Human resources in a multinational corporation : From administrative function to a strategic partner of top management
Moisio, Hanna (2019-08-07)
Human resources in a multinational corporation : From administrative function to a strategic partner of top management
(07.08.2019)
Julkaisu on tekijänoikeussäännösten alainen. Teosta voi lukea ja tulostaa henkilökohtaista käyttöä varten. Käyttö kaupallisiin tarkoituksiin on kielletty.
suljettu
Julkaisun pysyvä osoite on:
https://urn.fi/URN:NBN:fi-fe2019081624409
https://urn.fi/URN:NBN:fi-fe2019081624409
Tiivistelmä
International human resource management literature has supported the idea of Human resources
(HR) as a strategic partner in organizations. HR’s role as a strategic partner is to manage
organization’s intangible assets, human resources, which in today’s economic world create
competitive advantage. Overall, HR’s role in strategic issues has become more and more significant
and especially in multinational corporations (MNCs) due to their continually growing power in
international business. Simultaneously new technological solutions have taken some of HR’s
traditional workload and facilitated it to adopt new more influential role and focus more on long-
term oriented strategic tasks.
Despite the above mentioned, evidence shows that much of HR departments’ work concerns
administrative tasks with little strategic influence. Therefore, the focus of this research is to study
ways HR functions could change their traditional administrative roles and become strategic partners
of top management in MNCs. Studying the mentioned is important to improve HR’s long
underestimated strategic role.
In addition to extensive literature review, the research approach adopted in this thesis includes
qualitative empirical research using semi-structured interviews with senior-level HR managers. The
findings from this research provide evidence that HR needs to focus on understanding the value of
it, its link with business strategy and the design of HR organization in order to become a strategic
partner of top management. In MNC context these focus areas need to be examined in the light of
local culture and globally differing perceptions as well as in the limitations of local business
environment including local institutions.
The main conclusions drawn from this study are the centrality of business strategy in HR action and
specifically, understanding HR’s role in enabling it. Furthermore, regarding its organization, HR
should aim for high level of global integration to ensure efficiency in its processes and to gain
strategic credibility. Overall, this research argues that HR should most importantly increase its
business knowledge to do the mentioned and mainly, to be perceived as a strategic partner by top
management in MNCs.
(HR) as a strategic partner in organizations. HR’s role as a strategic partner is to manage
organization’s intangible assets, human resources, which in today’s economic world create
competitive advantage. Overall, HR’s role in strategic issues has become more and more significant
and especially in multinational corporations (MNCs) due to their continually growing power in
international business. Simultaneously new technological solutions have taken some of HR’s
traditional workload and facilitated it to adopt new more influential role and focus more on long-
term oriented strategic tasks.
Despite the above mentioned, evidence shows that much of HR departments’ work concerns
administrative tasks with little strategic influence. Therefore, the focus of this research is to study
ways HR functions could change their traditional administrative roles and become strategic partners
of top management in MNCs. Studying the mentioned is important to improve HR’s long
underestimated strategic role.
In addition to extensive literature review, the research approach adopted in this thesis includes
qualitative empirical research using semi-structured interviews with senior-level HR managers. The
findings from this research provide evidence that HR needs to focus on understanding the value of
it, its link with business strategy and the design of HR organization in order to become a strategic
partner of top management. In MNC context these focus areas need to be examined in the light of
local culture and globally differing perceptions as well as in the limitations of local business
environment including local institutions.
The main conclusions drawn from this study are the centrality of business strategy in HR action and
specifically, understanding HR’s role in enabling it. Furthermore, regarding its organization, HR
should aim for high level of global integration to ensure efficiency in its processes and to gain
strategic credibility. Overall, this research argues that HR should most importantly increase its
business knowledge to do the mentioned and mainly, to be perceived as a strategic partner by top
management in MNCs.