International Human Resource Management

International Human Resource Management

Introduction

International HRM (IHRM) is based on recruiting, selecting and training employees of diverse backgrounds that need certain considerations in the global job markets. While the Human Resource personnel have various duties to perform, their activities and functions gain more complexity in an international context (Dowling et al., 2007). International HRM deals with how Multinational Companies (MNCs) manage their geographically dispersed workforce in order to leverage their HR resources for both local and global competitive advantage. 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 (Chitakornkijsil, 2010). This paper aims to highlight the major roles and functions of International HRM.

Discussion

The major objective of IHRM 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 (Dowling et al., 2007). No doubt, IHRM strategies are an important complement to business strategies in many ways. Researchers agree that IHRM strategy must contribute to furthering the firm's competitive strategy, for example, a firm that pursues a multi-domestic strategy must have its organizational structure divided according to the target markets and a degree of polycentric recruitment. In addition, main problem in IHRM is the need to create a balance between the headquarters and the international subsidiaries (Scroggins, 2010). There are likely to be pulls in two directions, i.e. towards decentralization, or local diversity, where the local agenda rules, or towards centralization, where the international agenda, or corporate integration rules (Adeley, 2011).

Similarly, communication alone is not enough to manage human resource in an effective manner internationally as it is necessary to create a strong corporate culture throughout the ...