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International Human Resource Management refers to a set of practices and beliefs enforced by a Multinational Company (MNC) at an international level. It includes managing people both at an individual and collective level across more than two or more countries. It is concerned with troubleshooting human resource management problems of an organization outside of its country of origin. The productivity and robustness of an organization is dependent on the employee performance. Human Resource Management helps in making those decisions that help in maximizing employee potential and performance.
International Human Resource Management helps in managing human management problems by providing solutions when a company starts expanding out of its country of origin. It provides different approaches in managing organizations depending on their growth and functional requirements. It shares many of the same principles of Domestic Human Resource Management but also goes beyond in terms of management complexity. It handles employee immigration and deals with cross cultural differences.
Since Multinational Companies have employees spanning across different countries and continents, International Human Resource Management helps in analyzing different skill sets and levels present across different countries and regions. It then uses this data to manage and develop workforce across its different regions of operations. These factors are important and an absolute necessity in maintaining order and structural integrity in any Multinational Enterprise. International Human Resource Management shares similarities with Domestic Human Resource Management.
Both of them focus on the factors mentioned below:
International Human Resource Management focuses on management issues that transcend boundaries of the companys country of origin. It focuses on the organisational activities and the external environments that is the operation base of a Multinational Enterprise. It focuses on managing three types of employees typically found in these enterprises.
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International Human Resource Management categorizes Multinational Enterprises under five categories:
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