The "country of origin effect" in the cross national management of human resources

The impact of American Multinational Companies (MNCs) on the German economy is significant, as this report explores how these firms transfer human resource management (HRM) practices from their U.S. headquarters to German subsidiaries. It examines the extent of adaptation to local practices in areas such as performance-related pay, workplace communication, expatriate development, and employee representation strategies. A key focus is understanding how the German environment influences the HRM strategies of American subsidiaries and the approaches developed to address these influences. The study raises critical questions about the convergence of HRM practices amid global integration versus the persistence of national differences, which may serve as valuable resources. The empirical foundation consists of case studies of American MNCs in Germany, providing a detailed overview of their HRM practices. This research is connected to similar studies in other European countries (UK, Ireland, Spain), allowing for a comparative analysis of HRM practices across different contexts. Findings are expected to reveal distinct HRM patterns in each country and could offer important policy implications for the companies involved, particularly regarding entry into new national markets and identifying effective HRM practices in subsidiaries that could serve as benchmarks for other divisions.