment. However, there

is little research which has examined how formal and informal mechanisms complement

each other in the process of HR replication. Limited research addressed the challenges

encountered by HR professionals who attempted to replicate formal and informal HR

processes with their global subsidiaries (Morris et al., 2009).

Purpose of the Study

The study examined the challenges that HR leaders of MNCs encounter when

attempting to replicate informal and formal HR recruiting and mechanisms for recruiting

and retention in a global work environment. Complexities, such as cultural variations,

technological differences and diverse regulatory requirements, frequently impede the

ability of HR professionals to implement a holistic organizational strategy to

geographically-dispersed subsidiaries (Von Glinow et al., 2002). In order for leaders of

MNCs to effectively have supported global operations, it is imperative that HR

professionals define the functional parameters for replicating formal and informal HR

processes on a global level (Pudelko, 2005).

Research Question Background

The primary research question that guided, this research addressed the addressed

the challenges that HR leaders experience when attempting to replicate HR processes in

the global environment. This research question was augmented by several subquestions,

and the subquestions were further divided into two questions each. The subquestions

8
served as the foundation for the open-ended 9-item interview questions that were

presented to the participants (Singh, Hillmer, & Ze, 2011). According to Shelly and

Rosenblatt (2012), the value of open-ended questions is that such “… questions

encourage spontaneous and unstructured responses. Such questions are used when you

want to understand a larger process or draw out the interviewee’s opinions, attitudes, or

suggestions” (p. 160). The use of open-ended interview questions further enabled the

researcher to examine the issue of interest as it was experienced by the participants.

Primary Research Question

What challenges do HR leaders of MNCs encounter when attempting to replicate

informal and formal HR mechanisms for recruiting and retention in a global work

environment?

Subquestions (Interview Questions)

1. What formal HR mechanisms, defined as standardized or universal

systems, does your organization use for recruiting and retention?

a. What challenges has your organization encountered when

attempting to replicate these formal HR recruiting and retention
mechanisms in a global work environment?

b. What recommendations do you have for improving the replication

of the formal HR recruiting and retention processes in the global
work environment?

2. What informal HR mechanisms, defined as subjective personnel

motivators, does your organization use for recruiting and retention?

a. What challenges has your organization encountered when

attempting to replicate these informal HR recruiting and retention
mechanisms in a global work environment?

b. What recommendations do you have for improving the replication

of the informal HR recruiting and retention processes in the global
work environment?

9
 3. Discuss the degree to which the formal and informal HR mechanisms your
company uses for recruiting and retention complement one another.

a. How would you improve or modify the mixture of formal and

informal mechanisms used for recruiting and retention?

b. What challenges has your organization encountered when

attempting to replicate a standard package of formal and informal
HR mechanisms in the global work environment?

Significance of the Study

Morris et al. (2009) stated that there is a lack of research which addresses the

challenges faced by companies attempting to replicate HR practices in a global work

environment. The intent of the following research study was to contribute to the existing

body of knowledge that identified some of the replication challenges experienced by HR

leaders of MNCs. The research was based on the experiences of the HR leaders within

the same manufacturing company.

Companies with international subsidiaries can achieve competitive advantages

through the effective replication of best practices in their global subsidiaries. For this

reason, HR leaders who support MNCs need to understand the replication challenges

associated with three areas: formal mechanisms, informal mechanisms, and the

interaction between the two. Understanding the independent actions and complementary

interactions of HR mechanisms could provide organizational HR leaders the

comprehensive view needed to determine which HR processes and systems to be

replicated on a global scale (Von Glinow et al., 2002). The potential benefit was the

company’s ability to replicate and benchmark proven, successful HR processes and

systems that allowed it to gain a competitive edge over less organized competitors. The

10
benefits to companies who can replicate processes may include increased sales and

revenues, reduced attrition rates, and the achievement of various human capital metrics,

such as diversity and inclusion objectives (Begley & Boyd, 2003).

Role of the Researcher

The basic, key role of the researcher was to establish the parameters of the study.

The foundation for the study began with background research to determine the existent

research on the issue of interest. Based upon the existing research, the researcher

determined the best approach for the study was g to fill a gap in knowledge through new

research. From this point, the researcher determined the appropriate research design and

instrumentation for conducting the research (Creswell, 2009).

The case study method was used to collect data for this study. According to Stake

(2005) qualitative researchers have specific roles and responsibilities when it comes to

data collection and analysis. These researcher responsibilities for conceptualizing this

study included the following roles:

1. Bounding the case, conceptualizing the object of study;

2. Selecting the issue of interest, themes, or issues (i.e., the research

questions to emphasize);

3. Seeking patterns of data to develop the issues;

4. Triangulating key observations and bases for interpretation;

5. Selecting alternative interpretations to pursue; and

6. Developing assertions or generalizations about the case. (Stake, 2005, pp.

459-460)

11
 The researcher’s role regarding the data collection in this study was to execute the

interviews in a standardized manner with each participant, capturing responses that

reflect the individual research participant’s lens, or viewpoint. The researcher gathered

data from individuals who experienced the issue of interest (Giorgi, 1994). The

researcher also synthesized the data into a coherent whole by organizing and

summarizing responses from all participants.

In line with Creswell’s purpose for conducting qualitative research, two

characteristics were most relevant to the qualitative research approach: theoretical lens

and interpretive characteristics. For the following qualitative research study, using the

theoretical lens gave the intent to observe the “context of the problem under study” (p.

176). The lens enabled the analysis of participant responses related to the natural

organizational setting with Manufacturing MNC. Simply stated, the lens translated into

the individual viewpoint of each research participant, as based upon all of those factors

that caused an individual to process and understand an experience. The viewpoint of one

participant had the potential to vary greatly from the other participants, because each

participant was likely to process information differently. Combining the observations

identified through the theoretical lens with the approach of the interpretive characteristic

was an important element of the study.

Because the researcher’s position within the company included responsibilities for

executing HR processes and systems, the potential for researcher bias was present. The

researcher minimized bias by utilizing specific steps for recording and verifying the

accuracy of each participant’s responses to the interview questions. The following five

steps were taken to reduce researcher bias:

12
 1. An audio recording was made of each participant’s responses to the
interview questions.

2. Upon immediate completion of the interview, the researcher reviewed the

recorded responses with the participant to ensure accuracy.

3. The audio tapes were transcribed by a professional transcriptionist. The

transcribed data was saved as a Microsoft word document.

4. The transcribed Word documents were loaded directly into NVivo

software without modification or manipulation by the researcher.
5. Each research participant received a copy of his/her individual responses
for a final verification of the information that was loaded into the
qualitative analysis tool.

In addition to implementing steps to ensure the accuracy of the participants’

responses for the following study, research bias was minimized by the researcher’s self-

awareness. Glesne (2011) stated, “Biases may be more apparent to me if I seek out

interviews with colleagues that I know to hold differing opinions. These

discussions...will be another method that will allow me to explore my topic, as well as

my subjectivity” (p. 50). Researcher self-awareness described the need for researchers to

identify the areas of the study that could have incorporated subjectivity or bias. The logic

for using the self-awareness technique is to interject varying perspectives of the issue of

interest that will challenge the researcher to explore more than one potentially biased

path. The validation step ensured that research participants’ data was crosschecked with

the identified themes for compatibility with the participants’ responses. The effective

application of the validation step ensured that the researcher’s experience did not

circumvent that of the participant.

In using this approach to qualitative research, the researcher strived to capture and

record participant responses in a consistent manner. Allowing participants to provide

13
responses to open-ended questions based on their experiences enhanced the integrity of

the responses (Cooper & Schindler, 2008; Creswell, 2009). During qualitative data

collection and analysis, the researcher was ensured the validity of the data by reviewing

the data for credibility, reliability, confirmability, and dependability. These four criteria

protected the integrity of the research study and reflected “the underlying assumptions

involved in much qualitative research” (Trochim, 2006, para. 2).

Nature of the Study

The goal of this study was to determine the challenges HR leaders experience

when they attempted to replicate HR practices with global subsidiaries. Qualitative

research was used to identify common replication challenges as they emerged from the

perspectives of HR leaders in a manufacturing company with global operations (Cooper

& Schindler, 2008). The purpose of qualitative research is to “Describe, decode,

translate, and otherwise come to terms with the meaning, not the frequency of certain

more or less naturally occurring phenomena” (Cooper & Schindler, 2008, p. 162).

According to Denzin and Lincoln (2005), the qualitative research design is appropriate to

use when a problem or issue needed to be explored in further detail. The objective of the

study was to explore the challenges companies faced when attempting to replicate HR

processes in the global environment; therefore, the use of qualitative research was

appropriate for this research.

The qualitative approach included interviews to capture the experiences of HR

leaders who participated in daily HR processes and systems of the identified MNC

(Shelly & Rosenblatt, 2012). The execution of a qualitative case study allowed the

14
researcher to look through the lenses of the participants to explore and understand the

meaning of their experiences with replicating HR processes. The use of a qualitative

interview allowed the participants to provide details of their personal experiences with

the phenomenon of interest (Denzin & Lincoln, 2005; Shelly & Rosenblatt, 2012).

Purposeful sampling, which was a non-random sampling scheme, was used to

recruit participants for the study. Purposeful sampling is used when the researcher has a

specific purpose and a specific population in mind (Collins, Onwuegbuzie, & Jao, 2006).

Purposeful sampling allowed the researcher to explore of the challenges of replicating

HR systems and processes from the experiences of HR leaders in a specific company. A

total of 14 HR leaders who served in various capacities in the Manufacturing MNC

provided lenses through which the researcher explored the challenges associated with

attempting to replicate formal and informal HR processes in a global work environment

(Cooper & Schindler, 2008; Creswell & Miller, 2000).

Data analysis was conducted using Glaser and Strauss’ (1967) constant

comparison method, in order to identify themes in the aggregated data. The application of

the method required both inductive and deductive analysis of the participants’ transcribed

responses. Inductive analysis was used first, to determine recurring words or patterns

(Thomas, 2006). The complementary use of deductive analysis was to isolate the pre-

identified themes related to the research questions (Leech & Onwuegbuzie, 2007).

Conceptual Framework

The conceptual framework which guided this research was grounded in

Herzberg’s two-factor theory, also known as the motivation-hygiene theory. The two-

15
factor theory emerged from research conducted in an effort to identify the factors related

to individual motivation and satisfaction (Herzberg, 1966). Herzberg conducted a

seminal, qualitative study in which 200 accountants and engineers provided narratives

regarding the positive and negative experiences of their work environments (Guha, 2010;

Islam & Ali, 2013). Results from the research aided HR leaders in determining factors

that led to either worker job satisfaction or job dissatisfaction. The factors that led to job

satisfaction were called motivator factors and the factors that contributed to job

dissatisfaction were called hygiene factors. See Figure 1 for a visual model of the two-

factor theory.

16
Figure 1. Hertzberg’s two-factor theory. Adapted with permission from by Management:
Challenges for Tomorrow's Leaders (6th ed.), 2013, by P. H. Lewis, S. H. Goodman, P.
M. Fandt, & J. Michlitsch, South-Western, a part of Cengage Learning. Copyright 2013,
Cengage Learning.

Herzberg’s two-factor theory is directly relevant to the formal and informal

mechanisms associated with recruiting and retaining personnel in a MNC. The hygiene

factors of Herzberg’s two-factor theory are closely related to formal HR mechanisms.

The goals associated with hygiene factors and formal mechanisms are attracting

employees and maintaining worker satisfaction. The hygiene factors (or formal

17
mechanisms) refer to the universally applied standards that are created to maintain

organization and structure in the work environment (Guha, 2010; Islam & Ali, 2013).

The factors in this category include variables such as the following:

1. Documented company policies and procedures,

2. Structured wages and salaries,

3. Clear expectations for employee relations in the work environment,

4. Standards for work conditions and work environment,

5. Reasonable employee expectations for job security.

Conversely, the category of motivator factors is more like informal HR

mechanisms. This category of factors included the elements of job satisfaction that

motivate individual performance to exceed outlined expectations. These factors are

unique and personal to the employee but often included the following:

1. Organizational status or position,

2. Opportunities for career advancement / succession planning,

3. Awards and recognitions,

4. Feelings of value for work contributions,

5. Sense of personal growth and achievement.

Leaders in MNCs must understand the independent categories of factors that led

to employee satisfaction or dissatisfaction, as well as the interaction that occurred

between the two categories. The right combination of hygiene and motivator factors was

critical to recruiting and retaining employees (Guha, 2010; Islam & Ali, 2013). The

hygiene and motivator factors (formal and informal HR mechanisms) are important to

18
recruiting efforts because these factors set the initial expectations for melding the needs

of the company with the expectations of the qualified candidates (Herzberg, 1966).

When leaders of an organization understand the factors that will appeal to

potential employees, the organization can incorporate formal and informal recruiting

mechanisms that detail the job purpose, job responsibilities, and performance

expectations (Herzberg, 1966). The proper application of hygiene and motivator factors

serve as the foundation for creating the right blend of formal and informal HR

mechanisms to recruit talent into the organization (Guha, 2010; Islam & Ali, 2013).

Once qualified talent is recruited into an organization, HR leaders create another

set of formal and informal HR mechanisms for retention. Research regarding the

composition of the global work environment continues to identify the changing

demographics of the modern workforce (Ahmadi, Ahmadi, & Abbaspalangi, 2012;

Herzberg, 1966). Ahmadi et al. (2012) noted the industrial and manufacturing industries

must develop effective formal and informal HR mechanisms that will enable an

organization to achieve organizational employment goals in a global work environment

that has a scarcity of qualified talent. The changes in workforce composition require HR

leaders to reevaluate the hygiene and motivator factors that appeal to the new candidate

pool. The result could be the creation of formal and informal mechanisms that motivate

employees and ultimately increase employee retention (Morris et al., 2009).

Definition of Terms

Alignment. Alignment is the commonality in a process or system that drives a

consistent level of standardization among multiple areas (Zander & Kogut, 1995).

19
 Best practice. This is a process deemed as “A way or method of accomplishing a

business function or process that is considered to be superior to all other known methods”

(iSixSigma, 2012, para. 1).

Common knowledge. This term “comprises those elements of knowledge

common to all organizational members: the intersection of their individual knowledge

sets” (Grant, 1996, p. 115).

Convergence. This is the process of merging various management processes

with the intent of utilizing the merged practice throughout the organization (Pudelko,

2005).

Global mindset. Organizations with a global mindset develop business

procedures they can fully utilize across culturally and geographically diverse subsidiaries

of a company (Begley & Boyd, 2003).

Formal mechanisms. In HR, these are processes and systems are created to

provide standardized methods for managing human capital (Porter, 1996).

Hygiene factor. This category of factors refers to universally applied standards

created to maintain organization and structure in a work environment (Herzberg, 1966).

Informal mechanisms. These are the factors and variables that encourage

employees to align with HR processes and systems and with organizational goals (Zander

& Kogut, 1995).

Lens. This term refers to the viewpoint by which a research participant views his

or her experience as truth or fact. The lens is the observatory perspective of a research

participant that determines how the individual references the information as valid

(Creswell & Miller, 2000).

20
 Motivator factor. This category of factors is the elements of job that motivates

individuals to exceed outlined job requirements or expectations (Herzberg, 1966).

Multi-national company. This type of company has a host or parent company in

one geographic location with additional subsidiaries located in other countries (Von

Glinow et al., 2002).

Replication. This refers to the act of copying or duplicating a successful business

practice in a new location (Winter & Szulanski, 2002).

Subsidiary corporations. These are subcomponent organizations that are not

geographically located with the headquarters of the parent company (Von Glinow et al.,

2002).

Assumptions and Limitations

Assumptions

According to Cooper and Schindler (2008), all research is based on some set of

assumptions that influence both participant responses and the researchers’ interpretation

of those responses. Researchers must therefore identify and discuss those assumptions at

the outset of the study. Researchers make assumptions on the following aspects of their

research: (a) issue of interest being investigated, (b) chosen research methodology, (c)

data collection method, (d) data analysis procedures, (e) participants, and (f) researchers’

interpretation of results (Dusick, 2011). The following paragraphs addressed the

assumptions as each pertained to the following study.

The first assumption arose from the belief that the issue of interest can be

researched and evaluated. The primary focus of this study was challenges associated

21
with replicating HR systems and processes in MNCs that have global operations.

Existing research indicated that companies experience challenges in attempting to

replicate the HR practices of their parent organization in their global subsidiaries

(Ahmadi et al. (2012), Von Glinow, 2002. The assumption in this research was that HR

leaders could communicate what some of those challenges are and what could be done to

address those challenges.

The second assumption is that qualitative research is a valid method for exploring

the issue of interest. The goal of generic qualitative research is to build a chain of

evidence that captured the essence of the issue studied (Wertz, 2005). The second

assumption was extended to presume that generic qualitative research could be used to

successfully construct a chain of evidence regarding challenges associated with

replicating HR systems and processes as experienced by HR leaders.

The third assumption presumed that with the use of open-ended questions was an

efficient and effective method for collecting data from the participants. DiCicco-Bloom

and Crabtree (2006) suggested that the use open-ended questions allow participants to

respond to questions from a direct and personal approach. The use of the open-ended

interview questions allowed the participants to provide truthful responses regarding the

challenges they experienced when attempting to replicate the HR practices of their parent

organization in their global subsidiaries.

Several assumptions surrounded the participants for the study. The first

assumption was that each participant was an HR leader who supervised mid-level or

higher HR supervisors. In order to serve in such a capacity, the MNC targeted for this

study required the candidates to have career experience with HR practices. The

22
assumption was that all participants were HR leaders who had the career experience

required by the MNC.

The second assumption that was related to the qualitative research study

presumed that all participants were knowledgeable of the human resource management

systems utilized by their company. Manufacturing MNC had several corporate-approved

formal and informal HR mechanisms that applied within the parent organization and the

subsidiaries. The assumption was that all participants had access to the same or similar

corporate HR mechanisms. The further assumption was that each participant utilized

some subset of the corporate-approved formal and informal human resource management

systems within his or her organizational subordinates.

The third assumption regarding the participants was that each participant was an

actively employed HR leader within Manufacturing MNC at the time the study was

conducted. The assumption was that only active and current HR professionals from the

identified manufacturing company would provide input through the data collection

instruments. The final assumption concerning the participants was that each adhered to

the guidelines for completing the data collection instruments.

The interpretation of the results depended on two primary assumptions. First, the

participants’ willingness to participate in the research was critical; the assumption was

they were honest in responding to the questions posed to them and their participation was

nonbiased (Dusick, 2011). The second assumption in area of interpretation was that the

results of the study were meaningful and relevant to potential stakeholders (Dusick,

2011).

23
Limitations

Cooper and Schindler (2008) identified a research limitation as any error in the

research design that could affect the validity or reliability of the data. Limitations are the

variables over which the researcher may or may not have control. Each factor that serves

as an assumption can also serve as a limitation (Dusick, 2011). Researchers must address

the known limitations of their research at the outset of the research. The following

factors were limitations that could have introduced potential bias into the research when

analyzing results.

The use of purposeful sampling to recruit participants may have introduced limiting

factors into the research study. Purposeful sampling was used to recruit participants for

the study. Researchers look for specific criteria when targeting individuals to participate

in a study and are likely to verify that each participant meets the criteria for being in the

sample. Using a purposive sample, researchers are more likely to get the opinions of

their target sample population (Collins et al., 2006). The use of purposeful sampling may

not have captured the challenges that others in the company face when attempting to

replicate HR practices.

Another limitation was that participants were members of the same MNC.

Collecting data from HR professionals of one MNC may have limited the generalizability

of the findings to other MNCs. Participants in the study may have experienced

replication challenges that are unique to the MNC in which they are employed. In

addition, the HR leaders in Manufacturing MNC may not have had knowledge of or

access to all internal and external corporate-level HR processes and systems in the

organization. Each participant was limited to his or her individual knowledge of the

24
external benchmarking of industry standards. Other MNCs with similar or dissimilar

goals and objectives may have or may not have experienced the same types of replication

challenges. Each of these factors limited the generalizability of the findings to areas of a

given company or to other companies.

The demographic composition of employees at Manufacturing MNC may have

also posed a limitation in generalizing the findings of the study. The geographical

location of the targeted MNC was within an area with a homogeneous cultural

composition. The employees were mostly U.S.-born citizens. The HR leaders of the

MNC were also nearly homogeneous in terms of their age, gender, race, and ethnicity.

The homogeneity in the demographic mix of the HR leaders at MNC limited the degree

to which the results could be generalized to other cultural groups.

The final limitation related to gathering data for the international laws that

impacted the global subsidiaries of MNCs. The HR leaders of MNCs were expected to

comply with local and international laws when creating HR policies. Resources were not

available to evaluate the mandatory, bright-line regulations associated with country-

specific laws. Research related to international law aside from potential participant

responses was not evaluated in this study.

Organization of the Remainder of the Study

The remainder of this dissertation is organized into four chapters. Chapter 2 is a

literature review of the existing research related to f formal and informal HR processes

and systems. The primary objective of the literature review is to determine what is

present in the literature regarding the challenges to replicating formal and informal HR

25
processes and systems in a global environment. Specific to the research study, the

literature review examines the formal and informal HR processes for recruiting and

retaining talent. The chapter begins with a comprehensive review of existing research to

define the current state of HR processes and systems currently utilized by the

Manufacturing MNC’s HR organizational leadership. Chapter 3 contains details of the

research methodology chosen to answer research questions supporting the significance of

the study. Chapter 4 presents a summary of the results. Chapter 5 contains a discussion

of the findings presented in the contest of existing literature.

26
 CHAPTER 2. LITERATURE REVIEW

Introduction

The study investigated the challenges that HR leaders of MNCs encounter when

attempting to replicate informal and formal HR mechanisms for recruiting and retention

in a global work environment. The objective of the research study was to determine the

replication challenges encountered by HR professionals within the Manufacturing MNC.

The examination of HR replication challenges begins with understanding the obstacles

presented to organizational HR leaders who attempt to adopt a global mindset.

Globalization has become a requirement for any company seeking to be

competitive within an industry. As the modern work environment continues to evolve,

globalized operations have become a necessity for companies to maintain a viable

presence within respective markets (Razi, 2006). To achieve competitive advantage

within industry, MNCs must find approaches to execute operations in the most efficient

methods possible. One approach is for such companies to replicate successful HR

processes and systems among its international subsidiaries (Morris et al., 2009). For this

reason, HR organizational leaders who support MNCs need to understand the replication

challenges associated with three areas: formal mechanisms, informal mechanisms, and

the interaction between the two (Begley & Boyd, 2003).

27
 The challenges to replicating HR processes and systems can be detrimental to an

MNC’s viability if organizational leaders do not address the greatest obstacles

immediately (Razi, 2006). In most cases, geographic and cultural variations present the

biggest challenges to replicating HR processes and systems globally and may cause

substantial complexity with deploying HRM processes and systems in diverse

environments. Managerial leadership replication potential encounters difficulties when

attempting to globally employ practices tailored for a specific group. This is the result of

practices that were not created to meet the diverse needs of subsidiaries, but instead only

the specific needs of an organizational component (Razi, 2006; Von Glinow et al., 2002).

The first step for successfully replicating HR processes is for a company to understand

what it takes to achieve global operations.

Global Operations

A company’s ability to become a global operation entails much more than simply

opening offices in another part of the world or using technology to circumvent

geographic boundaries. As a first step the company must understand what defines a

global operation. Some of the most referenced research to initially establish guidelines

for defining globalization came from Kanter and Dretler in the late 1990s. Their initial

findings and theories have been repeatedly substantiated, over the last 14 years (Areiqat,

Tawfiq, & Al-Tarawneh, 2010; Razi, 2006).

Kanter and Dretler (1998) observed the definition of global has become so

distorted that some organizational leaders inadvertently apply it to almost anything. An

example of definition distortion involved the former CEO of Sun Microsystems, Scott

28
McNealy. In the mid-1990s, McNealy traveled to Southeast Asia for what was

categorized as personal travel. However, as referenced by the authors, The New York

Times presented McNealy’s travel as global expansion for his company.

Although McNealy’s travel may have planted a seed for future discussions of

global operations, personal travel is not indicative of globalized operations (Begley &

Boyd, 2003). The effective employment of global operations in the international work

environment goes far beyond mere travel and distorted terminology. It begins with the

complete understanding of how organizational leaders can define and implement

globalization objectives (Morris et al., 2009).

For a company to demonstrate globalized operations, the company must develop

and execute an integrated strategy (Finklestein, 2002; Mitleton-Kelly, 2006). Several

U.S. companies have attempted to capitalize on progressive markets by entering mergers

with companies from other countries. The overall strategy had been to allow expansion

of globalized operations through the incorporation of foreign partners with an established

foothold within certain geographic locations. This was the case in the failed merger of

the Daimler-Benz and Chrysler corporations (Finkelstein, 2002).

The failed merger of Daimler-Benz and Chrysler is another example of what

happens when an MNC fails to integrate a standardized system of operations among

international subsidiaries (Finkelstein, 2002). From a superficial business perspective,

experts believed the merger of Daimler-Benz and Chrysler was a pairing of corporate

equals. However, the organizations quickly realized the failure between the previously

independent companies to integrate and standardize the formal and informal mechanisms

that had sustained the organizations separately. Essentially, the viability of two

29
independently successful companies was destroyed by the failure to create a

comprehensive strategy that addressed cultural, organizational, and technological

differences. The U.S.-based Chrysler company was isolated from decision-making and

suffered the negative consequences of being an acquired entity rather than a partner

Independently, the companies boasted success within the automotive industry

during the 1990s for their respective market segments. Organizational leaders of both

companies assumed that combining the companies would exponentially increase the

consumer base and yield substantial returns to the combined company (Finkelstein, 2002;

Mitleton-Kelly, 2006). The companies, however, had drastically different organizational

cultures that did not mesh well and ultimately resulted in failed operations (Finkelstein,

2002). The results of the failed merger were plummeting share prices, plant closures, and

significant number of employee terminations (Badrtalei & Bates, 2007; Finkelstein,

2002). To achieve global operations companies must develop formal and informal HR

systems and process that foster the development of a global mindset.

Achieving a Global Mindset

Begley and Boyd (2003) researched the underlying connective thread that

contributes to the effective replication of HR practices in a global work environment. The

researchers noted that achieving a global mindset was the major element in achieving

global operations. According to Begley and Boyd (2002) the first step of achieving global

operations is that a company must have a global focus at all levels of the company.

These researchers asserted that a global mindset does not mean forcing a singular strategy

into local markets, but rather a global mind set means taking the time to evaluate and

30
comparatively analyze how company-wide organizational strategies affect all

subsidiaries.

It's not enough for a few executives at a multinational to have a global mind-set.
All employees should excel at balancing global consistency with local
responsiveness. That's why many organizations are testing ways to embed a
corporate global mind-set in companywide policies (Begley & Boyd, 2003, p. 25)

For an MNC, achieving a global mindset results from a combination of numerous

strategic and operational components. Organizational leaders must determine the most

effective combination of formal and informal mechanisms to achieve strategic objectives

while taking localized HR needs into consideration. Achieving an overarching

organizational strategy begins with a focused and common objective that can be

translated to its subsidiaries. The cornerstone of the strategic focus is the achievement of

a holistic organizational approach to replicating formal and informal HR mechanisms

(Razi, 2006).

Myths About Globalization

There are a number of t myths and untruths about globalization that can quickly

derail any plans a company may have for expanding operations into the global work

environment. Organizational leaders can mistakenly accept myth for fact, which may

automatically encumber the achievement of a global mindset. Kanter and Dretler (1998)

identified six common myths that seem to permeate the mindset of organizational leaders

as they attempt to conduct global operations. The myths are only a subset of common

obstacles encountered by companies seeking to achieve a global mindset, thereby

inhibiting the successful replication of HR practices.

31
 The myths and misunderstandings identified by Kanter and Dretler (1998) are

overarching themes of flawed understandings of what it takes to establish a global

mindset within a organization. Each of the myths or misunderstandings presents an

obstacle that minimizes organizational leaders’ ability to successfully develop effective

human resource practices, processes, and systems. Each of the obstacles presents faulty

logic that immediately undercuts the validity and reliability of the HR processes and

systems.

The first myth addresses the misconception that a company with international

locations is also a global company. Organizational leaders unintentionally use the terms

interchangeably, failing to realize global is not indicative of international. The

distinguishing characteristic between the terms “international” and “global” is the level of

interdependence among the internal components of the company. Companies or

organizations with subsidiaries that function independently in multiple countries are

international operations. However, companies that have inter-reliant subsidiaries are

global because decisions are made communally among the organizational components

(Pudelko, 2005).

For example, if a company has international subsidiaries with local requirements

or limitations the company fails to consider when making strategic decisions, then no

critical element of interdependency is present among the geographically separated

subsidiaries. Interdependency requires that subsidiaries collectively share information

and develop cohesive formal and informal processes and systems reflective of the needs

of all organizational components. On a fundamental basis, if decisions are made in the

32
absence of input from all subsidiaries, the subsidiaries are simply independent businesses

(Pudelko, 2005).

If a company is genuinely global, it encounters the challenge of the second myth,

which questions the appropriateness of having a singular operational strategy for all of

the geographically separated subsidiaries (Kanter & Dretler, 1998). The second myth

purports that global operations mean doing everything the same way in every region.

The HR replication challenge introduced by this myth is the ability of HR leaders to

balance global strategy with local market demands (Pudelko, 2005). The myth is that

companies have no requirement to analyze the preferences of the local consumer market

or tailor a subsequent strategy to meet customer demand (Razi, 2006). One company that

overcame the HR replication challenge associated with this myth was the Coca-Cola

Company (Coca-Cola, 2011).

The Coca-Cola Company arguably mastered diversification of its global strategy

to meet local market demands. The Coca-Cola brand is truly a global brand people

recognize in over 200 countries, and the company has almost 140,000 employees. Coca-

Cola has irrefutably demonstrated debunking of the second myth by employing

operational strategies that incorporate regional differences into the company’s

overarching global strategy. As a result, the company is an industry leader that has had

49 consecutive years of increased dividends during its 125-year history (Coca-Cola,

2011). According to the Coca-Cola annual shareholder report, the key to the company’s

global success is its ability to connect with the local market to provide a quality product.

Companies that have the ability to successfully incorporate local market requirements

33
into a global strategy are more readily able to conquer the challenges presented by the

third and fourth myths.

The third myth of globalization implies the need for a company to sever all

national ties. A misconception similar to the third myth, the fourth myth suggests the

need to eliminate any affiliation with a specific country image. These myths are closely

inter-related as both may result in an MNC entering a realm of ambiguity that does not

clearly associate the company with any one nation or local community (Kanter & Dretler,

1998). The two myths imply that an MNC is not required to identify with the

communities and nations in which it operates.

Typically, there are two outcomes that occur when MNCs fail to identify with the

local environments. First, companies that globalize operations into the international work

environment do not assume a level of corporate social responsibility (CSR). The

companies have no CSR actions to ensure that the company gives back to the

communities and countries generating its products and services. Second and equally

important is that the company may fail to create a brand that both embraces and

encompasses the culture and values of the international regions. Both CSR and brand

creation serve as the symbol by which consumers, shareholders, and community

members recognize the positive value of the MNC (Kanter & Dretler, 1998; McElroy,

2001). Symbolism does not occur when organizational leadership to recognize the value

of identifying with the communities and nations in which an MNC operates (Wiechmann,

Ryan, & Hemingway, 2003).

In the fifth myth of globalization, some companies mistakenly equate

globalization with the simple act of acquiring subsidiaries in other countries without

34
integrating those subsidiaries into the parent organization’s operations, processes, or

systems. The mere acquisition of companies or businesses in other international

locations does not automatically categorize a company as globalized. Companies that fail

to integrate a standardized system of operations among international subsidiaries cannot

maintain an adequate level of organizational oversight to effectively achieve strategic

objectives in those subsidiaries (Pfizer, 2011).

For example, Kanter and Dretler (1998) documented the results of what happened

when the Swedish pharmaceutical company, Pharmacia and Upjohn, failed to integrate

standardized operations among its American and Italian subsidiaries. The company

leaders failed to effectively integrate the diverse organizational cultures of its acquired

subsidiaries into its existing structure and made no attempt to create a synergistic

approach to executing strategy, which eventually created factions in the company. As a

result, the divisions of the pharmaceutical giant underwent a series of mergers and

acquisitions with other companies such as Pfizer and Amersham Life Science.

Consequently, the once-growing company experienced diminished assets and operations

(Pfizer, 2011).

The last myth associated with global operations perpetuates the belief that sales or

operations alone, in another country, signify that a company has a global operation. Truly

globalized operations require host companies to scour geographical entry points into the

market, by understanding the advantages and limitations of the local markets. Success at

generating sales and conducting operations in another country is only a part of a

comprehensive strategy to create an effective and efficient global company. To be

effective as a global industry, companies must understand the nature and dictates of

35
global operations and they must develop a strategy that will enable them to establish a

competitive industry advantage (Von Glinow et al., 2002).

Union Pacific Resources (UPR) of Fort Worth, Texas, was a U.S.-based company

that provided petroleum products. The company had a strong position in the U.S. market

and sought to expand its operations to the global market. The company first evaluated

the global market to determine the strengths and weaknesses of its industry competitors.

As a result, the UPR leaders determined they needed to use an integrated strategic

approach to establish footholds in key areas for international business (Anadarko, 2011).

This UPR strategy encompassed a global mindset that fostered collaborative

operations among international subsidiaries. Using this approach, UPR showed

continuous growth and merged with Anadarko Petroleum Corporation in 2000. The

company’s primary tenet for ensuring continued growth was to “employ a global business

approach” (para. 5). As a result, Anadarko was able to solidify its position as an industry

leader, generating record sales for its shareholders (Anadarko, 2011).

The Significance of a Holistic Strategy

Developing a holistic approach to executing the company’s strategic objectives is

critical to the company’s success, and the approach must go beyond mere

internationalized operations. Kanter and Dretler (1998) stated, “Global success rests on

the ability to listen and learn in locations far from the home base. Searching

internationally for concepts as well as customers and suppliers can stimulate innovation

and ease eventual entry into new markets” (p. 62). A holistic HR strategy is an approach

36
that effectively integrates strategy and activities among the various international

components of a company.

Kanter and Dretler’s (1998) statement highlights a simple yet often overlooked

premise for developing integrated HR strategies: the necessity of knowledge sharing

among all of the interconnected subsidiaries. A holistic approach to strategy embodies

the concept of interconnection among and demands that organizations explore viable HR

practices from various locations, not just from those created by the host country business

(Von Glinow et al., 2002).

For a global organization to have a holistic strategy, the organization must make a

concerted effort to develop the right collective mixture of people, processes, and systems.

Kanter (1999) noted, “The global economy is not the flow of goods . . . but the flow of

capital, people, and information” (p. 8). As HR leaders develop strategies for a global

market, the proper application of these three components is critical in determining the

organization’s future success. The strategy that ensues will create a common platform for

knowledge sharing to enable the people who comprise the organization to execute the

strategy to work more effectively in meeting organizational needs (Kanter, 1999).

People, Processes and Systems

The acquisition and retention of the right talent is a critical component to the

viability of every organization. Talent acquisition and retention can be challenging in a

localized organization, but the challenge increases exponentially when an organization

must incorporate multiple generational and cultural variables into strategy development.

The variations among generational and cultural norms pose significant obstacles to

organizational and HR leaders who attempt to develop formal and informal resource

37
management mechanisms. For example, the recruiting practices for Millennials in the

U.S. could vary from the practices used to recruit millennial talent in Asia (Fink, 2009;

Guha, 2010).

The challenge presented to HR leaders is to understand the cultural and regional

factors influencing employee perspectives related to organizational satisfaction. In

MNCs that effectively implement holistic strategic human capital objectives, HR leaders

should be able to manage culturally unique recruiting practices while simultaneously

developing retention practices that meet employee expectations. Successful human

capital practices support an organization’s holistic strategy for acquiring and retaining

diverse talent (McElroy, 2001).

Instituting HR processes and systems that provide standardized methods for

directing employees to achieve organizational strategic initiatives is an important element

of organizational success (Sturman et al., 2003). Again, the challenge lies with providing

enough flexibility in the processes and systems to accommodate for regional and cultural

differences. As Fink (2009) noted, much like organizations with multigenerational

challenges, MNCs with multicultural challenges cannot always rely upon a single method

of communicating processes with the expectation of a shared understanding among all the

culturally diverse employees.

The efforts which an MNC expends to integrate people, processes, and systems is

critical to cultivating an organizational culture in which there is a shared understanding of

the company’s strategic initiatives (Sturman et al., 2003). The success of a company is

directly related to the degree to which the HR practices align with the company’s

strategic initiatives. For example, Morris et al. (2009) stated, “Informal people alignment

38
consists of a common understanding of specific organizational objectives and why those

objectives are important. Informal people alignment consists largely of shared

understanding that comes from social interaction and identified similarities” (p. 976). To

develop a shared set of company goals illustrated the need for early identification of how

cultural variations could affect HR practices.

Implementing Best Practices

Impact of Formal and Informal Mechanisms on

Recruiting and Retention

The formal and informal mechanisms selected for recruiting and retaining talent

are critical to the livelihood of businesses seeking to establish a global footprint.

Businesses that have capitalized on the benefits to be derived from diversification have

increased demand for globalized operations. The concept of diversity is not limited to

superficial attributes, such as race and gender. The innovative knowledge or perspective

that an employee can contribute to an organization is a much more valuable diverse

contribution (Meyer & Herscovitch, 2001). In the last three decades, researchers

conducted a substantial number of quantitative and qualitative research analyses to

further evaluate the need for formal and informal mechanisms to recruit and retain a

global workforce. Researchers noted a need to simultaneously create formal mechanisms

and informal mechanisms to recruit talent within different geographical regions. The

formal mechanisms were those HR processes and systems used to universally leverage

the brand of the MNC. Creative HR on-boarding and knowledge sharing systems were

39
used to drive standardization across various regions. The informal mechanisms that

complemented the formal mechanisms were the tailored recruiting and selection HR

processes that would attract the localized talent pool. Tailored HR processes consisted of

individual motivators that were created by regionalized recruitment teams that could

intermix with the local talent and determine the specific local needs (Meyer &

Herscovitch, 2001; Razi, 2006).

As MNCs continue to conduct globalized operations it is essential that they also

develop tailored recruiting and retention mechanisms that reflect of the needs of the

localized talent (Razi, 2006). According to Razi (2006), “In the recruiting and selection

phase, for instance, leveraging the employment brand worldwide is as important as

ensuring local hiring practices remain consistent with the demands of the candidate pools

within their local domains” (p. 62). Tailored formal and informal mechanisms for

recruiting should not be created with a singular approach that is blindly applied to all

subsidiaries of an organization. Rather, recruiting and retention mechanisms should

consist of complementary formal and informal mechanisms that incorporate the distinct

regional employment differences associated with each localized culture. Effective

recruiting and retention strategies require a shift in the organizational mindset, and that

shift must occur to move HR leaders from viewing traditional HR practices as the only

method for talent management. Areiqat et al. (2010) stated that such a shift “Requires

organizations to reflect on how to attract, recruit, employ, and retain talented employees.

Organizations know that they must have the best talent in order to succeed in the

hypercompetitive and increasingly complex global economy” (p. 329). In order to recruit

and retain the best talent within any industry, the HR mechanisms used by MNCs must be

40
reflective of the expectations of the local candidate pool, when it comes to the superior

performance expected of them.

Areiqat et al. (2010) studied the recent efforts of Carilion Health System as an

example of an organizational shift toward applying innovative formal and informal

mechanisms to improve the recruiting and retention efforts of the company. The focus

of the study was on attracting and retaining quality nurses from multiple regions to be

part of the same healthcare system. A representative sample of nurses from the

population was selected from all regions. The experiences of the research participants

were explored to gain additional understanding of the innovative talent management HR

practices that would attract and retain the best nurses within the system (Areiqat et al.,

2010).

The research participants worked to revamp existing HR recruiting and retention

mechanisms, like the compensation and benefits packages offered. For example, a

scholarship programs was modified to be more reflective and engaging for attracting new

nurses. Simultaneously, innovative retention mechanisms such as mentoring encouraged

quality candidates to remain engaged in the healthcare system. The results of improved

recruiting and retention processes yielded a higher number of nursing recruits into the

healthcare system and a higher rate of retention (Areiqat et al., 2010; Razi, 2006)

Summary

In summary, the literature review contains discussion of the existing literature and

studies related to the replication challenges encountered by HR professionals within

MNCs. The challenges to replicating formal and informal HR mechanisms in a global

41
environment were identified as the geographical and cultural differences that exist

between regions. Differences in geography and culture, in most cases, had historical

roots that did not easily yield to attempts to implement standardized global HR practices.

Companies that attempted to naively force a singular HR process to geographically and

culturally diverse subsidiaries were often doomed to fail in successful operations. For

those MNCs that successfully implemented a complementary system of standardized

formal mechanisms with locally-focused informal mechanisms, replication of HR

processes and systems presented a greater return on investment for the MNC. The

companies that created universal policies with latitude to address regional needs were

found to have a more competitive advantage within the given industry. Chapter 3

contains an outline of the qualitative research design, methodology, and instrumentation

that will be executed to contribute to closing the existing gap in literature.

42
 CHAPTER 3. METHODOLOGY

Introduction

The purpose of this qualitative study was to investigate the challenges that HR

leaders of MNCs encounter when attempting to replicate formal and informal HR

mechanisms in a global work environment. The literature review in Chapter 2 included

research which revealed that replication of HR processes becomes increasingly difficult

when cultural subsidiaries are involved (Morris et al., 2009). This chapter has details of

the method chosen to collect data for the study. The chapter contains a description of the

research question, the research design, the data collection procedures, the sampling

frame, and the sampling procedures.

A qualitative research design using the case study method was used to address the

research question. As noted by Punch (2005), case studies are “more a strategy than a

method” (p. 144). It is important to understand that a case study is merely a generic

strategic design for conducting qualitative research. However, a qualitative case study

allows for the exploration of an issue of interest that cannot be accomplished through a

rigorous quantitative research design. Findings from the research provided information

regarding the challenges companies faced when attempting to replicate HR processes in

the global environment. The findings could be used to assist HR leaders in developing

43
strategies for addressing those challenges and minimizing the possible impact on global

operations.

Research Questions

The primary research question which guided this research addressed the

challenges that HR leaders experiences when replicating HR processes in the global

environment. The research question was augmented by several subquestions, and the

subquestions were further divided into two questions each. The purpose of the

subquestions was to serve as a foundation for the open-ended interview questions

presented to the participants (Singh, Hillmer, & Ze, 2011). As noted by Shelly and

Rosenblatt (2012), the value of open-ended questions was to “encourage spontaneous and

unstructured responses. Such questions are used when you want to understand a larger

process or draw out the interviewee’s opinions, attitudes, or suggestions” (p. 160). The

use of open-ended interview questions further supported the ability to examine the issue

of interest experienced by research participants.

Primary Research Question

What challenges do HR leaders of MNCs encounter when attempting to replicate

informal and formal HR mechanisms for recruiting and retention in a global work

environment?

Subquestions (Interview Questions)

1. What formal HR mechanisms, defined as standardized or universal systems, does

your organization use for recruiting and retention?

a. What challenges has your organization encountered when

attempting to replicate these formal HR recruiting and retention
mechanisms in a global work environment?

44
 b. What recommendations do you have for improving the replication
of the formal HR recruiting and retention processes in the global
work environment?

2. What informal HR mechanisms, defined as subjective personnel

motivators, does your organization use for recruiting and retention?

a. What challenges has your organization encountered when

attempting to replicate these informal HR recruiting and retention
mechanisms in a global work environment?

b. What recommendations do you have for improving the replication

of the informal HR recruiting and retention processes in the global
work environment?

3. Discuss the degree to which the formal and informal HR mechanisms for
recruiting and retention in your company complement one another.

a. How would you improve or modify the mixture of formal and

informal mechanisms?

b. What challenges has your organization encountered when

attempting to replicate a standard package of formal and informal
HR mechanisms in the global work environment?

Research Design

A generic, qualitative research design was chosen for this study. The objective of

a generic qualitative research is to develop “A strategy of inquiry in which the researcher

identifies the essence of human experiences about a phenomenon as described by

participants” (Creswell, 2009, p. 13). A generic qualitative study allows researchers to

look through the lenses of the participants to explore and understand the meanings of

their experiences. The process of exploration allows the participants to speak for

themselves and reveal meaning behind their experiences (Denzin & Lincoln, 2005). The

use of the qualitative research method was appropriate for the following study because

45
the case study allowed a more detailed exploration of any shared challenges encountered

by HR professionals who utilized similar formal and informal HR mechanisms within

Manufacturing MNC.

Cooper and Schindler defined qualitative research as the use of “an array of

interpretive techniques which seek to describe, decode, translate, and otherwise come to

terms with the meaning, not the frequency, of certain more or less naturally occurring

phenomena” (2008, p. 162). Qualitative research is suitable when a problem or issue

needs to be explored in further detail (Denzin & Lincoln, 2005). It is appropriate to use a

qualitative design when a researcher wants to obtain a detailed understanding of an issue

(Marshall & Rossman, 2006). According to Creswell (2009), the purpose of qualitative

research was “to establish the meaning of a phenomenon from the views of participants.

This approach means identifying a culture-sharing group and studying how it develops

shared patterns of behavior over time” (p. 16). The researcher of this study was

interested in obtaining a detailed understanding of the issue of interest by directly

contacting individuals who had experience with the phenomenon of interest. The

participants were able communicate their first hand experiences with replicating formal

and informal mechanisms through global subsidiaries for Manufacturing MNC.

Therefore the use a qualitative research approach was appropriate for achieving the

objective of the study.

A major characteristic of qualitative research is that it requires an interpretation of

collected data (Creswell, 2009). The interpretation of qualitative data involves

identifying trends or patterns in the responses submitted by research participants. The

interpretation aspect of qualitative research also requires the researcher to draw

46
conclusions about the theoretical and personal meaning of the participants’ responses.

The interpretive characteristic of qualitative data analysis requires that researchers

employ a personal lens to sort, filter, arrange, and interpret the data (Creswell, 2009).

The theoretical lens and interpretive characteristics added to the validity of the qualitative

methodology selection, because careful consideration by the researcher is required to

capture individual research participant perspectives without interjecting personal bias or

opinion (Creswell, 2009). As the researcher collected data from the research participants,

the data was inductively and deductively analyzed to objectively identify themes and

patterns without introducing personal bias into the data.

The qualitative research method was the most appropriate approach for the

following study for several reasons. First, a qualitative research design allowed the

researcher to investigate a specific area of interest (Denzin & Lincoln, 2005). The

problem area of interest was the challenges associated with replicating formal and

informal HR practices in a global work environment. Second, use of a qualitative

research approach allowed the researcher to obtain a detailed understanding of the issue

at hand (Denzin & Lincoln, 2005). The research was able to gather information from

participants who had direct experience with replicating such processes. Third, the

qualitative research design offered the benefit of collecting data from participants who

had direct experience with the issue of interest (Creswell, 2009; Marshall & Rossman,

2006). Participants in the study were HR professionals who had direct experience with

replicating HR processes in a global work environment. The nature of this study required

the structure of a research design that would enable the researcher to investigate an issue

based upon the shared interest among the selected HR professionals from Manufacturing

47
MNC; therefore the use of qualitative research was appropriate for studying the issue of

interest.

Within the broad realm of qualitative research design, a case study approach as

selected to capture data related to the issue of interest. Based on the aspects of exploring

the lived experiences of research participants, a case study was determined to be the most

applicable overarching strategy for the conducting the research. Glesne (2011)

highlighted a limitation of solitary case study research identified by other qualitative

researchers. Alone, a case study methodology was broad and ambiguous, and its

meaning “can vary, from one person to a village or from an event to a set of procedures”

(p. 22). To provide greater focus for the case study strategy, elements of a qualitative

study to explore the issue of interest was useful to capture the experiences of HR leaders

who participated in daily HR processes and systems of the identified MNC (Glesne,

2011). The latitude within the case study approach allowed the research to evolve, based

on the experiences of the research participants, rather than provide constraints or

limitations to exploring the issue of interest. The following case study strategy was

supported by utilizing elements of qualitative research approaches to understand the

shared experiences of the research participants.

Population and Sampling

The theoretical population to which the researcher was interested in generalizing

results (Trochim, 2006) consists of HR leaders in manufacturing companies with global

operations. Sampling allows researchers to gather data from a smaller set of individuals

with the intent of being able to generalize results back to the larger theoretical population

48
(Trochim, 2006) of interest in the study. It was impossible to study the entire theoretical

population of interest; therefore, an accessible sample of participants was selected from

the intended population. The accessible population was HR professionals from a single

manufacturing company located in the Midwest. For the purpose of the following

qualitative study, participants were active, full-time employees of a Midwestern

company, which was designated as Manufacturing MNC.

A non-random sampling scheme known as purposeful sampling was used to

recruit participants for the study. Creswell (2009) provided the justification for

purposefully selecting participants for a study. He indicated that purposeful sampling is

used to “Select participants or sites (or documents or visual material) that will best help

the researcher understand the problem and the research question” (p. 178). Purposeful

sampling is used when the researcher has a specific purpose and a specific population in

mind (Collins et al., 2006). The purposeful sampling scheme allowed the exploration of

the challenges of replicating HR systems and processes from the experiences of HR

professionals. For the purpose of this study, the purposeful sample consisted of

participants affiliated with a single company.

Approximately 200-–250 HR professionals met the criteria for the study. A

smaller sample of participants was purposefully selected from this group. A list of

qualified research participants was obtained from and reviewed by the Corporate HR

team. The participant list was provided directly to the researcher, who reviewed the list

with the participating company’s corporate HR point-of-contact. During this review the

HR contact removed the names of any potential participants who were prohibited from

participating in the research. The various company reasons for barring individuals from

49
participating in the research were not disclosed to the researcher. However, an example

of something that could have rendered an individual ineligible for participation would

have been an unannounced organizational realignment that would change the roles and

responsibilities of the HR professional. The corporate HR contact did not remove any

names from the provided personnel list.

The targeted sample size was based on guidelines presented by other researchers,

such as Dukes (1984), who recommended including 3-10 subjects in qualitative studies to

examine an issue of interest. The recommendation for sample size is varied and

inconsistent, depending upon the source. The desired sample size for the proposed

qualitative research study was 20-25 participants who were HR leaders serving in

different capacities in the manufacturing industry MNC. The initial set of participants

was selected in a two-phased approach. In the first phase, the Corporate HR contact

provided a list of HR professionals with the same job function, who worked in different

functional areas of the company. There were approximately 12 individuals on the initial

list provided by the Corporate HR contact. Of the 12, only three agreed to participate in

the research study. In order to identify additional research participants for the qualitative

study, the Corporate HR contact provided a second list of HR professionals who had a

wider range of HR job functions. Using the existing organizational structure for the

Manufacturing MNC, a random sample of each HR functional area was selected.

Requests for participation were sent to potential participants, until 20 HR professionals

agreed to voluntarily participate in the study. Of the 20 HR professionals, 14 were

available to maintain the commitment to participate in the research study.

50
 The identified sample of HR professionals from Manufacturing MNC was

selected for the study because they met the criteria outlined by the researcher. The

Corporate HR point-of-contact also gave approval for the researcher to contact the

participants. The major criteria for including professionals in the study included the

following characteristics. First, each participant had to be actively engaged in the

execution of the Manufacturing MNC’s HR processes. Second, each participant had to

have the opportunity to gather information to assess the effectiveness of the company’s

processes and systems. Third, each potential participant needed to have additional access

to or coordination with supervisors who execute operations for various HR functional

areas within the Manufacturing MNC. Fourth, the HR professionals within the

Manufacturing MNC who did not interact with global processes and systems nor gathered

input from multiple regions were limited to providing perspectives from only their

specific area or geographic region.

Instrumentation

The primary data collection instrument for the study was an interview (see

Appendix A) that consisted of nine open-ended questions. Swanson and Holton (2005)

identified the value of broad, open-ended questions as a potential source of data that

could aid researchers in understanding a subjective issue of interest. The value of using

open-ended questions lies in the ability to allow participants to give details of their

individual experiences. For this research study, the open-ended questions addressed

challenges the participants may have encountered when attempting to replicate HR

processes and systems in a global work environment.

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 The interview protocol consisted of two separate sections. The first section

collected demographic data from the participants regarding their age, gender, and total

years of experience in each of the following areas: manufacturing at the MNC, at

locations outside of the Midwest region, at locations outside of the continental U.S., in

HR-related career fields, and in HR-related career fields within or external to

Manufacturing MNC. The demographic data was be used to provide a description of

participants who participated in the research. The second section of the interview

protocol consisted of nine open-ended responses that address challenges the participants

may have encountered when attempting to replicate HR processes and systems. The

value of open-ended questions is that the research instrument promotes unstructured

feedback from the research participants, allowing uninhibited observance of the issue of

interest (Shelly & Rossenblatt, 2012). Participants had the opportunity to describe their

experiences in detail, and they were allowed to make suggestions regarding how to

improve the HR systems and processes used for recruitment and retention in the global

environment.

Expert Panel Review

The use of an expert panel of HR professionals was utilized to review the research

study instrument. Weiss (1994) stated the parameters of utilizing an expert panel for

qualitative research as “People who are uniquely able to be informative because they are

expert in an area or are privileged witnesses to an event” (p. 17). An expert panel of

three HR professionals within the Manufacturing MNC constructed and reviewed the

data collection instrument. The members of the expert panel were selected because each

member had knowledge and experience with the formal and informal HR mechanisms

52
used by the Manufacturing MNC. The interview questionnaire is an original instrument

designed for the proposed study and had not been utilized for any other research study.

Field Test

The individuals selected for the field test were selected because each member

matched the criteria for research participants in the proposed sample. All of the feedback

from the field test, provided from September 4, 2012 through September 12, 2012, was

reviewed. Overall, the feedback from the field test was complimentary and had limited

corrections for the interview questions. The feedback contained recommendations for

simplifying the verbiage and minor refinements of the text. One panel member

recommended removal of an interview question that was a duplication of another

question. The recommended changes were made to the interview protocol.

Validating the Findings

Creswell (2009) stated that the validity of qualitative data requires the researcher

to implement an appropriate system of checks and balances to verify accuracy of data.

The following four criteria are commonly used to assess the validity of qualitative

research data: credibility, transferability, dependability, and confirmability (Trochim,

2006). The following sections identified the actions that were completed during the

research study to assess the validity of the data, as related to Trochim’s four criteria. .

To establish credibility in qualitative research, the participants’ experiences must

be captured in a manner representing the unique perspective of each participant.

Accurately representing each participant’s perspective is fundamental to credibility

because only the participant can determine whether his or her experience is captured

53
correctly in the research study (Trochim, 2006). In the presented qualitative study,

research participants were presented with a series of open-ended interview questions

related to their experiences with challenges replicating formal and informal HR

mechanisms. Participants were allowed to provide uninhibited responses to the interview

questions, in order to capture the unique experiences of each research participant. In

order to eliminate the disruption caused by transcription during an interview, each

interview was audio-recorded. At the conclusion of each interview, responses were

verified for accuracy and completion with each respondent. A professional

transcriptionist was used to transcribe the audiotapes. Member-checking was completed

to ensure transcripts were complete and reflective of the corresponding research

participants.

Establishing credibility is a two-step process: the first step ensures the accuracy of

recorded and transcribed data. The second step ensures that narrative interpretations of

the data reflect the participants’ experiences with the issue of interest. In the proposed

research study, such verification means determining the accuracy of recorded or

transcribed data and ensuring correctness of the data from the perspective of the

participants. The following steps were taken to ensure the credibility of the data that was

collected from the participants:

1. An audio recording was made of each participant’s responses to the

interview questions.

2. Upon immediate completion of the interview, the researcher reviewed the

recorded responses with the participant to ensure accuracy.

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 3. The audio tapes were transcribed by a professional transcriptionist. The

transcribed data was saved as a Microsoft word document.

4. The transcribed participant responses were rechecked for accuracy and

completeness. In a situation where the transcription omitted portions of

responses due to the inability to determine the response, participants were

required to resubmit responses electronically to the researcher. Member-

checking of the data was completed to ensure the resubmitted responses

were matched to the correct respondent. The research participants

confirmed their individual submissions and again validated the responses.

5. The transcribed Word documents were loaded directly into NVivo

software without modification or manipulation by the researcher.

Complementary to credibility is transferability, which moves the research results

from the internal participant-specific findings and attempts to generalize the findings to a

different context. The focus of the results shifts from individual results viewed by

participants to general themes observed by an external participant (Trochim, 2006). In

the proposed qualitative research study, the researcher served as the external participant.

As external participant the researcher synthesized the recurring patterns and responses

from the individual participants into broader more general emergent themes. A detailed

summary of those emergent themes are presented in Chapter 4. The transferability of the

emergent themes is discussed in Chapter 5.

Dependability is another concept central to validity in qualitative research. The

criterion of dependability requires researchers to maintain awareness over the changing

55
environment in which the research takes place (Trochim, 2006). Researcher oversight

ensures that the impact of environmental changes on the study is considered. Awareness

of any organizational changes that could affect the research criteria is essential. Such

changes could include the changes in the roles and responsibilities of research

participants that could influence the data. Dependability during the qualitative research

study required the researcher to remain abreast of all organizational movement for HR

professionals. The visibility over personnel movement and organizational change was

accomplished through the periodic review of communications within the Manufacturing

MNC and collaborative updates with the Corporate HR contact.

Confirmability of qualitative research requires objectivity by the researcher in

substantiating the research results. Confirmability can be accomplished by examining

and reevaluating the results for accuracy (Trochim, 2006). Several steps were taken to

ensure the confirmability of the recorded and transcribed data. As the first step of

confirmability the researcher used a standardized process to collect data for the study. .

Standardized processes reduce the degree of variance associated with collecting data in

qualitative research (Creswell, 2009). A standardized, open-ended set of interview

questions (see Appendix A) was administered to all participants. All participants were

presented each research question in the same order. As a second step of confirmability

the researcher recorded each interview.

The second step of confirmability occurred after the data were transcribed. The

participant responses were transcribed and recorded into text format using Microsoft

word processing software. The text documents were then uploaded into entered into

NVivo software for analysis. The data was then double-checked after being transferred

56
into the NVivo qualitative software for analysis. The confirmation of the data occurred

through the comparison of the text documents to the information that was uploaded into

the system, to ensure a match for each individual participant’s data. The purpose of the

double-checking was to verify that the data were correctly transferred and that the

transferred data were correctly linked to the appropriate participant, by comparing the

data transferred to the original text manuscripts containing the participants names

(Creswell. 2009).

Data Collection Procedures

A Request for Participation (Appendix B) was sent to the purposefully selected 25

HR identified professionals. Each participant received an electronic request to participate

in the study (see Appendix B). The letter contained the following information:

description of research, purpose of research, and statement regarding informed consent.

Of the 25 HR professionals who were contacted, 19 individuals agreed to participate in

the study. Due to organizational requirements taking precedence for the HR

professionals, five individuals could not participate in the study. The final results consist

of transcripts from 14 HR professionals.

Participants were interviewed within a maximum period of two weeks after giving

their consent to participate to ensure minimal opportunity for variables to change (e.g.,

personnel movement and HR mechanism change). An e-mail reminder (see Appendix C)

will be sent to remind participants of their pending interview, 48 business hours prior to

the interview (Fowler, 2009).Each interview was conducted in the office of the research

57
participant. The average length of time for the interviews was approximately 30 minutes

in duration.

Approval to Conduct Research

No research took place until after approval was obtained from the proper sources.

Approval to conduct this study was obtained from the appropriate sources at

Manufacturing MNC. The research also gained to conduct this research must be obtained

from the university in which the researcher attends.

Approval from Manufacturing MNC

The initial step for gaining approval from Manufacturing MNC involved going

through the company’s formal information release process. This step ensured that there

was no conflict of interest between the researcher, the participants, and their affiliation

with the company. The company’s information release process involved a review of the

proposed research study by the public affairs, corporate human resources, and legal

departments, as required. After the reviews were conducted the researcher obtained a

signed permission of consent from the appropriate official at Manufacturing MNC (see

Appendix D) before submitting an application for approval to conduct the research from

Capella University.

Institutional Review Board (IRB) Process

The purpose of the IRB was for the university to provide a thorough review of the

research topic prior to the researcher data collection process. Such review is especially

important when human subjects are involved in research. The researcher submitted a

detailed research proposal which outlined the parameters of the study. In addition the

58
researcher submitted to the IRB application for committee review. Members of the IRB

reviewed the proposal to ensure the researcher would maintain ethical standards and do

no harm to participants. The researcher submitted an IRB application to the Capella

University IRB. No research took place until after the IRB approved the research study.

Ethical Considerations

Several ethical considerations must be addressed in research with human subjects

and researchers must discuss how they will address those ethical considerations. The

primary ethical consideration for this research pertained to protecting the privacy and

confidentiality of the participants. The steps that were taken to address privacy and

confidentiality are presented below.

Privacy Considerations

Several steps were taken to maintain the privacy of participants. The names of

participants were stated during the audio-recording of interviews, in order to member-

check the data. After the transcription of the data, the name of each participant was

replaced with the term “Participant” and a corresponding letter of the alphabet (e.g.

Participant A). All individually identifying information (e.g. name, organization, position

title, etc…) was removed from the data analysis records. In addition to the unique

designators, aggregated data is presented in the dissertation, with specific participant

comments having been attached to a designator. No individually identifying information

that could potentially link responses to individual participants or the Manufacturing MNC

will be discussed or published.

59
Confidentiality Considerations

All participants’ responses and research data will be stored on the researcher’s

personal computer, which is protected by a user name and password combination and

biometric fingerprint scan. The data files will receive additional password protection,

which only the researcher will be able to access. Upon completion of the dissertation, all

participant responses, research data, and files will be transferred to an electronic storage

medium (e.g., a memory stick) and the data will be removed from the computer’s drives.

All research data will be maintained electronically with password protection remaining

intact, for the seven years required for data storage prior to data destruction. The data

will be deleted from the storage medium and the storage medium will be destroyed via

industrial shredder.

Summary

Chapter 3 contained an outline of the research approach to obtain a greater

understanding of the challenges encountered by MNCs in attempting to replicate HR

processes and systems in a global environment. A qualitative research method was used

to study the experiences of the Manufacturing MNC’s HR leaders who have global

responsibilities. The target population for the study was HR leaders within the

manufacturing company. The purposefully selected sample was chosen from one specific

geographic region. As the research study takes place, the confidentiality and ethical

treatment of the participants will be ensured by both the university’s review process and

actions taken by the researcher.

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 CHAPTER 4. DATA ANALYSIS AND RESULTS

The Study and the Researcher

The purpose of this qualitative study was to investigate the challenges that HR

leaders of MNCs encounter when attempting to replicate informal and formal HR

mechanisms for recruiting and retention in a global work environment. This chapter

presents a summary of the results from the data analysis. The chapter begins with a

summary of the demographic data for the participants. Next, findings from each research

question are presented in detail. This summary contains a description of the major

recurring themes for each research question. The chapter ends with a brief summary of

the overall findings from the data.

The researcher became interested in the challenges of replicating HR processes

and systems in a global environment approximately two years ago. An organizational

change resulted in the researcher having greater exposure to multiple facets of the HR

community and observing, firsthand, the implementation of formal and informal

mechanisms throughout the MNC. The researcher experienced challenges in executing

HR processes within multiple regions. Many of the challenges were due to variations in

culture, communication gaps, disconnected technology and diverse national

requirements. The replication challenges experienced by the researcher were the catalysts

that motivated the research to pursue additional knowledge in the issue of interest.

Surprisingly, multiple HR professionals shared their knowledge, experiences, and

61
challenges with replicating HR processes and systems in a global environment. With so

many HR professionals having experienced challenges, the researcher saw an opportunity

for knowledge sharing and potentially the opportunity to gather suggestions for

improving the process of replicating HR processes.

Prior to conducting the study the researcher had minimal experience with

conducting research. However the researcher had completed several research methods

course while in attendance at Capella University. In addition, the researcher completed

the CITI training modules and Capella University tutorials on conducting qualitative

research. Due to the limited research experience, the researcher worked closely with the

dissertation committee to create a tool for capturing the participants’ experiences with

replicating HR systems and processes. The tool, an interview questionnaire, was vetted

through an expert panel and a field test before being utilized in the research. An expert

panel of three HR professionals in the Manufacturing MNC also reviewed the interview

protocol for sufficiency. Details regarding the expert panel review and the results of the

review are presented in Chapter 3.

The researcher conducted in-person interviews with 14 participants. Each

interview was audio-taped. Participants consented to being audio-taped and signed the

appropriate consent forms. The audiotapes were provided to a professional

transcriptionist to transcribe the individual participant interview sessions. The compiled

responses were evaluated inductively to identify frequency counts or word counts

amongst the respondents’ interviews. Lastly, the compiled responses were reviewed

deductively to identify common themes in data. The following sections of Chapter 4

present the findings of the collected data.

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 Description of the Population and Sample

The following section presents information regarding the sampling procedure

employed in this study. The section begins with a description of the population of

interest. The next section describes the sampling procedure that was used to recruit

participants for this study. The section ends with a summary of the descriptive data for

the participants.

The Population

The population of interest for this study consisted of HR professionals from a

single manufacturing company located in the Midwest. Individuals who met the inclusion

were considered to be eligible for participation. The inclusion criteria indicated that

participants must be active, full-time HR leaders of the MNC. The researcher obtained a

personnel list of HR professionals who met the inclusion criteria from the Manufacturing

MNC’s corporate HR office. The personnel list was generated from the company’s

confidential employee database. Approximately 200-–250 HR professionals met the

inclusion criteria for the study, thus comprising the population of interest. Purposeful

sampling was used to recruit participants for the study. Details of the procedures used for

recruiting are presented in Chapter 3. A total of 14 participants completed the interview

process. A summary of the data collection process is presented in the next paragraph.

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 Data Collection

Data were collected through face-to-face interviews. The first set of questions in

the interview gathered demographic data from the participants. The second set of

questions captured the participants’ experiences with replicating formal HR mechanisms

and informal HR mechanisms in the global environment. Participants were also asked

about their perceptions of the interactions that occurred between the categories of

mechanisms. A summary of the participants’ demographic data is presented in the

following paragraph.

The Sample

The sample for this study consisted of 14 participants who were full-time HR

leaders at Manufacturing MNC. The following tables provide a summary of the

demographic data about the research participants. Table 1 provides general data regarding

the participants’ age and gender. The table shows that participants were grouped into

three age groups that consisted of 10 year intervals. Results revealed that there was an

equal number of participants in the 40-50 year-old and 50-60 year old age bracket.

Regarding gender, 43% of participants were male and (57% were female.

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 Table 1. Research Participant Demographics

Participant Characteristics: General n (N=14)

Age Group:
30 – 40 2
40 – 50 6
50 – 60 6

Gender:
Male 6
Female 8

Table 2 shows a summary of the number of years of HR work experience the

participants had while working at the Manufacturing MNC. The data revealed that

participants had a minimum of five years of experience working within the

Manufacturing MNC. Six participants indicated they had over 21 years of internal work

experience with the MNC. The majority of the participants (n = 8) had at least five years

of HR-related experience within company. The remaining six participants had 11 to 21

years of experience. Twelve participants reported that they had work experience with

organizations outside of the Midwest. Six of the 14 participants had 10 years or less of

work outside of the Midwest, and eight participants reported having 11 to 21 years of

work experience outside of the Midwest. Lastly, most participants (n = 8) indicated they

had five years or less of work experience outside of the continental US. The remaining

six participants reported having 11 to 21 years of work experience outside of the US.

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Table 2. Research Participant Demographics for Experience at Manufacturing MNC

Participant Characteristics: Experience at MNC n (N=14)

Total Years Experience at MNC:

<1 0
1<5 0
5<11 2
11<21 6
21<31 5
31+ 1

HR-Related Experience
<1 0
1<5 0
5<11 8
11<21 6
21<31 0
31+ 0

Years Experience Outside Midwest:

<1 2
1<5 2
5<11 2
11<21 8
21<31 0
31+ 0

Years Experience Outside Continental US:

<1 3
1<5 3
5<11 2
11<21 6
21<31 0
31+ 0

Table 3, shows a summary of the participants’ total work experience, which

includes experience both prior to and during tenure at the Manufacturing MNC. The data

revealed that participants had a minimum of five years of experience in HR-related

66
positions. Several participants (n=7) had greater than 11 years of HR experience. The

largest number of participants (n = 8) indicated that they had between 1-5 years of

external work experience. Only one participant had more than five years of external work

experience.

Table 3. Research Participant Demographics for Total Work Experience Internal and
External to Manufacturing MNC

Participant Characteristics: Total Work Experience n (N=14)

Total Years HR-Related Experience:

<1 0
1<5 0
5<11 7
11<21 5
21<31 1
31+ 1

Total Years Work External Experience:

<1 5
1<5 2
5<11 6
11<21 1
21<31 0
31+ 0

Research Methodology Applied to Data Analysis

Data were analyzed using Glaser and Strauss’ (1967) constant comparison

method. The constant comparison method is a systemic approach used to identify

prevalent themes within the compiled data. Simply stated, the analytical method

“discovers the latent pattern in the multiple participants’ words” (Glaser, 2012, p. 29).

Themes from constant comparison can emerge through inductive analysis or deductive
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analysis (Leech & Onwuegbuzie, 2007). Both types of analyses were used to analyze data

gathered in this study. Details regarding the data analysis are presented in the paragraphs

which follow.

The first step of the constant comparison was a review of the transcripts of all 14

participants. This review was conducted for each research question and subquestion. This

review provided the researcher with a general idea of the overall content of the responses.

The second step of the constant comparison was a more systematic review of all

transcripts. During this review the researcher used inductive analysis to determine words,

patterns of words, ideas, or categories of ideas among the participants’ responses to each

research question. Thomas (2006) identified inductive analysis as allowing “research

findings to emerge from the frequent, dominant or significant themes inherent in raw data

without the restraints imposed by structured methodologies” (p. 298).

After the third reading of the transcripts the researcher developed a code sheet to

document the recurring patterns of ideas. The transcripts were again read and constant

comparison was used to compare and code the emergent ideas. After the codes reached a

point of saturation, open coding was used to code the responses for each research

question via the use of NVivo software for qualitative data analysis.

The researcher also quantified the data in order to aid the interpretation of the

results (Collins et al., 2006; Onwuegbuzie & Leech, 2005). The researcher quantified the

data by conducting frequency counts to determine the relative frequency in which each of

the emergent themes appeared across the participants’ responses. The frequency count

served two distinct purposes. First, according to Leech and Onwuegbuzie (2007), a

frequency count can be used to improve the rigor of data analysis. The second function of

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the word count was to assist the strategy for accomplishing the deductive aspect of the

data analysis. Deductive analysis involves looking for and coding pre-identified themes

in written text (Leech & Onwuegbuzie, 2007). The pre-identified passages and themes

derived from each interview question were used to guide the data coding phase. In the

next phase of data analysis the researcher used axial coding to connect related patterns of

ideas. The broader emergent themes were derived from the axial coding. The list of

emergent themes varied for each question and associated subquestions. The following

paragraphs present the data analysis of each interview question and the associated

subquestion answered by the research participants.

Presentation of Data and Results of Analysis

There was one primary research question which guided this study was: What

challenges do HR leaders of MNCs encounter when attempting to replicate informal and

formal HR mechanisms for recruiting and retention in a global work environment? A

total of nine interview questions, three primary and six subquestions, were presented to

each of the research participants during a face-to-face interview. Each interview was

audio-recorded and later transcribed. Results are presented for each question and the

associated subquestions.

Interview Question 1: What Formal HR Mechanisms, Defined as Standardized or

Universal Systems, Does Your Organization Use for Recruiting and Retention?

The data analyses revealed three formal mechanisms that were most often

referenced by the participants. The Taleo system was the most frequently referenced

formal HR mechanism. Eight of the participants (57.1%) gave some reference to Taleo.

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According to the participants the Taleo system was used for performance management

and recruiting functions. Four participants (28.6%) referenced the use of the PeopleSoft

data management system, and two participants (14.3%) references use of the KRONOS

timekeeping HR system.

Interview Subquestion 1a: What Challenges Have Your Organization Encountered

When Attempting to Replicate These Formal HR Recruiting and Retention
Mechanisms in a Global Work Environment?

The majority of participants (8 out of 14 or 57.1%) indicated that the most

prevalent challenge was related to variations in cultures that could be attributed to

historical lineage, social mores and regulatory requirements. One participant succinctly

summarized the challenges that cultural variations have on HR processes. That response

is presented below:

The challenges that we have is cultural, so many times one system or one process
can’t meet the needs of the different cultures. For example, we hire in India and
things that matter most to them are very different than things that matter most in
the U.S. An example could be in India, they have different ways of getting to
work and so therefore they value public transportation, they value safety, they
value things of that nature, where in the U.S. people have cars and people have
ways of getting to work and so when you are designing packages and designing
attracters, you have to be cognizant of what matters most in those regions to those
folks that are wanting to join the company.

The data revealed that the second most frequently occurring challenge pertained

to the lack of standardized processes or the failure to adhere to the existing standardized

processes or systems. Seven participants (50%) gave comments that related to this theme.

The following participant response captured the essence of the challenges that are

associated with lack of standardization in HR processes: “Not every facility that we

support has HR professionals that utilizes all the same tools and those who may be on

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some of these tools may have alternate versions from corporate standards because of

previous and current autonomy some of our business units who may even use the same

tools but choose to configure it differently...”

The third challenge experienced by the participants related to legal or regulatory

constraints associated with diverse geographical regions. Four of 14 participants (28.6%)

identified the challenges they faced with attempting to deal with legal or regulatory

compliance. One participant clearly summarized the regulatory challenges to replicating

HR processes and systems:

[F]rom a legal and regulatory compliance perspective on a global basis, even the
tools that are used there are legal and regulatory reasons certain facts and data that
we can gather in one country and cannot gather in another. For privacy reasons or
governmental reasons.

The recurring pattern for this theme was that the legal and regulatory constraints of

various cultures affect company recruiting and retention efforts. Participants suggested

that it becomes difficult to standardize processes because different laws in different

locales affect the types of incentives that can be offered or mandate. The variations

prevent the effective use of standardized HR processes.

Interview Subquestion 1b: What Recommendations Do You Have for Improving the
Replication of the Formal HR Recruiting and Retention Processes in the Global
Work Environment?

There was only one primary theme that emerged from the responses to this

question. Five participants (35.7%) indicated that they would improve the processes by

implementing standardized processes or systems. The response from Participant D clearly

articulated the suggestions regarding the use of standardized processes:

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 Where legally able you should have standards from an enterprise perspective that
are non-negotiable that are truly mandated. Everyone must be on [the same
version of the formal mechanism]. Everyone who has [employees on] payroll
must use our KRONOS payroll system. Just some standards that should be non-
negotiable unless they are legal reasons to the contrary. And then once that is
determined, if I had control, not only must they be used but they must be
configured consistently.

Interview Question 2: What Informal HR Mechanisms, Defined as Subjective

Personnel Motivators, Does Your Organization Use for Recruiting and Retention?

There were four prevalent themes that emerged from the responses to this

question. The first theme was the no usage of informal mechanisms. Four (28.6%) stated

that their organization did not utilize any type of informal mechanisms. When asked

about the use of informal mechanisms with the organization, one participant stated “We

don’t do that [use informal mechanisms]. Everything is pretty standard from division

[perspective].” The four respondents suggested that their organizations were solely reliant

upon the use of formal mechanisms for the execution of processes and systems. The

justification was that standardized, universal processes and systems were the only way

that oversight could be maintained amongst the global subsidiaries.

The second emergent theme suggested that the informal mechanisms were based

on regionalized efforts that were designed to recruit regionally. Informal HR recruitment

mechanisms included the use of culturally-focused recruiting teams as well as

determining regionalized advertisements or interview processes. Two of 14 participants

(14.3%) identified the use of regionalized incentive or benefits packages. Both

participants indicated that the company had established broad guidelines for incentivizing

employees, but delegated the execution or delivery of those incentives to the regional

leadership. One participant stated,

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 We do have groups that – we have a social/recruiting club located in each region
that helps to determine what the recruiting strategy is going to be. so they help
determine what schools will be visited, what is the best way to advertise and
market jobs, what is the best way to have a presence on campus and then even to
help determine different activities that are planned for students to get awareness
of the company and what we do and what their engineers do.

The participant went on to provide a rationale for delegating some incentive programs to

regional leadership. The primary reason pertained to the regional/cultural variations in the

definitions of rewards or incentives. The participant explained that the terms are not

universal and are limited by the cultural or regional expectations.

The third emergent theme encompassed the variations in use of a regionalized

Human Resource Information Systems (HRIS) as being challenges. The HRIS are

information technology (IT) systems that are used to execute the company’s HR

management functions. Two of the 14 participants (14.3%) identified the variation in

HRIS technological mediums based on the type of data that needed to be collected or the

technological infrastructure that would support the systems. One respondent stated that

“Legal and regulatory requirements, HR Information Systems that support different

information by region (e.g. collected personnel information varies from country to

country).” The challenge is that each of the IT systems was modified based on regulatory

limitations for each geographical region and did not have a standard mechanism for

equitably comparing cross-regional information.

Interview Subquestion 2a: What Challenges Have Your Organization Encountered

When Attempting to Replicate These Informal HR Recruiting and Retention
Mechanisms in a Global Work Environment?

There were two themes which emerged from the responses to this question. The

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first theme addressed cultural limitations associated with replicating informal recruiting

and retention procedures in a global work environment. One participant noted

Having lived in [location removed] and with responsibility for the entire region,
there are truly many, many cultural barriers between [location removed] and
(location removed), between different caste systems in [location removed], as
there are in other countries. So culturally there are reasons why there are barriers.
People either don’t want to give information or comply, don’t feel they have an
obligation to provide a company certain information and to the contrary, some
countries that I have worked for feel like absolutely everything is to be publicly
displayed and have a difficulty with confidentiality, they share salary information,
they share information that we would like to protect. Those are cultural in my
mind.

The participant noted above indicated that one prevalent cultural challenge that he

encountered was the caste system. The above participant identified the challenges of

attempting to implement a Western philosophy of working with a facility, when there are

existing caste systems with one country or competing caste systems between two

countries.

The second theme regarding the challenges associated with replicating informal

HR processes was again related to regulatory and/or legal requirements associated with

various regions. One respondent stated

[To] go beyond the cultural [challenges] from a global perspective…you have the
legal regulatory [limitations]. They [regulatory limitations] are very deeply
immersed in some countries such as [location removed] that our government-
mandated on numerous things. Including what information can be shared and
who that information can be shared with and it’s not necessarily compliant with
our internal processes or desires. So you have to be aware and that’s the biggest
challenge we have is not recognizing sometimes until we fall in the rabbit hole of
what we do not legally comply with.

The respondents suggested that the legal requirements were neither universal nor

stagnant. They indicated that continuously changing policies present unique and pitfalls

to the MNC as it attempts to maintain a global footprint. The challenge that HR

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professionals face is the lack of knowledge to and the lack of visibility over the

sometimes fluid legal requirements of dozens of companies.

Interview Subquestion 2b: What recommendations do you have for improving the
replication of the informal HR recruiting and retention processes in the global work
environment?

There was one prevalent theme that emerged from the data. Five participants

(35.7%) identified the need to standardize the informal HR mechanisms that the

organization used. HR professionals within the Manufacturing MNC recognize that there

is a need for regionalized processes and systems. However, these HR professionals also

identified the need to have standards or guidelines implemented to ensure that employees

have a common knowledge-base and communications platform from which to work.

One participant stated,

Without that basic foundation of standardization, you can’t even begin to deploy
the efficiency for [HR process and systems] for execution because they [HR
professionals] are constantly investigating whether you [the organization] can do
it [process or system] this way there [within a geographical region]. So from a
legal and regulatory, that’s the first step.

For example, one participant noted that regionalized regulatory and/or legal requirements

should always be compared against the company’s existing processes and systems. A

comparative review of regulatory requirements against company policies would identify

compliance gaps or conflicts, in order to determine if the company is compliant.

Although comparative analysis of every legal requirement to existing MNC policies

could be time-consuming, the process ultimately protects the MNC from potential

regulatory or legal requirements

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Interview Question 3: Discuss the degree to which the formal and informal HR
mechanisms for recruiting and retention in your company complement one another.

Four of the 14 participants indicated that they did not use informal mechanisms.

Therefore those participants were not asked the third interview question as they would

not be able to discuss the interaction between formal and informal HR processes and

systems. There were ten remaining participants who did provide responses to Interview

Question 3. There were three prevalent themes that emerged from those 10 participants.

Four participants (40%) stated that the organizational formal and informal HR

mechanisms balanced each other by allowing the flexibility to be responsive to cultural

differences. One participant stated,

Some of the structural elements that we put in place help so [the organization has]
a solid line to a regional director and a dotted line to the [global] process owner
we’ve kept the budget with the [global] process owner so there’s always an
awareness of where you are investing.

The “dotted line” reporting concept, referenced by the research participant allowed HR

professionals the latitude to create tailored informal mechanisms that met the need of the

local talent pool. Specifically for recruiting, HR professionals had the flexibility to create

processes and systems that complied with broad corporate policies, but only required

immediate approval through process owners to create mechanisms to suit cultural

differences.

The second theme suggested that it was not possible for the formal an informal

mechanism to be complementary processes. Three of the ten participants (30%) stated

that complementary interaction between formal and informal HR mechanisms was not

possible because of the unavoidable regional and/or national differences. One participant

stated, “To try to standardize them [formal and informal mechanisms] completely to

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bridge or to align the informal and formal processes more it’s not possible because of the

regional differences.” The challenge was attributed to the process rigidity caused by

regional differences that limited modification of either formal mechanisms or informal

mechanisms.

The third theme related to aligning individual goals with company goals and

values. Three of 10 participants (30%) stated that the balance between formal and

informal mechanisms allowed for greater understanding of and alignment to the company

philosophy and values. Participant I provided the following example of how

compensation was used to retain leaders to support the long-term corporate strategy.

[O]ne filter would be what is our [company] philosophy, for example, in terms of
our [company] compensation philosophy is that as you [the employee] moves up
in the organization, you [the employee] have more pay at risk so you [the
employee] have a higher [short-term incentive compensation], you [the employee]
may get more [total compensation] in the way of [long-term incentive
compensation].

In the example, formal HR mechanisms such as the corporate compensation strategy

were used to complement regionalized informal HR mechanisms.. The HR professionals

supporting regional subsidiaries had enough room to maneuver within the boundaries of

the corporate HR processes and systems and construct informal HR mechanisms. The

ability of the HR professionals to create regionally-focused processed resulted in the

ability to motivate the regional leadership to align to long-term corporate philosophy.

Interview Subquestion 3a: How would you improve or modify the mixture of formal
and informal mechanisms?

Interview Subquestion 3b: What challenges has your organization encountered when

attempting to replicate a standard package of formal and informal HR mechanisms in the

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global work environment?

Participants did not provide relevant responses to Interview Subquestions 3a and

3b. The lack of responses could be attributed to the construction of the subquestions.

Participants that attempted to respond to the subquestions either believed that Interview

Question 3 encompassed the content of the subquestions or they saw no relevance in the

subquestions. Therefore, no themes could be identified for data analysis.

Summary

Chapter 4 provided the data analysis of the collective research participants’

experiences with replicating formal and informal HR mechanisms in a global work

environment. The instrument used for data collection was face-to-face interviews of 14

HR professionals within a single MNC. When analyzed, the findings from the data

presented prevalent themes for seven of the nine interview questions that were presented

to the participants. Analysis of the research data identified prevalent replication

challenge themes for formal mechanisms and informal mechanisms. There were three

primary themes associated with the formal mechanisms. The replication challenge

themes included variations amongst different cultures, constraints associated with

regional regulatory and legal compliance and lack of standardization in applying formal

mechanisms in a global environment. The two themes associated with replication

challenges for informal mechanisms were very similar. Research participants again

identified variations among cultures and regional regulatory and legal compliance as the

most notable challenges. Further discussion related to the themes associated with the

interview questions will be presented in Chapter 5. The collected data will be synthesized

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and comparatively reviewed against the existing literature related to the research

question. Chapter 5 will also present the opportunity to further explore research

limitations and additional recommendations for further study.

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 CHAPTER 5. RESULTS, CONCLUSIONS AND RECOMMENDATIONS

Introduction

This study investigated the challenges that HR leaders of MNCs encounter when

attempting to replicate informal and formal HR mechanisms for recruiting and retention

in a global work environment. This chapter presents a summary and a discussion the

results from the data analysis. The chapter also presents a summary of the results within

the context of the literature review presented in Chapter 2. The limitations of the study

will also be presented in this chapter. The researcher will next present some suggestions

for further research before presenting the conclusion of the chapter.

Summary of Results

A generic qualitative research design was used to investigate the topic of interest.

The focus of the study was on the challenges HR leaders experience when attempting to

replicate formal and informal HR processes in a global work environment (Pudelko,

2005). Past research has shown that the most common challenges to replicating HR

processes stem from issues related to geographic and cultural differences. The differences

introduce additional levels of complexity when replicating HR processes and systems in a

globally diverse work environment (Areiqat et al., 2010; Meyer & Herscovitch, 2001;

Razi, 2006).

The significance of the study is that it contributes to the gap in knowledge

regarding the challenges associated with replicating formal and informal HR mechanisms

in the global work environment. Specifically, the study presents information about how

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the interaction between the formal and informal HR processes affect replication of HR

processes in the global work environment. The target population for the research study

consisted of HR professionals who have knowledge of and responsibilities for the

execution of formal and/or informal HR mechanisms in the global environment.

Purposeful sampling was used to select 25 participants to send invitations to participate in

the study. A total of 14 invitees successfully completed the study. The results from the

study are discussed in the following section. Each research question will be presented

along with a brief summary of the results. The results will then be discussed within the

context of the literature review.

Discussion of the Results

There primary research question which guided this study was: “What challenges

do HR leaders of MNCs encounter when attempting to replicate informal and formal HR

mechanisms for recruiting and retention in a global work environment? A total of nine

interview questions were used to answer the research question. The questions were

presented to each of the research participants during a face-to-face interview. The results

for each question are presented below.

Formal Mechanisms

The first three research questions addressed the formal mechanisms associated

with HR processes. The first interview question asked participants to identify the formal

HR mechanisms being used by MNC. The constant comparison data analysis identified

three prevalent formal HR mechanisms that were being utilized by the HR professionals.

Two of the systems, Taleo and PeopleSoft, were used for performance management

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initiatives. Although there were slight variations in the type of data that could be entered

into the systems based on regional requirements, Taleo and PeopleSoft served as standard

formal mechanisms for both gathering employee information. The third formal

mechanism referenced by participants was a time-keeping system, KRONOS. The system

provided a standardized mechanism to track employee work time.

Challenges to Replicating Formal Mechanisms

The second interview question asked participants to provide information on the

challenges they encountered when they attempted to replicate formal HR mechanisms in

a global work environment. The three replication challenge themes that emerged from the

data were culture, standardization and legal/regulatory requirements. Participants

indicated that corporate strategies cannot be universally applied to local cultures. Based

upon experiences, participants stated that the cultural and social mores do not always may

not easily complement the host-country’s perceived policy standars. Several participants

gave examples of cultural and geographical values that were incongruent with company

policies. For example, work councils were used to govern the regional policies and

procedures impacting workers. The guidelines for work councils varied by country and

in some cases varied by regions within companies. On a global scale, work ethic values

had different meanings to different regions.

The second challenge to replicating formal mechanisms was related to the lack of

standardization. Participants stated that the lack of standardized, compulsory formal

mechanisms inhibited their ability to execute HR processes amongst global subsidiaries.

Without the corporate enforcement of standardized mechanisms for global operations,

subsidiaries are perceived to have a level of latitude to use disconnected processes or

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systems that do not roll up to a standardized set of metrics. The lack of standardization

impeded the ability of the organization to deploy processes and systems in support of the

corporate strategy.

The third challenge encountered by the participants related to the legal or

regulatory requirements. Participants identified significant differences in legal and

government compliance based upon regional or country requirements. Differing legal

and regulatory requirements made it difficult to effectively maintain oversight of the

constantly changing requirements. Depending on the region, legal requirements could

limit the type of data that can be collected. In addition regional legal or regulatory

requirements could hamper the execution of the operations.

Participants’ Recommended Improvements to Formal Mechanisms

The third research question asked participants to provide recommendations for

improving the existing processes or systems. There was no single process or system

improvement recommended by all of the participants. However, there was one prevalent

theme that arose during the data analysis. Several participants stated a need to standardize

the existing formal mechanisms used within the corporation. Those participants felt that

all subsidiaries should be required comply to comply with corporate mandates. The

recommended improvement would support greater compliance, knowledge sharing and

alignment to the corporate strategy.

Informal Mechanisms

The fourth interview question asked participants to identify the informal HR

mechanisms being used by MNC. The data analysis identified four themes amongst the

participants’ responses. These themes included the intentional non-usage of informal

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mechanisms, regional recruiting mechanisms, HRIS and incentive packages. The first

theme, intentional non-usage of informal mechanisms, was an unanticipated theme that

emerged from the data. Based on the literature, the assumption was that MNCs must

have a mixture of formal and informal HR mechanisms to sustain operations in a global

work environment (Guha, 2010; Islam & Ali, 2013). The systems allowed little to no

latitude for cultural, regional or operational differences. Rigidity in the systems limited

the ability of HR professionals to create informal mechanisms that motivated employees

within the local cultures.

The remaining three themes were regional recruiting mechanisms, HRIS and

incentive packages. As indicated by the participants’ responses, the three themes shared a

common objective for supporting the corporate strategy. Each of the informal

mechanisms supporting the three themes was considered essential to allowing the

successful integration of regionalized subsidiaries into the company’s global strategy.

All of the participants, in some manner, indicated that challenges were

encountered with the cultural differences of employees within global subsidiaries. There

was limited flexibility in the corporate HR mechanisms that allowed the recruiting,

retention and performance management of the employees. As presented in the research

study, the objective of HR professionals working at MNCs worked to find innovative

ways to motivate global subsidiaries to comply with the corporate strategy, which was

extremely challenging.

Participants identified the challenges with collecting employee data through

existing systems. Challenges were experienced with the lack of standardized Human

Resource Information Systems (HRIS) throughout the entire company. In locations

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where the regional infrastructure supported, the common HRIS was not consistently used.

Participants stated that the collection of employee data for all subsidiaries of the company

could not always be aggregated.

Lastly, participants experienced challenges with creating standardized corporate

guidance for employee incentive packages. Participants had to identify creative solutions

to tailor incentive packages based upon the demands of the local talent pool. The broad

corporate policy constraints did not always lend support to the creation incentive

packages would allow some level of standardization and uniformity, regardless of the

region.

Challenges to Replicating Informal Mechanisms

Several participants cited cultural variations as the primary major obstacle for

replicating HR practices in a global work environment for an MNC. Cultural identifiers

and the traditions that create them tend to be rigid and unyielding. As noted by research

participants who had work experience external to the US, their experiences indicated it is

virtually impossible to implement any process or system that could change a culture’s

logic or behavior, sometimes taking decades or centuries to observe any evolution of

thought. For example, the caste system in some countries does not allow or support the

interaction of individuals between classes, which runs counter to the formal HR

mechanisms associated with career progression opportunities for retention. Now,

introduce a western philosophy of hiring qualified workers into a factory, without taking

into consideration the social and historical limitations of the existing culture. As

observed through the research participants’ experiences, it is critical that HR

professionals supporting MNCs understand the history and culture of the regions in

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which they execute operations, in order to better understand how to create flexibility in

corporate HR formal and informal processes that allow latitude for the tailored regional

HR practices.

The prevailing theme that pertained to challenges in replicating informal

mechanisms was related to legal/regulatory requirements in different geographical

regions. Some participants commented that the operational definitions of legal/regulatory

requirements vary from country-to-country and region-to-region, and could change at any

moment without notification. Constantly changing legal/regulatory policies present an

obstacle to replicating formal and informal HR mechanisms by HR professionals within

MNCs, which can only be equated to hitting a moving target. As noted by Fasterling

(2009), “In the last two decades, legal practice has changed most dramatically where lawyers

represent large and internationally active corporate clients” (p. 21). Combined with limited

knowledge of the culture and lack of visibility over potentially thousands of legal

requirements, there is an increased potential for the in advertent legal/regulatory violation

(Fasterling, 2009). Violations of this nature have to potential not only to limit

profitability and operational success, but there is the even greater potential to do

irreparable damage to the corporate image which could result in long-term organizational

damage.

Participants’ Recommended Improvements to Informal Mechanisms

There was one prevalent theme that emerged from the participants’

recommendation for improving the informal HR processes. A number of participants

stressed that there was a need for standardizing the informal HR mechanisms. The

participants emphasized the importance of establishing an overarching set of standards

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and guidelines within which all subsidiaries must operate. Some participants believed

that the potential for corporate risk could be minimized if these policies could be

standardized and a corporate framework be established. The potential benefits of an

established corporate framework would ensure knowledge-sharing, organizational

oversight and minimized corporate risk to legal/regulatory violations.

Interaction Between Formal and Informal Mechanisms

As part of the research participants were asked to discuss the interaction that

occurred between the form and informal HR mechanisms. Several participants indicated

that they did not utilize informal HR mechanisms for their operational functions.

Therefore, these participants were unable to provide relevant experiences related to the

interaction that occurs between formal and informal HR mechanisms. Of the remaining

ten participants, there were three themes that emerged related to the interaction between

the two types of mechanisms, but no additional relevant data was collected in relation to

challenges or improvements for interaction. The three themes for interaction are as

follows: not possible to balance formal and informal mechanisms, allow for diversity, and

understanding company philosophy and values.

A third of the participants stated that it is impossible to establish a balance

between formal and informal mechanisms because of the regional or national differences

involved. Participants who supported this theme stated that informal and formal HR

mechanisms are so heavily influenced by the regionalized culture and legal/regulatory

policies that the two categories of HR processed cannot be proactively influenced. The

HR professionals that supported the MNC’s non-host country subsidiaries stated they

struggled to be consistently proactive in executing HR mechanisms for the corporate

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strategy, because of the rigidity and sometimes unpredictability associated with regional

or national differences.

A second recommendation that emerged from the data was the recommendation

that HR leaders be given the ability to be flexible in managing regional and cultural

differences in a manner that would allow better alignment of localized HR processes and

procedures to the corporate strategy. The participants stated that formal mechanisms

provided a standardized foundation for supporting a centralized, global strategy while the

informal mechanisms supported decentralized execution of operations. The consistent

sentiment among participants was that they had a desire to have the ability to be

responsive to the needs of their regionalized subsidiaries without disengaging employees

and while achieving company objectives. As noted by one research participant, the

flexibility of balancing formal and informal mechanisms yielded greater retention of

regionalized personnel for the HR professionals and ultimately the company.

The last theme, understanding of company philosophy, complements the second

theme. Participants for this theme consistently referenced the need to support corporate

strategy, even when presented with process and system challenges. The HR professionals

who experienced this theme stated the ability to again have some level of flexibility in

managing the regionalized employees in a manner that helped them to understand and

conform to the larger corporate strategy. The HR professionals noted that there is an

expected level of separation among geographically separated employees that can

encourage a sometimes siloed approach to operations. In some cases unintentional, a

siloed approach to business can benefit the regional subsidiary and diminish the returns

for the collective company. The ability to balance the interaction between formal and

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informal mechanisms allowed HR professionals to realign regional subsidiaries, as

required to focus on actions that would benefit the collective MNC.

Discussion of the Conclusions in Relation to the Literature

and the Field

Introduction

The theoretical perspective that provided the conceptual framework for the

conducted qualitative research study was Herzberg’s two-factor theory, also known as the

motivation-hygiene theory. For the purpose of the study formal mechanisms were

likened to Herzberg’s two-factor theory, which consisted of hygiene factors and

motivators. The hygiene factors were most directly related to formal HR mechanisms, as

both were used to attract employees and maintain worker satisfaction, not necessarily

worker motivation. Both hygiene factors and formal mechanisms were categorized as

universally applied standards created to maintain organization and structure in the work

environment. Conversely, motivator factors were likened to informal mechanisms, as

each is founded on the individual motivations within the work environment. The focus of

both motivator factors and informal mechanisms was to impact the job satisfaction that

motivated individual employee performance to surpass organization expectations. Similar

to Herzberg’s variables for motivator factors, the conducted study supported the assertion

that successful MNCs must create comprehensive informal mechanisms to motivate

employees in a global work environment through the following: opportunities for career

advancement / succession planning; awards and recognitions; feelings of value for work

contributions (Guha, 2010; Islam & Ali, 2013). Based upon individual experiences,

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research participants provided data related to the types of HR mechanisms used, the

replication challenges experienced with the identified HR mechanisms, and provided

their recommendations on improvement of the HR mechanisms.

Types of HR Mechanisms

The findings from the conducted study supported existing research defining the

variables of formal mechanisms, as well as the need for MNCs to establish universal

systems to connect global subsidiaries (Razi, 2006; Ryan, et. al, 2003; Wiechmann, et. al,

2003; Winter & Szulanski, 2002). The study presented three universal systems that

clearly documented company policies and procedures for the execution of recruiting,

performance management and time keeping. There were several formal HR mechanisms

prevalent within the Manufacturing MNC, but few that were identified as compulsory for

the entire organization regardless of geographical location or cultural variations. The

system allowed for a standardized mechanism to track employee work time, which

controls and monitors labor costs. Although these formal mechanisms should provide

standardized processes to be implemented regardless of culture and geographical

location, 100% of the participants stated some level of challenge experienced when

attempting to replicate the mechanisms in a global work environment.

There was not a single theme that emerged from the data regarding the type of

informal mechanisms that were being used by MNC. The data analysis did reveal four

themes amongst the participants’ responses. These themes included the following:

intentional non-usage of informal mechanisms, regional recruiting mechanisms, HRIS

and incentive packages.

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Challenges to Replicating HR Mechanisms

There was no single challenge to replication identified by all of the participants

for the formal HR mechanisms; there were three prevalent themes that arose during the

data analysis. The three replication challenge themes that emerged from the data were

culture, standardization and legal/regulatory requirements. As noted in Chapter 2, there

is a considerable amount of literature that exists on the use of formal HR mechanisms or

informal mechanisms; however there is limited research on the interaction that occurs

between the two distinctive types of mechanisms. Researchers explored the use of formal

mechanisms to create universal HR processes and systems that provided standards for all

employees of the company, regardless of geographical location or cultural identification.

Formal mechanisms included HR resources such as corporate guidelines for the ethical

treatment of employees and standardized HR data collection systems. The informal

mechanisms were those HR processes and systems that allowed HR professionals to

modify processes and systems to meet regional markets. The greatest focus identified

within the literature for informal mechanisms was in the recruiting and retention areas.

The HR professionals created tailored recruiting mechanisms, such as regionally located

recruitment teams, to gain a greater understanding of the local talent pool. Increased

insight of the local talent pool allowed HR professionals to determine the most effective

recruiting and retention tools, such as company branding and compensation packages

(Areiqat et al., 2010; Begley & Boyd, Meyer & Hercovitch, 2001; Razi, 2006).

Existing research identified that HR professionals of MNCs encountered

challenges when HR process and system replication was attempted in the various

geographical regions. The most current research relevant to the issue interest, from as

91
recent as 2012, was incorporated into the conducted literature review. Regardless of the

time-period for the presented research studies, the most prevalent recurring challenges to

replication of HR mechanisms within a global environment were the differences

associated with geographical dispersion of subsidiaries and culture. Consistently noted in

the literature were the undeniable influences that geography and culture had on a local

population, which challenged HR professionals to identify or create formal mechanisms

that were universally applicable. The creation of informal mechanisms could be equally

challenging to HR professionals, because there was not always a consistent endeavor or

application of resources to fully comprehend the unique needs of regionalized talent

pools (Fink, 2009; Finkelstein, 2002; Guha, 2010; McElroy, 2001; Razi, 2006). The

conducted study supported the challenge created by cultural differences, when HR

professionals attempted to replicate HR processes and systems in a global work

environment. The study also revealed replication challenges associated with regulatory

and compliance initiatives based on regional differences (Herzberg, 1966; Meyer &

Herscovitch, 2001; Razi, 2006).

The participants were asked to provide information regarding the challenges they

encountered when they attempted to replicate informal HR mechanisms in a global work

environment. The two prevalent themes that emerged from the data analysis were

cultural variations and legal/regulatory requirements. Based on existing literature, MNCs

tended to encounter replication challenges with informal mechanisms primarily due to

differences in cultures, just as experienced with the formal mechanisms (Badrtalei &

Bates, 2007; Razi, 2006).

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Recommendations for Improving HR Mechanisms

The Two-Factor Theory initially explored those work stimuli that created a

notably positive or negative experience within the work environment. The experiences

were categorized into two groups, hygiene factors and motivator factors, as noted by

Guha (2010), motivator factors shared certain attributes “because all these involved self-

direction and productivity. The factors or themes that led to job dissatisfaction were

termed ‘hygiene” (p. 122). For the purpose of the conducted study, hygiene factors were

likened to “hygiene” factors because of the factors are not influenced by individual

preferences but should be more universally applicable to employees, regardless of

geographical location or cultural identification (Guha, 2010; Islam & Ali, 2013).

Participants gave recommendations for improving to the existing processes or systems.

However, there was one prevalent theme that arose during the data analysis. The one

replication process improvement theme that emerged from the data analysis was

standardization.

Existing research studies in the field supports the need for standardization in HR

processes and systems to conduct globalized operations. The use of standardized HR

processes and systems helped to communicate to all regions of the company corporate

expectations for compliance, but also educated individuals on their employee rights.

Some examples of formal mechanisms that were identified as recommended for

standardization were corporate policies, statements of ethics or values, and performance-

related communications between employees and supervisors (Guha, 2010; Harvey, 1993;

Islam & Ali, 2013; Meyer & Herscovitch, 2001; Razi, 2006; Wiechmann et al., 2003).

The majority of participants in the study supported the need to consistently apply

93
standard policies and procedures through the execution of standardized processes and

systems (Razi, 2006).

Research participants provided recommended for making improvements to the

existing informal HR mechanisms. There was one prevalent theme which emerged from

the data: a need for standardizing the informal HR mechanisms. Participants identified

the importance of establishing an overarching set of standards and guidelines within

which all subsidiaries must operate. Participants in the study stated that there is a need to

have broad guidelines that ensure consistency across the organization. The broad

guidelines for informal mechanisms should allow enough latitude to address cultural

differences without allowing the potential for potential regulatory or compliance

infractions to occur (Razi, 2006).

The last series of interview questions asked participants to describe the interaction

that occurred between formal and informal mechanisms within the Manufacturing MNC.

For a plethora of reasons, the majority of the research participants did not provide

relevant responses to Interview Question 3a and Interview Question 3b.

The participant responses to Interview Question 3 did not yield valid responses

that contributed to the executed research study. Data that was gathered for this particular

interview question and subquestions failed to contribute to further understanding of the

interaction and balance that occurred between formal and informal mechanisms. Only 10

of the 14 participants provided any response to the interview question. Although themes

were identified, based upon the word-count of participant responses, the themes did not

address the fundamental issue of interest for the interview question. The three themes for

94
interaction are as follows: not possible to balance formal and informal mechanisms, allow

for diversity, and understanding company philosophy and values.

Limitations

There were a number of variables that posed limitations to this research. First, the

use of purposeful sampling to select research participants introduced a limiting factor into

the study. Of the approximately 200 HR professionals that met the criteria for the

research study, only 14 individuals provided responses to the interview questions. As a

result, less than 7% of the total population was represented in the research study.

Although purposeful sampling allowed the exploration of the issue of interest, a larger

sample size may have yielded more representative data from the population. In addition,

a random selection of participants may have also yielded more representative data

regarding the challenges of replicating formal and informal HR processes in the MNC.

Again, the use of a purposeful sampling method may not have successfully resulted in a

sample of individuals whose experiences accurately represented the replication

challenges of the entire population of HR professionals within company.

The second limitation of the study was the participants’ affiliation with a single

company. Although the participants had varying lengths of work experience both internal

and/or external to the company, all of the participants had been with the company for the

last five years. As HR processes and systems continue to evolve in response to

technological advances and cultural shifts, the research participants may not have had

knowledge of the most current HR processes and systems. Potentially having limited

knowledge of the advancements in external HR processes and systems, the research

95
participants may have been relegated to only those processes and systems used within the

Manufacturing MNC..

A limitation was the limited ability to gather data related to international laws that

impacted the global subsidiaries of MNCs. Although, the HR leaders of MNCs were

expected to comply with local and international laws when creating HR policies,

nevertheless there were legal and/or regulatory challenges identified for replicating

formal and informal HR mechanisms in a global work environment. Additional

resources would have been required to evaluate the mandatory, bright-line regulations

associated with country-specific laws. At the time of the research study, additional

resources were not available and further study of the legal and/or regulatory implications

were not explored.

The last limitation that emerged during the study related to the role of the

researcher as a novice interviewer. During the research participant interviews the

researcher attempted to execute the interviews in a standardized manner by reviewing the

purpose of the study, operational definitions of relevant terms, and reviewing the

questions with each participant. As the researcher conducted the interviews, in some

cases exploratory questions were required to redirect the participant back to the original

interview question. The use of exploratory questions varied among the research

participants in order to redirect him or her back to the original questions. The use of non-

standardized questions may have introduced an unanticipated level of bias into the

research data.

96
 Recommendations for Further Study

Since globalization of manufacturing operations continues to be a staple for

organizational success and longevity, the researcher has several recommendations for

further research that will contribute to understanding the challenges that companies

experience when attempting to replicate HR processes in the global work environment.

The recommendations are as follows:

1. Replicate the existing study, but identify additional resources that would

support interviewing an increased sample size of the population. A larger

sample of research participants may yield more representative experiences of

the targeted population.

2. In addition to the increased sample selection, random selection of the

participants as opposed to purposeful selection may also provide more

representative experiences of the population. To accommodate random

selection of an increased sample size, the two-week window for completing

interviews may need to be increased.

3. This research study was conducted amongst HR professionals within a single

company, but research participants spanned various organizational functional

areas that had diverse strategic initiatives for replicating formal and informal

mechanisms that were unique to his/her functional area. A future study could

provide a standardized list of known formal and informal mechanisms used by

the company. This would allow the participants to select from the same list,

rather than use memory recall to identify the formal and informal

mechanisms. In addition to adding a standardized list to the interview

97
 questions, only participants within one functional area should be researched.

Members of one functional area should have more related experiences to the

same subset of formal and informal mechanisms. .

4. Chapter 4 data analysis identified legal and/or regulatory challenges for both

implementing formal and informal mechanisms. Recommendations are for

further exploration of the legal and/or regulatory challenges to the replication

of HR formal and informal mechanisms. Additional research would serve

beneficial in understanding the replication challenges experienced by the HR

professionals. Due to the limited resources for the conducted study, the

experiences shared by the HR professionals, in relation to their legal and

regulatory challenges, were not explored in greater detail.

5. The execution of quantitative study focused on the replication challenges

encountered by HR professionals should be conducted. A quantitative

research design would allow for the collection of a broader range of

information related to the issue of interest. In addition, a larger sample size of

the population would be required for the study.

Significance of the Study

The conducted research study, using Herzberg’s Two-Factor Theory as the

theoretical perspective, supported existing research related to the challenges encountered

by HR professionals who support MNCs. Data was collected from HR professionals who

have experienced challenges when attempting to replicate HR processes and systems in a

global environment. Analysis of the research participants’ experiences with the issue of

98
interest confirmed the challenges associated with formal HR mechanisms as culture and

standardization (Guha, 2010; Harvey, 1993; Islam & Ali, 2013; Meyer & Herscovitch,

2001; Razi, 2006; Wiechmann et al., 2003). The study additionally supported the

replication challenge for informal HR mechanisms that were identified by existing

literature as culture (Guha, 2010; Islam & Ali, 2013; Schuler & Rogocsky, 1998;

Vaitkuvienė, Balvočiūtė, & Stoškus, 2010). The conducted study also highlighted need

for increased focus on increased exploration of the legal and regulatory compliance

challenges encountered by HR professionals, who support MNCs. Morris et al. (2009)

stated that there is a lack of research which addresses the challenges faced by companies

attempting to replicate HR practices in a global work environment. The intent of the

following research study was to contribute to the existing body of knowledge that

identified some of the replication challenges experienced by HR leaders of MNCs. The

research was based on the experiences of the HR leaders within the same manufacturing

company.

Conclusion

This qualitative study sought to contribute to existing research and literature

addressing HR leaders’ perception of the challenges associated with replicating HR

processes in the global environment. The research participants provided additional

understanding of both formal and informal HR mechanisms, as well as the interaction

that occurs between the two categories. Through the use of inductive and deductive

analysis, themes in participant experiences were identified and explored for each of the

nine interview questions that supported the primary research question. It was only

99
through the research participants’ experiences with the issue of interest was the study

able to provide relevant data to the challenges faced by HR professionals supporting

MNCs, as well as potential opportunities for improving both categories of mechanisms.

The study proved to support the known cultural challenges of replicating both

formal and informal mechanisms in a global environment, but also brought to light the

continued need to understand the implementation challenges resulting from diverse

legal/regulator concerns. As stated in Chapter 1, the conducted research study should aid

HR leadership within an MNC to better understand the challenges they face when

attempting to replicate HR processes and systems globally.

100
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