International Human Resource Strategy and Control: The Case of Multinationals and Their Subsidiaries
Tech Report Number
1994-007
Abstract
This study examined the relationship between International Human Resource (IHR) Strategy and International Human Resource Control. To do so, Jarillo and Martinez's (1990) framework for parent--subsidiary business strategy was recast into an IHR strategy context and Snell's (1992) conceputualization of control int he supervisor--subordinate relationship was extended to the parent--subsidiary setting. Data from 100 subsidiaries and their parents shwoed that subsidiaries adopt one of three (receptive, active, or autonomous) IHR strategies. In addition, the data demonstrate that a globally integrated IHR strategy is associated with tighter control over the subsidiary's selection, performance evaluation, and reward systems and looser control over the subsidiary's training and socialization system when contrasted with a more locally responsive IHR strategy.
Date of this Version
1-1-1994