Multinational Corporation and Country Nationals
Introduction
In the recent decade, international human resource management (IHRM) experienced tremendous research growth due to the increase number of organizations begun to extend their businesses into overseas markets. Multinational Corporation (MNC) is the term used to describe a business with overseas operation.
Some of the main reasons for the growth of interest in IHRM are: 1) the number of MNC has increased with rapid growth of global competition which resulted in increased mobility of human resource. 2) Effective HRM strategy has been recognized as determinant of success or failure of organization. 3) It is more difficult to exercise control and implementation of corporate strategy over remote subsidiaries with different culture and background. (Fernando, 2006)
In this article, we will discuss the difference between international and domestic human resource management and the challenges that organization faced when selecting, developing, motivating and maintaining the employees for the overseas assignment and how these issues will affect the strategy of the organization.
Finally, the article will conclude that IHRM is complex, difficult and critical to global business success. (Stone, 2008) It faces a lot of challenges as compared to domestic human resource management mainly due to the geographic dispersion and multiculturalism.
Defining International Human Resource Management (IHRM)
There is no consensus about what the term IHRM covers although most studies in the area have traditionally focused on the area of expatriation (Brewster and Harris, 1999). Taylor et al. (1996) define IHRM as a range of people management functions, processes and activities which involve consideration of more than one national context.
Difference between Domestic Human Resource Management and International Human Resouce Management
IHRM has similar human resource activities as domestic human resource management except that it is at a global level. Regardless of
In the recent decade, international human resource management (IHRM) experienced tremendous research growth due to the increase number of organizations begun to extend their businesses into overseas markets. Multinational Corporation (MNC) is the term used to describe a business with overseas operation.
Some of the main reasons for the growth of interest in IHRM are: 1) the number of MNC has increased with rapid growth of global competition which resulted in increased mobility of human resource. 2) Effective HRM strategy has been recognized as determinant of success or failure of organization. 3) It is more difficult to exercise control and implementation of corporate strategy over remote subsidiaries with different culture and background. (Fernando, 2006)
In this article, we will discuss the difference between international and domestic human resource management and the challenges that organization faced when selecting, developing, motivating and maintaining the employees for the overseas assignment and how these issues will affect the strategy of the organization.
Finally, the article will conclude that IHRM is complex, difficult and critical to global business success. (Stone, 2008) It faces a lot of challenges as compared to domestic human resource management mainly due to the geographic dispersion and multiculturalism.
Defining International Human Resource Management (IHRM)
There is no consensus about what the term IHRM covers although most studies in the area have traditionally focused on the area of expatriation (Brewster and Harris, 1999). Taylor et al. (1996) define IHRM as a range of people management functions, processes and activities which involve consideration of more than one national context.
Difference between Domestic Human Resource Management and International Human Resouce Management
IHRM has similar human resource activities as domestic human resource management except that it is at a global level. Regardless of
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