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We explore determinants of subsidiary autonomy in setting human resource management (HRM) practices within US-parented multinational enterprises (MNEs), in Europe and Australia. We examine both the effect of strategic context and the effect of the institutional location of the subsidiary. We find that US MNEs show greater centralisation of control over HRM where the subsidiary faces global markets, in coordinated market economies vs liberal market economies, and where union density is low.

This article presents a study of the degree to which national institutional settings impact on the application of management practices in foreign subsidiaries of multinational companies. Applying the national business systems approach our study centres on the use of calculative human resource management (HRM) practices by subsidiaries of US multinational companies in the UK, Ireland, Germany, Denmark/Norway and Australia, respectively, in comparison with these countries’ indigenous firms.The analysis indicates that while US subsidiaries adapt to the local setting in terms of applying calculative HRM practices, they also diverge from indigenous firm practices.

This paper tests predictions from institutional and rational perspectives about the adoption of organizational practices through a comparative study of human resource management in firms located in six European countries. Distinguishing between calculative practices-aimed at efficient use of human resources-and collaborative practices-aimed at promoting the goals of both employees and employer-the paper predicts differences in adoption across countries. Results show that institutional determinants, as indicated by the national embeddedness of firms, have a strong effect on the application of both calculative and collaborative human resource management practices. Firm size, a rational determinant, has a considerable impact on calculative practices, whereas the effect of industrial embeddedness is quite modest for both practices.

In this paper we study drivers of firms’ human resource planning practices. This is done by analyzing two central parts of personnel planning, formal HRM strategies and analyses of competence development needs. Data collected from 3,877 firms in 21 countries are applied in the analysis. Nine out of ten firms conduct analyses of needs for competence development to some extent, while every second firm in the sample has elaborated a formal HRM strategy. Results indicate that resources (size, having an HRM department and corporate affiliation) and to some degree cost-benefit considerations are the main determinants of these human resource planning arrangements. Moreover, institutional factors have an impact on firms’ use of competence needs analyses.

A paper proposes a conceptual foundation for future theory construction and empirical research on human resources in organizations by proposing a classificatory framework for work-related competences carried by employees. These are defined as the composite of human knowledge, skills, and aptitudes that can serve productive purposes in firms (Nordhaug, 1994).