International Human Resource Management

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Introduction The Analysis Machines (2004) defined Multinational Corporation as an enterprise operating in two or more countries with headquarters in one country. In today’s world, most of the businesses are getting globalized by setting up there business operations abroad. There are various forces which facilitates globalization like liberalization of international trade, international integration of production, Research and marketing by major MNC’s and emergence of economic regions like European Union enabled companies to invest overseas to gain and maintain competitive advantage. With an MNC having foreign subsidiaries comes the responsibility to transfer the organisational practices of the home country i.e. the headquarters to transfer its practices to the subsidiaries in host countries. The transfer of organizational practices can also contribute to developing a common corporate culture, enhancing procedural justice within MNC’s (Kim and Mauborgne, 1993) Human resource practices can be viewed as valuable resources to an organisation that increases the efficiency of business operations and its competencies (Zaheer, 1995; Szulanski, 1996). Bartlett and Ghoshal (1991) argued that human resource management policies and practices are becoming crucial because these practices can help in controlling international operations and co-ordination within subsidiaries and parent company. The ability to effectively transfer HRM practices that are proven efficient in the parent company to the overseas subsidiaries is a key characteristic of the successful MNC (Nohria and Ghoshal, 1997). HRM constitutes a major constraint when MNC’s implement global strategies due to the complex labour market and cross cultural environment in different countri... ... middle of paper ... ...multinational companies", International journal of Manpower, vol. 25, no. 6, pp. 518-534. Nohria, N. and Ghoshal, S. (1997) The differentiated network: Organizing multinational corporations for value creation, Jossey-Bass Publishers San Francisco^ eCA CA. Pucik, V. (1992) "Globalization and human resource management", Globalizing management: Creating and leading the competitive organization, vol. 61, pp. 84. Rosenzweig, P.M. and Nohria, N. (1994) "Influences on human resource management practices in multinational corporations", Journal of International Business Studies, , pp. 229-251. Szulanski, G. (1996) "Exploring internal stickiness: Impediments to the transfer of best practice within the firm", Strategic Management Journal, vol. 17, pp. 27-43. Zaheer, S. (1995) "Overcoming the liability of foreignness", Academy of Management journal, vol. 38, no. 2, pp. 341-363.
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