IHRM

International Human Resource Management



International Human Resource Management

Introduction

The main purpose of this paper is to make an analysis on the main issues and theories of International Human Resource Management (IHRM) and Comparative Human Resource Management (CHRM). The paper identifies the main issues and theories relating to globalisation, and comparison of international and European employment systems. The paper also makes an analysis on the importance of political ideology as an influence on government action, policies and legislation.

Main Issues and Theories of International Human Resource Management IHRM

The management of international human resources is much more complex than in the home area. You have to analyze various aspects such as:

- The remuneration

- If you recruit, select and hire local labour, or whether to use expatriates - where labour code will set the new subsidiary of the company.

If after this analysis are expatriates deciding to employees, take into account:

1.The travel ticket

2.Moving

3.The status in the country where the employee will

4.Language,

5.Family ties

6.Rental of impeaching

7.Payment of utilities water, electricity and telephone

The stages of internationalization

Companies spend five stages as to internationalize their activities.

Stage 1

The market for the company is exclusively national (production and sales)

Stage 2

The company expands its market to include foreign countries, but retains its production facilities within their borders.

Stage 3

The company physically moves some of their activities outside their country of origin. These have its usage to assemble components, although there may be some production abroad.

Stage 4

The company becomes a multinational company with production and assembly facilities in various countries and regions. It is the most inappropriate for human resources, as though there is some decentralization of decision-making; continue to be made regarding personnel at the headquarters of the company.

Stage 5

The companies are transnational and have few close links with their home country operations are highly decentralize, and each business unit is free to make decisions on personnel with little control from headquarters. Example: Guillette.

As stated by Brewster, Sparrow and Vernon, (2007, p205), International HRM “examines the way that international organisations manage their human resources in the different national contexts in which they operate”. They indicate that these globalised organisations have identification as MNC's Multinational Corporations or Multinational enterprises (MNE's). They point out that such organisations have to operate within a complex environment of different “institutional, legal and cultural circumstance (Brewster, 2011, p. 345).” Also, they feel that these elements tend to shape what can be done and cannot be done in different areas of the world also impact on what has observed as good practice in terms of cost effective HRM strategies. Ultimately, organisations will; therefore, have to agree a set HR of policies and practices that act in some way as a glue to hold core objectives and general values of the organisation together, yet be adaptive to cultural and circumstantial differences. This balancing act is a significant focus.

Businesses, large and small are increasingly intense competition, as competition increases through the use of new technologies (Budhwar, 2009, p. 493). In this context, managing internationally mobile employees, is in many cases at least one concern in ...