INTERNATIONAL HRM Section A: This question must be answered by all students: Boyacigiller et al (2006 p81) have stated that ‘A key difference between domestic and global managers is the need for global managers to deal with significantly greater complexity and to be open to the outside world.’ However, Baruch (2002 p36) has made the point that ‘although the concept of globalization reflects true business reality, the idea that there is a certain template-a “gingerbread man cutter” concept into which one should fit in order to be the successful Global Manager seems flawed’. Critically evaluate these perspectives so that you address the arguments for and against these views. Introduction As the world of business has become increasingly globalised there has been a corresponding need to adapt the business processes which facilitate a successful business (Beardwell and Claydon, 2010). Human Resource Management (HRM) is a business function which has been forced to expand and integrate its remit to embrace international aspects of business and recognise that a ‘one-size-fits-all’ approach to managing employees is no longer acceptable in the modern business environment. This essay examines contrasting opinions of what
comprises best practice in international HRM.
International HRM French defines HRM as “a set of activities aimed managing organisational human resources at international level to achieve organisational objectives and achieve competitive advantage over competitors at national and international levels” (2010:12). He argues that the basic concepts of HRM do not differ in an international context, but the increased complexity of international cultures requires a further level of empathy and the ability to manage increased complexity. Dowling et al (2008) concur with this view and they suggest that the core aim of HRM remains constant regardless of the international context. In short, International HRM
Human Resource Management Assignment: Sample
(IHRM) is concerned with maximising the human capital of the organisation to achieve organisational goals, a view which aligns with that of Boyacigiller et al (2006:81).
Key Differences between Domestic and Global HRM However, there is a wide body of knowledge which suggests that there are actually key differences between domestic HRM and international HRM. The literature appears to
suggest that IHRM requires a further level of capability on the part of the HRM manager, as noted by Guirdham (2005). She suggests that there are three core differences between domestic and global HRM as follows. The first and most basic premise is that domestic HRM is conducted at a national level, whereas international HRM is conducted globally. The impaction from this is that International HRM is often more strategic in nature because it considers how core employees from around the world will work together. Secondly,
domestic HRM can be introverted and is only concerned with managing employees at a national level, whereas international HRM requires the management of up to three types of employees; local, national and host. An example of a host employee is one whose nationality is neither that of the parent company or the country in which they are employed. For example a UK company may have a site in Saudi Arabia and employ a German to run the Saudi Arabian site (Ferner, 2007). Guirdham (2005), notes that each type of employee will require a slightly different form of management and support.
Thirdly, domestic HRM is generally concerned with a limited number of activities at a local or national level such as recruitment and selection and training and development. In contrast, international HRM is concerned with more complex matters such as expatriate management and relocation. As each country has different regulations and legislation covering foreign or expatriate workers this requires an additional level of...