Introduction
With the process of globalization and internationalization, multinational firms develop rapidly. What is the multinational firm? It should be called multinational corporation (MNCs) which is more academic. An MNC is a company physically active in more than one country, like McDonald, Nestle, Ford etc.
General speaking, Human Resource Management plays an essential role for an enterprise, especially for a multinational enterprise. What is Human Resource Management? Noe et al. (2006: 5) defined HRM that “HRM refers to the policies, practices and systems that influence employee behavior, attitudes and performance in order to support business goals and objectives” while Dowling et al. (2008: 2) “HRM refers to those activities undertaken by an organization to effectively utilize its human resources”. What are HR activities? Earlier research (Beardwell, J. and Claydon, T., 2007) demonstrated that HR activities for an enterprise include: human resource planning, staffing (recruitment, selection, placement), performance management, training and development, compensation (remuneration) and benefits, industrial relations. HR activities are more complex and complicated for a multinational firm. The managers may encounter more challenges and difficulties which do not exist in the HR activities for a domestic firm. There are problems about different nations of employees, different cultures and regional differences. Therefore, every HR activity may be different in Human Resource Management between MNCs and domestic firms. This essay will discuss three HR activities engaged in HRM for an MNCs, which are not require in a domestic circumstance.
Main body
Firstly, it is staffing, including recruitment, selection and placement. In this part, the action involved in HR activities of a multinational firm and not required in a domestic environment is the staffing of subsidiaries. There are three sources of employees
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