Importance Of International Human Resource Management Policies In The New Environment

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With the increasing globalisation of business organisations must adapt to meet the demands of an ever-changing marketplace, and with constant advancements in technology and increasing competition on a local scale, organisations are recognising that success in the marketplace is becoming increasingly reliant on a successful global presence (resource 8). The drive to become a Multi-National Enterprise (MNE) may be based on setting goals such as increasing sales or gaining a competitive advantage, but to achieve these goals requires careful planning and adapting the Human Resource Management (HRM) policies to employees operating in the new environment. As such, to what extent should an organisation export its domestic HRM policies and practise…show more content…
However, expatriate managers often overlook the point that an approach to HRM that works in the home environment, does not necessarily mean that it will work in the subsidiary’s environment (Resource 10). International Human Resource Management (IHRM) relies on the expatriate manager understanding that the policies they implement regarding staff selection, training and development, remuneration etc. must be adapted to reflect the culture and values of staff in the host environment. According to resource 10, HRM policies developed for a subsidiary by the home office will be reflective of the culture, behaviours, values and norms held by staff back at home, as such these policies may be inappropriate or be misinterpreted by those working at the subsidiary office. Resource 7 notes that the strong corporate culture of the home office is a key…show more content…
To this effect, a common mistake made is that the MNE will want to apply all of the success-creating elements from the home office to the subsidiary, so that the MNE can maintain a consistent level of management and appear stable to consumers and competitors around the globe (resource 4). If a paper company were to become an MNE and expand from the United States of America into India, they would likely send an experienced manager who is knowledgeable about the industry, has been appropriately trained in terms of how the national culture of India functions, and is able to become acclimated to the new environment they will be operating in. The manager may then implement corporate policies and objectives and use motivators that are not attractive to the employees in the host environment, such as; using a 2-week Mediterranean cruise as a motivator to increase sales,
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