The International Human Resource Management Function Essays

The International Human Resource Management Function Essays

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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 discusses the important activities of IHRM in the MNCs. Third, it elaborates how and why these activities vary between the MNCs. In the end, it gives a conclusion to sum up the essay.
Multinational company The MNCs have the ability to transfer and share the specialised skills or expertise to their cross-border network of the subsidiaries. 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 ...


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...of the HQ to its subsidiaries.
One example of efficient knowledge management in an MNC is that of Toyota. Dyer & Nobeoka (2000) studied the comparison of the Toyota and its competing auto maker networks. Dyer & Nobeoka (2000) noted that Toyota has converted its capacity of knowledge management into its competitive advantage through a highly integrated network with its suppliers to facilitate knowledge sharing. Furthermore, Toyota has set rules regarding the knowledge sharing and the knowledge related to its manufacturing skills is considered as Toyota’s property. As a result, a common problem of free riding is efficiently avoided. In addition, the close knitted network of Toyota with its suppliers enables the multi-dimensional flow of knowledge sharing. As a result, the cost of finding new knowledge is reduced and its access to the existing knowledge becomes easier.

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