Global or local HRM in the multinational company: the Irish experience

Abstract

This article considers the extent to which multinational enterprises adopt a global or local approach in their management of human resources. The analysis is based on the findings of research in nine subsidiaries of multinationals operating in Ireland. The study revealed that the majority of multinationals adopted a local approach, with headquarters involvement in many cases limited to monitoring the financial implications of human resource decisions. It appears that the transfer of human resource management practices can be a two-way process and that some subsidiaries manipulate human resource policies in order to maintain their competitive position within the corporation. The findings also suggest that the integration of human resource issues in strategic decision making may need to be considered as a local, rather than a corporate level, activity.

Keywords:

• Human resource management
• multinational companies
• decision making