Discuss The Role Of The IHRM

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The internationalisation of the organizations has made the International human resource management function (HRM) complex. The IHRM has many functions that are the same as that of HRM. However, due to the internationalisation of the companies these IHRM functions must be accommodated to manoeuvre on the large scale while keeping in view, the more complicated and diverse business goals of the respective MNC (Dowling et al., 2009).This essay gives an insight into different roles of the IHRM in the multi-national companies (MNCs) and how these roles differ between the MNCs. Although IHRM performs significant activities in the (MNCs), the jobs performed by IHRM vary in different MNCs depending upon the strategy and structure of the respective MNC that is the degree of integration and centralisation. Also, the IHRM’s role differs between the MNCs on the basis of the size, nature of the business and the institutional and cultural context of the MNC. First, the essay briefly describes the terms that would be relevant to the essay. Second, it…show more content…
In addition, the knowledge transfer could be two way, when a subsidiary transfers the valuable knowledge to HQ through reverse diffusion (Ferner & Varul, 2000). Another important term in this essay is the corporate social responsibility (CSR) which is broadly defined by Watts & Holme (1999) as the ethically committed behaviour of a company towards the society where the management of the company is also responsible for the betterment of the stakeholders in the society along with their shareholders. Moreover, the concept of the workforce diversity recognises the existence of visible or invisible differences among employees on the basis of the gender, age, religion, culture, marital status, social status, ethnicity, sexual orientation, personality and culture (Kossek et al.,
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