Importance Of International View Of Hrm Business

Essay add: 29-03-2016, 20:39   /   Views: 4

By analyzing the current business environment intensively, it is clear that it has got a tendency to get leveraged or enhanced to other countries through strategic alliances between the corporate structures in different countries.

Activities in the current global business environment would not be carried out effectively without extending their brand globally by international investment. Globalization of business is done to accomplish this competitive advantage. It can

therefore be argued that globalization is in one way working towards

enhancing the global business environment by escalating the

competitiveness of the business and improving their performance and goodwill. Globalization give way to cultural diffusion and human resource is transferred between the nations for expediting the growth across borders making IHRM more important. If a domestic company is not interested in such sort of international investment, it cannot avoid or move away from the pressure exerted by the rival multinationals in the same domestic market.


The aspects of IHRM cover the common concepts of HRM at the national level which mainly includes the employment system and employment law which prevails in a country. The critical analysis of the strength that the trade union and the employer union posses should be taken into consideration while framing up a strategy as this matters in policy formation.

In social context, culture is given importance. It is important not to lose sight of the significance of individual cultural work force that structures job and employment condition. IHRM frames up subtle business strategy based on climate and political environment in which the firm operates.

Local adaptability of IHRM is carefully studied and in what standard they have to implement it is analyzed. There is a chance that employees with very different national characteristics works within a national company.In this context, integrative IHR framework is needed to coordinate between departments in the same company.


While promoting the business to a foreign location from the home country a company is subject to more political, economical and cultural pressures.HRM is an important aspect in this context in which the management should achieve some conflicting strategic objectives and policies which encompasses more function and blend with the cultural and social settings of a particular country. Managing a diverse workforce is necessary while the business is propelled international. The approach is focusing upon constructing specific skills and it includes drafting the practices which gets best to the employees. Heterogeneous workforce is established to perform to its full potential in an equitable work environment.

To be triumphant, a comprehensive International human resource Management must have a strategy that is manifestly articulated and continuously refocuses to match the International Human resource management targets and objectives to achieve the competitive advantage.  The entire association of employees who all are working in the firm having the same depiction, speculations and opinion will generate a well-built organizational structure.  To provide a competitive edge in international business world and to develop the international human resources to be more prolific, the companies having international branches must uphold a "global view" by integrating the HRM policies and propagating linkage between countries taking into consideration the cross cultural management issues, expatriate cost etc.

IHRM involves constantly changing perspectives. It requires more involvement in employees' personal lives and consideration should be taken while implementing strategies. The HR manager must synchronize policies and actions to handle expatriates.


Knowledge of the industry and the competitor understanding is essential for a firm and IHRM deals with it. Having a global perspective and by implementation of strategic analysis, IHRM can pulse the multiple stakeholder sensitivity. Knowledge about partner orientation is also worked out by IHRM. MNCs are flourishing day by day which makes more participants involved all over the world and making economic environment more complex and competitive.


IHRM deals with managing cultural diversity and acknowledging diversity as the distinguishing attribute of global workforce. A manager should be the creator of learning culture and value shaper. Beside leadership competency, IHRM deals with the professional and technical competency to succeed the international business.


The specialist skill is resourced from overseas market and recruitment is done in context of an internationalization strategy. IHRM department takes the responsibility for such sort of overseas recruitments.

Managing diverse workforce with standardization of policies.

By enriching the company with skilled workforce, making the company internationally more competitive and attractive.

Analyzing the needed technical competence or skill of the new employees and formulating assessment process.

Achieving talent management inventiveness at a global level.

Systematic development of HR policies which includes efficient expatriate management, more innovative in-country operations, talent management and human resource business partner role.

Globalised strategies for recruitment, selection and reward systems.

Managing to get a balance between the internationally coordinated HR policies and the employee needs including the cultural differences. This balance is also set up to align both business needs and senior management philosophies together.

Development of wide range of competence within the employees who have to work across changing or different cultural, political and organizational boundaries.

Developing coordination between the different strata of the global business to work closer by the implementation of various formal and informal methods.

Managing the benefits and pay determination based on special requirements of expatriates and host country nationals.

Gives insight into international finance as company has to pay its employees in different currencies which are subject to change over a period of time.

Providing specialist skill for carrying out overseas business opportunity assessments.

Providing deeper insight into the international geopolitical forces and their linkage to the business.

More inputs to build up a sophisticated HR practice in recruitment and selection.

More knowledge about the international labour legislations as the various aspects of employment differs from country to country.

Good knowledge about the local labour market.

Reducing the burden of expatriate cost if the company posses skilled promotable staffs through training and support.

More sophisticated than the plain HRM as it gives more light towards risk exposure. The analysis for the chances of failures and dangers are figured out.

Analyzing the level of adaptability of the company's HRM policies and objectives to other country's local political and social environment while globalization.


While operating a business in the present global environment, a company is facing many disturbances that can root out from the cultural diversity or pattern of thinking by each individual human resource. Different pattern of thinking might be because the workforce comes from different countries and use different languages. Each individual posses different attitude towards labour and way of life. In some companies distribution of managerial positions are based on national or ethnic distinctions and professional qualification is not taken into consideration. Some other issues are as follows;

Different opinion about the leadership style to be undertaken. The difference in the understanding of roles to be performed is another one.

Lack of consistency between the firm-internal functional significance of manager's position and his social status which is a firm-external function.

Tendency of the employees from the same nationals or ethnic origin sticking together and neglecting other employees in the team which eventually results in bad communication and thus lower overall performance.

As it is necessary for the company to make the diverse workforce to work together under the same roof, proper focus should be made to overcome these problems by implementation of IHRM based strategies.

Some of the measures include,

Homogenizing the behavior of managers and other employees from different cultural background as they are the part of same workforce.

To assure an effective language for good communication. An effective working language is developed.

To develop a consciousness for the firm along with its global and intercultural employees based on written guidelines and un written team born norms of behaviour.

Through application of IHRM, recruitment process is standardised by which professional qualification is given consideration rather than racial or ethnic preferences.


Already today, and certainly in the near future, firm must undertake an international view of HRM as managers should understand the cultural differences to successfully implement global research and development, international marketing, global production and global financial strategies. Awareness about the culture has become important not only within the global firms but also structuring and integrating activities among the employees in the national or domestic business too.

Multiple level of analysis is to be taken while implementing international HRM as it takes into account political, cultural, social and economic environment. The industry, the firm, the sub unit, and its each employee is also important. If the HR executives are not successful in recognizing and managing these issues, their firm will not survive.

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