Human resource management practices of large multinational firms in Hungary, 1988–2005

Abstract

A model of human resource (HR) practices in the subsidiary units of multinational corporations (MNC’s) in Hungary was developed from a review of the literature. This model describes the evolution of different HR variables in the light of external (macro) and internal (firm specific) factors. Based on components of this model, an interview-based survey of top level HR executives at 42 subsidiaries of large multinational companies in Hungary was completed. Results suggest that local subsidiary HR executives still maintain significant authority over their functional processesvis-à-visthe corporate office and expatriates are used less now than in earlier stages of development. Critical issues facing these executives varied by stage of competitive development between 1988 and 2005, HR staff continue to have significant in-country head counts, consulting is largely limited to training and development activities and most privately owned subsidiaries perceive unions as a marginal institution in Hungary today. The paper concludes with a series of limitations based on the interview processes and small sample size and a discussion of areas for further regional and national research development relevant to the model.

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