International and Comparative Human Resource Management

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

Human resource management functions in multinational companies are incredibly complicated by the need to adapt policies and procedures related to personnel, to differences between the countries, which is one of the branches. In particular, the countries cultural differences, differences in economic development and legal systems may require an international company adaptation programs of hiring, firing, training and remuneration for

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,

Hofstede’s cultural dimensions theory is a framework for cross cultural communication which describes the effects of a society’s culture. Greet Hofstede came up with six basic issues that society needs in order to organise itself these are called dimensions of culture.Each of them has been expressed on a scale that runs roughly from 0 to 100.The six dimension model of national culture are given below

It may not be feasible to generalize HRM practices across multiple countries because of their cultures, policies, laws and practices. Conversely, the varied cultures may affect on how HR policies across geographies are implemented.

The internationalization of human resource management has increased the scope of traditional HRM. Today, HR practitioners not only manage people from their home country, but one that involve managing many diverse nationalities, with which the culture of staff and employees are already well-known or predicted. Companies start business within their country of origin and staff are hired from within that country. However, with the arrival of globalization and the shift from industrial to information technology, a new problem for HR practitioners emerged as employees become more diversified and hard to manage. Companies expand to other countries, or moreover participate in joint ventures or mergers and acquisitions. This move has many

Power distance is a society 's view on differences in power. High power distance constitutes an acceptance of power inequality in the workplace and in general. Conversely, low power distance means a nation does not accept this difference. The United

Human Resource is an important function performed in organizations to ensure employee satisfaction. The importance of HR is growing, especially in organizations operating in more than one nation.

The strategic importance of HRM means that a number of key concepts must be applied.

• Cultures strongly influence the appropriateness of HRM practices. • Cultural differences can affect how people communicate and how they coordinate their activities Cultural environment

When you compare IHRM and domestic HRM practices it is primarily similar in areas such as HR planning and staffing, recruitments and selection, appraisal and development, and industrial relations. Both IHRM and HRM have the same management objectives. First, they ensure the business has the utmost satisfaction in the human resource demands. Secondly, they ensure effectiveness in the business through involvement. Third, promote sustainable development of the business by make the most of the development of internal and external human resource management foreign and domestic. Lastly, maintain and encourage human resources within the business to improve the likeliness of human capital. Another similarity that involves IHRM and domestic HRM is also influenced by the environmental forces. These environmental constrictions consist of political, economical, legal and cultural significant which all have a major impact on HR functions that is carried by both IHRM and HRM

HRM plays a key role in international level because it is the duty of the HR department to identify, train and develop individuals who are ready to take up the challenge of an ‘expatriate’ (Lexicon, 2013). Living in an unknown place with different culture, style, preference can be tough for anyone; therefore, the HRD needs to identify people who can actually undertake this pressure. Expatriates are essential for the organization as they are responsible for delivering the goals, objectives and spreading the culture of the home country’s organization.

As international businesses become more common and globalization continues to boom, many challenges face the Human Resource Department. With employees and business spanning over many countries, continents and hemispheres, businesses will face cultural diversity, technology reliance, and many other risks that go along with international businesses. Human Resource departments have been forced to become more knowledgeable in the hiring, training and retention of managers in international businesses due to these challenges. HR should first learn how best to train managers, and then utilize the following best practices to implement the training and development of managers in international business.

HRM in International Context - For Human Resource Management to grow and evolve into Strategic Human Resource Management means that it was necessary to not only develop and change its function, but its entire paradigm. The new model for global management includes creating and maintaining a diverse work environment in which cultural diversity is encourage and celebrated, rather than