Discuss the Challenges and Opportunities of Ihrm When Operating Simultaneously in Countries in Economic Growth and Recession.

International human resource management is about the worldwide or global management of human resources. (Schuler et al., 2009). It can be referred to as the activities undertaken by an organization to effectively utilize its human resources. (Dowling, et al. 2008). Many organisations now compete on a worldwide scale. The vast range of technological developments available to business in modern times has changed the interface of business. As we move towards a more knowledge-based global economy, the importance on human resources has increased significantly in order to survive in an unstable economy. To operate in an international environment, human resources departments engage in a number of activities that would not be necessary in a domestic environment such as international taxation, relocation, administration services for expatriates; host government relations and translation services (Dowling et al. 2009). Human resources are the largest element of operating costs for a company, which is why many multinational companies operate in low-wage economies.

Until recently, the core focus of international human resource management (IHRM) was how to best manage human resources in the multinational enterprise, however it now incorporates two more perspectives; cross-cultural human resource management (HRM) and comparative HRM. HRM organisational processes vary from country to country. Even managers within the same firm will have different approaches to managing their own teams. Each unit within a company will function in a different way to other units. Countries have their own approaches to how HRM operates within cultural, institutional or regional specifics which is the very reason why IHRM is much more difficult than the HRM in one country considering most aspects of management are local. Today, as organisations become globalised, there are increasing challenges and opportunities presented to IHRM, with developments such as the global financial crisis,

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