Strategic Strategies of Gillette
Introduction
During the last decade, increasing attention has been paid to the area of international human resource management (IHRM), which is concerned with human resource management issues of multinational corporations (MNCs) (Schuler et al., 1993). It has found that human resource policies and practices are the source of sustained competitive advantage to firms (Pfeffer, 1994). But diffusing HR policies and practices within multinational corporations (MNCs) to subsidiary management teams can be problematic, for example, how to align HR policies and practices with the rest of the organization (i.e. global integration) and how to adapt HRM practices to the local environment in which the subsidiary is operating (i.e. local adaptation). Furthermore, scholars point out that national origin of the MNC is a major influence on the trade-off between global integration and local adaptation.
Now, Gillette Group has a plan to set a subsidiary in Shenyang of China which is a advanced city in China. So choosing effective HR practices is very important for the development of this subsidiary. In this report, first, some practical HR methods of Gillette Group will be introduced and illustrated, and then through analyzing the differences between US and China to find out the barriers. Finally, some practical HR practices will be chosen to diffuse in Gillette’s Chinese subsidiary.
1. Strategic IHRM of MNCs
1. Strategic IHRM
HRM practices have a long history. Before the mid-1980s, most practices had focused on the low level, routine tasks such as recruiting, record-keeping, wages and rewards (Storey, 1992). Fombrun et al. (1984) pioneered the development of the concept of strategic HRM and started linking HRM functions with the organizational overall strategy. Strategic HRM mainly referred on activities involving HR planning and HR policies such as internal career opportunities, performance appraisals, employment security, training systems, profit-sharing plans, voice
During the last decade, increasing attention has been paid to the area of international human resource management (IHRM), which is concerned with human resource management issues of multinational corporations (MNCs) (Schuler et al., 1993). It has found that human resource policies and practices are the source of sustained competitive advantage to firms (Pfeffer, 1994). But diffusing HR policies and practices within multinational corporations (MNCs) to subsidiary management teams can be problematic, for example, how to align HR policies and practices with the rest of the organization (i.e. global integration) and how to adapt HRM practices to the local environment in which the subsidiary is operating (i.e. local adaptation). Furthermore, scholars point out that national origin of the MNC is a major influence on the trade-off between global integration and local adaptation.
Now, Gillette Group has a plan to set a subsidiary in Shenyang of China which is a advanced city in China. So choosing effective HR practices is very important for the development of this subsidiary. In this report, first, some practical HR methods of Gillette Group will be introduced and illustrated, and then through analyzing the differences between US and China to find out the barriers. Finally, some practical HR practices will be chosen to diffuse in Gillette’s Chinese subsidiary.
1. Strategic IHRM of MNCs
1. Strategic IHRM
HRM practices have a long history. Before the mid-1980s, most practices had focused on the low level, routine tasks such as recruiting, record-keeping, wages and rewards (Storey, 1992). Fombrun et al. (1984) pioneered the development of the concept of strategic HRM and started linking HRM functions with the organizational overall strategy. Strategic HRM mainly referred on activities involving HR planning and HR policies such as internal career opportunities, performance appraisals, employment security, training systems, profit-sharing plans, voice
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