International Human Resource Management

This assignment delves into the intricacies of International Human Resource Management (IHRM). It defines IHRM as the management of human resources functions within multinational companies, emphasizing the complexities arising from managing diverse employees across nations. The assignment highlights factors like demographic changes, technological advancements, cultural variations, and institutional differences that influence the external environment of IHRM. Key areas covered include basic HRM functions (recruitment, training, development), expatriate management, and the impact of cultural distance and institutional factors.

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International Human Resource Management
Name of the student:
Name of the university:
Author note

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Executive Summary
This assignment has looked into the trending challenges and the opportunities in the field of
international human resources management and the role of the head of HR in mitigating the
issues. While working in a cross- cultural environment it is the responsibility of the head of Hr to
keep into consideration the cultural similarities and the differences. The involvement of the
employees and the knowledge sharing makes an important part of the organizational
performance. There are different strategies for the international human resources management
which should be followed by the head of the HR department for successful growth and
development of the organization.

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Table of Contents
Introduction......................................................................................................................................4
Trends and Challenges.....................................................................................................................4
Globalization................................................................................................................................5
Political perspective.................................................................................................................5
Cultural perspective.................................................................................................................5
Economic perspective..............................................................................................................5
Social perspective....................................................................................................................6
Impact of globalization on knowledge sharing........................................................................6
Impact of globalization on employee satisfaction...................................................................6
Cultural similarities and differences........................................................................................6
Critical evaluation of globalization.........................................................................................6
Demographic changes..................................................................................................................7
Political perspective.................................................................................................................7
Cultural perspective.................................................................................................................7
Economical perspective...........................................................................................................7
Social perspective....................................................................................................................8
Impact of demography on knowledge sharing.........................................................................8
Impact of demography on employee satisfaction....................................................................8
Cultural similarities and differences........................................................................................8
Critical evaluation of demographic change.............................................................................9
Technological changes.................................................................................................................9
Political perspective.................................................................................................................9
Cultural perspective.................................................................................................................9
Economical perspective...........................................................................................................9

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Social perspective..................................................................................................................10
Impact of technological change on knowledge sharing.........................................................10
Impact of technological change on employee satisfaction....................................................10
Cultural similarities and differences......................................................................................10
Critical evaluation of technological change..........................................................................10
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................11
Bibliography..................................................................................................................................12

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Introduction
International human resource management involves the function of human resources such
as recruitment as the first and foremost, then selection, guidance and progress, presentation
appraisal and discharge done at the international level and other activities such as worldwide
skills management, emigrant management and so on. Global competition and differences have
resulted in the development of global organizations to develop their international human
resources strategies. International human resource management is simply the process of
managing the people in an international setting. It should be conducted in at least two countries.
International HRM looks into a wider range of human resource activities unlike the domestic
HRM. This process looks into the matters related to employee belongings of more than one
country. With a greater involvement of HR manager in the personal life of the employees, a
balanced work relationship is maintained. But there are disadvantages as greater amount of risk
exposed in the international assignments. The general practices carried out in the process of
IHRM are international staffing, pre- exit training and development for the international
assignments, repatriation, and management activities being performed at the international level
and there can be compensation issues in the international assignments (Brewster, Houldsworth,
Sparrow, & Vernon, 2016).
There are different major trends and challenges associated with the practices of
International Human Resources Management. IHRM is applicable to international, multinational,
global and transnational corporations. MNCs have operating units situated in foreign countries,
which work as autonomous units. As the head of HR in an MNC, the issues that can be looked
up to are Globalization, Demographic changes and Technological Changes.
Trends and Challenges
In the recent days, companies and organizations experience both opportunity and the
challenge of recruiting global employees who vary in race, culture, background, age and gender.
As the head of the HR department, it is a really difficult to ensure the success of organization in
such a varied and global environment.

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Globalization
Competition at a global basis is the new fad where the employers and the employees
visualize themselves as the international player in the global HR markets. There is a stiff
competition going on at a constant rate between the countries as the consumers have a flexible
pattern of purchasing. For instance, two renowned technological companies in a country are
recruiting employees from another country by promising them a successful career (Armstrong,
2014).
Political perspective
Politics is considered within the national political systems. This is because the national
governments are responsible controlling the security and the economic welfare of the people and
also protect the human rights and the environment within their periphery. With the ongoing
change in the global ecology and a more combined economy along with other global trends, the
political activity is rapidly taking place at the international level. There are different political
integration schemes above which the politics take place under a globalized business.
Cultural perspective
With the expansion of the companies across international borders, accessing the global
market place becomes easy for both small and large business. The cross cultural team members
are becoming more common and the business is getting benefitted from the diversified
knowledge. In an international business scenario, the form of professionalism varies from one
country to another. Therefore the IHRM process should be practiced in such a way as not to hurt
the sentiments of any employees (Sparrow, Brewster, & Chung, 2016).
Economic perspective
International business carries a significant amount of share in GDP in various countries.
Different companies in different countries are in the search for new growth opportunities across
the transnational boundaries. International business and HRM can be responsible for exciting the
major sectors of the economy which will lead a better prospect for growth of profit. Thus IHRM
and globalization together refers to the interconnection and interdependence between different
countries that are coming together from the combination of different integration aspects such as
trade.

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Social perspective
With the effect of globalization in international human resources management, the
relationship and connection among the nations have grown and developed. IHRM can be
considered as a method to bring in globalization. It has led to an increase in the application of
technology which gives way to liberalization of transnational trade and the resource movements.
The increasing pressure of the consumers and the rapid increase in the international competition
has forced to drive globalization in the international market.
Impact of globalization on knowledge sharing
Knowledge management is a subject which is practiced on a global scale in today’s
world. It refers to the people and giving them the opportunity to work in such an environment
where they can boost up their knowledge and develop themselves. Knowledge is considered as
the basis of competition, therefore, as the head of HR it will be required to set strategies about
the organizational knowledge and capabilities for supporting the intended strategy (Alfes,
Shantz, Truss, & Soane, 2013).
Impact of globalization on employee satisfaction
There are certain external factors which are considered to be influencing the working
environment and global work force is taken as one such factor which affects job satisfaction by
increasing demands.
Cultural similarities and differences
The ability to communicate with efficiency is a major challenge in the global
environment. Misunderstanding can arise out of miscommunication which can give way to
organizational conflict. Speaking the same language is not enough to avoid miscommunication
because conflict can take place due to difference in ethnicity, race and culture. Moreover,
communication is directly proportional to organizational performance.
Critical evaluation of globalization
The global trends vary from one country to another. The major issue that is addressed in
the above subject is that if globalization has led to any change in the organizational performance
improvement. To critically evaluate the impact of globalization the concept of culture, economy,
society and politics have to be taken into consideration. If the positive impacts are looked into

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then globalization has developed a better economy by introducing new technologies. On the
contrary, the growth in international business has led to income inequality in industrialized and
non- industrialized countries.
Demographic changes
The change in demography has caused a shift in the work patterns. The major prospect is
the growing population which can lead to two kinds of concerns-one, the possible loss of the
managerial memory and intellectual property with the retirement of the employees and two,
succeeding demand for the post retirement pension and welfare services. Evolution of the new
generation who are neither educated nor employed is a rising concern as a result of change in
demography (Jackson, Schuler, & Jiang, 2014).
Political perspective
The change in demography is triggered by the mechanism of birth, death, age and
migration. There is always an opportunity for incorporation and also the change in boundary and
identity. In this way the boundary of population can be withdrawn which would not have been
possible in biological populations. There are some issues in it such as surges of young people in
the developing world, increase in the ageing population in the developed countries and the effect
of growing urbanization.
Cultural perspective
There is constant increase in the internationally operating companies. The global market
is opening up to invite the foreign companies and new innovations in the business for successful
growth. It is important to gain knowledge about the manners and customs of the foreign culture
before welcoming the companies. This will set a healthy way of carrying out the business.
Economical perspective
There are some developing countries who are putting effort to reduce poverty but there
are many left to do so (Lucio, 2013). Energy and environmental security tends to be the primary
issue in the potential for long- term economic goal. In the contemporary boundary- less world,
there seems to be very less threats that can evolve into major problems.

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Social perspective
It is a fact that sociology and demography showcase mutual separation and indifference
in international human resources management. The major social factor that influences business
on a global scale is the change in customer preferences. Things that were popular previously
might become outdated in the recent years. There are various styles and preferences which paves
the way for long term products and services. For instance, in the process of recruitment the
characteristics of the employee that were considered ten years ago have been revised to some
new characteristic traits. Changes in demographics pose to be a major factor in the world of
international business (Kramar, 2014). With the ageing of the population, the market of some
products and services sinks with the growth of new innovations. Change in the gender ratio and
various religious, racial and ethnic groups in the community has a significant effect on the
business is conducted by a company.
Impact of demography on knowledge sharing
Although knowledge sharing among the employees is an integral part of the
organizational activities but there are some cases in which there is reluctance on the matter.
Knowledge is identified as the most important resource for any organization. Therefore all the
organizations are trying to focus on the advantages that they will get by knowledge sharing. As
the head HR it is a responsibility to value knowledge sharing for the benefit of the organization.
Impact of demography on employee satisfaction
In this era, international human resources management and development has been of
great importance because individuals have found their own positions in the management and
social processes. Demographic factors, along with the organizational factors, have a great impact
in this regard.
Cultural similarities and differences
The globalization of HRM and other businesses in today’s world is an obvious condition
for the future growth and success of the organization (Zhong, 2016). There are factors which
need some modification that are directly associated with the legal regulations of other countries
but also to the cultural traits of their nation. The effect of some dimensions of the national culture
is the chosen content of HRM in companies of few countries.

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Critical evaluation of demographic change
Demographic factors play a major role on the human resources management practices in
an organization. It has become the responsibility of the head of HR department to keep
equilibrium in race, gender and ethnic diversity. It has become an important task for the
companies nowadays to keep workplace balance in consideration. So, the demographic factors
affect the HR practices related to recruitment, planning selection and security of workplace.
Technological changes
With the change in workforce structure, the potential IT is resulting in job loss and a
struggle in the narrow industrial skills. Innovations in technology can be both beneficial as well
as pose threat. There are only a handful of people who can work in the prime location but not all.
Such a fad has made way for workplace diversity and cross- cultural performance.
Political perspective
The impact of power and politics in the technology of HRM is the outcome of the
changing nature of the workplace environment on a global scale and the part of power and
politics in this modification. The information about the effect of power and politics is essential
for eliminating the constraints for sustainable development of HRD, improvement of the global
system and creating individual who are politically and socially responsive (Purce, 2014).
Cultural perspective
If the impact of national culture is kept in mind along with the chosen trend and content
of HRM in certain organizations, then the connection between the different dimensions of
national culture, policies and procedures of an area can be established. There are organizations
within the structural framework of the internationalization of business which can create business
entities in some other countries.
Economical perspective
The global and economical modification is to the human resources management is in
need for implementing a function driven by the market in all the possible approaches and thus,
manages the diversity in the continuously increasing cross- cultural work environment (Obeidat
& Abdallah, 2014). The disruption in the trade barriers and the evolution of a free market
economy on an international scale has increased competitiveness in the firms.

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Social perspective
The understanding of the new innovations in technology for the society begins with an
apprehension of the type of elements composed in the given technology. Recently, internet has
become the ever increasing area of inquisitiveness along with the style among the individual
users and there are few systematic tasks on the organizational traits that are related to IT
(Messersmith & Wales, 2013).
Impact of technological change on knowledge sharing
The information and communication technology has an impact on the knowledge sharing
behaviors in many organizations. It had an objective to address the qualitative methodology and
the outcome of which showed that the technological factors are involved within the work
environment culture.
Impact of technological change on employee satisfaction
There lies dark cloud in the connection between employee involvement and the
organizational activities along with the challenge in the Information Technology. The new
innovations deliver an important possibility which can develop the organizational performance
by employee development.
Cultural similarities and differences
In international human resources management, the differences in culture and ways to deal
with it are considered as one of the main challenges. it will be the responsibility of the head of
HR to understand the cultural similarities and differences for developing strategies that are
accepted equally in other countries (Deresky, 2017).
Critical evaluation of technological change
With the constant increase in global economic landscape there is a rapid growth of
international export of goods and services. It can be observed that the growth in absolute values
is taken into consideration for high- income economies.
Recommendation
As the head of HR it becomes the responsibility to make the elementary contribution for
the development of the organizational culture and extraordinary staffing. If the organization is

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large then the head of HR will have roles which involve more responsibility and authority. The
HR managers have the responsibility to lead various departments such as training, compensating
and recruitment. The role of the head of an HR keeps on changing with the change in modern
organizations and firms. There must be a similarity in the requirements for developing and
changing organizations. They are able to identify that organizations will compete for talent in the
near future.
Conclusion
Therefore it can be concluded from this assignment that international human resources
management refers to management of human resources functions at the multinational companies.
IHRM is bothered about managing the employees of different nations keeping in mind the
change in demography, technology and the differences in culture and community. Apart from
managing the basic functions of HRM such as recruitment, training and development, the IHRM
also looks into the expatriate management. Cultural distance and institutional factors among
other external factors affect the external environment which makes IHRM complicated.

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Bibliography
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human
resource management practices, engagement and employee behaviour: a moderated
mediation model. . The international journal of human resource management, 330-351.
Armstrong, M. &. (2014). Armstrong's handbook of human resource management practice. .
Kogan Page Publishers.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource
management. . Kogan Page Publishers.
Deresky, H. (2017). International management: Managing across borders and cultures. .
Pearson Education India.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human
resource management. . Academy of Management Annals, 1-56.
Kramar, R. (2014). Beyond strategic human resource management: is sustainable human
resource management the next approach? The International Journal of Human Resource
Management, 1069-1089.
Lucio, M. M. (2013). International human resource management: An employment relations
perspective. . Sage.
Messersmith, J. G., & Wales, W. J. (2013). Entrepreneurial orientation and performance in
young firms: The role of human resource management. International Small Business
Journal, 115-136.
Obeidat, B. Y., & Abdallah, A. B. (2014). (2014). The relationships among human resource
management practices, organizational commitment, and knowledge management
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and Management, 9.
Purce, J. (2014). The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management . (Routledge Revivals).

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Sparrow, P. B. (2016). Globalizing human resource management. . Routledge.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management.
Routledge.
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human resource practices, and cultural value orientations: A cross‐level investigation.
Journal of Organizational Behavior, 823-844.