In today's global business environment, managing diversity in human resources has become a very important and crucial issue. Human resources management has a lot to deal with managing workers/employees from different countries and nationalities. Managing multinational human resources becomes an issue not only in the multinational corporations, having their offices or plants in different countries, but also in the domestic companies, with domestic workforce becoming more and more diverse each day. Creating an HR that has the ability to recruit and select the right people and the ability to effectively socialize and train employees will allow multinational companies to excel in all business aspects.
In this paper we have chosen to explore Procter and Gamble (P&G), a multinational corporation which has lead the way in creating one of the best human resource management systems to date. By using P&G, we are seeking to provide an example of how current multinational companies make decisions to manage their human resources (HR) activities, in search of effective management of their HR costs and in search of professional HR management.
First, the concept of multinational HR management will be outlined, followed by the discussion of the P&G case.
Human Resource Management Concept
Human resource management (HRM) encompasses the activities of acquiring, maintaining, and developing the organization's employees (human resources). "The traditional view of these activities focuses on planning for staffing needs, recruiting and selecting of employees, orienting and training staff, appraising their performance, providing compensations and benefits, and making their career movement and development." HRM involves two aspects:...
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Hitt M.A., Black J.S., Porter L. W. Management.-Pearson, Prentice Hall, 2005.
Kelly, David. "In Through the Out Door: P&G Turns to IBM Outsourcing to Focus on Its Core Businesses." Accessed November 1, 2005. http://www.consumergoods.com/
Patton, Susannah. "Outsourcing Vendor Management." Accessed November 1, 2005 http://www.cio.com/
PG.com Global Diversity http://pandg.com/company/who_we_are/diversity/global/index.jhtml
PG.com Diversity Facts
Myer, Wayne (Week 10 April 29, 2001). Social Infrastructure of Belgium. Available: http://polaris.umuc.edu/mba/public/AMBA606/The_Global_Matrix/socialinfra_belgium_myer.htm. Accessed November 5, 2005
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