Chapter 4: Human Resource Management in Multinational Corporations

The practice of human resource management (HRM) in multinational corporations (MNCs) has changed irrevocably over the last decade with the increasing internationalisation of work, changing demographics, new forms of working arrangements and the growth of emerging economies. COVID-19 has also presented new opportunities and challenges for MNCs in terms of managing diverse workforces and operating both within and across countries. This chapter focuses on HRM policies, processes and practices in MNCs. The chapter considers the evolution of HRM in MNCs and synthesises current debates in the literature by differentiating global, international and comparative HRM. We then consider the organisation of the HRM function in MNCs and provide an overview of differing approaches to the implementation of policy and practices. We then focus on one of the key debates within the study of HRM in MNCs, namely, what are the issues that impact on the transfer of HRM practices in MNCs? Here we explore the different factors that may influence a MNC's decision to transfer their HRM practices across their foreign subsidiaries. The next section of the chapter focuses on one of the key practical issues for International Human Resource Management (IHRM) which is the management of the MNC staffing operation. We examine differing staffing approaches and consider emerging forms of new global working arrangements. We conclude by highlighting methodological issues and challenges faced by scholars studying HRM in MNCs and address future directions and reflections for the field.