Diversity in IHRM
Table of Contents
Table of Contents ii
International Human Resource Management 1
Workforce Diversity and International Human Resource Management 3
Diversity within Organizations 3
Benefits from Diversity and Inclusion 4
Best Practices Examples from International Companies 4
International Human Resource Management
The world is becoming more international due to improved technology, ease of travel, integrated economies and communications. This has resulted to growth of global organizations that has increased permeability in the traditional business boundaries, which in turn leads to high rates of economic change, a growing number and diversity of participants, rising complexity and uncertainty.
IHRM has traditionally examined the way in which international organisations manage their human resources across these different national contexts. Early research in the field of IHRM reflected that in the broader field of international management, and focused on the role of MNEs. Research has since focused on understanding those HRM functions that had to change when firms went international. Finding and nurturing the people able to implement international strategy was seen as critical for such firms, and considerable attention was given to the management of expatriates.
IHRM encompasses the worldwide management of people in the multinational enterprise (Poole, 1990). According to Briscoe and Schuler (2004), IHRM is human resource management in an international environment and problems created in an MNC performing business in more than one country, rather than those posed by working for a foreign firm at home or by employing foreign employees in the local firm. IHRM is how MNCs manage their geographically dispersed workforce in order to leverage their HR resources for both local and global competitive advantage (Scullion, 2005). According to Peltonen (2006) IHRM is a branch of management studies that investigates the design of and effects of organisational human resource practices in cross-cultural contexts. Stahl and Björkman (2006) defined all issues related to the management of people in an international context including human resource issues facing MNCs in different parts of their organisations and comparative analyses of HRM in different countries. Edwards and Rees (2008) percived IHRM as encompassing complex relationship between globalisation, national systems and companies three distinct levels of analysis for interpreting and understanding HRM strategies and practices. They include the globalisation effect, the regional and national effect, and the organisation effect. Brewster et al. (2007) argued that the subject matter of IHRM must be covered under three headings: cross-cultural management; comparative human resource management; and international human resource management. IHRM according to Dickmann et al. (2008) is how MNCs manage the competing demands of ensuring that the organisation has an...