Research On The Impact Of Human Resource Management Practice Of Overseas Subsidiaries On Organizational Performance

According to the Blue Book of China Business Globalization Report(2017)published by the Global Think Tank(CCG),global direct foreign investment reached US$1.75 trillion in 2016.The United Nations Conference on Trade and Development also shows that China is one of the popular investment destinations.As the degree of internationalization of the world economy continues to deepen,how to effectively manage the human resources of multinational subsidiaries and how to better play the role of expatriate leaders becomes an important source of competitiveness for multinational corporations.This study directly explore the impact of standardization and localization of human resource management on organizational output.And the relationship between human resource management practices and organizational performance is influenced by cross-cultural leadership behavior adjustments,the time that expatriate executives work in China,and the frequency of interaction between expatriate executives and Chinese subordinates.This study takes 71 executives and 334 direct employees in China as a sample.It seeks to explore the impact that standardization and localization of human resource management have on multinational subsidiaries and the role of the contextual factors that may affect it.Firstly,through the study of relevant literature in China and abroad,the theory building of this paper are completed,and the hypothesis model of this paper is proposed.Secondly,select used research scales and build them into the variable measurement tools of this paper,and select appropriate objects to issue questionnaires.Finally,organize the acquired data,delete the invalid samples,and form the research data of this paper.Empirical analysis was performed using SPSS 22.0 and MPLUS 6.12.The steps include: questionnaire reliability and validity test;common method deviation test;descriptive statistics and correlation analysis;main effect test.It is found that the localization of human resource management practices of multinational subsidiaries has a significant positive impact on subsidiary performance and subordinate attitudes(satisfaction and organizational commitment);standardization of human resource management practices will significantly positively affect subordinates' performance.Expatriate executives adjust their behavior to meet the expectations of their subordinates strengthen the positive impact of localized human resources on subsidiaries performance;subordinate change(work change and personal change)is positively moderating the relationship between localized human resource management practices and organizational commitment.Expatriate executives' time in host country plays a moderating role in the relationship between the standardization of human resource management practices and the performance of subordinates.The interaction frequency between expatriate executives and Chinese subordinates plays a positive role in moderating the relationship between localization of human resource management practices and subordinate attitudes(satisfaction and organizational commitment).This suggests that when we operate a subsidiary in the host country,the localization of human resource management practices will have a positive impact on the performance of the subsidiary and the attitude of the host country's employees,and when the leader's behavior meets the expectations of the subordinates,and The increase in the frequency of communication will strengthen the above positive impact;the highly standardized human resource management practices have a positive impact on the performance of subordinates,when the expatriate leader has been in the host country for a long time,and subjectively willing to make greater adjustments to the leadership behavior.When the positive impact is strengthened.