American Firms
The American firms researched show a wide disparity in the approach to
human resources management. For example, the human resources management
system of the A5 firm has very rigid structures and rules. While promoting very
few higher-potential employees faster, the A5 firm fires lower performers. The
power delegation from the A5 firm to its subsidiaries is very limited. Other
American firms that we researched do not utilize such rigid systems. However, all
of the researched American firms emphasize managing their employees on a
worldwide basis. Compensation philosophies of the American firms are commonly
applied for all employees on a worldwide basis. Business units, rather than
headquarters human resources departments, play important roles in international
human resources management.