There is a dearth of existing literature on cross-national variations in the organization, role, and boundaries of the personnel function. This chapter explores the evolving role and structure of the personnel function within the different national subsidiaries of US multinationals, and how these fit with the multinational company’s conception of the function’s role at an international level. It is argued that personnel departments in US multinationals face mounting pressures to reduce costs, leading to structural innovations such as shared service centres. Subsidiary personnel departments have pursued a more strategic role as ‘business partner’, and as contributor to the design of international HR policies. The management of tensions between the US approach and different host-country traditions of personnel management are examined, as well as the way in which subsidiary personnel managers ‘negotiate’ with higher levels of the international HR function, drawing on the institutional resources of their local environment.

This chapter sheds light on the nature of managerial resourcing in US multinationals. Hitherto there has been a strong reliance on the use of internal labour markets (ILMs) as the principal means of sourcing managerial talent. In several instances, however, enhanced competition has triggered the necessity for the rapid importation of new skill sets eroding the primacy of ILMs. Over and above such supply side change, some organizations were similarly moving away from seniority based promotion towards a more meritocratic model, less sheltered from the vicissitudes of market pressures. Consistent with the theoretical focus of this volume, it is nevertheless demonstrated that headquarters did not have a totally free hand. The partial dismantling of ILMs was subject to local constraints and contestation, giving rise to new and significant tensions. More specifically, the emphasis upon tight performance standards was often met with stiff opposition suggesting local norms remain influential.

This chapter provides a brief overview of the companies forming the basis of the analysis. The sketches are grouped into three categories: core, secondary, and minor studies. The precise ranking is a function of two factors: the number of international subsidiaries taking part in the research, and whether or not the data were supplemented with material gathered at corporate HQ in the US and/or international business or European HQ.