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International HRM (IHRM) is the process of procuring, allocating, and effectively utilizing human resources in a multinational corporation, while balancing the integration and differentiation of HR activities in foreign locations (Briscoe et al, 2009). IHRM should function in a way it should avoid cultural risks, regional disparities and must manage diversified human capital.The managerial responsibilities must include developing a global “mindset” by weighting on informal control mechanism, fostering horizontal communication, using cross-border and virtual teams and using international assignments. They should create cultural synergy and use cross-cultural skills daily and must treat foreign colleagues as equals and use foreign assignments as career development (Dowling, 2008).
IHRM has paralleled the internationalisation of business whereby large corporations increasingly produce and market beyond their countries of origin. This process has also signalled the internationalisation of employees as well, which has shifted HRM to a business activity of strategic importance (Armstrong, 2001) . It could be argued that the practice and study of international HRM has evolved alongside globalisation; business is operating in an increasingly international environment. In fact, ‘International HRM’ is often the term given to the management of HR in Multi National Corporations (MNCs) (Almond et al. 2004).
IHRM concerns the extent to which these core tasks change when HRM is practiced across national boundaries. On this basis, Morgan (1986 ) presents a model of IHRM based on the interplay between human resource tasks or activities, the national or country categories involved in HRM and the categories of employees in an international firm. The functions of HRM for an organization to go abroad should tally with the expectations of that host country where a subsidiary may be located, the home country where the firm is headquartered and other
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