The host country effects influence HRM in the multinational enterprise


Human resources management is one of the most important elements for the corporations to do the strategic management, if loss the effective management of human resources, the various developed strategies are set up by the company can only be a dream, and cannot grow the company's economic. For multinational companies, it may operate in a foreign market which have very different environment and culture, the complexity of environment decide the complexity of multinationals human resource management. Multinational corporations have to deal with a range of special human resources management issues. There we would discuss which factor the multinational enterprise should pay attention to.

2. The host country effects 2.1. Language

Language is the most basic behavior of human being, and the language of the world is very complex. So multinational corporations go to start a company in another country which speaking different language compares the home country, for human resources management, the language would be one of the most obvious problems. Language is an important means of communication between people, and communication, in business management plays a very important role.

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Of course, nowadays the international economic contacts and cooperation are quite common, so the investors do not have to master the host language. For example, by hiring the local managers or some person are familiar with and understand the local culture and language, it both can greatly reduce the language barrier. In fact, each social group has their own strong feelings of the mother tongue. In a different language country, to close and motivate the employee, language would be the important way.

2.2. Concept of time

As cultural differences between nations, people have different concept of time. For example, in the United States often give each other a latest time, but in the Middle East giving a latest time would be considered a boorish behavior.

Concept of time is largely affected by the economic development level. Modern industrial process accelerates the pace of life, changing people's concept of time, and thus concept of time differences between developed and developing countries to be displayed. Developed countries to see time as money and life, everyone was pressed for time, especially those people who seek for high achievement. The developing countries, especially underdeveloped countries have the slow pace of life, people take negative attitude on punctuality and time-efficient. In the same country, developed areas and backward regions also exist of a similar different concept of time. So that multinational corporations should adopt a flexible attitude to treatment the concept of time.

2.3. Education

Meanwhile, the education level of the host country also plays a very significant impact in human resource management of multinational company. If you do not understand a country or community's education levels and the education system, transnational corporations in that country is difficult to manage effectively. For example, if a country or region has a high level of education, business' management issue or Technical staff issue can be resolved at the local direct recruitment. But if the host country has low levels of education, company should according to the actual capacity and local habits to provide training in order to acquire those employees with higher skill levels. Therefore, the host country's education system also affects the human resource management of multinational companies.

2.4. Nationalism

Nationalism is an ideology and important belief of loyalty to their nation. Managers of multinational companies maybe come from different countries, when they are making a decision which maybe concern with some countries, whether they are one hundred percent loyal to the Company, may be a problem. In fact, many managers, especially managers from the host country, making decisions, tend to first take into account the interests of their own ethnic group, the company's activities are always as much as possible favor their country. The Nationalism sometimes would prevent the company to achieve the goal objective that gets the maximum benefit. Multinational companies do not want hire an employee from the host country for the middle and senior management positions, one of the reasons is because of considering the nationalism.

2.5. Custom

Custom is the habitual and spontaneous behavioral pattern of people. Custom includes all aspects of social life, for instance the meals custom, make-up custom, and business custom and so on. Custom of different countries in the world are different widely. So that the host countries' custom definitely affect the human resources management of multinational enterprise. For example, the relationship is taking an important role in doing business in China, because Chinese people emphasis the emotion of person. That's why apart the power of the enterprise, relationship also important. But the relationship is not such importance for doing business in Western countries. If western multinational enterprise open a subsidiary in China, how to train or select the person to doing business in China would be difference in the home country.

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2.6. Regulation

Every country has its own labor laws. Almost all the host countries, especially developing

countries, have great attention to employ their own citizens for foreign companies, for

providing employment opportunities for local citizens to the fullest extent possible. Even developed countries like the U.S., the law show the employment problem to the immigration, the U.S. company is also very difficult to hire foreigners unless the employment of persons with special abilities and qualities. In addition, some host government set certain restrictions to foreign companies to assign other countries' worker coming. Because they want to encourage foreign companies to train the local people, and promoted the local people to the company's more important positions. Sometimes these provisions would be a constraint for the multinational companies to transfer and manage the staff.

3. Conclusion

Different countries have different cultural differences, so multinational enterprise should according to different countries and adapt to local customs and culture, and make some special strategies to adapt to local conditions, better handling of local countries' human resources, and then assist to implement the operation strategy to promote the company's development.