Abstract:

The main goal of the paper is to determine in what way the coherence of the advancement levels of HRM subfunctions may influence on the performance financial results of MNCs. The research problem covered the identification and analysis of the relationships between the advancement levels of HRM subfunctions (independent variables) and the financial performance results of local subsidiaries of MNCs (dependent variable). The HRM subfunctions considered in the research were: employee resourcing, employee retention, engagement & satisfaction, performance appraisal, career development, talent management, competency management, development of leadership, employer branding. The research sample covered 200 headquarters (HQs) of MNCs and their local subsidiaries. The empirical research results show that there are some identifiable and statistically significant correlations between dependent and independent variables. Excluding employer branding, what has been found is that the higher the advancements level of HRM subfunctions and the stronger the associations between the advancement levels of these HRM subfunctions - the better the financial performance results of foreign subsidiaries of MNCs. Our study, therefore, represents an original effort at examining all these relationships.