Open AccessHRM PRACTICES ON FOREIGN-OWNED COMPANIES IN HUNGARY
Author(s) -
Ayman Balawi,
Esther Wanjiru Wachira
Publication year - 2021
Publication title -
modern management review
Language(s) - English
Resource type - Journals
eISSN - 2353-0758
pISSN - 2300-6366
DOI - 10.7862/rz.2021.mmr.21
Subject(s) - multinational corporation , internationalization , business , hierarchy , individualism , human resource management , human resources , socioeconomic status , hofstede's cultural dimensions theory , marketing , market economy , management , international trade , economics , sociology , finance , population , social science , demography
This paper sought to answer the question of how best human resource practices can support organisations in the current phase of internationalisation while still maintaining the local standards of the hosting country? In attempting to answer this question, the paper studied the HRM practices of Foreign-Owned Companies and Hungary's Socioeconomic environment. The study revealed that the Hungarian cultural society was more independent, and power hierarchy was not entrenched in the organisational cultures, highly individualistic, masculine, intolerant towards taking risks, realistic, and culturally restrained. The paper concluded that the increased FDIs and multinational companies in Hungary posed a great challenge to employees' effective and efficient management while still maintaining the host country's local standards.