International Human Resource Management Essay

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

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 countries of operation (Adler and Bartholomew, 1992). The effectiveness of human resource management can be seen as the key to success of MNC’s in the 21st century (Bartlett and Ghoshal, 1994, 1995; Pucik,

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