3161 Words Apr 1st, 2008 13 Pages
Over the last decade, the numbers of multinational corporations (MNCs) have increased significantly because of the dramatic growth of internationalization and global competition. MNCs play an important role in order to maximize profits and manage complex of international business activities. In spite of the fact that the multinational corporation is operated in several countries (Stonehouse, Cambell, Hamill & Purdie, 2005), the operation and strategic planning of international firms would be more complex than domestic firms in terms of dealing with affiliates across borders and transferring human resources and knowledge between parent companies and their affiliates. Due to these complexities, MNCs can be confronted with various challenges …show more content…
An integrative SIHRM orientation focuses on the best HRM system of both home and host countries and interactive transferability. The second level is the affiliate 's HRM system based on the degree of similarity of parent and affiliate. They have concluded that an exportive SIHRM orientation is the highest level of similarity following by an integrative SIHRM orientation and an adaptive SIHRM orientation. Additionally, this degree is influenced by affiliate 's strategic role, method of affiliate 's establishment and parent and host country 's environments: culture and legal. Thirdly, an affiliate employee group 's HRM system focuses on managing particular employees who are critical to MNCs ' performance in affiliate.
Consequently, if MNCs follow multidomestic strategy, it is likely that an adaptive orientation would be adopted, whilst exportive and integrative orientations would be adoped if MNCs follow global strategy (Taylor et. al, 1996)

According to the model, it could classify challenges of the integrating SHIRM and organization strategy into three sections towards the levels of model. The first part is the attitude of senior managers that affect designing SIHRM suiting with organizational strategy. The second section is the affiliate 's environment: cultural diversity that affects the similarity of host and home countries. The last part is managing expatiates that play a significant role to MNCs ' performance.

Initially, the attitude of senior
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