The Localization Challenge:
With the standardization, there are many challenges with the localization. Where standardization brings many benefits, it is crucial to address the issues related to localization. These issues arise with the difference in the legal requirements of the different countries, cultural norms and behaviour of the region and the employee. Thus, to deal with the localization, the standardization must be done with the incorporation of flexibility about the situation that calls for localized adaptation (Shoham 2021).
Legal and Regulatory Compliance
The localization challenges can be observed in the legislation and regulatory compliance process as each country has their own particular set of legal requirements and regulations when it comes to employee rights and practices. Thus, standardization must happen with compliance with regional labour laws and regulatory practices while maintaining international standards. It will need a core performance and talent management framework that must align with the global strategic goals and must be flexible enough to cater for the local compliance modules (Kynighou 2020). Thus, these modules and frameworks must complement each other such that legal adherence must be ensured while maintaining the standardized system within the MNC and subsidiaries (Cuervo‐Cazurra et al. 2020).
Cultural Sensitivity:
According to Jyoti et al. (2015), cultural difference is the issue that influence the standard practices of Talent and performance management system. This impacts the overall execution process of talent management and performance management; thus, it is essential to implement such practices that respect local norms and perspectives. In the standardized system, the components related to cultural sensitivity must be integrated such that adjustments can be made to the local values and culture. There must be a balancing approach such that global practices are responsive enough to the local practices. There must be an enabling adaption process that is sensitive to local norms and simultaneously respects international standards. This will help in maintaining employee motivation, engagement and satisfaction across the subsidiaries (Baglioni et al. 2021).
Employee Engagement:
Shantz et al. (2013), states that employees of different cultures have different reward concepts thus they may have different expectations when it comes to performance evaluation and the concept of career development. However, an efficient standard system must be able to cater to such diverse demands and expectations that also enhance employee satisfaction and engagement. For this purpose, a regular feedback system should be implemented that has surveys that provide insight into employee input in the context of talent management and performance management. This feedback will help with making informed decisions to adjust the standardized system and ensure that it aligns with local expectations and promotes employee engagement. This can only be ensured with input from the regional employees or the expats. This will help with understanding the local expectations and perception accommodating the overall performance of the subsidiaries and the organisation (Teimouri et al. 2016).
