Multinational corporation management strategies and international human resources practices : bringing 1 H R M to the bottom line

This paper examined the relationship between multinational corporations' global management strategies and the resulting international human resource piactices . Four global strategies, which vary in their extent of global integration and local responsiveness, were examined (ethnocentric, regiocentric, polycentric and geocentric) . Data from international human resource professionals in forty-sir companies generally supported the hypothesis that HR practices (recruitment . selection, socialization) varied by global strategy . In particular, strategies varied especially between the ethnocentric and geocentric companies. These strategies were further found to be related to a composite Multinational Corporation Success Index of economic variables (return on capital, sales growth, return on equity . profit margin) . Companies which had ethnocentric strategies were found to be less successful than companies operating under any of the other three strategies . Findings suggested that local responsiveness should be incorporated into the global strategy of multinational companies. Recommendations for international human resource practices based on these results have been given . Keyssords Global management strategies, international human resource practice. selection . recruiting . economic success