Who Is in Charge Here? Evidence of the Division of Roles and Responsibilities Between Global and Local HR Managers in MNEs Operating in the CEE Region

Abstract

Abstract This article focuses on the roles and responsibilities of HR units in multinational enterprises (MNEs) in the region of Central and Eastern Europe. The authors analyze 705 questionnaires originating from foreign owned subsidiaries operating in five countries (Hungary, Poland, Romania, Serbia, and Slovakia). The results show that the culture of the MNEs home country, the age of the subsidiary, and the pattern of international staffing assignments influence the HR control relationship between the headquarters and the subsidiary. Also, the findings reveal a significant impact of subsidiary level factors such as the age of the subsidiary, business sector, size, mode of market entry, focus on executive human capital, and international assignments on the degree of HR practice autonomy at the subsidiary level.