To what extent should an organisation export its domestic HRM policies and practices to its international operations? Your answer should consider SIHRM in multi-domestic, multinational and global organisations in the context of cultural, political and economic influences
"To what extent should an organisation export its domestic HRM policies and practices to its international operations?"
The development of global strategies has been a topic of interest for some 40 years. Organizations can choose among the 3 basic approaches of multi domestic, multinational or global strategies as they develop global operations (Adler & Ghadar, 1992). This essay will is structured as follows: First an introduction on what HRM and International HRM are. Second discuss the 3 different business strategies that firms might engage in and the implications for each of those strategies in exporting HR policies and practices. Third, compare Adler & Ghadar model against other SIHRM models.
Finally, some recommendations and assumptions are provided.
What is international HRM? Before offering a definition of international HRM, the general field of HRM needs to be defined. HRM refers to those activities undertaken by an organization to effectively utilize its human resources. These activities would include at least human resource planning, staffing, performance management, training and development, compensation and benefits and labour relations. Certain activities change when HRM goes international such as the broad human resource activities of procurement, allocation, and utilisation. The national or country categories involved in international HRM activities are the host-country where a subsidiary may be located, the home-country where the firm is headquartered, and other countries that may be the source of labor or finance. International human resource management (IHRM) is defined as the interplay among the three dimensions - human resource activities,