International HRM Strategies
A challenge that has emerged with respect to the development of these systems for the management of the HRM function internationally is that nations have different standards for the various functions – recruitment, selection, training, performance appraisal, and compensation – in a firm’s HRM systems.
These different standards can be reflected in local employees’ expectations for the job conditions under which they might work and in the adaptations a firm must make in compensation and performance appraisal, for example, when assigning a manager to an international position.
The different standards emerge in perceptions of equity and fairness in a multinational firm as its HRM systems will inevitably involve a comparison with other organizations
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The last two issues are of particular concern when framing international HR strategies.
A successful IHRM requires a careful understanding of the cultural, legal, political, ethical and economic differences among nations and its people. Even within national boundaries, the challenge of effectively managing a multicultural workforce is exercising many organizations.The HR Managers must be aware of the factors that motivate people from different countries and their influence on global assignments. Thus, IHRM is more challenging than HR management within the boundaries of one country. The issues IHRM have to deal with are as follows:
Management of Cultural
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• What is the employee relations climate?
• What are wage levels, associated social costs of employment, expected or required terms and conditions, and inflation rate trends?
• What local or central government laws and regulations affect employment?
• What is the prevailing attitude amongst HCNs to work, and working for a foreign company?
• What are the costs, advantages and disadvantages of living and working in that location for potential expatriates?
• What are the potential costs of entry and exit in the labour market in that location?
• What work permit and other restrictions affect labour mobility: both HCN mobility within the country and the ability of foreigners to work there?
Management of Legal and Industrial Relations Issues
Each country has unique legal and industrial relations practices. For instance, legal systems in some countries permit hiring, firing and employee lay-off at will. But, in some others, separation of employees may be a time-consuming, expensive and cumbersome process. Similarly, factors determining industrial relations may differ from one country to another. In some countries, HR policies on subjects like wages and benefits are determined by
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