Instrument Development (Questionnaire)

Questionnaires are the most frequently used data collection method in educational and evaluation research. Questionnaires help gather information on knowledge, attitudes, opinions, behaviors, facts, and other information. Development of a valid and reliable questionnaire involves several steps taking considerable time. The following explanation describes the sequential steps involved in the development and testing of questionnaires used for data collection. Figure 1 illustrates the five sequential steps involved in questionnaire development and testing. Each step depends on fine tuning and testing of previous steps that must be completed before the next step. A brief description of each of the five steps follows Figure 1.

Conduct Survey

Run Reliability Test

STEP - 5

Observe Result

Target Audience, Population

Revision Readability Test

Field Test
STEP - 4

Panel of Experts Approval

Purpose & Goals, Objectives.

Generate Statements

Knowledge Attitudes Opinions Behaviors

Questionnaire Format

Variables: Dependant & Independent

STEP - 1 STEP - 2

Appropriate Scale of Measurement

STEP - 3

Figure: 1

Step 1-- Background

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In this initial step, the purpose, objective, research questions, and hypothesis of the proposed research are examined. Determining who the audience, their background, is especially their educational/readability levels, access, and the process used to select the respondents (sample vs. population) are also part of this step. In our situation, our sample size was 100 and the target audience was the entry level and mid level employees of A.C. Nielsen. The purpose of our questionnaire was basically to find out the opinions of these employees whether the practices implemented and internalized in their MNC unit resembles those of the headquarters practices or not. Step 2-- Questionnaire Conceptualization After developing a thorough understanding of the research, the next step was to generate statements for the questionnaire. In this step, content (from literature/theoretical framework) were transformed into statements/questions. In addition, a link among the objectives of the study and their translation into content is established. For example, we indicate what the questionnaire is measuring, that is, knowledge, attitudes, perceptions, opinions, recalling facts, behavior change, etc. Major variables (independent and dependant) are identified and defined in this step. Step 3-- Format and Data Analysis In Step 3, the focus was on writing statements, selection of appropriate scales of measurement, questionnaire layout, format, question ordering, and proposed data analysis. Scales are devices used to quantify a subject's response on a particular variable. Understanding the relationship between the level of measurement and the appropriateness of data analysis is important. For example, if regression or correlation is one mode of data analysis, the dependent variable must be measured on a interval/ratio scale (strongly disagree to strongly agree).

Step 4-- Establishing Validity

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As a result of Steps 1-3, a draft questionnaire is ready for establishing validity. Validity is the amount of systematic or built-in error in measurement. Validity is established using a panel of experts (in this case, our faculty) and a field test (for proof reading). Which type of validity (content, construct, criterion, and face) to use depends on the objectives of the study. The following questions were addressed in Step 4:
1. Is the questionnaire valid? In other words, is the questionnaire measuring

what it intended to measure? 2. Does it represent the content? 3. Is it appropriate for the sample/population? 4. Does the instrument look like a questionnaire? 5. Is the questionnaire comprehensive enough to collect all the information needed to address the purpose and goals of the study? Addressing these questions coupled with carrying out a readability test enhanced our questionnaire validity. Approval & feedback from our honorable faculty was also obtained. Following the approval, the next step was to conduct a field test using subjects not included in the sample. Make changes, as appropriate, based on both a field test and expert opinion. Now the questionnaire was ready to pilot surveys. Step 5-- Establishing Reliability In this final step, reliability of the questionnaire was carried out. Reliability refers to random error in measurement. Reliability indicates the accuracy or precision of the measuring instrument. After the survey was over, we wanted to see if offered a consistent reply from the respondents. The survey seek to answer the question, does the questionnaire consistently measure whatever it measures?

Data collected from the survey was analyzed using SPSS (Statistical Package for Social Sciences) software. The reliability coefficient (alpha) can range from 0 to 1, with 0

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representing an instrument with full of error and 1 representing total absence of error. A reliability coefficient (alpha) of 0.80 or higher is considered acceptable reliability. Title Inter-Organizational Relationship MNC Headquarter Governance HR System in Subsidiary Transfer Process Mechanism Change Management Implementation of Practices Internalization of Practices Alpha Value .9261 .8014 .8973 .8446 .8121 .9367 .9358

As we can see from the table above that for each of the variables, both independent (InterOrganization Relationship, MNC Headquarter Governance, HR system in Subsidiary, Transfer Process Mechanism and Change Management) and dependant variables (Implementation and Internalization of Practices), the alpha value came to be more than 0.8 in each of the cases. These values eventually tell us that the statements that were provided under these variables fetched us reliable and consistent answers in all the cases. If there were to be a value of alpha that was below 0.8 then the requirement of factor analysis would have been a question. But fortunately, that was not the case to be. Systematic development of the questionnaire for data collection is important to reduce measurement errors. Well-crafted conceptualization of the content and transformation of the content into questions (Step 2) is inessential to minimize measurement error. Careful attention to detail and understanding of the process involved in developing a questionnaire are of immense value. Not following appropriate and systematic procedures in questionnaire development, testing, and evaluation may undermine the quality and utilization of data.

Statement of the Problem

Background of the Study

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The debate about the extent to which management practices are, or are likely to converge globally has been a constant thread in academic debates about international comparative management for around half a century. As a part of BBA program, our Human Resource Management course lecturer assigned us to prepare a report on the effective transfer of HRM Practices in Multinational Corporations. With the help of a published article named Transferring HR Practices within multinational corporations by Ingmar Bjorkman and Jon E. Lervik, we have conducted a survey for required information in A.C. Nielsen Dhaka head office. Rationale of the study We are 4th year, 11th semester students of NSU. Sooner than later we will be going to job market and competing with other universities graduates for getting a suitable job. For getting an expected job, we need to be concerned about job market condition from this moment onwards. Understanding the practices currently performed in the major MNCs in our country, we could acquire required knowledge in different HR areas such as- about their recruiting and selection process which would eventually help us to perceive a common picture about recruiting and selection process in all multination company in Bangladesh. We can identify our lacks; prepare ourselves for future job market. So, we have the same opinion that this fruitful report not only assure reasonable grade mark in our curriculum result but also assure well-done feedback for near future job market.

Literature Review
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In a classic post-war statement of convergence, Galbraith (1967:336) argued that: "the imperatives of organization, technology and planning operate similarly, and as we have seen, to a broadly similar result, on all societies". In practice this meant a convergence to management systems that were being developed to accompany the most advanced technology, and thus a convergence towards US management methods (Kerr, Dunlop, Harbison & Myers, 1960) as the USA was the technological leader. Multinationals, being at the forefront of such developments, were seen as major mechanisms by which this convergence would unfold. The convergence thesis rests essentially on the notion of competitive isomorphism. As firms are increasingly faced with similar competitive environments globally they will adopt similar (optimally efficient) management practices. Alternatively, it has often been argued that convergence is unlikely since, despite increasing globalization of markets driven by technology and international agreements on trade, there continue to be significant social, political and cultural differences between regions and states. The debate has been given new importance by the more recent rise in international trade legislation, the importance of international institutions such as GATT and the EU and the rise in economic importance of multinational corporations (MNCs). Another important stimulus for the debate has been the increasing adoption of capitalist modes of economic activity among former communist states. MNCs have become of particular importance to this debate. First, they are often seen as an important channel for the transmission of management practices from one country to another. Second, the transferability of management practices from one national context to another is a matter of considerable practical importance for managers in MNCs. Third, the economic importance of large MNCs and their border spanning nature mean that the activities of MNCs have particular salience to legislators and regulators.

As empirical evidence accumulates (e.g. Gooderham, Nordag and Ringdal, 1999; Sparrow, 1997; Brewster, 1994), there is no clear conclusion to the convergence debate, which
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increasingly seems too simplistic. There is both convergence and evidence of continuing and robust diversity. In the post-war years, rather than simple convergence of management practice within a monolithic capitalism, we have seen the emergence of significantly divergent forms of capitalism. In the past decade an emphasis has emerged on what might be described as limited diversity, founded in distinctions between different forms of capitalism and in particular the dualism between liberal market economies and coordinated market economies (Hall and Soskice, 2001: 8). In liberal market economies (LMEs), such as the UK or the USA, firms coordinate their activities primarily through competitive markets and hierarchies. Firm relations are characterized by arms-length exchange of goods and services in a context of competition and formal contracting. Firm governance is characterized by the primacy of shareholder interests and the operation of well-developed capital markets. In coordinated market economies (CMEs) such as Germany or Japan, there is greater emphasis on coordination through nonmarket mechanisms: relational contracting, coordination and mutual monitoring through networks; and reliance on collaborative rather than competitive relationships to build firm competence. Firm governance is characterized by attention to a wider set of stakeholder interests, reinforced by legislation on employee rights and by financial arrangements that are less reliant on open capital markets. The contractual/market versus relational approach of the two systems is also reflected in the approach to employee relations. In the LME case, the emphasis is on flexible and efficient labor markets and on individual contracting. In the CME case, the emphasis is on long-term collaborative (and collective) relations between employer and employees supported by representative structures at the level of the industry, firm and workplace. An important difference between CMEs and LMEs is then the extent to which managers have autonomy in their decisions about human practices. In LMEs managers are relatively free from national institutions, including legal constraints, industry- level agreements, and the multiple stakeholders that constitute them. MNCs provide the ideal opportunity to study the interplay of national and international influences on national practice. Drawing on the RBV, Taylor, Beechler and Napier (1996) argue that HR-related strategic capabilities engendered by HR systems and routines, exist for MNCs at three levels: at the level of the parent company, across the MNC as a whole and at the level of the affiliate. They
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go on to argue that these capabilities may be context specific or general. They are concerned to model the circumstances under which HR capabilities will be seen as general within the MNC and hence transmitted from the parent to affiliate or from one affiliate to another. The principal dependent variable in the Taylor et al model is the degree of similarity between parent and affiliate HRM systems. The main determinants of this are summarized in figure 1.

Three forms of SIHRM orientation are identified in the model: adaptive, exportive and integrative. Firms that adopt an adaptive orientation seek to adapt affiliate HRM systems to local circumstances. Firms that adopt an exportive orientation seek to transfer HR policies that are seen as successful in the parent, to affiliates. In contrast an integrative orientation implies a focus on the transfer of best practice from wherever it might be found among affiliates to elsewhere in the firm. Taylor, Beechler and Napier conceptualize parent international strategy in terms of Porter's (1986) two generic international strategies: multi-domestic and global, and propose that a multi-domestic strategy leads to an adaptive SIHRM orientation, while a global strategy leads to an exportive or integrative SIHRM orientation (an integrative orientation representing a later stage of international development than an exportive orientation).

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In addition to the corporate level influences, in Taylor et al's model, there are four affiliate level influences on the degree of similarity between affiliate's and parent's HRM systems: the affiliate's strategic role (this affects the power balance between parent and affiliate and the parent's ability to impose HR practices), the method of establishment (it is easier to impose HR practices in a greenfield site than in an acquisition), and the legal and cultural context of the affiliate (the greater the legal and cultural distance between the country of the parent company and the host country of the affiliate, the harder it is to transfer HR practices). There is some empirical support for this model (Fenton-O'Creevy & Wood, 2001; Taylor, Beechler, Najjar, & Ghosh, 1998) in particular there is support for the importance of top management belief in HRM as a strategic capability and the cultural and legal distance between parent country and host country.

Existing Evidence
There is already an emerging body of work that addresses the trans-national diffusion of HR practices from an institutional perspective. For example, Gooderham, Nordag and Ringdal (1999) showed the adoption of collaborative and calculative approaches to strategic HRM to be significantly influenced by national institutional context. Fenton-O'Creevy and Wood (2001) have shown the rational-economic approach of Taylor et al (1996) to diffusion of HR practices within MNCs to be significantly enriched by adding an institutional perspective to their model. Recently, Kostova has argued (1999) for an institutional approach to practice transfer within MNCs and built a convincing empirical case (with Roth) for the importance of institutional processes in the transfer and adoption of quality practices from parent to affiliate (Kostova & Roth, 2002). In particular they show that practice adoption is a function of both host country institutional pressures and relational pressures within the MNC. They also usefully distinguish between ceremonial and more substantive adoption and show that substantive adoption requires coincidence of local normative and cognitive institutions with pressures from the parent or regulatory context.

Hypothesis Building
Hypothesis:
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Any undecided explanation can be referred to as a hypothesis which we use in many managerial decisions. For example: qualified employees generate more revenue. This statement is still faltered because there is no proof of its validity. This is why we conduct hypothesis testing which shows the validity of the explanation. A hypothesis should have testability so that it can proceed to the stage of hypothesis testing. Hypotheses must also be able to explain the phenomena under any set of conditions; if a hypothesis can only explain a phenomenon in one set of conditions, it is generally considered unacceptable. Hypothesis Testing: This test tries to prove the validity of the given hypothesis. The test involves a series of experiments in many different conditions. If the hypothesis does not stand up to the tests in all conditions then a new one is formed and submitted to the same hypothesis testing. If the new hypothesis passes in all conditions then it can be considered as a reliable and valid theory. We have used statistical hypothesis testing for which we have collected large quantities of data through questionnaires and interview. Then we have conducted tests (mean, correlation, reliability, regression). In a hypothesis test there are two hypotheses: null hypothesis and alternative hypothesis. Null hypothesis is the accepted decision and alternative hypothesis is the decision that one tries to prove. There are two types of errors in hypothesis testing. They are Alpha and Beta error. When a poor candidate is hired then Alpha error has occurred and if a good candidate is not hired then Beta error has occurred.

Our hypothesis: The transfer of HR practices is a social process where the MNC governance mechanisms, HR systems, Inter-organizational relationship ties and the transfer approach process influences the
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outcome of the process. There are extensive claims that planned transfers of management practices by the headquarters of multinational corporations (MNCs) to foreign subsidiaries are not always successful, and this is what we are ought to prove as wrong. Hence, our hypothesis in this regard is:

Successful transfer of HR practices within MNCs lead to proper Implementation and Internalization of the practices.

SIGNIFICANCE & OBJECTIVE OF THE TOPIC

Objective of the Study The report aims to provide statistical evidence that effective transfer of practices from MNC headquarters leads to proper implementation and internalization of practices within the subsidiaries. Limitations of the Study We are lucky enough to get a chance to prepare a report. We tried heart & soul to prepare a well-informed report. But unfortunately we faced some difficulties when preparing this report. We tried to overcome the difficulties. In spite of trying our level best, some difficulties that hamper our schedule report work: Shortage of time: Within a short time, we were to conduct the survey and come up with a rough draft as early as possible, for this reason, we could not get a fluent time schedule for the report. For which, the results should only be interpreted hypothetically. Lack of Cooperation within the organization: The employees of AC Nielsen were too busy with their own work. For this, they did not have sufficient time to fulfill our queries and some of them neglected us to support. Difficulty in collecting data: Many employers of the organization were not well known about all information that were asked of them. Many of them also hesitated to answer the questions and even to the extent not

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willing to reveal their names. These things were essential for the background checks and so might have hampered the information collection.

Research Methodology
Designing Questionnaire: We have decided upon 5 independent variables and 2 dependent variables before forming our questionnaire to support our hypothesis. The independent variables are: 1. Inter-Organizational Relationship 2. MNC Headquarter Governance 3. HR System in Subsidiary 4. Transfer Process Mechanism 5. Change Management

Under each independent variable we constructed 5 questions and there were total 35 questions in our questionnaire. The answers were ranked in a scale of 1 to 5 and had five options for the raters. The answers were: 1. Strongly Disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly Agree

After giving questions about independent variables, the last 10 questions in our questionnaire were about the dependent variables. We have given these questions later because after answering about their perceptions about the independent variables the employees will have a

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standpoint about the firms fairness during the assessment method and if we asked them about the dependent variables at the very beginning then their answers could have been inconsistent.

Dependent and Independent Variables

Inter- Organizational Relationship Social capital theory has recently been proposed as a fruitful framework for explaining knowledge transfer and integration between subunits. This theory is actually used to understand and examine how the relationship between MNC headquarters and the subsidiary may influence the transfer of HR practices. Social capital is actually defined as the sum of the actual and potential resources embedded within, available through, and derived from the network of relationships possessed by an individual or social unit and also the distinguishing between structural, relational and cognitive (Zaheer, 1995; Szulanski, 1996). The structural dimension of social capital is concerned mainly with the interpersonal linkages between people or units, the cognitive dimension of social capital encompasses organizational phenomena such as shared representations, interpretations, language, codes, narratives and systems of meaning among parties and relational dimension of social capital focuses on the personal relationships, friendships and relations. The structural dimension of social capital is closely related to what in international management research is usually termed as normative (or social) integration mechanisms. Intra- MNC integrated mechanism can be two types: Bureaucratic or formal ones and normative or informal (Kim and Mauborgne, 1993). Bureaucratic mechanisms can be used to deal with MNC management as well as some other staffs. Normative mechanisms used increasingly to deal with the issues such as personnel rotation, short-term visits, participation in joint training and management development programs etc. This informal mechanism actually helps the individuals to develop interpersonal networks as well as open and positive attitudes towards other nationalities and cultures (Kostova and Roth, 2002). This interaction ties is likely to lower the costs of transfer of practices and also make it easier for subsidiary actors to obtain help in finding useful ways to integrate the focal HR practices with other organizational practices and processes.

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MNC Headquarter Governance Subsidiary autonomy MNCs are not total hierarchies, where power and control is vested at the top, but can rather be seen as federal network organizations but there are some degrees of independence. From one study it was revealed that, the more foreign subsidiaries are dependent on the foreign parent organization and the higher equity held by the foreign parent organization, the more similar their HR practices are to those of the MNC home country. Considerable autonomy given to subunits are less likely to enact the corporate initiatives; but on the other hand less autonomous subunits are more likely to consent reluctantly to headquarters pressures to adopt practices (Ghoshal and Bartlett, 1990). A subsidiary with little autonomy may be forced to implement Headquarters HR practices but this can lead to counterproductive when it comes to internalization of the practices because organizational members may view the implementation of the practices as having been forced upon the unit. HR System in Subsidiary The MNC Headquarter may force or propose new HR practices to the subsidiary but all these things actually depend on the subsidiary managements satisfaction with its existing HR practices. If the subsidiary unit is satisfied with their existing practices then it will influence the perception and interpretation of new HR practices proposed by MNC headquarters management. If the subsidiary unit is highly satisfied with their existing HR practices they will not want to accept the new practices (Newman and Nollen, 1996; Kostova and Roth, 2002). The capabilities held by the receiving organization are important for its capacity to successfully receive practices and subsidiaries with high-level HR capabilities are more likely to effectively acquire and assimilate the practices in their own organization and are also more likely to exploit them in their unit (Hannon et al., 1995; Bjrkman and Lu, 2001). In subsidiaries, line managers play an important role to integrate the new HR practices with other organizational practices where the HR capabilities are perceived as high. Internalization of HR practices is expected to be relatively high in units with strong beliefs in the organizations HR capabilities (Kostova and Roth, 2002) .
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Transfer Process Mechanism One important aspect which is used of transferring HR practices to the foreign subsidiary unit is Due process. The subsidiary managers are more likely to accept decisions on HR practices to be implemented in their units if they perceived themselves involve in the process of decision and design. Another factor is, if subsidiary managers are provided in-depth explanations for decisions, decisions are more likely to be implemented (Ghoshal and Bartlett, 1990). It was accepted by some people that the use of international project teams may be beneficial for the development and diffusion of best HR practices in the MNC. Change Management In addition to the Due process, there are some other efforts also involved at managing the process of transfer to foreign subsidiaries. There are some other key factors related, among all these change management is a key one as well as leadership (see e.g. Kotter, 1996). Various aspects of leadership and management are important in organizational change. There are three types of leadership activities and they are Charismatic leadership, instrumental leadership and institutional leadership. Another aspect is, managing change processes is managers ability to manage meaning through shaping and reinterpreting stories about the firms history and purpose. The view of change management is --- its like a collective phenomenon and argues that the demonstrated attitudes and activities of the headquarters managers towards facilitating the transfer of HR practices to the focal subunit will influence subsidiary management interpretations and attitudes towards the practices (Feldman, 1990). Implementation of Practices Implementation refers to the empirically observable behaviors constituting the enactment of the transferred practice (Kostova and Roth, 2002). Transfers of organizational practices might or can make some changes which are different from the planned structures of headquarter but it doesnt mean that it will lead to the expected outcome (Beer et al., 1990). The actual focus is on developing a more holistic understanding of transfer and examining the extent to which headquarters prescriptions are enacted by subsidiaries for purposes of efficiency, coordination and/or legitimacy in the MNC as a whole.

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Internalization of Practices The term Internalization is actually refers to what degree externally imposed rules become internalized in the recipient unit, when it is taken for granted and accepted by employees, and when the employees see the value of using this practice (Kostova, 1999). Successful transfer is not just accepting the practices but also the degree to which employees are valuing these practices and also how much comfortable they are with these practices. And it is unlikely that high levels of internalization exist without the practices having been implemented in the first place.

Organization of research
AC Nielsen is a global marketing research firm, with worldwide headquarters in New York City. Regional headquarters for North America are located in Schaumburg, IL. As of May 2010, it's the part of The Nielsen Company. Academic Program The Nielsen Company has a long history of embracing innovation in consumer research, audience measurement, and the development of cutting-edge measurement technologies. Since Arthur Nielsen Sr.s procurement of the Audi meter, the first electronic measurement device, in 1936, our engineers and researchers have received numerous patents in their pursuit of excellence. Nielsen Academic Program offers eligible academic institutions and individuals a wide variety of formalized collaboration opportunities. These include everything from consulting opportunities, internships, assistance with curriculum design to financial support in the form of research and dissertation grants, as well as intellectual property licensing. By collaborating with The Nielsen Company, participants will enjoy: Being involved in advanced research and gaining access to state-of-art facilities Licensing innovative technologies and merchandising research ideas Accumulating industry experiences for participating faculty members Receiving financial support from The Nielsen Company
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Investor Relations The Nielsen Company provides the expertise, tools and data assets required to provide a competitive edge to its customers. Nielsen is committed to delivering outstanding and sustained value to its shareholders. The Nielsen Company hosted an investor conference call to discuss its full year 2009 results. Interested parties are invited to listen to a replay of the call over the Internet. AC Nielsen Bangladesh: Overview The proliferation of new media technologies and devices is empowering people to become their own programmers, develop their own playlists, and create personalized media portals. These changes create an increasingly challenging environment for capturing a greater share of market and monetizing your audience effectively. How can you extract more value from your content and optimize your ad sales yield? How do you measure the quality of your audience, not just the quantity? How do you adapt to the dynamically changing marketplace in advance of your competitors? Look to Nielsen to help you understand your viewers or listeners - and your industry - in new and more profitable ways. They invite you to get to know them as consumers and to understand them so completely and deeply that you'll be able to anticipate their next move. Their unmatched media industry expertise and leadership, deep understanding of consumer media consumption and behavior across all platforms, and innovative research and measurement tools position us to help you achieve your goals. They will collaborate with customers to develop the right strategies so you can overcome the challenges you face across media today. Whether your business is movie studios, radio stations, online portals, a new cable network or a local affiliate - Nielsen will provide the insights that let you know more see what's next and move forward confidently.

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Factor analysis
Factor analysis is a statistical method used to describe variability among observed variables in terms of a potentially lower number of unobserved variables called factors and this technique is applied when the reliability is below 0.8. In other words, it is possible, for example, that two or three observed variables together represent another, unobserved variable, and factor analysis searches for these possible combinations. The observed variables are modeled as linear combinations of the potential factors, plus "error" terms. The information gained about the interdependencies between observed variables can be used later to reduce the set of variables in a dataset. The analysis will isolate the underlying factors that explain the data. Factor analysis is an interdependence technique. The complete set of interdependent relationships is examined. There is no specification of dependent variables, independent variables, or causality. Factor analysis assumes that all the rating data on different attributes can be reduced down to a few important dimensions. This reduction is possible because the attributes are related. In the questionnaire survey, the reliability test has been conducted to test the internal consistency reliability between the questions in the questionnaire. The internal consistency reliability indicates the extent to which items on a given measure assess the same construct. The reliability test generated results, which were above 0.8 for all the dependent and independent variable relationships. This shows that the questions in the questionnaire is reliable and therefore factor analysis was not used during the survey and analysis process.

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Research Results and Discussion

Analysis Tools: Correlation
Correlation is a statistical measurement of the relationship between two variables. Possible correlations range from +1 to 1. A zero correlation indicates that there is no relationship between the variables. A correlation of 1 indicates a perfect negative correlation, meaning that as one variable goes up, the other goes down. A correlation of +1 indicates a perfect positive correlation, meaning that both variables move in the same direction together. It is basically a statistical procedure used to determine the degree to which two (or more) variables vary together. Correlation does not suggest a cause-effect relationship but only the degree of parallelism or concomitance between the variables, the cause of which may be unknown. The Pearson product-moment correlation (r) is the most frequently used, and this coefficient is used unless another is specified. Regression Analysis In statistics, a process for determining a line or curve that best represents the general trend of a data set. Linear regression results in a line of best fit, for which the sum of the squares of the vertical distances between the proposed line and the points of the data set are minimized (see least squares method). Other types of regression may be based on higher-degree polynomial functions or exponential functions. A quadratic regression, for example, uses a quadratic function (second-degree polynomial function) to produce a parabola of best fit. A statistical technique used to estimate mathematical models of economic and other processes. It is used to find a mathematical expression that best fits the relationship between groups of random variables as indicated by a sample of data. ANOVA/T-test In statistics, analysis of variance (ANOVA) is a collection of statistical models, and their associated procedures, in which the observed variance is partitioned into components due to different sources of variation. In its simplest form ANOVA provides a statistical test of whether or not the means of several groups are all equal, and therefore generalizes Student's two-sample t-test to more than two groups. ANOVAs are helpful because they possess a certain advantage over a two-sample t-test. Doing multiple two-sample t-tests would result in a largely increased chance of committing a type I error. For this reason, ANOVAs are useful in comparing three or more means.
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Correlation Analysis:
In the correlation analysis, we are trying to find the direction and magnitude of the relationships among the independent variables and dependant variables: Inter-Organizational Relationship: Headquarter Governance: HR System in Subsidiary: Transfer Process Mechanism: Change Management: Implementation of Practices: Internalization of Practices: Table: Correlation Analysis Variables
1) IOR 2) HG 3) HRSS 4) TPM 5) CM 6) ImP 7) InP

(IOR) (HG) (HRSS) (TPM) (CM) (ImP) (InP)

Mean SD
3.62 2.65 3.51 3.44 3.58 3.63 3.65 0.86 0.67 0.88 0.83 0.79 0.92 0.89

1
.31** .96** .92** .22** .99** .98**

.29** .32** .21** .32** .31**

.91** .21** .94** .93**

.15** .91** .91**

.21** .22**

.97**

** - Correlation is significant at 0.01 decimal places In the correlation analysis, we are trying to find the direction and magnitude of the relationships among the independent variables Inter-Organizational Relationship, MNC Headquarter Governance, and HR System in Subsidiary , Transfer Process Mechanism and Change Management with the dependant variables (i.e. Implementation and Internalization of Practices). Relationship between Inter-Organizational Relationship and Implementation of Practices: In the case of Inter-Organizational Relationship and Implementation of Practices, the Pearson Correlation (r) value is .991, which means that there remains a very strong positive relationship between these two variables. The value is so near to 1 that the relationship is very strong. From the organizational perspective, it means that, the inter-organizational relation among the headquarters and the subsidiary here is very strong due to which the employees execute the organizational practices very effectively and effectively. This might also mean that the MNC headquarters management may also use the existence of the interpersonal
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relationship to put pressure on the subsidiary to adopt certain practices. Evidence lies where we can see that inter-organizational ties do affect the HR practices in subsidiary. Results of the analysis indicated the existence of two groups of HRM practices conducive to interactional ties (Dana B. Minbaeva, 2005). Relationship between Inter-Organizational Relationship and Internalization of Practices: In the case of Inter-Organizational Relationship and Internalization of Practices the Pearson Correlation (r) value is .984. This also means that the relationship between these two variables is positive and very strong. The value is very close to one and the relationship is strong. From the organizational perspective, it means that, the employees here in the subsidiary unit are satisfied with the chosen practices for them and so the effectively are able to internalize them in their system. Results of a prior research work analysis indicated that the simultaneous effect of HRM practices of MNCs affect of staffing, training, promotion, compensation and appraisal of the subsidiary (Dana B. Minbaeva, 2005). Relationship between MNC Headquarter Governance and Implementation of Practices: In the case of MNC Headquarter Governance and Implementation of Practices the Pearson Correlation (r) value is .325, which means that there remains a weak positive relationship between these two variables. From the organizational perspective, it means that there is a positive but weak relationship between MNC Headquarter Governance and Implementation of Practices. The respondents of the questionnaire feel that though there is MNC governance in the unit, but they are not so happy with it. But they dont have an option other than to implement it. Also, evidence lies that less autonomous subunits are more likely to consent reluctantly to headquarters pressures to adopt practices (Ghoshal and Bartlett, 1990). Relationship between MNC Headquarter Governance and Internalization of Practices: In the case of MNC Headquarter Governance and Internalization of Practices, the Pearson Correlation (r) value is .314. This also means that the relationship between these two variables is positive but weak. From the organizational perspective, it means that there is a positive but very weak relationship between MNC Headquarter Governance and
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Internalization of Practices. The respondents of the questionnaire feel that, though there is MNC governance in the unit, but they are not so happy with it. But they dont have an option other than to internalize it in their whole system and use it to their effectiveness. Relationship between HR System in Subsidiary and Implementation of Practices: In the case of HR System in Subsidiary and Implementation of Practices, the Pearson Correlation (r) value is .949, which means that there remains a strong positive relationship between these two variables. From the organizational perspective, it means that there is a positive but strong relationship between HR System in Subsidiary and Implementation of Practices. There is evidence that if the subsidiary unit is highly satisfied with their existing HR practices they will not want to accept the new practices (Newman and Nollen, 1996; Kostova and Roth, 2002). The respondents in our case feel that they are not highly satisfied with their existing practices and hence they are willing to adopt the foreign practices with open arms. Relationship between HR System in Subsidiary and Internalization of Practices: In the case of HR System in Subsidiary and Internalization of Practices, the Pearson Correlation (r) value is .939. This means that means that the relationship between these two variables is positive and very strong. From the organizational perspective, it means that there is a positive but very strong relationship between HR System in Subsidiary and Internalization of Practices. The respondents of the questionnaire feel that there is a lack of motivation to continue their existing practices in the unit and so, wants to internalize the foreign practices. Relationship between Transfer Process Mechanisms and Implementation of Practices: In the case of Transfer Process Mechanisms and Implementation of Practices, the Pearson Correlation (r) value is .914, which means that there remains a very strong positive relationship between these two variables. From the organizational perspective, it means that there is a positive and very strong relationship between Transfer Process Mechanisms and Implementation of Practices. The respondents of the questionnaire feel that the transfer process followed by the headquarters is effective in the sense that the unit is able to implement their practices effectively.
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Relationship between Transfer Process Mechanisms and Internalization of Practices: In the case of Transfer Process Mechanisms and Internalization of Practices, the Pearson Correlation (r) value is .911. This means that the relationship between these two variables is positive and strong. From the organizational perspective, it means that there is a positive but very strong relationship between Transfer Process Mechanisms and Internalization of Practices. The respondents of the questionnaire feel that the transfer process followed by the headquarters is effective in the sense that the unit is able to internalize their practices effectively. Relationship between Change Management and Implementation of Practices: In the case of Change Management and Implementation of Practices, the Pearson Correlation (r) value is .210, which means that there remains a very weak positive relationship between these two variables. From the organizational perspective, it means that there is a positive and very weak relationship between Change Management and Implementation of Practices. Evidence is that among all the change managements a key one is leadership (see e.g. Kotter, 1996). The respondents of the questionnaire feel that there is a huge lack of leadership capabilities in the subsidiary and so, the foreign practices are not properly communicated to the employees, hence the implementation is not correct. Relationship between Change Management and Internalization of Practices: In the case of Change Management and Internalization of Practices, the Pearson Correlation (r) value is .222. This means that means that the relationship between these two variables is positive but weak. From the organizational perspective, it means that there is a weak positive relationship between Change Management and Internalization of Practices. The respondents of the questionnaire feel that internalizing the foreign practices requires a Transformational Leadership which is seriously lacking in the AC Nielsen Bangladesh.

Regression Analysis
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Inter-Organizational relationship and Implementation of Practices Hypothesis:

Strong interaction ties between the subsidiary and MNC headquarter leads to leads to effective implementation of practices.
Fcal = 5160.6 Fcrit = 3.92 Sig Value = 0.00 R2= 0.98 The Regression analysis of Inter-Organizational relationship and Implementation of Practices tells us that there are strong interaction ties between the subsidiary and Multinational Company headquarters which leads to the effective implementation of practices. The analysis has given us a statistical value which denotes that Fcal = 5160.6 and Fcrit = 3.92 with a Significance Value = 0.00. In this case we can see that there is a very large value for Fcal against the Fcrit value which denotes that a very strong relationship lies between the subsidiary and the MNC headquarters and this is not only proven statistically but also in the practical implementation of the company. Thus we can connote that Fcal is greater than Fcrit and thus we can accept H1 and reject the null hypothesis (H0). The analysis of the variables states that there is linear relationship between the two variables and that also a very strong relationship between the two variables. Also, the R 2 of 0.98 suggest that the interaction ties between headquarter and subsidiary creates an immense bonding that results in the 98% successful implementation of the practices.
6

IMPLPRAC

0 1 2 3 4 5 6

IORELN

MNC Governance Mechanism and Implementation of Practices

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Hypothesis:

Strong governance mechanism followed by MNC headquarters leads to effective implementation of practices.
Fcal = 11.580 Fcrit = 3.92 Sig Value = 0.001 R2= 0.16 The regression analysis states that the more the foreign subsidiaries are dependent on the foreign parent organization and the higher the equity held by the foreign parent organization, the more similar their HR practices are to the MNC of the home country. The analysis states us that there is a relationship between the two factor as Fcal is greater than Fcrit even though the difference between them are not vast. Thus we can clearly state that there is a relationship between them but that is only statistically significant as the result states so. There is a relationship but this will not be practically counted as the difference between them is minimal. We can clearly see the statistical difference of Fcal being 11.580 and Fcrit being 3.92 which only satisfies the analysis statistically not in reality. Further down the analysis we can state that the Headquarters may be forcing the unit to implement their practices due the small R2 value to be seen. The R2 value of 0.16 tells us that though the subsidiary is implementing the practices but just for the sake of it. Thus we will clearly affirm that we have now accepted the H1 and rejected the null hypothesis (H0) and say that our hypothesis was correct.
6

IMPLPRAC

0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

MNCHQGOV

HR System and Implementation of Practices

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Hypothesis:

Strong HR system followed by MNC headquarters leads to effective implementation of practices in subsidiary.
Fcal = 885.10 Fcrit = 3.92 Sig Value = 0.00 R2= 0.90 The regression analysis of the HR system and Implementation of Practices portrays the strong relations followed by the MNC headquarters that will lead to an effective implementation of practices in subsidiary. Here in the analysis we can see that the Fcal value is greater than the Fcrit by a large margin, where Fcal =885.10 and Fcrit= 3.92 and the standard value is 0.00. thus we can connote that the relation between the HR system and Implementation of practices is very strong when followed by MNC headquarters that leads to effective implementation of practices in subsidiary. In reality there is a strong relation between the implementation when the MNC headquarters directs its practices to its subsidiaries. Thus we can strongly say that we can accept the H1 proving our analysis right and thus reject the null hypothesis (H0).

IMPLPRAC

0 1 2 3 4 5 6

HRSYSTEM

Transfer Process Mechanism and Implementation of Practices

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Hypothesis:

Effective transfer process followed by the headquarters lead to satisfactory implementation of practices in subsidiary.
Fcal = 499.13 Fcrit = 3.92 Sig Value = 0.00 R2= 0.83 The regression analysis for the transfer process mechanism and implementation of process focuses on the effective transfer process which is followed by the headquarters that lead to the satisfactory implementation of practices in subsidiary. Here we are trying to find a linear relationship between the transfer process mechanism and the implementation of practices. Finally we can state that there is a strong relation between the two variables not only on the basis of statistic analysis but also in reality it deals with a proper relation. We can say that Fcal is greater than Fcrit as Fcal = 499.13 and Fcrit = 3.92. Thus we can simply state that our hypothesis was correct and we can accept the H1 based on the study and safely reject the null hypothesis (H0). Further we can analyze that foreign subsidiary managers are more likely to accept decisions on HR practices to be implemented in their units if they are been involved in the process of decision and design in HR practices to be used in different parts of the MNC and that effective transfer process followed by the headquarters lead to a satisfactory implementation of practices in subsidiary. There is thus a formal transfer process, proven transfer process and the content of country is considered.
6

IMPLPRAC

0 1 2 3 4 5 6

TRNSPRO

Change Management and Implementation of Practices

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Hypothesis:

The perceived headquarters change management behaviors and attitude lead affects the implementation of practices in subsidiary.
Fcal = 4.50 Fcrit = 3.92 Sig Value = 0.036 R2= 0.04 The regression analysis for the perceived headquarters change management behaviors and attitude lead affects the implementation of practices in subsidiary, focuses on the linear relation of the change management and implementation of practices. According to the regression analysis, Fcal=4.5 and Fcrit=3.92, at a significance level of 0.036. Since the value of Fcal is greater than Fcrit we reject the null hypothesis. This indicates that a linear relationship exists between change management and implementation of practices. Thus now we accept the H1 and the perceived headquarters change management behaviors and attitude lead affects the implementation of practices in subsidiary is proved right. But we can see that the hypothesis is proven right but the figures do not have a concentrated observed line due to the Fcal and Fcrit value being somewhat close and thus we can state that the statement affects statistically but practically it may not be proven correct all the time as due to the low R2 value.
6

IMPLPRAC

0 0 1 2 3 4 5 6

CHMGT

Inter-Organizational Relationship and Internalization of Practices

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Hypothesis:

Strong interaction ties between the subsidiary and MNC headquarter leads to effective internalization of practices.
Fcal = 2956.4 Fcrit = 3.92 Sig Value = 0.00 R2= 0.96 The regression analysis for the Inter-Organizational Relationship and internalization of Practices focuses on identifying whether any linear relationship lies between the two variables in terms of the internalization. He we can see the Fcal is greater than Fcrit by a huge margin as Fcal= 2956.4and Fcrit = 3.92 with a Significance value of 0.00. Therefore a strong relationship is found between the ties of the subsidiaries and MNC headquarter leads to effective internalization of practices. We can thus reject the null hypothesis (H0) and accept our hypothesis H1 which is proven right that there is a strong interaction ties between the subsidiary and the MNC headquarter leads to effective internalization of practices. This is not only statistically correct but in reality it plays a significance role when internalization of practices is concerned with the inter-organizational relationship. The relation between the interaction of the subsidiaries and the MNC headquarters are also very strong when internalization is concerned. This also reinforced with the value of R2 to be very strong at around 96%.
6

INTRPRAC

1 1 2 3 4 5 6

IORELN

MNC Governance Mechanism and Internalization of Practices Hypothesis:

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Strong governance mechanism followed by MNC headquarters leads to effective internalization of practices.
Fcal = 10.744 Fcrit = 3.92 Sig Value = 0.001 R2= 0.09 The regression analysis for the MNC Governance Mechanism and the Internalization of Practices with respect to the hypothesis of the strong governance mechanism followed by MNC headquarters leads to effective internalization of practices. Here the H1 is accepted, and the null hypothesis (H0) is rejected as the Fcal is greater than the Fcrit. The Fcal = 10.744 and Fcrit = 3.92 with a significance value of 0.001. here the strong governance may be imposed on the MNC headquarters and the hypothesis may be correct in statistical terms but in reality it is proven wrong. There is a lack in the proof of it being realistic and may not work for the internalization of practices. Also a minor 9% relationship of headquarters governance and internalization of practices further reinforces our assumption.
6

INTRPRAC

1 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

MNCHQGOV

HR System and Internalization of Practices Hypothesis:

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Strong HR system followed by MNC headquarters leads to effective implementation of practices in subsidiary.
Fcal = 731.97 Fcrit = 3.92 Sig Value = 0.00 R2= 0.88 The regression analysis of the HR system followed by the MNC headquarters leads to the effective implementation of practices in subsidiary with the variables HR system and Internalization of Practices. The Fcal value is greater here than the Fcrit value and thus the hypothesis we are imposing is correct and accept the H1 and we reject the null hypothesis (H0). There is a strong relationship between the MNC headquarters implementation of practices in the subsidiary as the HR systems and Internalization of Practices is followed. The Fcal = 731.97 and Fcrit = 3.92 and the Significance Value is 0.00. Our hypothesis is proved right both statistically and practically as shown by the strong relationship and a strong linear line can be expected from the regression of the two variables HR System and Internalization of Practices.

INTRPRAC

1 1 2 3 4 5 6

HRSYSTEM

Transfer Process Mechanism and Internalization of Practices Hypothesis:

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Effective transfer process followed by the headquarters lead to satisfactory internalization of practices in subsidiary.
Fcal = 480.2 Fcrit = 3.92 Sig Value = 0.00 R2= 0.83 The regression analysis for the effective transfer process followed by the headquarters lead to satisfactory internalization of practices in subsidiary when the variables Transfer Process Mechanism and Internalization of Practices are taken. Here the Fcal is greater than the Fcrit, as Fcal = 480.2 and Fcrit= 3.92 with a significance level of 0.00. Thus we can state that the null hypothesis (H0) is rejected and the H1 is accepted proving our hypothesis right which is the effective transfer process followed by the headquarters lead to satisfactory of practices in subsidiary. The transfer process mechanism and the internalization of practices have a strong regression analysis which is statically and realistically proven right.

INTRPRAC

1 1 2 3 4 5 6

TRNSPRO

Change Management and Internalization of Practices Hypothesis:

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The perceived headquarters change management behaviors and attitude lead affects the internalization of practices in subsidiary.
Fcal = 5.07 Fcrit = 3.92 Sig Value = 0.027 R2= 0.04 The regression analysis for the perceived headquarters change management behaviors and attitude lead affects the internalization of practices in subsidiaries when change management and internalization of practices is concerned. The null hypothesis (H0) is rejected with the H1 being accepted proving our hypothesis that the perceived headquarters change management behaviors and attitude lead affects the internalization of practices in subsidiary is statically proven but in practical the hypothesis may not be correct due to the difference being not very large as the Fcal is greater than the Fcrit but by small number. Here Fcal = 5.07 and Fcrit = 3.92 and the significance level is 0.027. Thus we can state that the change management and the internalization of practices with the perceived headquarters change management behaviors and attitude lead affects the internalization of practices in subsidiary is correct with the statistics of the regression analysis. The r2 value of 4% tells us that though the employees in the subsidiary ar trying to internalize the foreign practices but are not actually satisfied with it.
6

INTRPRAC

1 0 1 2 3 4 5 6

CHMGT

Recommendations & Implications

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More autonomy in the subsidiary unit through decision making empowerment

As seen in the correlation analysis, there is a positive relationship between MNC governance mechanism and both the implementation and internalization of practices. Upon conducting the regression between the variables, we could prove our hypothesis that strong MNC governance leads to the implementation and internalization of practices. But what we could understand is that the implementation and internalization was a result of pressure from the headquarters. Yes, the practices were being utilized but not satisfactorily. So we recommend that even though headquarter governance is important, but some degree of autonomy should be allowed to the subsidiary so that they can choose the best practice for their unit, rather than the only possible practice.

More initiative to Change Management through leadership

We could figure out that though there was a statistical evidence of change management affecting the implementation and internalization of practices in the subsidiary unit, it was practically insignificant to approve our hypothesis. This means that the perceived headquarters change management activities were not affecting the subsidiary here in Bangladesh. So, efforts should be made by the subsidiary manager here to bring about necessary changes in the system and leadership.

Training Program to better adapt to foreign practices

Since it was evident that most of the AC Nielsens practices were influenced by the headquarters, in order to ensure proper implementation and internalization of these practices, the employees should be sent through extensive training. The eventual results would be a cadre of employees who would be a having a sense of corporate identity and also some specific headquarter based competencies. Return on investment on training in this case would be that the MNC headquarter would allow more autonomy for the subsidiary unit here.

Introduce Feedback and Response information system

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We could identify that there was a huge flaw in the overall communication system between the headquarters and the subsidiary unit here. Once the HR practices were passed on to the subsidiary, there was no one to ensure as to whether the practices have been effectively implemented and internalized. We recommend that AC Nielsen Bangladesh should introduce a feedback system so that once the practices are being implemented, they measure the outcome of the move and pass it on back to the headquarters for performance appraisal. The subsidiary manager in this case should be the one to ensure this feedback and ensure that they get a response from the headquarters in return to see whether they were successful in internalizing the foreign practices in their unit or not.

References:
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Beer, M., Eisenstat, R.A. and Spector, B. (1990). Why change programs dont produce change. Harvard Business Review, 68: 6, 158166. Dana B. Minbaeva, (2005) "HRM practices and MNC knowledge transfer", Personnel Review, Vol. 34 Iss: 1, pp.125 - 144 Fenton-O'Creevy, M., & Wood, S. (2001, August 3-8). Antecedents of strategic international human relogicalTitle management in UK MNCs: Putting relogicalTitle based theory in an institutional context. Paper presented at the Academy of Management Conference, Washinton DC, USA. Ghoshal, S. and Bartlett, C.A. (1990). The multinational corporation as an inter-organizational network. Academy of Management Review, 15: 4, 603625. Gooderham, P., Nordag, O., & Ringdal, K. (1999). Institutional and rational determinants of organizational practices: Human relogicalTitle management in European firms. Administrative Science Quarterly, 44(3), 507- 531. Hannon, J., Huang, I.-C. and Jaw, B.-S. (1995). International human resource management and its determinants: the case of subsidiaries in Taiwan. Journal of International Business Studies, 26: 3, 531554. Kerr, C., Dunlop, J. T., Harbison, F., & Myers, C. A. (1960a). Industrialism and industrial man: The problems of labour and the management of economic growth. Cambridge, MA: Harvard University Press. Kim, W.C. and Mauborgne, R. (1993). Procedural justice, attitudes and subsidiary top management compliance with multinationals corporate strategic decisions. Academy of Management Journal, 36: 3, 502526. Kostova, T. (1999). Transnational transfer of strategic organizational practices: A contextual perspective. Academy of management review, 24, 308-324. Kostova, T. (1999). Transnational transfer of strategic organizational practices: a contextual perspective. Academy of Management Review, 24: 2, 224308. Kostova, T. and Roth, K. (2002). Adoption of an organizational practice by subsidiaries of multinational corporations: institutional and relational effects. Academy of Management Journal, 45: 1, 215233. Kotter, J.P. (1996). Leading Change, Boston, MA: Harvard Business School Press. Porter, M. E. (1986). Competition in global industries: A conceptual framework. In M. E. Porter (Ed.), Compe- tition in global industries (pp. 15-60). Boston: Havard Business School Press. Taylor, S., Beechler, S., Najjar, M., & Ghosh, B. C. (1998). A partial test of a model of strategic international human relogicalTitle management. Advances in Inter- national Comparative Management., 12, 207-236.

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Taylor, S., Beechler, S., & Napier, N. (1996). Toward an integrative model of strategic international human relogicalTitle management. Academy of Management Review, 21(4), 959-985. Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management Journal, 38: 2, 341363.

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