Multinational corporations are increasingly organized as ‘global networks’. What are the challenges of managing human resources and employment relations across organisational boundaries?
Globalization has significantly changed the level of firm interconnectedness and cross-national coordination. Firms cooperate across national borders and have to deal with differences among individual countries. As a result, they no longer operate in isolation; on the contrary, they are organised as ‘global networks’. The proper managing of human resources and harmonious employment relations represent a necessary part of the successful coordination of these networks. This essay discusses the major challenges of managing human resources (HR) and employment relations (ER) across organisational boundaries. The first part discusses HR and ER issues that emerge in every MNC, while the second part focuses on problems connected to outsourcing and offshoring since they are often carried out in multinational corporations. The third part presents the challenges connected with the integration of HR in mergers and acquisitions (M&A).