Summary of the CIPD research report
The report highlights the important role HR can play on a global basis by creating networks to develop and implement policy. It is available to purchase online – please visit our bookstore for more details and to find out how to order.
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Different types of networks
The research was carried out by Dr Olga Tregaskis and her colleagues at Leicester Business School as part of CIPD’s ongoing research into International HR. Case studies in six companies across four sectors reveal how HR departments, based in different countries, using various means of communication, can increase their influence and have a significant impact on the success of their business. The report looks at the different types of networks which can be set up - formal committees of managers of different national subsidiaries, informal project groups, works councils, seminars etc - and how they work.
Key functions of networks
The research identifies seven main functions performed by International HR networks. These include:
- policy development
- policy implementation
- creation of best practice
- knowledge sharing about best practice
- use of HR expertise
- fostering commitment to the organisation’s business and HR values
- information sharing
- building social capital
How networks work in practice
The report looks at how networks work in practice. It indicates that, as with many aspects of working internationally, the success of networks is often dependent on one enthusiastic person or a small group driving the setting up of international networks. The values and ethos of the group can be determined by key people working closely together to develop a corporate culture on a global basis. The diversity of international networks brings huge advantages in doing business around the world and helps to create international mindsets in employees of all levels in different locations. The key message for HR professionals is that they can have a powerful role in global strategy making by collaborating in decisions about who does what work, where, according to expertise, and how to develop common frameworks which will facilitate the implementation of global policies with local adaptation.
Importance of social capital
Another important facet of international networks outlined by Dr Tregaskis in the report is their ability to contribute to the creation of social capital which is an asset created by the relationships between people at work. This can be a competitive advantage to MNCs. Because they are a form of intra-organisational communication, international networks can build social capital through the often unique knowledge which each of the network members has about HR issues within their specific business or country context. How organisations take advantage of this collective knowledge and how it can be used to create or adapt a global HR policy is one of the key challenges for International HR professionals.
This is a summary of:
TREGASKIS, O., GLOVER, L. and FERNER, A. (2005) International HR networks in multinational companies. Research report. London CIPD.
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