International human resource
management
Introduction
Increasing competition in global business has created new challenges for multinational
corporations (MCs) on how human resources are best managed. Globalisation has also
meant that international business has to be managed in a diverse multicultural environ-
ment comprised of different infrastructural systems, levels of economic development,
religions, values, ideologies, education, and social structures (Hollenbeck & Wright
2007). However, even domestic organisations cannot operate without the influence of
globalisation, which calls for an adjustment of ‘the way things are done at home’ in or-
der to remain competitive within a global context.
Therefore, international diversity and globalisation are key drivers of international
human resource management (IHRM). Schuler (2000) puts it in the right context as he
argues that the complexities of operating in different countries and employing different
national categories of workers is the key element that distinguishes domestic from inter-
national human resource management. This chapter is devoted to addressing human
resource management issues at the international level and their influence on the way
human resource functions should be handled and their implications in international
business competitiveness.
By the end of the chapter, the learner should be able to:
- Distinguish domestic from international human resource management,
- Examine the international environmental factors that affect human resource
functions, - Establish a link between international human resource management and MCs
competitiveness and - Appreciate techniques for handling challenges of managing a multicultural
workforce.