The description and use IHRM, with a SIHRM framework to identify IHRM opportunities and challenges for international organisations operating simultaneously in countries experiencing different economic environments.
When organisations go global, International HRM (IHRM) strategies are critical for success. IHR should participate in strategic decision making at the highest level. Strategic human resource management (SHRM) integrates an organisation’s HR strategy in close alignment with its corporate strategy and therefore is concerned with achieving firm goals and objectives. The strategic decision for international organisations is to find the balance to achieve organisational goals.
A MNE must take advantage of five opportunities to gain a competitive advantage: • Adapting to local market differences – especially marketing and customer support. • Exploiting global economies of scale.
• Exploiting economies of a global scope.
• Tapping into best locations and resources.
• Maximising knowledge and experience between locations.
When cultural diversity is needed to differentiate products and services to meet the needs of local markets, new corporate practices and organisational designs are required. An example of a transnational firm (TNC) is CGS (Europe’s largest computer software and service group) with a goal to be a modern TNC. They have built an information pooling systems to ensure that innovative solutions. Electronic bulletin boards and extensive electronic and voicemail facilities provide organisational culture of informal networks for sharing information in project teams. Challenges they face are HR components including: • Integrating wide variety of organisations into a common culture within a complex web of owner relationships. • Clarify and coordinate roles, objectives, systems and resources, particularly its skilled professional staff across various countries...