Professional Documents
Culture Documents
MNC
MNC
Helen De Cieri
Monash University
Department of Management
Faculty of Business and Economics
PO Box 197 Caulfield East
Victoria Australia 3145
Telephone: + 61 3 9903 2013
Facsimile: + 61 3 9903 2718
E-mail: helen.decieri@buseco.monash.edu.au
E. Anne Bardoel
Monash University
Department of Management
Faculty of Business and Economics
PO Box 197 Caulfield East
Victoria Australia 3145
Telephone: + 61 3 9903 2675
Facsimile: + 61 3 9903 2718
E-mail: anne.bardoel@buseco.monash.edu.au
This research was funded by the Society for Human Resource Management Research
Foundation and by Monash University. We thank Clarice Santos and Trisha Pettit for
Balancing demands for global co-ordination with the need for responsiveness to
as important strategic matters, it is well recognized that tensions exist between the parties
responsibilities and strategies for work-life management in MNCs. Our research shows
that there are numerous emerging challenges for researchers and practitioners related to
2
INTRODUCTION
competing pressures for global integration and local responsiveness. Connected with
these developments and challenges has been increasing awareness that the management
The IHRM system can be a key driver in a firm’s ability to attract, retain and
manage talent in global, competitive labour markets. In this paper, we examine the roles
and responsibilities for IHRM in MNCs, with particular focus on work-life management.
initiated and maintained in workplaces to address flexibility, quality of work and life, and
work-family conflict. We argue that global talent management relies on effective IHRM
aspect of IHRM in practice and a major factor in talent management (Poelmans, 2005;
Spinks, 2005).
care, family leave, and flexible scheduling (Arthur & Cook, 2003). We define work-life
initiatives as those strategies, policies, programs and practices initiated and maintained in
workplaces to address flexibility, quality of work and life, and work-family conflict. The
3
work-life concept was first identified and developed in the USA and in developed
managerial and professional levels to workers at all levels and across occupational
groups. However, most work-life studies have been conducted in western developed
countries (Spector et al., 2004) and several researchers have debated whether the concept
transfers, or translates, to less Asian countries (Bowes, 2005; Lewis, Gambles &
Rapoport, 2007).
ongoing debate amongst scholars in the broader research field of HRM about the extent
to which HRM practices in MNCs can or should be standardized across global operations
or localized to meet the context of the local unit. As Brewster, Wood and Brookes
(2007) explain, there are three schools of theoretical thought on these issues. First,
globalization theories (which includes universalist views) suggest that MNCs will seek to
either to obtain global efficiencies (see, for example, Kostova & Roth, 2002) or because
of ethnocentricity (see Heenan & Perlmutter, 1979). Second, and in contrast, theories of
local isomorphism (or contextualism) argue that MNCs will adapt, and even create, HRM
practices that have the ‘best fit’ with the local political, institutional, social and economic
The third school of thought is based in duality theory and suggests that MNCs
“face conflicting pressures both towards and away from the local practices, which may be
conditions and/or the strategic choices made by managers” (Brewster et al., 2007: 1).
4
Balancing the often competing global and local demands presents a substantial challenge
for the HRM function with regard to issues such as work-life management. To think
globally does not preclude attention to local environments and it is important that HR
development at the national, or local, level as well as within a wider global context. In
many developed and developing societies, there has been burgeoning interest in work-life
recognition that work-life issues present significant challenges for many people (Hein,
Cieri, in press; see Figure 1). However, this framework requires testing and generally
research appears to lag behind practice with respect to global work-life management. We
are not aware of any empirical study that examines management perspectives of work-life
management in a global context. While leading scholars in IHRM have raised awareness
of the constraints and challenges related to managing a global workforce (e.g., Scullion,
Collings & Gunnigle, 2007), there has been little discussion amongst researchers
regarding the roles and responsibilities of managers in MNCs (Brewster, Sparrow &
Harris, 2005), and even less attention given to work-life management in the global
context (Lewis et al., 2007). By bringing together these important yet neglected areas,
performance.
5
[Insert Figure 1 here]
family conflict and work-life issues (Byron, 2005; Greenhaus & Powell, 2006) which has
recognition that work-life issues are highly salient for many people (Spector et al., 2004).
In North America, Australia, and Europe there is increasing interest by organizations and
employees to seek ways to better manage the tensions between work and other life
demands (Rapoport, Lewis, Bailyn & Gambles, 2005). However, less is understood about
how these tensions are experienced in Asia and developing nations, let alone how MNCs
difficult to implement.
Extending duality theory (Brewster et al., 2007) by not only recognizing different
pressures but also addressing the dynamics between those pressures, a theoretical
perspective that has strong potential for applicability to the work-life field is the tension-
approach begins with the premise that organizations are conflicted sites of human
activity’. Dallimore and Mickel (2006) have suggested that there are inherent tensions in
the pursuit of quality of life, and much of the research in this area has explored tensions
6
Organizational tensions have been broadly defined by Stohl and Cheney (2001:
353-54) as a ‘clash of ideas or principles or actions and the discomfort that may arise as a
result’; such tensions are viewed as ‘inescapable, normal and, in some cases, to be
tensions may be used in to develop insights into organizational phenomena and change.
Tensions in organizational life have been explored in several studies, identifying tensions
at both micro- and macro-levels (Dallimore & Mickel, 2006; Stohl & Cheney, 2001;
Tracy, 2004). We suggest that tensions will arise in an organization’s pursuit of work-
life management initiatives, such as those that strive to meet both economic and social
related to work-life matters in MNCs. We favor Grzywacz and Carlson’s (2007) approach
related expectations that are negotiated and shared between an individual’s role-related
responsibilities at work and with their family. However we argue that this understanding
responsibilities but also include responsibilities to oneself, one’s community, and the
many priorities that may or may not have to do with family (Bardoel, 2006). The shift in
reflects a broadening of quality of life issues and career issues for both men and women.
Its also reflects a call for HR practitioners to play a significant role in shifting thinking
7
beyond merely providing programs to viewing work-life issues more systemically, so
they are included in work process redesign and cultural change processes.
identified in the management of work-life in a global context. While we do not claim that
this represents a conclusive list of all tensions possible for an MNC, this list presents
examples of the most prevalent and important tensions likely to arise in global work-life
inherent tensions between priorities and concerns upheld by various stakeholders and
drivers in MNCs. Managers in MNCs need to balance the often conflicting needs of
political pressures in each local market (differentiation) (Doz & Prahalad, 1991). The
growth. We postulate that these tensions may be expressed as different priorities and
organizational units (e.g., headquarters vs. subsidiary); in different functions (e.g., HR vs.
8
In addition, we acknowledge that there is tension between academic and practical
priorities and concerns with respect to managing global work-life. Concern about tension
between academic research and management practice is not new; as research technology
has become more sophisticated, it has been seen by practitioners as less useful for solving
their organizational problems. Rynes, Bartunek and Daft (2001) note evidence of the
typically do not use academic research or academic research findings when developing
approaches to HRM and the establishment of better links between research and practice
(Rousseau, 2006; Rynes, Giluk, & Brown, 2007), particularly with regard to
need to understand and develop ways and means to resolve these tensions. According to
Bird (2006), the demand for work-life solutions by employees and managers is expanding
and it will be one of the issues that executives and HR professionals will be expected to
manage over the next decade. Drawing from the literature on managing paradox (Poole
& Van De Ven, 1989), we note four potential strategies that may be applicable to tensions
9
• Synthesis – develop new terms to resolve paradox.
It is likely that combinations of the above could be found in practice. While research has
begun to explore tensions in work-life management (Dallimore & Mickel, 2006), our
the HR function in MNCs; namely, the management of a global work-life strategy that
will support a global workforce. Despite the potential benefits associated with global
work-life strategies, the specific challenges associated with the development of effective
work-life strategies that balance global and local demands need to be identified and
objectives such as diversity and performance management, recognizing the need for
MNCs is to achieve competitive advantage, but not at the expense of human health, well-
being and personal lives. In addition, there are specific and unique challenges for
managers seeking to attract, retain and manage the talent required to implement a global
CONTEXT
worldwide and is an important function in many MNCs (see, for example, Brewster et al.,
2005). There is now considerable evidence that characteristics of the HRM function,
including the manner in which HRM roles and responsibilities are ascribed, vary in
10
significant ways across countries and firms (Larsen & Brewster, 2003). Several
researchers (e.g., Brewster et al., 2005; De Cieri & Dowling, 2006) have discussed the
need for MNCs to develop an IHRM strategy to establish shared global guidelines, while
allowing for local differences. However, balancing the often competing global and local
demands presents a substantial challenge for IHRM. To think globally does not preclude
attention to local environments and it is important that HR policy makers give attention to
identifying and understanding strategic policy development at the national, or local, level
as well as within a wider global context. For example, the business case for adopting
work-life initiatives is both powerful and convincing (Kossek & Lambert, 2005; Masi &
Jacobsen, 2003). In many developed and developing societies, there has been burgeoning
by increasing recognition that work-life issues present significant challenges for many
people (Lewis et al., 2007). Many HR policies and practices, including work-life
management, may work well in developed, ‘Western’, countries but less well in
developing and transitional economies, such as in Asian cultural contexts (Lewis et al.,
2007).
Further, it can be argued that it is the overall understanding and support for HRM
within the organization, rather than HRM policy design, that has the potential to add real
value to an organization (Pfeffer, 2005). Bowen and Ostroff (2004) emphasize the
importance of a shared view of HRM, and argue that the impact of the HRM system on
performance outcomes will not be determined by the content of HRM practices and
policies but rather by the processes that signal to employees desired and appropriate HR
responses to form a collective sense of what is expected. This highlights the value of a
11
shared understanding of responsibilities related to HRM amongst managers in a
transnational firm.
this shared understanding. Vertical integration has two directions, namely upward and
HRM with the strategic needs of an organization (Budhwar, 2000; Farndale, 2005). The
(Budhwar, 2000; Currie & Proctor, 2001). In global firms, there are layers of vertical
integration within the HR function which involve how the global headquarters’ HR
the traditional operational line manager (see Novicevic & Harvey, 2001).
Several writers who have contributed to the debate on the future of the HRM field
have argued that it is not enough for HR to simply partner top management; it has to
actually drive business success (Cascio, 2005; Welbourne, 2005). It has been argued that,
and line managers as they have direct and frequent contact with employees and a capacity
12
to understand, motivate, control, and respond quickly to employees (see Budhwar &
Khatri, 2001; Currie & Proctor, 2001). However, for the benefits of devolvement to be
realized, there first needs to be effective management within the HR function, providing
training, resources, incentive and a communication channel between HQ and local units,
to ensure HR practices are carried out in accordance with HRM policy (Budhwar, 2000;
magnified across international boundaries. There are many unresolved questions about
how HR work is conducted: responsibilities at the different levels will vary considerably;
further, there are likely to be differences between headquarters and subsidiaries in MNCs,
within the HR function. It is inevitable that tensions will arise as all managers across
MNCs strive to negotiate their roles and responsibilities. In this paper, we focus on the
area of work-life management as a lens through which to explore the tensions related to
view it as one aspect of a global diversity management agenda, under the rubric of the
IHRM strategy (Childs, 2005). We note that practitioners such as Childs (2005) seem to
diversity management (Nishii & Özbilgin, 2007). The tensions identified earlier in
Figure 2 are implicit throughout this framework of global work-life management. The
matrix presented in Figure 3 depicts the influences on the IHRM system, and specifically
13
the components of global diversity, including work-life management, and the anticipated
Korabik, Lero and Ayman (2003) distinguish two different approaches to work-
family research that has been carried out globally: micro- and macro-level approaches.
First, the micro-level approach emanating mostly from North America has focused
mainly on workplaces and the business case for developing more effective management
derived mainly from Europe and has identified the critical importance of public policies
in relation to expectations about men and women’s roles and employment supportive
policies such as paid parental leave and benefits. We suggest that, for researchers and
level approaches to work-family issues, and so we seek to integrate these two approaches.
Michaels (1995) noted that, although many US corporations have been leaders in
countries’ values, policies and programs address work-life issues; in particular the role of
additional change agents such as unions, agencies and governments. Hence, we note in
our framework that there are numerous global and local factors influences that are
earlier, managers in MNCs need to balance the often conflicting global influences (such
as industry characteristics and global market factors) with local influences (such as
14
(institutional frameworks, local culture, and the stage of local economic development)
(Doz & Prahalad, 1991). In addition to this global/local dilemma, there are numerous
MNC characteristics that should be recognized as influences on the IHRM system and
therefore on global work-life management; these include the age and international
strategy, and available resources (De Cieri & Dowling, 2006). We also suggest that the
roles and responsibilities adopted by all managers across the MNC will be important
influences on the way in which the IHRM system, including work-life initiatives, is
developed and implemented (Novicevic & Harvey, 2001). Welbourne (2005) has argued
that the support of top management for HRM initiatives is critical for successful talent
management; further, HRM should be recognized as a priority for all managers. IHRM
initiatives, including work-life initiatives, will be most effective when led by senior
these ideas is that HR professionals may have to proactively assist the organization in
understanding and adjusting its mindset, so that human resource practices become a
source of competitive advantage. Part of the strategy to achieve this is to attract and
attracting and retaining the people required to implement a global strategy is of critical
importance to the organization’s long-term survival (Stroh & Caligiuri, 1998). Scholars
and practitioners have used the phrase ‘talent management’ to describe a long-term and
15
HR practices, and retaining valued employees in the organization.
acknowledgement that, although there are a number of common issues faced by working
women and men and their families, the global work-life strategy needs to balance shared
concerns with a course of action that is appropriate to each local environment. Global
(2001) have identified three surprisingly consistent themes in what employees from
around the world identify as being important barriers to reconciling their work and
personal lives. The three issues identified included a lack of flexible work policies and
practices, the availability and affordability of dependent care, and the negative impact of
work overload and long working hours; hence, we place these at the core of the IHRM
Russell (2000) have identified a range of benefits that may accrue to employees and
organizations that implement work-life practices and policies. First, work-life practices
can provide an incentive to increase motivation, job satisfaction and commitment and
thus achieve higher levels of engagement and productivity from the current labour pool.
Second, these practices can be part of strategy that supports attracting, managing and
retaining the talent. For example, global diversity management and work-life initiatives
can provide a means for knowledge sharing across an MNC, leading to reduction of
tensions and better understanding of the priorities and concerns of various parties. Third,
an effective work-life strategy can enable the best quality people to advance in the
organization. For example, it has been recognized that barriers to women include having
16
to take time out for dependent care responsibilities and a lack of flexibility in career
structures. Finally, companies can obtain community recognition and reputation by being
seen as a ‘good’ corporate citizen or caring organization. As Childs (2005: 113) has
stated, ‘Leaders must help all people with their business understand that workforce
diversity [including work-life management] can be the bridge between the workplace and
(Bedeian, Burke & Moffett, 1988); improved organizational performance (Perry-Smith &
Blum, 2000); increased organizational productivity (Konrad & Mangel, 2000); and,
improved staff morale (McCampbell, 1996). Furthermore, both HRM and management
consultants suggest that WLB strategies can enhance the employer brand that will lead to
other associated benefits including a broader and better quality labour pool available,
improved employee retention and reduced turnover (Barrow & Moseley, 2006).
Overall, the complexities and ongoing developments related to the global work-
life management present many important challenges and opportunities for managers in
MNCs, and for the researchers who seek to study these firms. Several of these
challenges, demands and opportunities are directly related to vertical integration of the
HRM function in MNCs. However, to date, little research has endeavored to integrate the
micro- and macro-level approaches; nor has there been much attention given by
17
1. Who has the responsibility, authority and accountability for work-life management,
2. Who is responsible for carrying the work-life policies through into practice?
Our research project aimed to identify and explore the antecedents and
RESEARCH METHOD
nature, and that this research project focuses exclusively on organizations, the research
Von Glinow, Drost and Teagarden (2002) note that much of IHRM has been
parochially focused (mainly on the U.S. and occasionally on Europe and at a stretch
Japan), and has used quantitative research methods. According to Von Glinow et al.
(2002) there is a place for the precision of valid and reliable scales but quantitative
different cultural contexts. They encouraged future researchers to use broad research
lenses with multiple embedded contexts when conducting globally distributed IHRM
Similarly, work-life scholars have called for future research to incorporate a focus
contexts (Poelmans, 2005; Poster & Prasad, 2005). As Poelmans (2005) concludes, there
18
is a need for more qualitative research that involves case studies of international
companies.
to unearth issues involving the key tensions and derived etics related to global work-life
surrounds all of our IHRM practices’ (Von Glinow et al., 2002, p.137).
Participants
This research involved a select group of 12 large MNCs; each MNC had a
corporate (HQ) HRM office and regional and/or national HRM managers (see Table 1).
Table 2. Key informants were chosen within the organization based on their formal
2004). Key informant sampling was chosen because the participants were most likely to
be knowledgeable about the issues being researched and able and willing to communicate
about them (Kumar, Stern & Anderson, 1993). The research required knowledge of the
19
Ten of the participating MNCs had between 25,000 and 209,000 employees
worldwide; one of the remaining MNCs is a joint venture between an Indian firm and a
Japanese global firm, and is the world-leader in its products. The sample firms operated
across a range of industries, including mining and mining services, health insurance and
studies, our aim was to obtain richness of understanding of our participants’ views, rather
than generalizability.
Procedure
countries, namely Australia, Brazil, China, England, Hong Kong, India, Malaysia,
Sweden and the U.S.A. Twenty-seven interviews were in English and 1 in Portuguese.
Interviews were recorded and transcribed (interview in Portuguese was transcribed and
then translated into English). Most of the interviews were conducted in person, although
a few were conducted by telephone due to the geographic spread of the sample;
diversity and work-life initiatives in their region and the global organization. Prior to the
conduct of each interview, the interviewee was provided with details outlining the intent
20
In addition to interview data, company documents were collected primarily to
provide background for the researchers to better understand the operations and culture of
each MNC. Company documents included strategy documents, HRM policy and
Data Analysis
and cluster the interview data and derive key themes (Richards & Richards, 1995). In
line with Lee, Mitchell and Sablynski’s (1999) framework, we undertook a process of
agreeing on thematic content. In presenting our interview data, we show the job title,
Our first broad research question asked: Who has the responsibility, authority and
accountability to set work-life policies, and at what level? Our findings showed that,
consistently across the MNCs in our research, policies are designed at global
dilemma (Doz & Prahalad, 1991). Several of our participating MNCs reported that they
had acknowledged problems related to poor relationships between global and local units,
21
… it was very ethnocentric … and they had an operation in [local unit country]
that … had never really been effectively integrated into the company, it was just a
satellite. There’s probably fault on both sides. [Global HR Head, Transport &
logistics, UK]
As has been documented with respect to other areas of IHRM (Brewster et al.,
2007), global work-life policies are often adapted for local conditions. We found
… under the global principles various operating countries will form their own
policies for work life balance. … Like in Malaysia we provide child care centre,
but in China we don’t do that, we do other things. But basically following what
the law says and the locations that you operate and following the local market
time working policies, and … 50% of the job be filled with women, minority
etcetera. but in the end the exact policy in China will be different from even
Local influences on global work-life policies and practices include legislation, customer
…from a business perspective our clients are changing… we need to make sure
that we meet the needs of those clients, but there are also pressures from clients
that go against the policies and the objectives that we set. [HR Manager, Finance,
Hong Kong]
22
Even within one MNC, we found differences between the perspectives of HR
practitioners at global and local levels. Whilst the interviewee at headquarters with
global responsibility discussed an ‘80/20 rule’, none of the local or regional managers
implemented at the geography level and those individuals are actually a part of
[our] team. So we use what we call the 80/20 rule. Eighty percent is standard
the 80%. Twenty percent is driven based on the business needs, local legislations
and the culture of the geography. [Global Diversity Manager, IT, USA]
The strategy is a common strategy... The initiatives and policies are followed too.
… Sometimes there is an initiative that is not adequate for our reality, then we
have to say, look, we are not going to implement it because it won’t be effective.
They’re trying to standardise flexible work options… So for a lot of the Asia
region they don’t have a lot of these workplace practices, so irrelevant of their
culture they actually have to try and implement them and make them part of it.
23
… [MNC] globally says ‘we will become a flexible workforce and you’re not
and but we’re going to help you to do that, it doesn’t matter about your culture,
you’re going to have to sort that out as well’. [National Diversity Manager, IT,
Australia]
may indicate that, even in an MNE that is well-advanced in terms of managing diversity
and work-life issues, there may be deficiencies in the IHRM system with regard to
knowledge transfer and shared understanding of the policy. Such deficiencies may
function. Minbaeva (2005) has argued that the IHRM system of an MNE will be a key
driver of its knowledge management, and hence essential to its success in international
business. Her argument reflects Kogut and Zander’s (1993) proposal that an MNE could
be viewed as a social community that creates, transfers, and integrates knowledge across
its different locations. In order for the MNE to operate effectively in this way, the IHRM
system, and the related policies such as work-life policies, need to be well understood and
supported by those within the HR function. However, in all of the MNCs, we found
evidence that policies planned at global HQ were not being implemented, and HQ were
unaware that their policies were not being followed in local units:
I’ve said that we have regional policies it doesn’t mean that they’re necessarily
24
… to give you an example of our diversity … the gay, lesbian, bi-sexual and
that the workplace is conducive for employees. So yes we have these challenges
countries we have posters put up, communication note going out to employees ....
But the GLBT is not celebrated in the same way. In fact the posters are not put
global policy, and examples of local initiatives adopted globally or in other regions.
Given that several of our local managers were located in large emerging markets of
China, Brazil and India (Economist Intelligence Unit, 2007), it is imperative that HQ
Our second broad research question asked: Who is responsible for carrying out
the work-life policies through into practice? In addition to the evidence showing
tensions between those responsible for global and local HR, we found that
function and line managers. Decisions related to employee access to work-life practices
were often at the discretion of direct supervisors and depends on the employee’s function.
25
There were often informal arrangements that depend on job/function (such as whether
there is interaction with client), and require negotiation with one’s supervisor or manager.
(at global or local levels) and line managers when participants talked about
If anyone tells us we don’t have female candidates, suitable candidates then the
managers are also taken to task, what are you doing in development of the next
group below you. So there are questions that they need to answer at every point.
practices should be delegated to local HR and line managers (Budhwar & Khatri, 2001).
competently and effectively (Budhwar, 2000). The role and responsibility of the line
manager has been debated, although not in the context of MNCs. We suggest that the
HR- line manager relationship needs more investigation for scholars and managers to
organizational performance.
MNC – employee tensions. It is evident that the priorities and concerns for an
individual employee will not always match those of the MNC overall. Work-life policies
and practices can form an important aspect of relationships with employees, to facilitate
26
individual outcomes such as engagement, commitment and satisfaction (Haas et al.,
2000).
We understand that when you have a relationship with an employee you know the
organisation-employee relationship that it doesn’t just stop at the office for them.
And it doesn’t just stop at work for them it’s a whole package. [National
Resolving Tensions
With regard to our third broad research question, the resolution of tensions and
participants were able to identify ways and means of resolving tension, which were
consistent with the four reactions to paradox identified by Poole and Van De Ven (1989).
Most of the reported resolutions fell into the category of synthesis (develop new terms to
resolve paradox), with some evidence also of opposition (accept that paradox exists and
use it constructively), although it is possible that these efforts may include some
combination of the other reactions to paradox identified by Poole and Van De Ven
(1989).
in all of the MNCs reported that there is scope to negotiate between global and local
concerns.
27
that managers are using to resolve tensions, although this is not a conclusive list. These
include strategies that require attention and support at global HQ, such as development of
clear policies and expectations, resourcing for work-life initiatives, and HQ respect for
integrated with other HR practices in the IHRM system. There are also several strategies
numerous ways in which our participants sought to resolve tensions with line managers,
training, education and advice (for all levels of managers, employees and colleagues).
Participants also offered suggestions for all employees, such as developing rapport with
working for MNCs and based in China and other parts of Southeast Asia (e.g. Singapore,
Malaysia, Indonesia) increasingly have to deal with the concept of work-life management
where the push often emanates from a western based head office to how this actually
dynamic economies, such as in China and Southeast Asia (Howard, Liu, Wellins. &
Williams, 2007; Russell, 2008; Sankaran, 2008). Particular themes/issues that emerged
as important in the Asian context were: Asian culture and work-life; the war for talent;
28
the need for local responsiveness; flexible work arrangements; equity; gender and care
needs to be a stronger understanding of the tensions between various drivers, and the
summarizes the key responsibilities for work-life management at the global, HR and line
accountabilities for the various elements of our matrix of global work-life management
There are several global responsibilities for work-life management. For senior
adequate resourcing (Enns & McFarlin, 2005). The corporate HQ HR professionals will
have global responsibility for formulating global policy, yet also need to be responsive to
local concerns (Novicevic & Harvey, 2001). Conversely, implementation relies to a large
extent on the engagement, knowledge and competencies of local HR. We anticipate that
global work-life management raises several challenges, particularly for MNCs seeking to
operate in developing and growing markets, such as the large emerging markets of Brazil,
Russia, India and China. First, recruiting and selecting candidates for local HR positions
29
competencies such as communication and networking skills, to build strong relationships
with line managers; as well as a strong understanding of the IHRM system. Resolving
the global-local tensions within the HR function depends to some extent on the ability to
develop a shared view of the IHRM system and to build synergies across levels of the HR
function (Bowen & Ostroff, 2004). Building these competencies will help to build the
credibility of HR managers with senior and line managers (Enns & McFarlin, 2005;
Farndale, 2005). A third challenge is that HR professionals need to form networks in the
HRM community outside their own organization. Knowledge sharing amongst the HRM
HRM policies and practices; for example, in China, the importance of networks or guanxi
has been widely recognized. Finally, HR practitioners must address the challenge of
working with line managers and employees to build their competencies; training
programs, and the provision of advice, support and resources are examples of the ways in
We acknowledge that there are limitations in our study. First, we acknowledge that
this research is limited to firms that are well-established and large. We have, however,
improved on previous research in the HRM field, as our interview data include more than
one informant from each organization. Much of the previous research has provided only a
30
influence the success (and outcomes) of global work-life management (Brewster et al.,
2007); the factors external to the organization would be worthwhile areas for future
research. We also recognize that, given that organizational-level analysis has tended to
dominate much of the HRM literature (Paauwe & Boselie, 2005), factors at other levels
in the firm (e.g. individual level) or external to the firm need to be investigated. Future
research could also explore the views of line managers and employees.
CONCLUSION
and by utilizing an exploratory, qualitative research method to identify issues hitherto not
managers in our study clearly are seeking to address ongoing tensions by adopting
and presents us with new and different challenges, especially as businesses become more
global’ (2005: 117). A consistent emerging theme identified by many of the HR and
diversity managers interviewed was that work-life balance is important for talent
management and for developing a high performing workforce. Employees around the
world are becoming increasingly vocal about their work and family needs and the issue of
managing work-life needs is likely to grow. Managers and employees are beginning to
recognize the strategic role of global work-life policies and practices in managing a
global workforce; this presents several challenges for the HR function in MNCs.
31
REFERENCES
Arthur, M. & Cook, A. 2003. The relationships between work-family human resource
Bardoel, E.A. 2006. Work-life and HRD. In P. Holland, & H. De Cieri (Eds.),
Bardoel, E.A. & De Cieri, H. (in press). Policy deployment across borders: A framework
(Eds.), Harmonizing work, family, and personal life in organizations: From policy to
Barrow, S., & Mosley, R. 2006. The employer brand: Bringing the best of brand
management to people at work. Chichester UK: John Wiley & Sons Ltd.
Bedeian, A.G., Burke, B.G., & Moffett, R.G. 1988. Outcomes of work-family conflict
among married male and female professionals. Journal of Management, 14(3): 475-
491.
Bird, J. 2006. Work-life balance: Doing it right and avoiding the pitfalls, Employment
Bowen, D.E., & Ostroff, C. 2004. Understanding HRM-firm performance linkages: The
role of “strength” of the HRM system. Academy of Management Review, 29: 203-
221.
32
Bowes, J.M. 2005. Emphasizing the family in work-family research: A review of current
research and recommendations for future directions. In S.A.Y. Poelmans (Ed.), Work
Brewster, C., Sparrow, P., & Harris, H. 2005. Towards a new model of globalizing HRM.
Brewster, C., Wood, S., & Brookes, M. 2007. Similarity, isomorphism or duality?
DOI: 10.1111/j.1467-8551.2007.00546.x
Budhwar, P., & Khatri, N. 2001. HRM in context: Applicability of HRM models in India.
Cascio, W. F. 2005. From business partner to driving business success: The next step in
Childs, J.T. (Jr.) 2005. Workforce diversity: A global HR topic that has arrived. In M.
Losey, S. Meisinger & D. Ulrich (Eds.), The future of human resource management:
Currie, G., & Procter, S. 2001. Exploring the relationship between HR and middle
33
Dallimore, E. J., & Mickel, A. E. 2006. Quality of life: Obstacles, advice, and employer
Daniels, J.D., & Cannice, M.V. 2004. Interview studies in international business research.
De Cieri, H., & Dowling, P.J. 2006. Strategic human resource management in
Doz, Y., & Prahalad C.K. 1991. Managing DMNCs: A search for a new paradigm.
Economist Intelligence Unit. 2007. World investment prospects to 2011: Foreign direct
investment and the challenge of political risk. Written with the Columbia Program on
Enns, H., & McFarlin, D.B. 2005. When executives successfully influence peers: The
role of target assessment, preparation and tactics, Human Resource Management, 44:
257-278.
16: 660-675.
Greenhaus, J. H., & Powell, G. N. 2006. When work and family are allies: A theory of
34
Implications for practice and managing. Advances in Developing Human Resources,
9(4): 455-471.
Haas, L. L., Hwang, P., & Russell, G. 2000. Organizational change and gender equity.
MA: Addison-Wesley.
Hein, C. 2005. Reconciling work and family responsibilities: Practical ideas from global
Howard, A., Liu, L., Wellins, R.S., & Williams, S. 2007. The flight of human talent
http://www.ddiworld.com/pdf/EmployeeRetentioninChina2007_es_ddi.pdf
Kogut, B. & Zander, U. 1993. Knowledge of the firm and the evolutionary theory of the
Konrad, A., & Mangel, R. 2000. The impact of work-life programs on firm productivity.
Korabik, K., Lero, D., & Ayman, R. 2003. A micro-macro approach to cross-cultural
Milan, Italy.
Kossek, E.E., & Lambert, S.J. 2005. Work and life integration: Organizational, cultural
Kumar, N., Stern, L., & Anderson, J.C. 1993. Conducting interorganizational research
35
using key informants. Academy of Management Journal, 36: 1633-1651.
Larsen, H.H., & Brewster, C. 2003. Line management responsibility for HRM: What’s
Lee, T.W,, Mitchell, T.R., & Sablynski, C.J. 1999. Qualitative research in organizational
Lewis, S., Gambles, R., & Rapoport, R. 2007. The constraints of a ‘work-life balance’
13(4): 451-467.
McCampbell, A.S. 1996. Benefits achieved through alternative work schedules. Human
Michaels, B. 1995. A global glance at work and family. Personnel Journal, 74(4): 85-93.
Minbaeva, D. B. 2005. HRM practices and MNC knowledge transfer. Personnel Review,
34(1): 125-144.
Nishii, L.H. & Özbilgin, M.F. 2007. Global diversity management: towards a conceptual
1894.
36
Novicevic, M., & Harvey, M. 2001. The changing role of the corporate HR function in
1251-1268.
Paauwe, J., & Boselie, P. 2005. HRM and performance: What next? Human Resource
Patton, M. 2002. Qualitative research and evaluation methods. Thousand Oaks CA:
Sage.
Perry-Smith, J., & Blum, T. 2000. Work-family human resource bundles and perceived
Pfeffer, J. 2005. Changing mental models: HR’s most important task. Human Resource
for future research. In S.A.Y. Poelmans (Ed.), Work and family: An international
Poole, M.S., & Van De Ven, A.H. 1989. Using paradox to build management and
view from high-tech firms in India and the United States. Social Problems, 52: 122-
146.
Rapoport, R., Lewis, S., Bailyn, L., & Gambles R. 2005. Globalization and the
integration of work with personal life. In S. A. Y. Poelmans (Ed.), Work and family:
Associates.
37
Richards, T., & Richards, L. 1995. Using hierarchical categories in qualitative data
Russell, G. 2008. Work and life in China, Boston College Center for Work & Family,
elements/pdf/China_Policy_Paper_Final.pdf
Russell, G., & Bourke, J. 1999. Where does Australia fit in internationally with work and
Rynes, S., Bartunek, J., & Daft, R. 2001. Across the great divide: Knowledge creation
44(2): 340-355.
Rynes, S., Giluk, T., & Brown, K. 2007. The very separate worlds of academic and
Sankaran, S. 2008. Retaining and developing top talent in Asia Pacific. Paper presented
February.
Scullion, H., Collings, D.G., & Gunnigle, P. 2007. International human resource
Shapiro, A., & Noble, K. 2001. A work/life lens helps bring a global workforce into
38
focus. Its about time, 2 (Spring): 1-2.
Spector, P.E., Cooper, C.L., Poelmans, S.A.Y., Allen, T.D., O'Driscoll, M., Sanchez, J.I.,
Oi, L.S., Dewe, P., Hart, P., Luo, L., De Moraes, L.F.R., Ostrognay, G.M., Sparks,
K., Wong, P., & Yu, S. 2004. A cross-national comparative study of work-family
stressors, working hours, and well-being: China and Latin America versus the Anglo
Spinks, N. 2005. Work-life around the world: Building a global work-life strategy,
Stroh, L. K., & Caligiuri, P. M. 1998. Increasing global competitiveness through effective
Trethewey, A., & Ashcraft K.L. 2004. Special issue introduction. Practicing
Von Glinow, M.A., Drost, E., & Teagarden, M.B. 2002. Converging on IHRM best
39
Business Objectives and Priorities
Diversity Focus
FIGURE 1. Conceptual Framework for Global Work/Life Strategy in MNCs (Bardoel &
De Cieri, in press).
40
Global Integration Local Responsiveness
Strategic/Policy Operational
Headquarters Subsidiary
HR Line manager
Manager Employee
Economic/Business Social/Ethical/Moral
Contextual/Institutional Organizational
Collective Individual
Research Practice
FIGURE 2.
41
IHRM System Outcomes
Global Influences
• Industry characteristics
Individual
• Global market factors IHRM roles and responsibilities for talent
• Positive employee
attraction, development, retention and
attitudes towards
management
employer
• Employee
IHRM policies and practices (global policy
engagement
MNC Influences development, local implementation)
• Job satisfaction
• MNC age • Global diversity management and work-life
• Quality of work-life
• MNC IB experience. policies and practices
• MNC strategic • Organizational definition of work-life
Organizational
orientation • Planning for work-life management:
• MNC reputation in
• MNC culture • Flexible work policies and practices;
local market
• MNC strategy • Availability and affordability of
• Flexibility
• MNC structure dependent care;
• Knowledge sharing
• Extent of global • Management of workloads and
• Talent attraction,
integration or local working hours.
development,
responsiveness • Resource allocation for work-life
retention and
• Resources management.
management
• Management roles and • Organizational communication about
• MNC reputation
responsibilities work-life issues.
• Organizational and
• Measurement and feedback on work-life
local unit
outcomes.
performance (e.g.
Local Influences health and safety,
• Location factors financial
• Institutional frameworks performance)
• National/local culture
• Political context
• Stage of national
economic development
42
TABLE 1.
COMPANY CHARACTERISTICS
274.3
OilA 115,000 >100 Europe 1908
billion
318.9
OilB 108,000 >130 Europe 1907
billion
Transport &
4.7 billion 25,061 27 Europe 1837
logistics
Manufacturing 14.6
70,000 >29 Europe 1905
(food) billion
38,637
Mining 209,000 24 Europe 1917
million
43
TABLE 2.
PARTICIPANT DEMOGRAPHICS
Participants by Country
Australia 6
Brazil 2
China 4
Hong Kong 2
India 1
Malaysia 1
Singapore 2
Sweden 1
Vietnam 2
UK 4
USA 3
Participants by Company
Information Technology 5
FinanceA 3
FinanceB 1
Health insurance and care services 2
OilA 2
OilB 4
Transport and logistics 3
Manufacturing (chemicals) 1
Manufacturing (food) 1
Manufacturing and retail 2
Automotive 1
Mining 1
Mining services 2
44
TABLE 3.
Strategy Evidence
Resolving global – local [The local unit typically says] … here is a standard we aim for, here is why we are aiming for it, put it up for
tension: Opposition debate and consideration and in some instances it will be adopted, in other instances we’ll agree to disagree, and
the likely outcome of the disagree would be ‘we’ll park there, and that will be a long-term goal, and if ever comes
an opportunity to move the international business closer to the head office view of the world then we’ll take it.
[National HR Manager, Health insurance and care services, Australia]
…it is a recognition of the business always comes first even though what we are doing will support the business,
2. Resourcing
understanding the timing, timing may be a problem. We run into issues regarding cost. We run out of money.
[Global Diversity Manager, IT, USA]
Our ideas here are very well accepted, and what comes from overseas we adapt to be effective. This is what [our
3. HQ respect for local
MNC] wants. … we respect the concept, the idea, we adapt to the needs of each country. [National Diversity
knowledge
Manager, IT, Brazil]
It was a male dominated culture and we were having problems with implementing flexibility. So we started in
2001 and realised that we needed to understand and accept the culture. It wasn’t something that was going to
happen in 2001. So we worked with the local team and we used their input to tell us what we could and could not
do. [Global Diversity Manager, IT, USA]
4. Integrate work-life Work life balance is a very personal thing to different people. And one of the things that we want to do is to try to
management with other encourage managers to have these sorts of conversations around their kind of career development review
HR practices discussions and … end of the year performance reviews, try and open up a dialogue around work life balance, to
45
see, see what you know what we can do to better accommodate this. [Diversity Manager, Finance, Hong Kong]
Actually in communications and support, employees need to know what [the MNC will] support and what the
5. Communication, awareness
companies do not. [Global Diversity Manager, IT, USA]
and support
We have a specific dedicated website to diversity inclusion as well [Global Diversity Advisor, Oil-A, Malaysia]
… in Asia, I’ve been working in the region, one of the things often people don’t understand what diversity is, you
know they’re so hung up on awareness. … as an organization there are people who are different, we all need to be
nurtured very differently. [Global Diversity Advisor, Oil-A, Malaysia]
We do a lot of focus groups and we have done focus groups in the past and now we use this survey as a key
6. Gathering information,
information source. . [Global Diversity Manager, IT, USA]
Measurement and feedback
We measure based on the diversity score card and the diversity score card is now a part of our overall human
resources score card. [Global Diversity Manager, IT, USA]
We believe if we make decision without people’s involvement and commitment behind the decision we can never
7. Engagement in decision-
implement that decision to the maximum level. And that’s why it’s better that we involve the people at the
making
beginning when we are making the decision then many people are standing behind the decision, they have a high
commitment level to the decision. [HR Manager, Manufacturing and retail, Sweden]
The HR managers need to have the time and ability to coach the other managers in doing that sort of work. I
8. Building HR competencies
guess there’s also a sort of a mindset that that’s HR work. In reality managing people is the responsibility of all
managers. [National HR Manager, Transport & logistics, Australia]
… we educate all our leaders as well. We have spent the last 2 years working with our top 1000 leaders to help
9. Provide management and
them understand the cultural dimensions. [Global Diversity Advisor, Oil-A, Malaysia]
employee training and
education
It’s pretty much across the board. I think it, clearly there needs to be the senior level endorsement. I think equally
it’s education of people who wish to participate within that, you know, their role, responsibilities, the impact on
the rest of the teams. … it’s broad education so I think we all probably have a role in some way or another to, you
know to make it work. It’s not just the manager and the employees, it will all be a knock on effect on other
46
members within the team as well. [National HR Manager, Finance, USA]
We strongly encourage managers to be open minded and you know reward people accordingly. We support
flexible work arrangements to the extent that it makes sense. And [HQ] for the last two years have been a huge
push on flexible work arrangements… a lot of the managers said ‘well we’ve offered a lot of our employees
flexible work arrangements but we need the bank to support us in return’. And we said ‘what do you need’ and
they said ‘we need field training. Because it is a lot tougher to manage someone who is on a flex schedule than to
manage someone who is in front of you’. So we’ve actually run a whole lot of workshops and training programs
for managers. [Diversity Manager, Finance, Hong Kong]
What we are doing now though is putting in, in place flexible work arrangement advisors… we think a more
helpful strategy is to have flexible work arrangement advisors who are there to support both the employee and the
managers…. Because that way we can help, you know better educate the managers of the employees so that we
can find a solution that best fit for everybody.
[Diversity Manager, Finance, Hong Kong]
10. Build a rapport One of the assumptions is if you have got a rapport and a relationship with your manager then you will be able to
negotiate things that are, will work for both of you. [National HR Manager, Health insurance and care services,
Australia]
So rather than trying to fight this doomed battle of fixing people’s personal lives we tend to focus more on their
11. Respect and accept
work life so that we make work place more of an attractive and joyful place so that when people spend their 8 or
diversity
10 or 12 or 14 hours in the office they actually enjoy it. [Diversity Manager, OilB, Singapore]
47
TABLE 4.
48