With the ever-increasing economic activities and inter-connections with other countries, the international integration is obvious. (Coase, 1937)IHRM is now confronted with different issues toward the cross-cultural configuration which the political, economic, social and legal systems among different countries are involved.(Mendenhall, M, 2000) Different levels of analysis can provide a framework for analyze and evaluate the IHRM practice, resource allocation or leadership style in making response to the internationalization process.
For the global level analysis, it is based on the geocentric approach which is perceived as a worldwide stance which the best policies and the most qualified individuals to staff the operations.(Dowling and Schuler, 1990) Because of the increased complexity and operation scope with global operations, good understanding can benefit the multinational organizations in finding the most appropriate employees for the job. Nevertheless,lack of knowledge transfer and information flowmay be incurred from the complex global setting. Market information, cultural-dimensions and demographic issues are hard to obtain, especially in predicting the data from universal trend.(Sparrow, 2009) For example, Disneyland isdifficult to assess the flow of customers as leisure industry is of great seasonal variation. (The Walt Disney Company, 2010)
Regional level analysis is based on the regiocentric approach on a particular geographic region. IHRM mangers can have the right and independence on making decisions as well as developing regional staffs. (Dowling and Schuler, 1990) For instance, HSBC is likely to develop the regioncentric approach to recruit personnel within a specific region like Europe, Asia, and India. (HSBC, 2010)
National level analysis is
References: China Daily, 2010. 'IKEA to double stores in China ', Available: http://www.chinadaily.com.cn/bizchina/2010-12/16/content_11711019.htm Coase, R., 1937. The nature of the firm. Economica, 4, 386-405. Dowling, P. and Schuler, R., 1990. International Dimensions of Human Resource Management, PWS-Kent. Hofstede, G., 2001. Culture 's Consequences – Comparing Values, Behaviors. Institutions and Organizations across Nations. Second Edition. London: Sage Publications. HSBC, 2010. 'HSBC Holdings plc: Annual Report and Accounts 2010 ', Available:http://www.hsbc.com/1/PA_1_1_S5/content/assets/investor_relations/hsbc2010ara0.pdf (Accessed: 2011, March 5). Mendenhall, M, 2000. Mapping the terrain of IHRM: a call for ongoing dialogue, Paper presented at 15th Workshop on Strategic HRM, Fontainebleau, France, and 30 March-1 April. Sparrow, P., 2009. Handbook of international human resource management: integrating people, process and context. United Kingdom: John Wiley & Sons. The Walt Disney Company, 2010. 'Fiscal Year 2009 Annual Financial Report and Shareholder Letter ', Available: http://amedia.disney.go.com/investorrelations/annual_reports/WDC-10kwrap-2009.pdf (Accessed: 2011, March 2).