by Samuel Isaac on 21 Jan ’14
The way HR technologies are moving, localization may be outdated in the future – possibly a decade from now. Especially with the advent of global cloud based HR systems. But till such time, localization will continue to be a painful need of HR strategy for Multinational Corporations (MNCs) worldwide.
Technology has been a key enabler and inhibitor of standardization and localization of HR respectively. At Neeyamo, we have observed that the failure rate of HR transformation initiatives go up with excessive thrust on standardization and return on technology dollars go down with increasing flexibility for localization. Local HR seems to be adverse to adopting some global HR processes and vice versa. While standardization does help institutionalize global HR best practices, localization are required to address local statutory requirements and socio-politico-operational-cultural (SPOC) nuances. Given the importance of human capital in a knowledge economy, it becomes a tightrope for global organization and their HR IT units to strike a balance between the right degree of standardization and localization.
There is a constant tug-of-war between the propagators of standardization at the corporate HQ and advocates of localization from the local HR. While the question of standardization vs. localization will continue to be played in the HR transformation war rooms as a part of the internationalization of human resources, it will also be a question of – to what degree? And more importantly – how? Enter – Discrete HR Apps.
The global HR system tries to institutionalize global best practices and “basic tenets” of contingent/ local practices. These components of a global HR system however fail to address nuances of the local HR requirements that calls for higher degree of localization, sometimes as local as only to one business unit in that geography! The Discrete Apps help create a HR technology infrastructure that enables MNCs address inevitable localization requirements without having to go for costly and very-oft self-defeating customizations. Discrete Apps helps address
localized HR requirements that goes beyond certain objective factors such as local labour/ industrial law and regulation and goes ahead to address localized process refinements that are aligned to local business and operational realities.
The non-invasive integrating Discrete HR Apps cater to MNCs’ local demands without having them compromise their HR system’s globalization tenets. Discrete HR Apps – which are highly configurable and can operate in harmony with the local HR processes and global HR systems – allow an organization to be much flexible to their localization needs and celebrate heterogeneity of the global organization.
To know more about HR Discrete Apps and to understand how it can address your localization needs, talk to one of our Discrete Apps specialists today.