IHRM

International Human Resource Management

International Human Resource Management

Introduction

Human Resource management plays a vital role in a success of any organization, local and Multinational (MNC). As the name suggest, HRM deals with arranging and managing human resource and matters related to them. The broad functions of HRM include Recruitment, Training and Development, and Compensation Management. This role of HRM becomes critical when the firm expands into international boundaries. Many researchers and scholars believe that the sole focus of International HRM is on Expatriates; however, there are other major areas of concern for International HRM, which will be explored in this essay. IHRM involves the world-wide people management. Although IHRM undertakes same functions as any domestic human resource, but the scope and complexity of these tasks depends on the extent of internationalization of the firm. The essay will highlight the broad roles and functions of International HRM. The essay will also present critical, theoretical analysis of literature related to International HRM (Dowling et.al 2008, pp.24).

Objectives of IHRM

The major objective of IHR is that its organization can achieve (a) competitiveness throughout the globe; (b) efficiency; (c) locally responsiveness; (d) flexibility and adaptability within short period; and (e) capability to transfer learning and knowledge across their globally disseminated subsidiaries.

According to scholars, effective expatriate management can be achieved through a strategic approach during the whole expatriate cycle. This cycle begins at planning stage. Once the HR department decides to appoint expatriate for major positions, the selection process begins. According to the studies related to international managers, proceeding managerial skills are required in managers, such as emotional stability, interpersonal skills, intercultural empathy, flexibility, and self-awareness. These are seen as soft skills, while many researchers have stated technical skill as more important. The final stage of this cycle is repatriation.

IHRM Strategy beyond Expatriate Management

Expatriate management is a major part of IHRM; however, expatriates are just a small proportion of total workforce of any organisation. Therefore, the head International Human Resource needs to develop an integrated strategy to support the global corporate strategy.

One of the major factors is the diverse culture which requires different organisational processes and management styles. The cultural issues are discussed in detail in following sections. Evidence suggests the existing differentiated managerial perspective across cultures. According to a study undertaken by Andre Laurent in 1986, there exists striking difference of attitudes due to diverse cultures. His survey included around 30 upper level managers. He presented the following statement, “It is important for a manager to have at hand precise answers to most of the questions that his subordinates may raise about their work”. Most of the Japanese, Italian and French managers agreed with the statement, while majority of American and Swedish managers disagreed. This result stresses the implications of cross cultural management (Laurent 1986, pp.5).

This broader perspective is directly related to making correct policy choices. The challenge is to achieve the fit between demand of global coordination and integration against local responsiveness. Forces leading to global integration include multinational customers, strategic co-ordination and operational ...