International HRM

Introduction

Employing an effective workforce gives a company a competitive edge. Many organizations work beyond national borders to conduct business. Consequently, the necessity for managing people globally is growing. A key factor in determining whether multinational businesses succeed or fail is the efficient administration of global workforces. Hiring, onboarding, and staff retention have become more difficult for multinational corporations. When it comes to managing personnel from various countries and geographic areas, IHRM is particularly important. It has been stated by Brewster, (2005) that a critical challenge for organizations from both the public and private sectors in the twenty-first century is the need to operate across national boundaries.

                   Figure 1/International HRM

Objectives of international human resource management

The process of managing people in multinational endeavors that involves activity in at least two countries is known as international human resource management. It is a well-known truth that the quality and abilities of human resources, as well as the efficient management and utilization of these resources on a global scale, determine the success of trade and economic ventures.

1. It improves the technical proficiency, organizational understanding, and managerial capabilities of HR managers and employees.
2. To develop into more adept at managing international corporate operations.
3. To oversee and protect workers' performance, pay, and career paths.
4. To oversee and plan a program of language instruction and cross-cultural counselling.
5. To provide a more workable comprehension of global work methods.

Differences between international HRM and domestic HRM

                                   Figure 2/DHRM Vs. IHRM

The term "domestic human resources management" describes staff management within a single nation. The most important function of domestic human resources management is the selection of competent individuals for various job profiles. The proper individuals may build and improve an organization's value. Worldwide levels

An international HRM has to make sure that workers from all over the world collaborate in the workplace despite challenges posed by geography and cultural differences and strive toward the organization's shared objective.

The distinction between international and global HRM

Traditionally, international HR has been about managing an international workforce –the higher-level organizational people working as expatriates, frequent commuters, cross-cultural team members and specialists involved in international knowledge transfer. Global HRM is not simply about these staff. It concerns managing all HRM activities, wherever they are, through the application of global rule sets (Brewster, 2005).

Challenges in international HRM

In contrast to domestic HRM, a number of challenges specifically impact international HRM practice. These concerns include the effects of globalization, the significance of cultural and variation in the environment, and the extent to which HRM practice and policy should differ. in multiple countries (convergence or divergence), this includes the methods applied to the hiring and supervision of foreign workers.

              Figure 3/Challenges in IHRM

Globalization: any company that has economic interests or activities extending across a number of international boundaries are a global company. This involves a number of issues not present when the activities of the firm are confined to one country. Ulrich, (1998) As put it, ‘Globalization requires organizations to move people, ideas, products and information around the world to meet local needs.’

Environmental differences between countries have to be taken into account in managing globally. Gerhart & Fang, (2005) mention that these include ‘differences in the centrality of markets, institutions, regulation, collective bargaining and labor-force characteristics.

The significance of cultural differences was the influential message delivered by Hofstede, (1980,1991). He defined culture as ‘the collective mental programming of people in an environment’, referred to cultural values as broad tendencies ‘to prefer certain states of affairs over others’, and described organizations as ‘culture-bound’.

Convergence and divergence according to Brewster, (2005), the effectiveness of global HRM depends on ‘the ability to judge the extent to which an organization should implement similar practices across the world (convergence) or adapt them to suit local conditions (divergence).

Conclusion

An international company's monitoring of its global workforce is known as international HR management. An organization can implement a uniform strategy to hiring, training, performance management, and grievances from employees across the entire business by implementing global HR management. It plays a crucial role in managing a global workforce, ensuring smooth operations and employee satisfaction across diverse cultures and legal frameworks.

References

Anon., n.d. Economic discussion. [Online]
Available at: https://www.economicsdiscussion.net/human-resource-management/what-is-international-human-resource-management/31956
[Accessed 11 April 2024].

Armstrong, M., 2010. International HRM. In: Armstrong’s essential human resource management practice. London: Great Britain and the United States in 2010 by Kogan Page Limited, pp. PP 103-118.

Brewster, S. H., 2005. Towards a new model of globalizing HRM. International Journal of Human Resource Management, Volume 16, p. pp 949 – 70.

Gerhart, B. & Fang, M., 2005. National culture and human resource management. assumptions and evidence, International Journal of Human Resource Management,, Volume pp 971– 86, p. 16.

Hofstede, G., 1980,1991. Cultural Consequences: International differences in work-related values Sage, Beverley Hills, CA.

Ulrich, D., 1998. A new mandate for human resources, Harvard Business Review. Volume January–February,, p. pp 124 – 34.