Abstract: A major challenge for practitioners and researchers in the field of globalisation is how to understand culturally indigenous and alien human resource management (HRM) practices using ‘emic’ rather than ‘etic’ characteristics to design effective diversity management for global companies. Initially, the study draws on literature to discuss the limitations of culturally alien HRM practices in global companies, and subsequently, a framework to understand culture based HRM practices is provided. Lastly, the framework is used to analyse three organisational stories to understand the impact of national culture, and culturally indigenous and alien HRM practices on organisational effectiveness among global companies. Implications of study findings and further research opportunities in this area are discussed.