INTERNATIONAL HUMAN RESOURCE MANAGEMENT

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is described as organizational activities of recruiting, selecting, designing to work, training, rewarding, managing, motivating and controlling the employees. The practice of human resource management is concerned with all aspects of how people are employed and managed in organizations (Armstrong, 2009).

International Human Resource Management (IHRM) is the process of managing people across international boundaries by multinational companies. It involves the worldwide management of the people not just the management of expatriates (Armstrong, 2009).

The IHRM differs in many ways from a Domestic HRM, such as which operates from an international level or beyond national boundaries and concerned with managing employees belonging to many nations. IHRM has to deal with more external factors than domestic HRM such as culture, education, political and legal system.

Challenges faced by International HRM

• Cross culture issues.
• Training and Development to a set of people from different nations.
• Remuneration and salary package.
• Setting standard performance appraisal to people from different culture.
• Managing international staffing.

As reported by Welfare (2006), the main contrast between national and global HR practice is the need to see the bigger picture: ‘The difference is the higher complexity and the need for sensitivity to different cultures and different business environments.

These are the impact of globalization, the influence of environmental and cultural differences, the extent to which HRM policy and practice should vary in different countries, and the approaches used to employ and manage expatriates (Armstrong, 2009).

Conclusion

With the impact of the globalization, IHRM plays a crucial role in achieving the organization’s goals. Due to the open market concept, through globalization the companies are ready to move their operations into another country. Hence, IHRM is important for their smooth operations.  

Due to globalization and implementation of IHRM, the Srilankan economy and people receive more advantage, for example, foreign investment is a significant driver of economic development. The investments contribute and improve work ethics, discipline, skills and knowledge of workers. It is an important means of technology transfer and transmission of best practice in management and often brings with them international markets (Weerakkody, 2016).

 

References

Armstrong, M. (2009). Armstrong's Handbook of Human Resource Management Practice. London: Kogan Page.

Weerakkody, D. (2016, November 04). Daily Mirror. Retrieved October 05, 2019, from Daily Mirror: http://www.dailymirror.lk/article/The-need-for-BOI-to-become-more-competitive--118657.html

Welfare, S (2006) A whole world out there: managing global HR, IRS Employment Review, 862, 29 December, pp 8–12