HRM Comparative Performance and Practices within MNCs’ subsidiaries in Kazakhstan

Abstract

The issue of human resource management (HRM) is critical to economic growth, particularly in the countries like the Commonwealth of Independent States (CIS) and in the transition economies of Central and Eastern Europe (CEE). The growing number of multinational corporations (MNCs) as one of the main drivers of the internationalization process in the HRM sector has attracted considerable attention from management scholars worldwide. The aim of this report is to discuss and analyse HRM performance and HRM practices in subsidiaries of MNCs in Kazakhstan, as the largest recipient of foreign direct investment (FDI) among CIS countries. The methodological approach of this study is based on the analysis of Poór et al. (2017) work on HRM performance and practices combined by cross-cultural management (CCM) of HRM in GLOBE study (House et al., 2004). It found that the subsidiaries of the MNCs in Kazakhstan tend to adopt the divergence of HRM functions and practices instead of the convergence concept by giving more freedom to the local HR departments in managing their HR roles and strategies. In terms of leadership style, Kazakhs prefer charismatic and team-oriented styles and belong to the societal cultural practices in the cultural dimensions of power distance and group collectivism. The implication practices of the study may help HR practitioners in both private sectors and public government administrations to understand about the importance of HRM policies and practices characteristics and behaviours amongst the MNCs subsidiaries a country, in achieving and improving labor productivity and business efficiency.