Strategy, structure, and HRM policy orientation: Employee recruitment and selection practices in multinational subsidiaries

Abstract

This study investigates influence of some important features of multinational corporations' (MNCs) such as their corporate strategies, structures, and international policy orientations, on subsidiaries' human resource management (HRM) practices, and particularly on employee recruitment and selection activities. Four European multinational subsidiaries operating in Bangladesh were selected for the study. In‐depth case studies revealed that the subsidiaries' recruitment and selection practices were guided by the changing nature of corporate structures, production strategies, and headquarters' international HRM policy orientations. The study also shows that the development of employee recruitment and selection practices by subsidiaries is not solely dependent on their parent companies. The roles and capabilities of subsidiaries also influence subsidiary–headquarters relationships, and consequently, the development of different employee recruitment and selection practices at the subsidiary level.