International Human Resource Management and Challenges!

Globalization has turned the world into a global village with most companies expanding to overseas markets with an aim to widen their market base. IHRM is concerned with HRM issues that cross national boundaries or are conducted in locations other than the home country headquarters. It is concerned with the relationships between the HRM activities of organizations and the foreign environments in which the organizations operate. As the pace of technological advancement rises and most firms develop a deeper international focus, effective management of the human resources to adapt to the changes becomes inevitable.

Not only that International HRM is concerned with identifying and understanding how the Multinational companies manage their geographically dispersed worked force in order to leverage their HR resources for obtaining local as well as global competitive advantage while HR Managers in the organization have to integrate HR policies and practices across a number of subsidiaries spread in several countries, so that the organization goals can be achieve at the same time. They have to make these policies and practices sufficiently flexible to allow significant differences in these policies in different countries.

Some places can be observed for having natural uniqueness providing those some benefits over other places, where people will love to spend their vacations, some places are very attractive for having historic backgrounds. Careful identification and environmental scan is a proper entry approach. SWOT analysis and PESTEL will help to realize the gap between the current and the future prospects. Anyway, it is essential to go through the potential growth plan and the capabilities & assets of the organization plus the people skills of the company.

Competent workforce with proper learning opportunities and career path will aid the organization to gain the expected targets into realities. There are many different areas, improving them is the duty of human resource manager resulting in the overall better performance by the entire organization.

However, effective management of the human resources is arguably one of the most challenging tasks to an organization The reason being IHRM (International Human Resource Management) deals with complex issues the main one being the development of management techniques in the host countries where different cultures, economic systems, and different legal systems exist. Sweeping demographic changes coupled with the millions of women pouring in the global workforces imply that multinational companies face an ever-increasing pressure to innovate creative ideas aimed at integrating and retaining the diverse global workforce. There are many examples of huge companies facing failure when entering into different countries. Therefore, HR department has to play a significant role in this regard while maintaining the significant corporate culture and also to cope up the issues regarding the external environment.

Moreover, this provides with the sense of security to the employees that they do have someone who can look after them whenever they commit a mistake. As the business environment is getting more competitive, organizations need to gain some access to those resources in which they have gain the competitive advantage to increase the profitability.

References

Snell, S. and Bohlander, G. (2007). Human resource management. Mason, OH: Thomson.

https://www.bayt.com/en/specialties/q/274752/what-is-the-meaning-of-international-hrm/

https://saylordotorg.github.io/text_human-resource-management/s18-international-hrm.html