The Strategic Role of Hrm in Multinational Corporations

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The Strategic Role of HRM in Multinational Corporations – A Holistic Perspective.

Sanjay Bhavnani

Director & Chief Operating Officer
MMS Maritime Agency(I) Pvt Ltd
Mumbai.

A Subsidiary Company of Meiji Shipping Group, Japan
To say that Human Resource Management is assuming a key importance in all organizations would be an understatement. It would be far more realistic to recognize the fact that the field of HRM is being perceived as more strategic in nature at all levels of an Organization which till very recently was being viewed traditionally as primarily operational in its function.

As more firms move outside their domestic borders into the dynamic world of international business, the globalization of world markets appears to be
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Many multinationals have an “International HR services” section that coordinates administration of the above programs and provides services for PCNs and TCNs such as handling their banking, investments, home rental while on assignment, coordinating home visits and final repatriation.

In the domestic setting, the HR department’s involvement with an employee’s family is limited. The firm may, for example, provide employee insurance program or, if a domestic transfer is involved, the HR department may provide some assistance in relocating the employee and family. In the international setting, however, the HR department must be much more involved and needs to know more about the employees’ personal life in order to provide the level of support required. For example, some government requires the presentation of a marriage certificate before granting a visa to an accompanying spouse. Thus, marital status could become an aspect of the selection process, regardless of the best intentions of the firm to avoid a potentially discriminatory selection criterion. In such situation, the HR department should advise all candidates being concerned for the position of the host-country’s visa requirements with regard to marital status and allow each candidate to decide whether he
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