Question

List and explain the seven (7) ways MNE’s handle employee relations.

Answer 1

MNE's follow these seven approaches to handle employee relations.

1. Hands Off: In this approach, the total responsibility of employees hand over to the local manager in the host country.

2. Monitor: In this approach, HR managers of headquarters try to foresee major problems for the parent company by asking insightful and intelligent questions about employee relationship management and responsibilities at each of the foreign location. But primary responsibility remains with the local managers.

3. Guide and Advise: This approach is a step ahead from monitoring. In this approach, International HR managers from Headquarters provide advice and guidelines to the local managers on how to conduct employee relations. But overall control stays with local managers.

4. Strategic Planning: In this approach, International employee relations fully integrated into MNE's strategic planning. Management of all aspects of the international, including employee relations integrated with a central program, particularly for policy-related matters.

5. Set Limits and Approve Exception: In this approach, international employee relations provide specific centralized control over local management practices. Subsidiaries are allowed freedom only within narrowly defined limits, and any exception must be approved by headquarters.

6. Manage totally from Headquarters: In this approach, local managers have no freedom of policy or practices in the employee relationship management activities. Managers from headquarters direct all employee relations.

7. Integration of headquarters HR management in line management in the field: In this approach, employee relations in the area, which managed by local managers are fully integrated with international HR assistance from the headquarters, with common policy and strategies.