International human resource management: An overview of its effect on managers in global organisations

Abstract

By managing international human resources (IHRM) correctly, it can enable a business to compete more successfully in the world market place. The last two decades have seen a gradual transition in style and substance from personnel management to human resource management, and recently to international human resource management. Human resource managers could consult local representatives of an overseas business regarding: local culture, employment aspects, safety, customs and traditions in order to operate in harmony with a local company’s procedures; different ethical and business standards can also lead to negative experiences. Because of various changes in socio-economic and legal-political requirements that differ from country to country designing remuneration packages could be different from ‘domestic-based’ human resource management. Doing business globally is a critical and important step because of the possible incompatibility of perceptions or standards in the company’s human resource’s policies and practices. It is not easy to manage pay packages of staff in a large multi-national company who are all earning at different rates; employees are more satisfied if they feel they are being paid what they are worth, especially those who are seconded to work overseas for a specific period.