Cultural Implications of Transfer of Hr Practices in Mncs

Transfer of Human Resource Management Practices in Multinational Corporations: A Perspective

Authors
Dr. Daleep Parimoo
Associate Professor,
School of Business Studies
Sharda University, Greater Noida, U.P [e-mail] Ms. Fehmina Khalique
Research Scholar at Sharda University and
Visiting Faculty
At Global Institute of Information Technology
Greater Noida, U.P [e-mail] Abstract: With the advent of globalization and liberalization, the emerging economies like China and India have grown manifolds. The mushrooming of MNCs is taking place at a very fast pace. The role of HRM in these companies has shifted from being a mere administrative to strategic one. The companies have realized that HR policies form the framework for culture in the business management and human assets are an emerging source of competitive advantage for them. Therefore National culture plays an important role in absorbing the HR practices from the MNC headquarters to Host country subsidiary. This paper examines the various HR practices which can be transferred, whether the subsidiaries follow the HQ practices or adopt the local ones. This area of research has been left unexplored by the researchers and therefore an attempt has been made to identify the reasons of transfer and what practices are transferred as well as the impact of transfer on organisational culture. In the end the result of transfer will be discussed as to how these HR practices shape the subsidiary company. Key words: International HRM, subsidiary, MNC, HRM practices, culture.

Transfer of Human Resource Management Practices in Multinational Corporations: A perspective

1. Introduction
According to Randhawa (2007) Human Resource management (HRM) refers to the policies and practices involving in carrying out the people or human resource aspects of a management position, including recruitment, screening, training, rewarding and appraising. Whereas,

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