The Effectiveness of HRM In Competition on Human Factor in MNC – The Empirical Research Findings

Abstract :

The main goal of the paper is to determine in what way the degree of HRM contribution to the MNC’s performance results influences on the perceived value of human factor as a competitive differentiator on the market. The research problem covered the identification and analysis of the relationships between the degree of HRM and its subfunctions’ contributions to the MNC’s performance results (independent variables) and the perceived value of human factor as a competitive factor (dependent variable). The research sample covered 200 headquarters (HQs) of MNCs and their local subsidiaries. The empirical research findings show that there is a clear, identifiable relationship between the degree of HRM contribution to the MNC’s performance results and the perceived value of human factor as a competitive differentiator on the market. This relationship is true when considered from the global perspective, when the MNCs evaluate their worldwide HRM practices and the impact of these practices on the worldwide competitive value of their human factor. There are some exceptions and differences when the overall HRM contribution or its particular HRM subfunctions’ contribution are juxtaposed with the overall human factor or its two subfactors at the local subsidiaries level.