The broader implication is that there is no single best way to approach HRM. Companies should design their approach according to elements of best practice and best fit to achieve the best possible outcomes. Studies conducted by Mendonca & Kanungo (1994) and Cyert & March (1963) show that the adaption of HRM approaches to local international environments is essential for companies leading to and adaption of processes and practices to fit with the local workforce. Successful MNCs like Unilever, Royal Dutch Shell and Nestle are those that conduct HRM strategies based on localized requirements incorporating elements from best fit and also standardized best practices (Briscoe & Schuler 2004). In this context a localized resource-based HRM approach can be a good possibility to create synergies between internal competences with strategy and performance.

4. Conclusion

To put everything under consideration, one can see that best fit and best practice approaches offer companies powerful tools for shaping human resource management processes. The case study has illustrated that an application of one bundle of best practice strategies across all geographies of MNCs, as proposed by Pfeffer (1998), is almost impossible because of regional differences in work-related practices, laws & culture and characteristics of motivation. Similarly, sticking to a best fit strategy which is only aligned to the contingency of strategy and a neglect of environmental forces and internal capabilities can lead to a failure of HR in international markets. The case has shown that the concepts of best practice and best fit have to be analyzed and adapted to suit the localized needs of international subsidiaries in order to pave the way to overall global competitive advantages through HR.