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Effective Management of Human Resources Essay

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Numerous researchers have recognized effective management of human resources internationally as a major determinant of success or failure in international business (Tung, 1984; Dowling, 1999). A definite link exists between an organization’s strategic human resource management and its business success or failure (Hays, 1971; Tayeb, 2005). Businesses have learned success often depends on forming strategic alliances but successful managing of these alliances is difficult due to differences in the company and country cultures, which often interferes with the ability of organizations to reap economic benefits and rewards from such alliances (Schuler, et al. 2006). This is true for domestic businesses and businesses operating in the international arena.
In his article “The Chief Cause of Business Failure and Success”, Khan (n.d.) pointed to Hogan’s U.S. Bank study and noted four reasons why businesses fail. They include 1) poor business planning, 2) poor financial planning), 3) poor marketing, and 4) poor management. Khan also argued that leadership is about knowing yourself and understanding your strengths and weaknesses, and businesses rise and fall on leadership,. Miller (1992) in his book, “The Icarus Paradox”, makes an analogy of corporate success and failure to the fabled Icarus of Greek mythology who fashioned wings out of feathers and beeswax. Ignoring warnings not to fly too close to the sun and enamored of his newfound flying ability, Icarus was able to fly so high and got so close to the sun that his wax wings melted and he plunged into the sea to his death. Miller suggested this same paradox can apply to outstanding companies – they become very successful doing something and their sheer success seduces them into t...


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...) motivational state, (4) family situation, and (5) language skills.
Finally, and as noted in the academic literature, there are many reasons for success or failure in the global marketplace. Among them are communication, strategic leadership, cross cultural competencies, maintaining core competencies, transfer of HR practices and policies, updating HRM practices, and ethical obligations of MNEs. “Successful project managers tailor team communication to expectations and preferences, initiate international projects effectively, master the virtual team challenges of distance, culture, and languages, and execute the right strategies to anticipate, prevent, and/or resolve conflicts” (Managing, n.d.). Likewise, leadership plays a significant role in strategic human resource management, and an even greater and decisive role in international human resource management.



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