Introduction of companies

Multinational companies are prone to create wealth around the world. The size and scale of multinational companies are large, bring them economies of scale and lower the average cost of production. Two selected MNCs for this paper are Cisco and HP. The paper will focus on the culture of each MNC and investigate international human resource practices, whether they are converging or diverging.

Cisco system Inc. is a California based company, operating in the computer and networking industry. Cisco is the leading power and network solutions company, and it is estimated that since 1990, its annual revenue has been increased from $69-$49.16 billion in 2016. It is ranked as the best companies to work with, according to Fortune. Human resource practices are the main cause of the rapid pace of development for the company.

HP is another big company dealing in IT sector and accomplishing the needs of the individual as well as corporate customers since 1939 (Meister, 2019). The role of HP in performance management is integral since it has employed people from multiple ethnicities without showing bias. The organizational roles of the company towards its use of resources are adequate, while the working environment of the company is conducive to polish the skills of employees. HP is also California based and has acquired a leading position in PC manufacturing from 2007 to 2013. The specific activities in manufacturing, design software, data storage and networking hardware by HP are main breakthroughs (Impact, 2019). The major product lines of the company are a wide range of printers, personal computing devices, imaging devices and industry standard servers. The consulting business services, online distribution, technology vendors and software partners are important endeavors by a company that are related to the effective human resources practices and activities.

Culture in Companies

This section will analyze the persistent culture of both companies. Hofstede cultural analysis provides best insights about the prevailing culture of human resource practices in companies, based on strategic management and knowledge performance. Cisco Company has established new learning and training solutions for its employees based on integrated learning (Moorhead, 2019). Cisco in different countries is operating as per cultural practices, knowledge and awareness, without focusing on bias related to ethnic groups. The non-discrimination policy implemented in multiple countries by Cisco Company is conducive to flourish its human resource practices. Effective HR practices under reward and performance management are based on interrelated methods that guarantee employees’ skills and capabilities (Meister, 2019). In the US, Japan, India and East Asia, Cisco is operating based on cultural differences while eliminating language barriers, cultural conflicts and conscious culture. It is to make sure employees and management is engaged in practices of self-awareness, feeling empowered and accountable (Chen, 2017). Cisco has implemented a flexible environment about equity and fairness to thrive in diversity and inclusivity. This aspect is linked with company culture through shaping beliefs and attitudes over 34 years.

HP, being an IT company working in multiple countries, aimed at focusing on integrated solutions regarding aesthetic principles and implementation for employees. HP is working on diversity policies to eliminate the differences in a different culture. The concept of diversity introduces gender, race, background, education and age differences. This diversified agenda of HP is presented over time to move towards a globalized workplace.  The diversified values of company accompany greater competitiveness, so a high level of adaptability is ensured at multiple countries operations (Impact, 2019). HP implements effective strategies regarding openness and transparency through its HR practices. Hence it is building unique principles and demographics for employees. The role of HRM practices is central to analyze the satisfaction rate of employees and their turnover in any company. The success of an organization is based on the cultural values it has implemented over multiple countries. The knowledge of executives in HP regarding the value of cultural, economic and legal aspects is centrally oriented to recruit employees and maintain HR processes, benefits and compensation.

Analysis of HRM practices

Human resource management is centrally aligned practice to ensure success and flexibility of the organization. The selected organizations for this paper, HP and Cisco have shown similar human resource policies, in terms of localized and foreign functions. The human resource practices at international level focus on the cultural, performance and knowledge-based strategies, for instance, in Cisco, hard and soft approaches regarding human resource management are implemented (Meister, 2019). The hard HRM practices are about the costs incurred on employees by the company to manage the requirements of employees (Moorhead, 2019). The soft HRM approach is about motivation and communication practices for employees that are aligned with the strategic objectives of organizations. Cisco is focusing mainly on the soft HRM approach of management to influence the six primary components of the human resource model. This model is based on the recognition of employees and stakeholders while caring for corporate social responsibility. The innovation regarding HRM practices is designed to build the commitment of employees and to generate long term benefits (Chen, 2017).

HP Company, while working for the HRM practices, has given rise to the diversity principles. It is mainly aligned to recognize the business culture and upgrade minorities for potential leadership positions for future (Impact, 2019). The human resource development at HP Company is aligning its ways for the internal growth of employees, through commitment and motivation. Workers from different cultures are gaining equity-based benefits, and there are no gender-based differences held by management. This analysis provides that HP and Cisco are sharing similar grounds for HRM practices, and these activities are convergent. The performance management and performance of employees is carried out in HP with the help of training of workers, appreciating and rewarding them (HRM, 2019). This performance management process at HRM is evolving with the advent of globalization (Edwards et al., 2013). The improved level of human resource management and implement strategies by Cisco and HP provide clear insights into the achievement of organizational goals and support the strategic aims of multinational companies.

References

Chen, H. (2017). The Success of Cisco Systems, Inc.’s Human Resource Management Strategy. Journal Of Service Science And Management, 10(03), 206-215. doi: 10.4236/jssm.2017.103018

Edwards, P., Sánchez-Mangas, R., Tregaskis, O., Lévesque, C., McDonnell, A., & Quintanilla, J. (2013). Human Resource Management Practices in the Multinational Company: A Test of System, Societal, and Dominance Effects. ILR Review, 66(3), 588-617. doi: 10.1177/001979391306600302

HRM, I. (2019). International HRM. Retrieved from https://saylordotorg.github.io/text_human-resource-management/s18-00-international-hrm.html

Impact, S. (2019). Sustainable Impact | HP® Official Site. Retrieved from https://www8.hp.com/us/en/hp-information/global-citizenship/index.html

Meister, J. (2019). Cisco HR Breakathon: Reimagining The Employee Experience. Retrieved from https://www.forbes.com/sites/jeannemeister/2016/03/10/the-cisco-hr-breakathon/#49b4e822f5ee

Moorhead, P. (2019). How Cisco Fosters A ‘Conscious Culture’ Within The Company. Retrieved from https://www.forbes.com/sites/patrickmoorhead/2019/03/19/how-cisco-fosters-a-conscious-culture-within-the-company/#a14ee1d50b74

 
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