Question

what is the strategic context of International human resource management

Answer 1

As the company evolves and globalizes themselves, their HRM activities cannot stay national, they also need to have an international context. International HRM covers all the aspects of management of people like HR- planning, staffing, developing and retaining. In the international context, it is important to cater to different product markets and various socio-cultural environments. Chandler once highlighted that "Structure follows strategy". A corporate strategy is not only based on internal and external factors, it has to include all the parts of the value chain. Business requires that all the function maximizes efficiency; this can be achieved by the HR function. Business performance will increase if the HR is successful in re-enforcing the firm's strategy. Existing IHRM has a little role in firm's strategic decision making, it is essential that businesses when going international understand the requisite of knowing different cultures and the way of doing business. Sticking to one set of policies and way of doing business can becomes a challenge as the businesses will have difficult time in understanding the sensitivity to socio-cultural differences which may lead them to make mistakes in both business decisions, policies and their interactions with local people, this may lead them to alienate from their foreign counterparts, customers, employees, suppliers etc. Integrating IHRM to the strategy of firm can help in solving the issue faced by companies operating out of domestic country; it will support and enhance the strategy of the firm.