In all these MNCs or MNEs, HRM is a key to success. For the vast majority of organisations, the cost of the people who do the work is the largest single item of operating costs. Increasingly, in the modern world, the capabilities and the knowledge incorporated in an organisation’s human resources are the key to performance. So on both the cost and benefit sides of the equation, HRM is crucial to the survival, performance and success of the enterprise. For international organisations, the additional complications of dealing with multicultural assumptions about the way people should be managed and differing
institutional constraints become important contributors to the chances of that success.