International Human Resources Management - Running head INTERNATIONAL HUMAN RESOURCES MANAGEMENT International Human Resources Management Name

International Human Resources Management - Running head...

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Running head: INTERNATIONAL HUMAN RESOURCES MANAGEMENT 1 International Human Resources Management Name: Institution:
INTERNATIONAL HUMAN RESOURCES MANAGEMENT 2 International Human Resources Management In the modern business environment, Human resource management is arguably the most critical element of a business’ performance. Strategic management recognizes employees as a corporation’s biggest assets, and thus their proper management is vital particularly in the modern day environment of globalization. With advancements in communication and business practices allowing an increasing number of organizations to operate globally, international HRM only grows in importance[Sto13]. International HR managers have a more complex job than their domestic counterparts do because differing legal systems, cultures, and economic development levels necessitate the adaptation of HR practices to each country. This essay looks at the level to which an organization can successfully export its local HR policies to its international activities. Infrastructural, technological, and communication changes have enabled increases in global staffing and recruitment. Organizations today face pressures to extend their operations beyond their national boundaries to take advantage of lower operational costs, economies of scale, and favorable regulations[Far04]. The increase in the number of global trade alliances has also created an opportunity for multinationals to thrive. However, this expansion to international markets means that the organizations must employ more staff both at the managerial and operational levels. Firms that operate internationally must decide whether to select managers from their home country, the host country or another country altogether. International HR managers face two primary categories of staffing needs. The first category is to recruit, train, and retain the executive and managerial employees whereas the second is to perform these tasks for non- managerial employees such as the white-collar office workers and the blue-collar production staff[Fer09].
INTERNATIONAL HUMAN RESOURCES MANAGEMENT 3 Most corporations often begin their international forays by exporting staff in small scale. Hence, during the initial entry into a foreign market, a citizen of the firm’s home country who may either have some specialized training in foreign operations or not runs the company’s international transactions[Gam03]. When the firm later sets up its international department, the lower level managers who usually originate from the host country report to the international division’s vice president. Recruitment of managers can take place from any of three groups. The first group is nationals of the parent country who are residents of the corporation’s country of origin and who receive transfers to the foreign country. When managers are recruited from this group, the facilitation of communication with the headquarters is easier because of the common cultural background with the staff at headquarters[Pud07]. Host country nationals are another group from

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