Factors affecting the applied approach of IHRM in practice: the example of Budapest Bank (ge money)

Abstract

Multinational companies have to use not just Human Resource Management, but International Human Resource Management Methodology to be able to allocate their human resources optimally in their subsidiaries. IHRM (International Human Resource Management) faces a set of problems that are considerably more complex and diverse than those encountered in respect of HRM. There are numerous approaches to IHRM, and a certain number of factors appear to play a role in identifying the one that is deemed appropriate in a given situation. General Electric (GE) is a more than one hundred years old company with a responsible and opened corporate culture, one of the best examples from multinational companies. In this paper I would like to introduce the influencing factors to IHRM in practice, in the house of Budapest Bank (GE Money Group) by my interview with the HR director. With everything said, we can conclude that Budapest Bank is a corporation with the long run goal of having their subsidiaries run entirely by workforce from the host country (local management), thus optimizing the allocation of resources, while at the same time, focusing on utilizing the advantages of international career management to the maximum. Thriving for optimality on all grounds, Budapest Bank by GE use possibly the most developed IHRM to date.