Domestic HRM Policies and Practices Exported to International Operations

build human capital it must develop strategies for locating the best talent, enhancing skills, training programs, and professional development. Human Capital is vital to an organization as it is an investment towards stronger performance and better financial results. Additionally, organizations even attempt to practice globalization with HRM strategies; which is known as international human resource management (IHRM). IHRM is to coordinate and manage diverse people on a global scale. However, every strategy would not work for every organization; especially for internal organizations.

International Human Resource Management (IHRM) is the management of Human Resource in business operations in at least two nations and IHRM issues are the HRM issues and problems arising from the internationalization of business, and the HRM strategies, policies and practices which firms pursue in response to the internationalization process (Rajan, 2013).

They need to build integration among HR practices and strategies of its auxiliary firms in distinctive region with a specific end goal to accomplish general organizational targets. Then again, these associations additionally guarantee a critical level of adaptability in their IHRM procedure on the grounds that representatives from distinctive nations are sponsored by diverse cultures and social qualities. Adaptability impacts the workers' execution. Due to the strengths of globalization and the associations' interest to create and implement a worldwide methodology, International Human Resource Management (IHRM) is turning into an essential to accomplishment of the organizational. The essential distinction between domestic and global human resource administration is the knowledge and obligations

Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’

While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the

Dowling Peter J and Welch Denice E and Schular Randall S(1999), International Human Resource Management, South-Western College

1. Why is the HRM role so much more complex, and important in the international context? (Chapter Nine). Corporations operating overseas need to pay careful attention to this most critical resource, - one that also provides control over other resources. In fact, increasing recognition is being given to the role of Strategic Human Resource Management (SHRM) that is the two way role of HRM in both helping to determine strategy as well as to implement it. That role in helping the organization to develop the necessary capabilities to be able to enact the desired strategy includes the reality strategic plans are developed in large part based on the resources possessed by the firm, including the human

In the context of International HR (IHR), managers take on the same responsibilities as their local based colleagues but the area of activity and difficulty of these duties is based on the extent of internationalisation of the organisation. As they move towards a more global economy, organisations are supposed to revise their HR strategies. From one country to another, for example, external factors (e.g. politics) or internal factors (e.g. practice) would be vastly different. As a result of this, normal decisions can be really complex in an organisation operating around the world in multiple countries, particularly since for international organisations,

Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,

The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]

Briscoe D., Schuler R., Tarique I., (2011). Internatonal Human Resource Management : Policies and Practices for Multinational Entreprise.

Needless to mention, HR policies guide various functions of HRM. HR policies of certain companies seem to discriminate on the basis of its diverse backgrounds of its workforce for example, sex, race, age, religion, education, sexual orientations and so on and so forth. The sources of the country of origin effect lies in the culture and institutions of the home country of the MNC. The mechanisms through which the effect manifests itself are the hiring of home-country nationals by the MNC, and the inbuilt administrative preferences of these host-country nationals in the organizational structures, procedures and processes of the MNC. The homogeneity of the home culture, substantive characteristics of the home country culture, size and openness of the home-country economy, the cultural and institutional diversity of the environments in which the MNC operates, and the international growth path of the MNC are often taken to impact on the strength of the country-of-origin effect. Often, cultural perspective has concentrated its attention on the

“International human resource management is the process of employing and developing people in international organizations which operate globally. It means working across national boundaries to formulate and implement resourcing, development, career management and remuneration strategies, policies, and practices applicable to international workforce.”5

Globalisation, as an integrated and independent world economy, has contributed to the rapid expansion of international trade and world’s economic growth (Paik & Vance, 2006; Mutsuddi, 2012). The increase presence of global firms is shifting domestic HR towards global HR in addition to carry out a wider span of HR responsibilities (Losey, Meisinger & Ulrich, 2005; Rao, 2010; Jie, 2011; Mutsuddi, 2012). The generation of cross-border labour market also had brought human resource management into an international context (Mutsuddi, 2012).

60 HR Predictions for 2008 By Floyd Kemske The top 10 predictions in Workplace Flexibility, Global Business, Work and Society, Workforce Development, Definition of Jobs, and Strategic Role of HR. Workplace Flexibility Collaborative cultures will be the workplace model.