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International Human Resources Management Essay

3285 words - 13 pages

The reading material gives a brief introduction to International HRM and mainly acquaints one with the terminologies of IHRM (ref. Do You Speak the Language of International HRM); it also makes a mention of the common issues facing an HR manager in an international company. Instead of reproducing the definitions of the reading material, we decided to illustrate the importance of IHRM through an example of how IHRM should be in alignment with the strategy of the organization.In today's world of expanding markets and disappearing boundaries, developing a comprehensive set of IHRM policies aligned with the strategy of the company has become an important concern for the large multi-national companies. Formally,International Human Resources Management is the systematic planning and coordination of the fundamental organizational processes of job and work design, staffing, training and development, appraising, rewarding, and protecting and representing the human resources in the foreign operations of an organization.Simply put, IHRM is HRM that cuts across national boundaries. It is important that the IHRM policies are congruent with the firm's strategy and its formal and informal structures and controls. IHRM has to ensure that the firm has the right people in the right places at the right times. The task is complicated by profound differences between countries in labor markets, culture, legal and economic system.We will illustrate how the IHRM policies of a multi-national company should be in line with its overall strategy and complement its existing structure and controls by focusing on the staffing policies. The training and development, performance appraisal and compensation policies should be similarly aligned with the overall strategy and consistent with each other. However, because of the constraints on time and space, we have focused only on staffing policies.Staffing Approach and Overall StrategyBroadly classifying, international organizations can be said to have one of the following strategies or models: Multi-domestic, International, Global, and Transnational. These strategies and the structure and controls to implement them are listed in the following table:It is quite obvious that all companies must strive to be transnational. However, becoming transnational is a difficult goal to achieve because the coordination required and thus the costs associated are very high.Now the staffing policy of an IHRM is concerned with selecting individuals - across different countries in which its operations are located - with the requisite skills to do a particular job. Clearly, staffing policies are important tools for developing and promoting a common corporate culture across all nationalities in which the company is present. So, broadly speaking, for the four different international strategies outlined above there are three different staffing policies:- Ethnocentric : Key management positions filled by parent country nationals- Polycentric: Host country...

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