The paper "International Human Resource Management: Samsung" is a wonderful example of a case study on management. In the wake of globalization, companies operating internationally need to function more effectively to be a cut above the rest and gain competitive advantage. Human resource management is an important contributor to provide them with this advantage and optimize their operations (Dowling et al. 1993). The creation of skills, innovation, and knowledge is HRM-dependent; this is being cited as one reason why internationally operating companies lay special emphasis on international human resource management or IHRM (Brewster 1991).
An effective IHRM provides a company with a critical factor to succeed in a globalized and international context. However, what sets IHRM apart from general human resource management is that while it is developed from the company headquarters, which is localized and influenced by one demography and culture; it has to be widely applicable and adjustable locally in a territory in which the company is operating. Internationally operating companies work in different territories which are influenced by different cultures. That puts the onus of developing HR guidelines and practices which meet the twin purpose of global integration and local responsiveness.
Harzing et al. (2004) has remarked that this is best met when internationally operating companies ask their subsidiaries to develop HR systems locally for strategic reasons. This tends to make these systems both context-specific and context generalized so that they are made adaptable to any work environments. Bjö rkman (2006) has stated that human resource policies refer to training and development policy, pay and performance policy, employee communication and involvement policy, and even policy towards trade unions. IHRM can be defined as “ The set of distinct activities, functions, and processes that are directed at attracting, developing, and maintaining an MNC’ s human resources.
It is the aggregate of the various HRM systems used to manage people in the MNCs, both at home and overseas” (Beechler et al. 1996:960). Furthermore when IHRM is used in conjunction with strategic focus and a firm's performance the gamut shifts entirely to SIHRM or strategic international human resource management, which talks about human resource management functions, policies, issues and practices that come to limelight on account of strategic activities in which multinational enterprises are involved and their international goals and concerns.
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