Directorate of distance education master of business administration

Labour Relations Factors 
 
Labour relations or industrial relations are bound to differ 
between different countries. MNC having its operation in different 
countries should take into consideration the labour relations prevailing 
in that country. 

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Recruitment, Selection and Training     
 
MNCs have to be critical and choosy in their selection taking 
into consideration its existing standard and style. Separate training 
programme for different nationals in employment may be needed. 
Communication Skill 
 
This aspect is important for the personnel employed in MNC 
placed in different countries. Special training in communication 
perfection may be needed. 
Self-Assessment Questions (SAQs) 
1.  Explain internal environment having influence on HRM. 
2.  Explain external environment which have bearing on HRM activities.    
3.  Explain the role of Government in the area of Human Resources. 
4.  How does HRM practice with reference to MNCs have special 
features?/What are the special features of HRM practice with 
reference to MNCs? 
Summary 
 
Both internal and external environments have a special bearing 
on HRM practices. The internal environment includes,  
i. 
Trade Unions 
ii. 
Organizational culture and conflicts
iii. 
Professional bodies 
External environment chiefly consists of 
a) 
Economic factors 
b) 
Political factors 
c) 
Technological factors 
d) 
Demographic factors. 

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HR practices are significant in achieving corporate excellence. 
Government has a positive role to play in developing the HR. It is 
macro level development. Legislations and schemes for technicians and 
entrepreneurs are other measures. 
MNCs have become a significant force in trade, business and 
industry. In view of MNCs operations with a very wide network spread to 
different nations, language and technical differences along with cultural 
variations the HRM practices for MNCs have special features.