International Human Resource Management: Importance, Effective Practitioner, Stages, and Recommendations

Running Head: HRM 0
HRMT

HRM 1
Table of Contents
Introduction................................................................................................................................2
Importance of greater degree of involvement............................................................................2
Effective IHR practitioner..........................................................................................................3
Stages a firm typically goes through as it grows internationally...............................................4
Recommendation........................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

HRM 2
Introduction
The art and science of Human Resource Management (HRM) is complex and
organisation needs to address its practices in depth to drive towards competitive advantage in
the industry. However, in order to cover the varying work scenario over the globe,
international perspectives of HRM has now been modified into IHRM (International Human
Resource Management).
International Human Resource Management is the practice of employing skilled and
significant staff through all the countries in which organisation extents and effectively
utilizing the talent of these HR in the enterprise to gain organisation mission statement (Shen
et al, 2009). IHRM is into the administration of employees in the three counties groups – The
parent country, the host nation and third country.
Importance of greater degree of involvement
When an international project is not accomplished, it is important to replace the
employee, the cost of the failure to the enterprise is both indirect and direct. The indirect cost
may be related to market share depreciation and ineffective interrelations with hosts.
Whereas, the direct cost may be related with cost of training, salary and relocation expenses.
Hence, for an organisation, it is important to carefully select employees in the completion of
the project, as these costs are quite expensive for an enterprise. The failure of employees at
international level is caused by an error in recruitment. In history, employee selection has
been depending on interpersonal factors. For example, Greguras & Diefendorff (2009) found
that interpersonal skills help in the adjustment of the culture of the employee and its
associated people (family and friends). The involvement of human resource department is
limited in domestic settings. The decision related to most of employee selection is developed
informally as their jobs need much more than the right skills. When an enterprise propels its
expatriate to some other nation, it also proceeds with over the responsibilities other than the
elementary functions of HRM. These enterprises not merely deal with the employee selection
of the best employee for work in foreign nations; however, they are also aware of family
needs that will accompany the expatriate to the new cultural environment. It was founded that
many international projects are unsuccessful as these employees family and spouses are not