What is Parent Firm

This chapter focuses on the challenges faced by human resource (HR) practitioners in multinational corporations (MNCs) in different sectors operating in South Africa. The chapter briefly outlines the global and South African challenges experienced by HR practitioners. The institutional, resource-based and Hofstede's cultural values theories is used as the theoretical framework. The authors conducted interviews with HR practitioners in four different western MNCs with the objective of identifying the challenges faced by them in these organizations. The results of the investigation revealed that MNCs enforce HR practices for employees at executive managerial posts in order to maintain their competitive advantage. MNCs simultaneously integrate their HR practices with the institutional and cultural practices of the host country for employees at lower levels. These diverse HR practices create challenges for HR practitioners in these MNCs. Some recommendations are made regarding solutions to the problems identified.