The paper "International Human Resource Management - Drill Bits Australian Company" is a perfect example of a management case study. International human resource management (IHRM) focuses on the management of employees in organisations that are in different countries. Due to the fast growth of the global marketplace, the roles of employees are vital in the capacity building of a company. The primary aim of IHRM is to discriminate the varying roles and functions of the various activities within the management of human resources. IHRM considers several challenges that are in managing expatriates in their country and other foreign countries within the multinational, transnational corporations and other types of international organisations (Merlot, Fenwick & Cieri, 2006).
Through this, there is a well understanding of human resource management, comparative management and organisational behaviour. The objective of the IHRM is to maintain competition throughout the world, efficiency, local, responsive, and flexibility and adaptively of the company (Lee Jungah & Chunsu Lee, 2013). This paper attempts to address the key issues involved in international human resource management (IHRM). There are three main issues in IHRM.
The first issue is the expatriate management and development that involves selection, compensation and repatriation of the failures of the expatriate. For example, the case study of Drill Bits an Australian company, Jason Goldthorpe, a manager in the company Andrew Sculzinski is a principal mining engineer. Goldthorpe discussed briefly with Sculzinski on the operational matter in the USA. After the discussion, Sculzinski was offered an expatriate assignment to Chile. He was selected to take the international assignment due to his vast technical knowledge and was willing to learn. Goldthorpe asked Caroline the company’ s human resource manager to prepare a compensation package for Sculzinksi. The second issue is the internalisation of management throughout the organisation, i.e. , the host country, parent country and other third countries.
The case study for Drill Bits Company has subsequently secured contracts with almost all major mining ventures in Australia for the past 20 years. The company has earned an extensive reputation in the mining industry due to its commitment to manufacturing quality products and offering timely site services. Drill Bits had been persuaded severally by high profile local companies to start exporting the products to the offshore mining sites in the USA as well as offer site services.
The company started exporting while under enormous management pressure that resulted in Marcus Goldthorpe appointing his son Jason Goldthorpe to oversee the company’ s internalisation. The third issue in the IHRM is the need to internalize the whole organization. It is due to the increasing interactions of cross-cultural in doing business at home and abroad that are mainly cultural communication, as well as language and communication (Lee Jungah & Chunsu Lee, 2013). As the business of the Drill Bits Company with international market continued to strengthen, Jason Goldthorpe travelled to the USA.
While in the USA, he contracted with two local agents to manage the USA drill bits importation. The arrangements that he had with the clients began to fail as the customers were complaining of the availability of agents at critical times. Jason Goldthorpe was appointed to the managerial position when he had no skills in management. These skills are vital in internalizing organizations in the international context.
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