The Contextual Analysis of HRM Practices in Multinational Companies in the Czech Republic

Abstract

This paper aims to analyze the current state of the Czech Republic’s socioeconomic environment and the HRM practices of MNCs. The Contextual Analysis was made by using data records from 2015 to 2020 from the Czech Statistical Office, Santander Trade’s website, and CzechInvest. By using Hofstede’s six dimensions, the Czech Republic was compared with its neighbor countries: Germany, Poland, and Slovakia. Literature review was done by using articles from the prestigious scientific journals. The study found that the Czech Republic is an attractive foreign investment market because of the followings: it has one of Europe's most strategic geographical locations. Its excellent infrastructure contributes to the Czech Republic's positioning as an important crossroads for European business corridors; its FDI policies and investor-friendly regulations, which offer a number of advantages for foreign investors; and its socioeconomic environment, which is also suitable for the establishment of new businesses in the country. At the end, the study recommends further research on the effects of the COVID-19 pandemic on MNCs, FDI, and the Czech Republic’s policies on how to eliminate these effects.