global integration of activities (Bartlett and Ghoshal 1992 ). It might be argued that
the HR structure should be aligned with the organizational structure. However,
where local conditions require a high level of local responsiveness, as may be the
case for diversity initiatives, HR structures are more likely to emphasize decentral-
ized decision-making.
- 3 HRM Roles
Cultural diversity is an important consideration for transnationalWrms and there
are speciWc implications for HRM. Researchers have suggested core competencies
for managers in transnationalWrms in order to deal with potential negative aspects
of diversity and to emphasize positive aspects of diversity, including empathy, an
emphasis on employee engagement, and the ability to incorporate diverse views.
Further, the complexity of operating across multiple countries and employing
multiple national categories of workers leads to speciWc role requirements for HR
managers in transnationalWrms (Dowling 1999 ), as discussed below.
- 1 More Human Resource Activities
In a transnationalWrm, HR managers must engage in a number of activities that
would not be necessary in a single-country operation, such as international
relocation and support for expatriates, host-government relations, or arranging
language translation services. For example, HR managers may be required to play
important roles in corporate governance, such as the design, implementation, and
maintenance of corporate codes of conduct (Beatty et al. 2003 ). However, training
in and enforcement of codes of conduct may be diYcult in some host-country
environments (Dowling and Welch 2004 ).
- 2 The Need for a Broader Perspective
HR managers in transnationalWrms face numerous challenges when designing and
implementing programs for culturally diverse groups or more than one national
group of employees working in one location (e.g. expatriates and locals working in
the Chinese operations of a US-basedWrm). Complex equity issues arise, particu-
larly with regard to compensation policies, when employees of various nationalities
work together. Understanding the perspectives of the various employee groups is
an important aspect of developing eVective management of cultural diversity.
- 3 More Involvement in Employees’ Personal Lives
A greater degree of involvement in employees’ personal lives is necessary for the
management of employees in a transnationalWrm than would be typical in a single-
country operation. As noted earlier, in response to the high costs and other
problems associated with expatriation, other forms of international work, such
transnational firms and cultural diversity 521