When an MNE has created an international subsidiary they will often send a manager from the home country’s corporate office to oversee operations and ensure that the new subsidiary can operate effectively. However, expatriate managers often overlook the point that an approach to HRM that works in the home environment, does not necessarily mean that it will work in the subsidiary’s environment (Resource 10). International Human Resource Management (IHRM) relies on the expatriate manager understanding that the policies they implement regarding staff selection, training and development, remuneration etc. must be adapted to reflect the culture and values of staff in the host environment. According to resource 10, HRM policies developed for a subsidiary by the home office will be reflective of the culture, behaviours, values and norms held by staff back at home, as such these policies may be inappropriate or be misinterpre...
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...tal values of the host country, and the organisational structure of the home office (resource 2). As discussed earlier an MNE will want to take the successful elements of its’ operations in the home office and apply those to the subsidiary firm, but to make the international endeavour work the most important element to focus on are the people and employees of the host country, for they determine the success of the subsidiary firm (resource 12). Effective HRM planning becomes a critical focus point as it works to integrate and adapt people-management policies and make them suitable for those in the subsidiary firm, the main point of focus for HRM policies is that they first be broad enough so that managers within the subsidiary firm are able to work with the expatriate manager and develop a set of policies, practices and norms that are a best-fit for local employees.
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