International Human Resource Management: Challenges and Contemporary Practices

INTERNATIONAL
HUMAN RESOURCE
MANAGEMENT

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Contents
INTRODUCTION.................................................................................................................................1
Implications for contemporary IHRM practice......................................................................................1
Key literature on contemporary practices in IHRM...............................................................................3
Influence on contemporary practices of IHRM and what managers can do...........................................5
Conclusion.............................................................................................................................................6
REFERENCES......................................................................................................................................7
INTRODUCTION
International Human Resource management practices have changed over the years. These
changes have been noticed due to the fact that cultural, economic and political environment
has changed. The changes in the procedures related to International staffing recruitment and

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selection and cultural ideologies of the MNC’s have led the companies to rethink about the
challenges that are faced by them. There is difference in the culture in different countries and
this variations needs to be managed in an appropriate manner (Reiche, Stahl, Mendenhall &
Oddou, 2016). In the recruitment and selection of candidates, organisation’s culture and the
culture of that country plays a very effective role. This report analyses the challenges faced
by the IHRM in the areas such as cultural management especially in terms of international
recruitments. It also shows the implications of these cultural variations on the IHRM
practices. This report also reviews the literature on the HR practices in the Cross-border
M&A, International Alliances and SMEs. In the last segment, it provides details about the
influence on the contemporary practices and its implications on the manager’s in the MNCs
due to Cross-border M&A, International Alliances and SMEs.
Implications for contemporary IHRM practice
Cross border merger and acquisition is understood as the either two company from different
countries merges with each other so as to become a greater force or one company from one
country, gains control of other firm from other country. International Human Resource
Management plays a major role in the cross-border mergers and acquisition. In merger and
acquisition, staffs of two different companies starts working with each other. In cross border
mergers, strategic human resource management is very much essential (Tarique, Briscoe &
Schuler, 2015). Due to this, companies had to face many kinds of challenges as people are
from different cultural backgrounds and at the same time they also have to ensure that proper
coordination is maintained in them.
The IHRM practices will also affect in terms of fact that due to merger and acquisition the
organisational structure will change. The policies related to the way in which rewards and
benefits are provided differs from company to company. In case of cross-border mergers and
acquisitions, they have to make a plan so that new incentives and reward system may not
demotivate employees of one company. IHRM of the firm must have a plan about the way in
which recruitment and selection of the staffs needs to be done in the new countries. A
glocalised strategy in the case of managing HRM across borders may not be highly
beneficial. This is because the problems in the management of human resource generally
arise due to localised problems and the factors that are present at the local levels (Stahl,
Björkman & Morris, 2012). In case of acquisition the problems related to controlling staffs
can be easy while in the case of mergers, it become more complex.