This section provides understanding regarding how HRM is being implemented in MNCs from emerging economies, which will assist in developing adequate understanding of the
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transfer process from these MNCs to their subsidiaries in Nigeria. Extensive data and information are available regarding how HRM is being treated in MNCs from developed countries. However, the treatment of HRM in MNCs from emerging economies is still under- researched. Moreover, it has been stated by various researchers that national culture tends to have an effect on the MNCs’ HRM practices (Fluery and Fluery, 2011; Bhagat et al., 2007), which means that national cultures of emerging economies/states will also have considerable impact on the treatment of HRM in their MNCs. Consequently, it is important to examine this perspective of MNCs from emerging economies for introducing appropriate and effective control to the transfer process. Brazil is an emerging economy and MNCs from this country possess a visible reflection of Brazilian management style, such as improvising creatively, focusing on short-term thinking, power distance and loyalty (Chu and Wood, 2008). The management model in Brazil has posed clear impact on the HRM practices of its MNCs, i.e. team management, promotion, and evaluation of performance (Tanure and Duarte, 2005). It has been argued that this heavy influence of the Brazilian management model can lead to direct impact on the competencies of HRM while the Brazilian MNCs engage in international activities. In this context, uncertainty avoidance and power distance are two such dimensions that are prominent in Brazilian management (Hofstede, 2001). HRM practices in Brazilian MNCs are centralised in decision making with greater control over their subsidiaries (Chu and Wood, 2008).
Silva (2010) argued that these cultural dimensions of Brazil and its management model tend to influence HRM functions of these MNCs and the way they manage their subsidiaries. MNCs from Brazil tend to greater control in their HRM functions as a result of the impact of cultural characteristics of Brazil. This explains the lower autonomy given to subsidiaries and the transfer of HRM practices from headquarters by Brazilian MNCs. However, it has been asserted in the literature that subsidiaries should firstly use competencies that belong to their headquarters and this same approach is being pursued by MNCs from Brazil.
According to Daven and Saunders (2000), South Africa has had a history of relationship with the continent which is considered complex, and the election in 1948 of the National Party did not help matters as this further led to the isolation of the country from other countries within the continent, especially Zambia which gained independence in 1964. There was a series of events which increased South Africa’s isolation. There was the establishment of the new African National Congress (ANC) after the apartheid government’s leader was incapacitated temporarily by stroke in 1989 (Wood, 2015). Since then, South African MNCs have become more popular since apartheid ended (Wood, 2015). It is important to note that South African MNCs still bear the baggage of their historical experiences; nevertheless, they leverage on
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benefits of an area, having a big market and also on the fact that they are quite experienced in managing in other African contexts (Wood, 2015). This has come with a lot of success stories(for instance M-Tel) but at the same time, there were some cases of challenges given by their inability to understand the political terrain and local needs, may be this was as a result of years of being detached in the apartheid environment (Wood, 2015)
Horwitz (2008) conducted a comprehensive study on HRM practices by focusing on South African MNCs. The finding highlighted two vital developments that have posed significant effects on the management practices of South African MNCs. However, from the perspective of MNCs in contemporary South Africa, it is common perception today that alternate sustainable models and strategies are required for addressing the issues of HRM practices and knowledge management; which means the landscape of HRM is not smooth within South African MNCs (Newenham-Kahindiet et al., 2013). South African MNCs have taken seriously the influence of increasing competition, information technology, knowledge-based economy and globalisation, which constitutes the first development aspect as it was visible in post-apartheid SA. As part of this development, the internet and increasing communication levels have made significant impacts on the way South African MNCs pursue their management functions. Horwitz et al. (2006) observed that the impacts of these changes have been dramatic on the HRM policies and practices, making it the second development in this respect. Moreover, the South African MNCs also employ different models of citizenship behaviour such as civic virtue, organizational loyalty and sportsmanship (Podsakoff et al., 2000), and most of such approaches overlap with popular competencies that MNCs from developed countries demand. However, these changes have made significant impact on different human resource practices which reflect the unique landscape of HRM practices in South African MNCs. Overall, the HRM practices implemented by most South African MNCs are lagging behind the HRM practices that are implemented by MNCs from developed countries with primary focus on paternalistic orientation of HRM practices (Erasmus et al., 2009). And this is as a result of the heavy influence of the South African national state and trade unions. Therefore, in recent years South African MNCs have started to adopt HRM practices that are being implemented in the MNCs of developed countries. Flexible working practices were not used by South African MNCs in the past and decision making was centralized, which has started to change (Zakaria et al., 2016). Performance-based pay and multi-skilling are now being adopted by South African MNCs. Few South African MNCs such as MTN, Nandos and Sasol have undertaken thane integration strategy for being part of the global domain, i.e. integrating with European policies of stimulating relationships across all management levels. For enhancing
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competitiveness and performance, South African MNCs have started to formulate HR practices which are based on western standards. However, the organizational and national institutional cultures visible in South African MNCs such as Indaba (debates in groups), Sebenza (problem-solving teams) and Ubuntu (respect, harmony, hospitality) are distinct from western culture where individualism is given priority, i.e. this South African culture is grounded in human relations and tends to include various stakeholders while engaging in developing or enhancing HRM practices (Jackson, 2002; Collings and Wood, 2009). These informal institutional cultures and norms especially Ubuntu came under what is known as
ubuntu management amongst others, which was popular in the 1990s and was also
introduced by some large corporations amidst the emphasis on equal employment opportunities and empowerment (Jackson, 1999, 2002, 2014). This is characterised by establishing human relations and tends to include various stakeholders in the organisation rather than “seeing people as resources in an instrumental (Western) perspective” (Jackson, 2014: 904). This signifies that the values of African society differ from that of their western counterpart that highlights individual achievement instead of placing an intrinsic value on people based on who they are, which is captured by the isiXhosa saying Ubuntu ungamntu
ngabanye abantu, meaning “people are people through other people” (Jackson, 2014: 904).
Nevertheless, Jackson (2004) noted that it is difficult to implement this in its original form; his research only identified two companies where these principles were adhered to and this was attributed to weak African societal values and the strong cross-vergence of westernised HRM and management principles resulting from the eminence of western education, MNCs and liberal constitutional guidelines. These cultural dimensions have allowed South African MNCs to move towards flat structures and decentralization by devolving the responsibilities and authorities downwards, i.e. from rigid controls to integrated corporate culture, which is similar to MNCs from developed countries. This shows that HRM practices in South African MNCs and especially HR practitioners have faced serious challenges over the years. Discrimination was another aspect which posed challenges for South African MNCs, i.e. retention of black staff and a white, male dominant culture ignoring black individuals, lack of human resource development, shortage of skilled black individuals, ignoring black staff regarding decision making etc. These issues also hampered the intentions of South African MNCs to enter a host country (Zakaria et al., 2016). South African MNCs have started to converge with best international HR practices but they are facing challenges in this regard, i.e. accommodating their national culture in corporate HR strategies is a difficulty faced by these MNCs. As per HR practitioners working in South African MNCs, they are facing a few serious HRM challenges while converging, i.e. training and development, employment equity and performance management.
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Consequently, hybrid or cross-vergence models are emerging in South African MNCs (Horwitz and Budhwar, 2015). Thus, it can be asserted that HRM practices in MNCs of emerging economies are shifting towards western dominant/ oriented HRM practices (Bae et
al., 2001: Ovadje and Ankomah, 2009; Rowley and Bae, 2002). Nevertheless, there is little doubt that some of the South African MNCs have coped a great deal better with a changed world than others, and this may explain a great deal more about their HR policies than simply the global dominance of liberal market HR paradigms (Wood, 2015).