International HRM essay

1. International HRM

In accordance to Brewster and Harris (1999, p.2) the IHRM covers the broad spectrum of issues and is not limited simply to the HR of expatriates. Basically, it includes the worldwide management of people. These authors note that there are several models of fitting IHRM into the globalization strategy. They mention that  ”˜Adler and Ghadar (1990) suggest that organizations will need to follow very different IHRM policies and practices according to the relevant stage of international corporate evolution, which they identify as: domestic, international, multinational and global. Linking this with the attitudes and values of top management at headquarters (classified by Perlmutter and Heenan (1979) as ethnocentric, polycentric and geocentric) they outline how organizations could adapt their HRM approaches and practices to fit the external environment in which the firm operates, and its strategic intent.’ (Brewster and Harris, 1999, p.2)

In addition, Brewster and Harris (1999, p.3) cite Evans and Lorange (1989) who claim that there are two logics for shaping HRM policy; product-market logic and social-cultural logic. And it should be emphasized that social-cultural became extremely important for business these days.

1. Environmental factors analysis in the context of International HRM

According to some researches, for instance, Boxall, Purcell, and Wright (2007) and Tayeb (2005), the role of international HR professionals is substantially changed under influence of information and communication technologies. These innovative tools transform organizational structures and business processes, breaking down organizational and geographic boundaries. (Boxall, Purcell, and Wright, 2007)

The role of HRM in the overall success and performance of the organization is crucial, so the factors that influence it have to be studied. The carefully implemented environmental factors analysis is extremely important for the global corporations that operate under conditions of increasing globalization and complex environments.

HR managers that work for multinational corporations often experience difficulties or face with complex challenges, because workforces are spread across countries, cultures and political systems and thus different approach is required, including different cultural approach.

In order to be able react this way, HR needs to analyze the environment the company operates in and take advantage of this knowledge. Boxall and Purcell (2011, p. 14 ) indicate organization’s people management practices should be embedded in a firm’s socio-political and economic environment and its business strategy.  The reason is that that organization that wants to achieve the success in the global environment faces a variety of threats and opportunities of global economy, markets, political and regulatory environments and international risk. In order to provide the effective HH policy and rely on it, the company which deals with different cultures and nations should check both local environment in specific countries and global trends. (Ashkanasy, 2011, p.32)