Skip to main content

Posts

Showing posts from October, 2008

Should HRM practices in MNCs should be adapted to the local environment to be most effective?

Observation: The world is becoming an increasingly smaller place to live in. There has been rapid progression in the arenas of transportation, faster communication channels and financial flows, all owing to advancements in technology. As companies spread their wings in the global scenario, there has been a tremendous boom in international trade and commerce. Markets that were once considered impregnable and safe are facing fierce competition and have become battle grounds where firms fight for market share against both local and foreign companies. Not surprisingly, nowadays a fairly good proportion of workforce in firms, regardless of their nationality, is located in foreign countries. As more companies go global, a new branch of human resource management called International HR management has emerged. Edith Penrose (1959) shows the firm as an administrative organisation and a collection of productive resources. According to her, HR of a firm is a unique resource and cannot be re