Does national culture always matter in International Human Resource Management? IntroductionIn the contemporary world, businesses have randomly shifted in pursuit to establish their own uniqueness and promote their own distinct competitive edge. Business organizations in domestic and international business environments are, driven by ease in accessibility, effective and efficient utilization of available resources. Among resources that underpin the organization’s success are the material resources such as factories and equipments, financial resources such as debts, monetary and funding support, and business capital resources including organization structures, plans, management and co-ordination, and human resource.
More recently, the more focus has been directed to effective and proper management of the human resource owing to its reliability and value to modern day business organization. This is because, human and business resources constitute the culture of an organization based on beliefs, values, perceptions and behavior. The human resource dictates the competitive edge of a company and their ability to induce innovativeness and product and service differentiation, which is particularly hard to do with increased consumer awareness, stiff market competition, and greatly reduced available resources (Harzing & Ruysseveldt, 2004).
Due to increased adoption of technology and development of efficient and competent physical and business infrastructures, more business have gone global to take advantage of the increased mass market on the global market platform. This necessitates the need to be able to assimilate and amalgamate national culture and international human resource management in order to promote cohesiveness, accountability, adoption and increased business production and performance (Martin-de-Castro, et al. , 2006). This report will candidly discuses whether national culture always matter in international human resource management. In addition, the report will seek to illustrate the discussion with reference to selection and reward management as the human resource management functions.
International human resource management Does national culture always matter in International Human Resource Management? Yes it does. International human resource management refers to the selecting and hiring of the best candidate as an employee, promoting initiatives that helps the skills and knowledge of the personal and professional aspects of the employees grow (Paauwe, 2009). Moreover, exploiting the potential of the labor force, effectively managing them, offering appropriate remunerations and compensations for labor services offered in a global context.
In addition ensuring the business objectives and goals are, aligned to existing cultures of the surrounding community, the external and internal environment of the business organization such as customers, investors, suppliers, workers, shareholders, management, and government regulations and policies in foreign market regions (Fahy, 2000). The need for international human resource has been necessitated by a need for a diverse workforce to help increase capacity of production, promote innovation and creativity, produce and deliver quality products and services to customers in good time and effectively satisfy the rising needs and expectations of the mass/ global market.
Employees in international organizations, offer the best of their skills, knowledge, abilities and experiences when supported by the structures that effectual international human resource management offers (Beaumont, 1993). When dealing with both domestic and international market environments, human resource managers in modern day business environments encounter rapidly shifting market and operation paradigms. This is in respect to shifting labor force demographics, culture diversity, inadequate supply of labor, creating symmetry between personal and professional lives of the employees, advanced technological frameworks, increased cutthroat market competition, increased need for professional work training and acquisition of education contents that meets international standards (Dowling, et al. , 2008).