International Human Resource Management

International Human Resource Management

Introduction

International human resource management (IHRM) is about the worldwide management of human resources. IHRM issues explore aspects of Human Resources Management (HRM) in Multinational Enterprises (MNE). International HRM (IHRM) is the process of procuring, allocating, and effectively utilizing human resources-in a multinational corporation, while-balancing the integration and differentiation of HR activities in foreign locations. To reduce the risk of international human resource

• To aid cultural risks 

• To avoid regional disparities

• To manage diversifies human capital

P. Mogans Model of International Human Resource Management

This paper will discuss International Human Resource Management in detail along with discussing its internal and external perspectives.

Discussion

Regional economic integration has managed to change the competitive strategies in which firms do business both domestically and across borders. Because of regionalization, many firms are faced with the unquestionable challenge of operating across borders with a transnational workforce. Firms encounter many national cultures when doing business in a global economy; therefore, it has become necessary for MNCs to review their international human resource management (IHRM) practices. To be successful and to remain competitive, a MNC must be able to effectively manage its human resources (Farndale 2010 161). A MNC must be able to attract, develop, and maintain capable professionals who can function effectively both domestically as well as across borders.

The role of IHRM is very complex and multi-faceted. The IHRM activities are further complicated when operating across borders because of the many cultural, social, and political differences that exist between countries (Finegold, 2008, pp. 21). In a study conducted by Tung (1984), it was revealed that many of the problems that U. S. MNCs encounter with foreign assignments are the result of poor human resources planning. Poor management of human resources can lead to inadequate selection criteria, inadequate training, inadequate performance evaluation, inadequate compensation and inadequate repatriation programs.

However, staffing global organizations in the 21st Century necessitates a comprehensive understanding of the allocation of human resources in the strategic decision-making process in management teams. Organizations appear to be struggling relative to identifying and hiring qualified global managers, who have the ability to address the expanding competitive needs and to develop cooperative working relationships with personnel from a multitude of culturally distant environments. As the inevitable progression of globalization continues to dictate the speed within the global marketplace, the resulting levels of confidence relative to the utilization of overseas staffing approaches that result in strategic decision-making capabilities suffer due to an apparent lack of insight created from a diverse set of perspectives. Capitalizing on the benefits derived from a global perspective or mindset would require the emergence of an extension of the existing International Human Resource Management (IHRM) paradigm. The institutionalized human resource management literature would suggest that the changing nature of global careers for managers underscores the need to examine a potential paradigm extension to a strategic global human resource management perspective.

The level of knowledge and expertise required of international transferees to succeed in overseas assignments is unprecedented and consequently calls for the utmost scrutiny in ...