Human resource practices and firm performance of multinational corporations: influences of country origin

Ngo, Hang‐Yue; Turban, Daniel B.; Lau, Chung‐Ming; Lui, Siu-Yu

doi:10.1080/095851998340937

Cited by 188 publications

(160 citation statements)

References 36 publications

(74 reference statements)

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“…Firms have used human resource practices to achieve their performance, particularly in relation to retention. The impact that human resource practices have on firm performance are apparent, as many researchers have shown in their studies from the United States and Europe [1], [2] to Asia [3], [4] and Africa [5]. Human resource management practices consist of many policies and practices that are used by managers to recruit, select, develop, utilize, reward, and maximize the potential of human resources in organizations [6].…”

Section: A Human Resource Management Systemmentioning

confidence: 99%

HRM Practices and Employee Retention in Thailand—A Literature Review

Tangthong¹,

Trimetsoontorn²,

Rojniruntikul³

2014

IJTEF

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Abstract-An empirical study is conducted to investigate the effects of HRM practices on employee retention in Thailand's FDI manufacturing industry. HRM practices that will be covered in this research consist of compensation & benefits management and reward system, and training & development. HR Intervening, which acts as the mediating variable, will be employee engagement. As the dependent variable and an observed variable, is employee retention. Thus, the conceptual model created for this study will comprise of two independent variables, one mediating variable and one dependent variable. A total of 5 theoretically-based hypotheses are developed, indicating possible positive and negative relationships among the variables of the model. Input consists of 400 top management, human resources managers/leaders and line managers of Thailand FDI's key industrial zone in Rayong province. The proposed model is empirically tested by using AMOS of a Path Analysis modeling approach. It is hoped that this study will help both academics and those managing human resource to realize, understand and see the influence of HRM practices and employee retention.need to be provided with training & development to develop their skills and perform better at work. Training and development can lead to superior knowledge, skills, abilities, attitudes, and behavior of employees, thereby enhancing excellent financial and non-financial performance of the organizations [10]. As for firm performance, employee retention is chosen as the observed variable since previous studies have shown how it has been related to effectiveness as a human resource outcome [11]. While there have been many studies on the relationship between human resource practices and firm performance, there are also studies that have managed to identify other factors that could have an impact on the relationship between HRM practices and organizational performance [12]. These factors are the HR Intervening, which mediate the relationship between HRM practices and firm performance. Employee engagement is chosen as the HR Intervening in this study, so as to gain a better understanding of the nature and the impact that employee engagement has on compensation & benefits management and reward system, and training & development as the two HRM practices, and employee retention, as the observed variable of firm performance. Thus, by understanding the relationship between HRM practices and firm performance, it would serve as a platform for managers in organizations by assisting them to achieve better performance. II. LITERATURE REVIEW AND HYPOTHESESThis section will focus on prior literature involving HRM practices and their interactions with employee engagement and employee retention as well as the literature surrounding the hypotheses that have been formulated for this study. It will focus, in particular, on the relationships between compensation & benefits management and reward system, and training & development as the two HRM practices, employee engagement as the HR Intervening and e...

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Section: A Human Resource Management Systemmentioning

confidence: 99%

HRM Practices and Employee Retention in Thailand—A Literature Review

Tangthong¹,

Trimetsoontorn²,

Rojniruntikul³

2014

IJTEF

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“…Se mide a partir de valoraciones subjetivas sobre diversos resultados economicos y financieros. Este tipo de medidas de percepción gozan de buena acogida entre los autores Delaney y Huselid, 1996;Fey y Björkman, 2001;Ngo et al, 1998;Yound et al, 1996). Sin embargo, el posible sesgo que puede haber entre ambas y el hecho de recurrir al responsable de recursos humanos o el gerente para la recogida de la información, conlleva una limitación que debe considerarse en la interpretación de los resultados.…”

Section: B Variable Dependienteunclassified

The effect of cultural context on the efficiency of best practices in human resource management

Lertxundi¹,

Rodríguez²

2011

cuadernosgestion

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“…Here the premise is that cultural values and norms so tightly interact with behavior that human resource management practices that encourage "unnatural" behaviors -such as individual performance rewards in a collectivistic society -are destined to fail. Empirical evidence seems to provide some support for the importance of this factor in constraining integration of HRM in MNCs (Ngo, Turban, Lau & Lui, 1998). Last is what can be called organizational factors, into which can be placed the strategic posture and imperatives of the firm.…”

Section: Ihrm Integration Debatesmentioning

confidence: 99%

“…Industry of the firm, country of origin, and top management beliefs have all been discussed or studied as contributing to the chilling effect on global integration of HRM. Country of origin, for example, has been found to influence the kinds of HRM policies that MNCs adopt in the foreign affiliates, with MNCs from some countries showing greater propensity to adapt than others (Ngo, Turban, Lau and Lui, 1998;Bae, Chen and Lawler, 1998).…”

Section: Ihrm Integration Debatesmentioning

confidence: 99%

Emerging Motivations for Global HRM Integration

Taylor¹

2006

Multinationals, Institutions and the Construction of Transnational Practices

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For many years, the field of international human resource management (IHRM) has struggled with the question of whether or not it is better for a multinational firm (MNC) to integrate its IHRM function across the various geographies in which it operates. By integration, I refer to the quest for consistency of HR philosophy, policies and practices across the MNC's operations worldwide. Looked at from one angle, the debate is rather a bizarre one. Does it really make any sense for a MNC to undertake 2 integration of HR policies? Surely, any VP or Director of IHRM must be considered slightly mad to take on such an endeavor. The obstacles this hapless VP faces would give anyone with his feet firmly planted in reality not just pause, but freeze him in his tracks. He is faced with a stupefying array of labor law regimes, enormous divergence in labor market characteristics, widely different institutional settings, vastly different cultures -who in their right mind would proceed to try to tie together their HR system into a global whole? No, much better to hire competent local HR specialists who can concoct a HR system for their local units that makes sense. It decreases the hair pulling over how to adapt and how much to adapt particular HR policies and yet retain an integrated system. It is simply easier, and less costly in both psychic and monetary costs, to not integrate.Evidently, the IHR profession must attract the slightly demented, because a fair number of firms actually seem intent on this lunacy. And, interestingly enough, we are likely to see more. And this is what I would like to explore with you today -why MNCs, and the IHRM VPs who work within them, are likely to become ever more intent on overcoming the many barriers that exist to integrating their HR management on a global basis. There are, I will argue, two emerging trends that cannot be ignored that are creating a strategic imperative for greater IHM integration, and that may dwarf other concerns. These two trends are the increasing need to focus on the creation of social capital within the global network, and the growing need to focus on sustainability as part of the company's global strategic imperative. And as I hope to show briefly, these harried VPs of IHR have gotten lucky, because achieving these two goals is a mutually reinforcing process. 3 I will first quickly review the major debates around HRM integration before turning to a description of these two trends in MNCs. I will then discuss how these trends are likely to increase the desire for integration of IHRM. I will finish with a short discussion of which aspects of HRM are most likely to be affected by each trend. My remarks are not meant as definitive but simply as food for thought, observations of the larger societal and strategic trends within which IHRM exists and with which it must deal.

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Human resource practices and firm performance of multinational corporations: influences of country origin

Cited by 188 publications

References 36 publications

HRM Practices and Employee Retention in Thailand—A Literature Review

HRM Practices and Employee Retention in Thailand—A Literature Review

The effect of cultural context on the efficiency of best practices in human resource management

Emerging Motivations for Global HRM Integration

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