International Developments That Have Critical Implication for Essay

International Developments That Have Critical Implication for International HRM - Essay ExampleA number of important transnational developments are presently taking place that has critical implication for multinational HRM. They include (a) the growth of multinationals in the emerging markets, (b) constant increment levels of foreign direct investments, (c) the growing motive of cross-border alliances (M&As) that involve companies from the emerging markets, (d) a growing trend in business process outsourcing, and (e) the challenges posed by the current financial crisis and the way to manage effectively in difficult times. The emerging international scotch scenario characterized by the rise of economically stronger emerging markets is creating serious challenges for the IHRM policymakers however, the same scenario lays immense opportunities for the IHRM researchers. The model of strategic international HRM (SIHRM) is based on the earliest and most famous article by Schuler, Dowlin g and De Cieri. The model describes endogenous and exogenic factors and strategic components that have an effect on SIHRM policies, issues, functions, and practices. They, in turn, incite the MNC goals such as efficiency, learning, flexibility, effectiveness, responsiveness, and transfer. According to the model, the immaterial factors (industry characteristics, country-regional characteristics and inter-organizational networks) have an effect on the internal organizational factors, strategic HRM and MNE (multinational enterprise) concerns and goals. The internal organizational factors, strategic HRM and MNE concerns and goals affect each other. The internal organizational factors include (a) MNE structure structure of the international operations, intra-organizational networks, mechanisms of coordination, and modes of operations, (b) MNE strategy corporative level strategy and business level strategy, (c) experience in the management of international operations, and (d) headqua rters international orientation. Strategic HRM entails HR function strategy and HR practices. MNE concerns and goals entail competitiveness, efficiency, the balance of local responsiveness and international integration, and flexibility.