Strategic management of human resources in the multinational enterprise

Abstract The efficient operation of a multinational enterprise is contingent upon the availability and effective utilization of numerous strategic resources—technology, capital, know‐how, and people. It is my contention that human power is a key ingredient to the successful operation of a multinational, without which all the other aforementioned resources could not be effectively and efficiently utilized or transferred from corporate headquarters to the various subsidiaries in the world; hence the need for multinationals to devote greater attention to the strategic management of human resources as part of the overall planning and control process in a firm. This article identifies the most common pitfalls to human resource planning in U.S. multinationals and offers guidelines for the development of a paradigm for the strategic management of human resources in the multinational enterprise.