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grammes which would enable them to anticipate critical workforce trends, shaping and executing business strategy, identifying and addressing people-related risks and regulations, enhancing workforce performance and productivity, and offering new HR services to help a company improve and grow (Edwards et al 2007).

1.5 HR Practices: Effectiveness

A number of authors have explored the links between individual HR practices and corporate financial performance. For example, Lam and White (1998) reported that firms' HR orientations (measured by the effective recruitment of employees, above average compensation, and extensive training and development) were related to return on assets, growth in sales, and growth in stock values. Using a sample of banks, Richard and Johnson (2001) examined the impact of strategic HRM effectiveness (ratings of how effectively a variety of HR practices were performed) on a number of performance variables. 

They found that strategic HRM effectiveness was directly related to employee turnover and the relationship between this measure and return on equity was stronger among banks with higher capital intensity (greater investments in branches). In this thesis, HRM would be described in the context of a number of innovative practices which have been proven to enable MNC's manage the transition process in their drive for global expansion, thus enabling organizational effectiveness and better performance outcomes. Wright and McMahan (1992) defined innovative human resource programmes as practices and activities employed to enable an organization achieve its goals. These practices are seen as a departure from the traditional HR activities. Delery and Doty (1996) asserts that these practices are key drivers required by MNC's to respond with the right strategy as they expand their operations in different environments (Boselie et al, 2005).

1.6 Empirical Research: Human Resource Factors & MNC Global Expansion

The drive for global expansion by UK MNC's has necessitated the need for a human resource strategy that would ensure that the company is able to sustain its workforce. This has therefore led to the departure from the traditional HR administrative role to a more robust global HR function which takes cognisance of employee profile, the work and environment demographics, de-skilling, re-skilling and multi-skilling and issues related to outsourcing and synergy of its processes vis-à-vis work-force reduction Lam and White (1998).

The largest survey of employment practice of multinational companies (MNCs) in the UK was carried out by Edwards et al (2007). The key findings from the first large-scale, representative survey of employment practice in MNCs which have operations in the UK. The survey is comprehensive in its coverage of all but the smallest international companies. The findings derive from interviews with senior HR executives in each of 302 multinationals operating in Britain, both overseas- and UK-owned. The findings from the research suggest a connection between human resource practices and the performance of firms, a summary include the following HR programmes stated below.

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