Adapting HR Concepts of German MNC’s to Thai Subsidiaries

Abstract

As firms in Thailand show increased global activity and growth in the foreign or joint-venture sector, multinational companies (MNC‟s) operating in Thailand are confronted with the question of whether to adapt human resource management (HRM) strategies to the work culture of the Thai employees. The process of industrialization can result in a global tendency to push HRM systems towards uniformity. This study aims to identify challenges when applying HR concepts of German MNC‟s in their subsidiaries located in Bangkok by analysing cultural differences with help of a qualitative content analysis. HR managers and general managers were interviewed regarding HR approaches such as career development talks, participation in corporate vision building, management by objectives and cross-functional teams. As a second objective, interviews aim to give insights to which extend to defend, hybrid or adapt HR concepts to the culture of the host country. Interviewees did not apply HR methods universally but adapted approaches and suggested to create necessary conditions such as fostering a company culture of harmony and care, employee relationships and a situational leadership style that respects the values of Thai employees.

Keywords: HRM, Germany, Thailand, MNC, business culture, expatriate