Multinational corporations benefit from quality interaction

between HR departments across the globe

October 2005

Good communication and interaction between HR departments across the globe will enable multinational corporations to create a knowledge sharing culture and help them achieve best practice. This will allow employers to monitor localisation and help them achieve global objectives in terms of learning and integration. This is according to a new report launched at the Chartered Institute of Personnel and Development (CIPD) annual conference today.

Frances Wilson, CIPD International Manager, says, "Knowledge is power and networking plays a critical role in the creation and diffusion of knowledge. Employers should encourage HR professionals in different locations throughout the world to network in order to circulate this knowledge. This will enhance the organisations' performance.

"Exchanging information, knowledge and skills between HR departments across the globe will enable employers to develop good policies and appropriate practice quickly. Attention must be given to the structural and relational dimensions of these networks if they are to be used successfully and effectively."

International HR Networks in Multinational Companies, by Olga Tregaskis, Linda Glover and Anthony Ferner, uses case studies to examine the role of HR networking within multinational corporations. International HR forums can have a positive impact on the global culture of an organisation in terms of collateral thinking and consistency. The research identifies the following functions as areas the HR networks impact:

  • policy development
  • policy implementation
  • the sharing or creation of best practice
  • the capture and exploitation of distributed HR expertise
  • buy-in
  • information-sharing
  • socialisation

"International HR networks can offer businesses huge benefits. But there are challenges that employers will need to overcome if they are to avoid conflict and be successful in ensuring best practice across the globe. It is important to be inclusive in the networking, involving subsidiary levels, in order to achieve buy-in. Good communication and regular interaction across all levels will help make sure everyone understands what is considered appropriate practice and why. This will assure acceptance of the new practices and policies more readily," says Frances Wilson.

Dr Olga Tregaskis, co-author of the report, will also be chairing conference session on HR's Global Influence, atth CIPD Annual Conference in Harrogate on Friday 28 October.

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