International Human Resource Management
International Human Resource Management
International Human resource management is defined as the process of employing and developing in international organizations which operate globally. Of course we know that doing business internationally is the biggest hurdle to overcome because of technology and culture (Phatak, Bhagat, Kashlak, 2009). Typical functions performed by HRM staff would be recruitment, selection, training and development, performance appraisal, dismissal, managing promotions and so on. Although International HR (IHR) managers undertake the same activities as their domestically-based colleagues, the scope and complexity of these tasks will depend on the extent of internationalization of the organization (Dr. Harris, 2013). So many companies are moving towards a global economy, that of course companies have to rethink the traditional ways of managing people. Companies are use to handling employees in a more traditional way and those same ways could be considered totally different internationally. In any organization, the primary objective of the human resource management function is to ensure that the most effective use is made of its human resources. To achieve this, HR professionals undertake a range of activities around sourcing, development, reward and performance management, planning, employee involvement and communications. If the organization has a strategic HR function, these activities will support and inform organizational strategy. HR professionals are also used extensively in organizational change and development initiatives. For international organizations, these human resource activities need to be coordinated across both the home country and different national subsidiaries and to take into account the needs of both parent country nationals, host country nationals and third country nationals. The world is becoming more globalized and more firms are doing business internationally (Dr. Harris, 2013). I will be discussing how domestic human resource management can differ from international human resource management. There are many differences and similarities in international human resources management and domestic human resource management practices, particularly in areas like; human resource planning and staffing, recruitment and selection, appraisal and development, rewards, the main distinctions, however, lies in the fact that while domestic human resource is involved with employees within only one national boundary, international resource management deals with three national or country categories, the parent country where the firm is actually originated and headquartered; the host country where the subsidiary is located; and other countries from where the organization may source the labor, finance or research and development. when comparing International human resources management and domestic human resource management (Brewster, Sparrow, Vernon, Houldsworth, 2011) The effective management of human resources in an international context is increasingly seen as a key source of competitive advantage in international business; and the quality of management seems to be even more critical in international than in domestic operations (Beck, 2011). When you have a multinational and global organization you have to take different approaches to managing and staffing subsidiaries. There are four major approaches that companies should follow and they are: ethnocentric staffing approach, polycentric staffing approach, regiocentric staffing approach, and geocentric (global) staffing approach. Ethnocentric approach is developed in home countries, and the values, attitudes, practices, and priorities of headquarters determine the HR policies and practices. With this approach it is preferred that managers for leadership should be from home country and other major positions in the subsidiary. Polycentric approach...
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