The Role of HRM in International Joint Ventures: A Comprehensive Study

This essay examines the crucial role of Human Resource Management (HRM) in the context of international joint ventures (IJVs). It highlights how HRM functions significantly impact the success of IJVs, particularly in the context of US-based organizations expanding globally. The essay delves into the stages of international expansion, from market analysis and partner selection to relationship building and the development of cross-cultural skills, emphasizing the implications for HRM at each stage. It underscores the importance of HRM in managing employees, navigating cultural differences, and ensuring the effective operation of IJVs. The essay concludes by reiterating the significance of HRM in the effective management of international organizations and their partnerships, emphasizing the role of human resources in global business operations.

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Introduction
The organizations which have their operations in a particular country aim at
expanding their operations with the help of international joint ventures or IJVs. The market
demand in different countries is able to play a major role in the effective operations of the
organizations which expand their operations. The US based organizations mainly aim at
expanding their operations with the help of international joint ventures. The sales based
growth of these international organizations are thereby based on the ways by which they are
able to expand their operations in different market areas (Chen, Chen and Zhou 2014).
The human resource based functions of the companies can play a key part in the
international expansion based activities. The discussion that will be done in the essay will
thereby be based on the methods by which human resource functions are able to affect the
international joint ventures. The international joint ventures are thereby considered to be the
most important ways by which the organizations are able to expand their operations in
different countries (Deák and Peredy 2015).
Discussion based on the stages of international joint venture and HR implications
The international joint venture related plans of the organizations can also face some
major obstacles in different countries. These obstacles can thereby be removed with the
proper assistance of the employees of both the organizations and different departments as
well. The human resource department can thereby play the most significant role in proper
management of the employees and their work process at the time of an international joint
venture (Debroux 2015).
The different stages that are considered in the international expansion of organizations
are as follows,

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Step 1 - The organization needs to have effective understanding of the international
target where it is planning to expand its operations. The organization thereby needs to search
for markets which are willing to purchase the products that are offered to the consumers. The
search for a perfect partner in the international joint ventures is also an important part of the
proper operations of the organizations. The potential partners thereby need to be analysed in
an effective manner by the company in order to decide the best among them (del Mar
Benavides-Espinosa and Ribeiro-Soriano 2014). The organization thereby needs to protect its
interests before it is able to plan the ways by which it can operate in the international markets.
The human resource department of the organizations can play a major part in the methods by
which the company is able to find the suitable partners. The research based on suitability of
the partners can be done by the human resource department of the companies (Gerschewski,
Rose and Lindsay 2015).
Step 2 – The organization which wishes to expand its operations in a different country
needs to search for a partner who has larger operations than it has in the international market.
The most important part of the selection is thereby based on the ways by which the partner is
able to provide effective amounts of support to the company which has planned for
expansions. The large local partners will play a major role in the growth of proper operations
of the company which has expanded its operations. The regulations which are thereby
developed in the international areas needs to be considered by the organizations in an
effective manner by the companies in order to operate in a profitable manner (Hollender,
Zapkau and Schwens 2017). The human resource managers of the companies can thereby
analyse the policies which are required for the proper functioning in the other countries. The
partners in international joint ventures thereby can be selected effectively with the help of
human resource managers. The analysis of employee data and external influences will

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thereby play a main part in the methods by which the companies can maintain the regulations
(Khamaksorn, Kurul and Tah 2017).
Step 3 – The imbalance between the size of two organizations who are about to form
the partnerships is evident in international joint ventures. The companies thereby need to
understand that the imbalance is not a negative aspect of proper business operations. The
changes which can take place in the external environment of the companies can be responded
to in an effective manner. The human resource managers are thereby able to affect the ways
by which the companies can create their response to changes which are taking placed in the
environment (Martin-Rios 2014).
Step 4 – The relationship which is thereby developed among the organizations is an
important part of the successful partnerships. The structure of the IJV thereby needs to be
maintained in an effective way with the help of the human resource managers of the
companies. The business relationships which are thereby developed in an effective way with
the help of appropriate assistance which can be provided to them by the human resource
managers of the company. The managers can play a main part in the methods by which the
organizations are able to develop effective relationships among themselves (Minbaeva et al.
2014).
Step 5 – The development of cross cultural skills is an important factor which can
affect the leadership based activities of human resource managers. The managers thereby
need to formulate effective relationships among the organizations with proper management of
diverse employees. The cross cultural skills will help in the development of employees of
both the organizations which belong to different backgrounds (Taussig and Delios 2015).
The different stages which form an important part of the process related international
joint ventures are thereby affected by the human resource related functions of both the

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companies. The human resources are thereby able to impact the ways by which organizations
and their effective operations can be managed by the employees.
Conclusion
The essay can be concluded by stating that the proper operations of international
organizations after their expansion is based on the ways by which the human resource
department is able to manage the different types of employees effectively. The human
resource department is thereby considered to be an important part of the operations of
companies after the process of international joint ventures have been completed effectively.
The human resources are thereby considered to be an important part of the operations of the
global organizations and their partners.

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