Theoretical Approaches to International Human Resource Management

Cite this

Introduction

The international body on human resource-IHRM is concerned with HRM issues relating to cross national borders or places other than the residential country’s head office. Being an international body IHRM is largely fretful about connections between organizations’ HRM activities and foreign conditions. IHRM includes comparative HRM studies, such as distinctions in how businesses in Thailand, Japan, Switzerland, and Austria plan for worker capacity building, and others. Additionally, the International Human Resource Management (IHRM) does not constitute studies that deal with issues that are not innate in HRM management. Consequently, the following study aims at assessing theoretical approaches to International HRM.

International HRM is divided into three essential methodological frameworks that guide its application in various facets. The cross-cultural approach to management is the first methodological perspective in consideration (De Cieri et al., 2021, P.121). This approach is concerned with diverse countries’ rules, norms, values, and how they conduct work systems. In this setting, HRM practices may be influenced by cultural norms (Schuler et al., 2002, P. 42). Cross-cultural analysis is an integral part of preparing in a cross-cultural context (Cooke, 2017, P.10). It includes a study on the impact of cultural intelligence on managerial and leading practitioners and an examination of the contextual factors of different persons and company boards. Character traits, conceptual understanding, conversations with their sociocultural context, and expert knowledge contribute significantly (De Cieri et al., 2007, P.292). The relatively broad fields of cross-cultural philosophy, anthropology, archaeology, organizational psychology, and the relevant field of internationalization are all contributing subjects. Some of the general subject zones include the cultural context in which leadership must occur and the variety of roles of the effective quality management system. Other areas include the impact of culture on overall organizational processes and systems, and strategic planning across nations and cultures.

There are worksite collaborations in John Lewis today by discovering the sense, processes, and operators for collaboration over the organization’s 80-year history. Researchers shed light on the structures and practices that the Partnership claims to use to motivate workers and contend in a competitive industry (Jabbour et al., 2010, P.1060). By highlighting the radical motives of the pioneer and discovering the principle of democracy involvement defined in the constitution, their findings challenge the popular perception of the organization as a simple profit-sharing enterprise.

Workplace collaboration at John Lewis is fraught with strained relations and contradictions. The conflict is not merely a challenge between employers and labor; rather, managers and staff have differing visions of the purpose of collaboration and the best way to achieve that purpose (Jiang et al., 2012, P.1290). Management teams praise robust transactions of perspectives while condemning conformance and deference (Martín-Alcázar et al., 2005, P.643). They did, nevertheless, demand dedication and assistance for managerial decisions. Non-management collaborators desire a constructive voice and a vote on critical choices (lópez-ridaura et al., 2005, P.62). They also expressed trust in their planning and a personal taste for involvement in operations and maintenance rather than strategic issues.

Comparative (Institutional) HRM Approach

The comparative international human resource management approach is the degree to which HRM differs across countries due to disparities in the quality of the work environment. Capitalism theory of institutional HRM approach best describes how training, state interference, and institutional ownership impact the employment regulations (Gooderham et al., 2018, P.21). Capitalism is commonly believed to be a market structure in which private entities own and control the means of production following their preferences and price. Product costs are freely fixed in marketplaces to serve customers’ best preferences (Hermans, 2018. P.443). Profit motivation is a foundational consequence of capitalism. “We expect our dinner not from the benevolence of the butcher, brewer, or baker,” said Adam Smith (Cooke, Veen and Wood, 2016.P.200). Both stakeholders to consensual parties have an interest in the outcome, but neither gets whatever they desire unless they get what they want.

A good example is why companies in coordinated industry economies (CMEs) invest less in training than liberal business economies (LMEs) (Wilkinson and Wood, 2017, P.2515). Such companies depend on existing organizations to regulate the industry and coordinate interactions with providers, clients, workers, and investment bankers (Schotter et al., 2021, P.210). Reasonably long relationships distinguish CMEs between market participants who are also comparatively collaborative, (Haak-Saheem and Festing, 2018, P. 1864) unlike liberal market economies (LMEs), which rely on competitive industries to gain financing, skills, human labor, and future technologies.

International HRM Approach

The international HRM approach is how countries can provide their human resources across multiple nations, i.e., the unique function and organizational behavior of MNCs and TNCs. For multinational corporations, cross-border management control is critical (MNCs) (Farndale et al., 2017, P.1630). Various management control mechanisms are in place to ensure that international intermediaries are aligned with company objectives (Budhwar et al., 2006, p.890). Good governance at MNCs has been the subject of several studies over the last 25 years, showcasing the topic’s importance.

Despite the reasoning that disparities are shrinking in international industrial and technological operations, it is critical to consider ethnic background dynamic nature as a factor influencing MNC entrepreneurial behavior in respective countries (Ferner, 1997). Various scholars have evidenced the influence of the nationwide business world on MNCs’ strategic orientation in host countries (Tsang, 1999, P. 603). This scenario provides MNCs operating in underdeveloped nations with a chance to improve and incorporate their home nation professionals (Francis et al., 2014, p.1330). In this regard, Ferner (1997) records those organizations have two primary corporate strategy options when it comes to strategic options in host nations (Brewster et al., 2016, p.292). A study of selection and recruitment procedures in Saudi Arabia, for example, is a study of domestic human resource management in Saudi Arabia (Almond, 2011, p.540). Although these study results may be of interest to those collaborating on international human resource issues, they are largely examples of residential Hrm systems.

Question 2

“As a result of globalization, HR policies and practices will correspond exactly into a solitary professional standard that will apply worldwide.” The above statement is true as companies will vary in their use of human resource practices. Even though all Human resource departments strive for good problem solving and plan advancement, their pathways to achieve these objectives vary. Differences between HR in smaller firms and huge corporations are size, obligations, assets, and recruitment and selection techniques.

It is a topic of considerable scientific attention whether institutions and their Human resources practices are merging more similar—(convergence theory) or deviating (divergence theory). Kaufman, (2016) suggest the cross-vergence theory of principles evolvement in their award-winning article on values progression. This perspective is differentiated from the economic generation’s divergence or conventional convergence theory (Kaufman, 2016.P.340). Given the influence of development in technology on other introductory and simple components, the convergence idea suggests that moral standards grow in lockstep with the software’s capability in a large community.

Principles will usually correspond to Modern capitalism as communities become comparable in terms of modernization and use of innovation. Research has provided that this is where the majority of mechanization has historically occurred (Sidani and Al Ariss, 2016, P.283). According to the divergence theory, sociocultural impacts are the predominant factors that lead social and cultural organizations to accept specific values regardless of external factors. Rather, the cross-vergence hypothesis argues that the reason that makes mindset formation is a combination of sociocultural forces and company epistemological influences (Farndale et al., 2017.P.1080). The delimited interconnected transmission viewpoint asserts that HRM practices now and then employ hybrid HR models, a stereotypical depiction that has gained traction in HR studies.

In line with those mentioned above, this CFP welcomes intellectuals to research these constructs in terms of human resource practices. There is some convergence in HRM activities with what may be regarded as an improvement in that respect, primarily developed in Western countries (Paik, Chow and Vance, 2011.P.650). The cross-vergence theory has received little attention in HR education in terms of HR practices (Mishra and Sohani, 2020, P.100750). They hope to understand better the developments in the HRM process and system convergence/divergence/cross-vergence from the documents they solicit. Earlier HR research appears to be pointing to cross-vergence in some areas (Mcgaughey and Cieri, 1999, P.240). According to Sidani and Al Ariss (2013), MNCs operate so that certain practices converge while others diverge, leaning forward towards a cross-vergence point of view. Brewster, Wood, and Brookes (2008) discover commonalities and dissimilarities in IHRM practices.

Additionally, Brewster (2004) incorporates “European perspectives on human resource management,” implying the presence of structural and political variables that fail to comply with a simple theory of convergence. Similarly, Rowley and Benson (2002) investigate the challenges and difficulties that HRM approach of merging faces in the Asian setting. Other HRMR donations investigate region HR policies and practices (Khilji, 2002, P.232). In this SI, the researcher asks whether they have a worldwide HRM model versus a region-specific HR model.

In addition to other lives and experiences, they are engaged for underworld regions, including Latin American, African, and Asian contextual factors. They encourage developers whose work involves studying employment activities in non-Western situations to stake their points of view on HRM in their circumstances (Kim and Gray, 2005, P.820). The purpose is to bring publications that resolve these concerns at the small and medium enterprises thresholds while remaining open to larger levels of abstraction.

Best practices are a compendium of Strategic Human Resource Management and similarly effective actions (Collins and Clark, 2003, P.746). In human resource management investigation, there are main thought schools about handling and managing people. The first represents the best fit, while the second represents the best practices. Based on the best fit school, to create value, HRM policies must be related to the organizational strategic plan (Delery and Doty, 1996, P.829). This presupposes that HR should understand the needs of both the company and its members. According to the form a key part school, a set of widespread HR functions results in excellent organizational outcomes. According to its creators, certain HR activity multipacks help the company compete effectively regardless of organizational context or industry (Redman & Wilkinson). This implies that, for maximum effectiveness, the Strategic alignment and successive Operational processes must be affiliated with the organization’s culture. This connectivity has also been termed as Human Resources Management in literary works.

Weaknesses of Best Practices

Best practices can erode a company’s strategic differentiation. Any decision to distinguish in the global market necessitates a financial decision, which may contradict the business’ best practices. Best practices have an effect of imposing a suffocating industry framework. For instance, if people consider the cinemas business, few theaters in the United States offered premium seats 20 years ago. Guiding principles can also reveal hidden views of the world (Jackson and Schuler, 1995, p.260). A vision of the world attitude can be restricting on both a personal and a common cultural threshold. Some people and organizations, for instance, are very rule-based. Best practices can help to maintain particular operational power (Lewis and Heckman, 2006, p.153). Recognizing industry standards can be a good place to start when thinking about a firm’s methodologies, or it could be used as a protective measure by senior management desiring autonomy and power.

Conclusion

Three methodological frameworks exist in international human resource management. The first methodological perspective under consideration is the cross-cultural approach to management. There are worksite collaborations in John Lewis today as a result of the organization’s 80-year history of discovering the sense, processes, and operators for collaboration. Researchers shed light on the structures and practices that the Partnership claims to employ in order to motivate employees and compete in a competitive industry. The comparative international human resource management approach examines how HRM differs across countries due to differences in work environment quality. The international HRM approach describes how countries can provide human resources across multiple countries.

List of References

Almond, P., 2011. The sub-national embeddedness of international HRM. Human Relations, 64(4), pp.531-551.

Brewster, C., Mayrhofer, W. and Smale, A., 2016. Crossing the streams: HRM in multinational enterprises and comparative HRM. Human Resource Management Review, 26(4), pp.285-297.

Budhwar, P., Varma, A., Singh, V. and Dhar, R., 2006. HRM systems of Indian call centres: an exploratory study. The International Journal of Human Resource Management, 17(5), pp.881-897.

Cooke, F., 2017. Concepts, contexts, and mindsets: Putting human resource management research in perspectives. Human Resource Management Journal, 28(1), pp.1-13.

Cooke, F., Veen, A. and Wood, G., 2016. What do we know about cross-country comparative studies in HRM? A critical review of literature in the period of 2000-2014. The International Journal of Human Resource Management, 28(1), pp.196-233.

De Cieri, H., Cox, J. and Fenwick, M., 2007. A review of international human resource management: Integration, interrogation, imitation. International Journal of Management Reviews, 9(4), pp.281-302.

De Cieri, H., Sanders, K. and Lin, C., 2021. International and comparative human resource management: an Asia‐Pacific perspective. Asia Pacific Journal of Human Resources, 60(1), pp.116-145.

Farndale, E., Raghuram, S., Gully, S., Liu, X., Phillips, J. and Vidović, M., 2017. A vision of international HRM research. The International Journal of Human Resource Management, 28(12), pp.1625-1639.

Francis, H., Parkes, C. and Reddington, M., 2014. E-HR and international HRM: a critical perspective on the discursive framing of e-HR. The International Journal of Human Resource Management, 25(10), pp.1327-1350.

Gooderham, P., Mayrhofer, W. and Brewster, C., 2018. A framework for comparative institutional research on HRM. The International Journal of Human Resource Management, 30(1), pp.5-30.

Haak-Saheem, W. and Festing, M., 2018. Human resource management – a national business system perspective. The International Journal of Human Resource Management, 31(14), pp.1863-1890.

Hermans, M., n.d. Comparative HRM research in South America: a call for comparative institutional approaches. Handbook of Research on Comparative Human Resource Management, pp.427-444.

Jabbour, C., Santos, F. and Nagano, M., 2010. Contributions of HRM throughout the stages of environmental management: methodological triangulation applied to companies in Brazil. The International Journal of Human Resource Management, 21(7), pp.1049-1089.

Jiang, K., Lepak, D., Hu, J. and Baer, J., 2012. How Does Human Resource Management Influence Organizational Outcomes? A Meta-analytic Investigation of Mediating Mechanisms. Academy of Management Journal, 55(6), pp.1264-1294.

lópez-ridaura, S., Keulen, H., Ittersum, M. and Leffelaar, P., 2005. Multiscale Methodological Framework to Derive Criteria and Indicators for Sustainability Evaluation of Peasant Natural Resource Management Systems. Environment, Development and Sustainability, 7(1), pp.51-69.

Martín-Alcázar, F., Romero-Fernández, P. and Sánchez-Gardey, G., 2005. Strategic human resource management: integrating the universalistic, contingent, configurational and contextual perspectives. The International Journal of Human Resource Management, 16(5), pp.633-659.

Schotter, A., Meyer, K. and Wood, G., 2021. Organizational and comparative institutionalism in international HRM : Toward an integrative research agenda. Human Resource Management, 60(1), pp.205-227.

Schuler, R., Budhwar, P. and Florkowski, G., 2002. International Human Resource Management: Review and Critique. International Journal of Management Reviews, 4(1), pp.41-70.

Tsang, E., 1999. The knowledge transfer and learning aspects of international HRM: an empirical study of Singapore MNCs. International Business Review, 8(5-6), pp.591-609.

Wilkinson, A. and Wood, G., 2017. Global trends and crises, comparative capitalism and HRM. The International Journal of Human Resource Management, 28(18), pp.2503-2518.

Al Ariss, A. and Sidani, Y., 2016. Divergence, convergence, or crossvergence in international human resource management. Human Resource Management Review, 26(4), pp.283-284. Web.

Baddeley, M., 2006. Convergence or Divergence? The Impacts of Globalisation on Growth and Inequality in Less Developed Countries. International Review of Applied Economics, 20(3), pp.391-410.

Brewster, C., Wood, G. and Brookes, M., 2008. Similarity, Isomorphism or Duality? Recent Survey Evidence on the Human Resource Management Policies of Multinational Corporations. British Journal of Management, 19(4), pp.320-342.

Farndale, E., Brewster, C., Ligthart, P. and Poutsma, E., 2017. The effects of market economy type and foreign MNE subsidiaries on the convergence and divergence of HRM. Journal of International Business Studies, 48(9), pp.1065-1086.

Kaufman, B., 2016. Globalization and convergence–divergence of HRM across nations: New measures, explanatory theory, and non-standard predictions from bringing in economics. Human Resource Management Review, 26(4), pp.338-351.

Khilji, E., 2002. Modes of convergence and divergence: an integrative view of multinational practices in Pakistan. The International Journal of Human Resource Management, 13(2), pp.232-253.

Kim, Y. and Gray, S., 2005. Strategic factors influencing international human resource management practices: an empirical study of Australian multinational corporations. The International Journal of Human Resource Management, 16(5), pp.809-830.

Mcgaughey, S. and Cieri, H., 1999. Reassessment of convergence and divergence dynamics: implications for international HRM. The International Journal of Human Resource Management, 10(2), pp.235-250.

Mishra, S. and Sohani, S., 2020. Convergence divergence thesis through sectoral lens: A study of India and China. Human Resource Management Review, 30(4), p.100750.

Paik, Y., Chow, I. and Vance, C., 2011. Interaction effects of globalization and institutional forces on international HRM practice: Illuminating the convergence-divergence debate. Thunderbird International Business Review, 53(5), pp.647-659.

Rowley, C. and Benson, J., 2002. Convergence and Divergence in Asian Human Resource Management. California Management Review, 44(2), pp.90-109.

Collins, C. and Clark, K., 2003. Strategic Human Resource Practices, Top Management Team Social Networks, and Firm Performance: The Role of Human Resource Practices in Creating Organizational Competitive Advantage. Academy of Management Journal, 46(6), pp.740-751.

Delery, J. and Doty, D., 1996. Modes of Theorizing in Strategic Human Resource Management: Tests of Universalistic, Contingency, and Configurational Performance Predictions. Academy of Management Journal, 39(4), pp.802-835.

Jackson, S. and Schuler, R., 1995. Understanding Human Resource Management in the Context of Organizations and their Environments. Annual Review of Psychology, 46(1), pp.237-264.

Lewis, R. and Heckman, R., 2006. Talent management: A critical review. Human Resource Management Review, 16(2), pp.139-154.

Cite this paper

Select style

Reference

BusinessEssay. (2022, December 22). Theoretical Approaches to International Human Resource Management. Retrieved from https://business-essay.com/theoretical-approaches-to-international-human-resource-management/

Reference

BusinessEssay. (2022, December 22). Theoretical Approaches to International Human Resource Management. https://business-essay.com/theoretical-approaches-to-international-human-resource-management/

Work Cited

"Theoretical Approaches to International Human Resource Management." BusinessEssay, 22 Dec. 2022, business-essay.com/theoretical-approaches-to-international-human-resource-management/.

References

BusinessEssay. (2022) 'Theoretical Approaches to International Human Resource Management'. 22 December.

References

BusinessEssay. 2022. "Theoretical Approaches to International Human Resource Management." December 22, 2022. https://business-essay.com/theoretical-approaches-to-international-human-resource-management/.

1. BusinessEssay. "Theoretical Approaches to International Human Resource Management." December 22, 2022. https://business-essay.com/theoretical-approaches-to-international-human-resource-management/.


Bibliography


BusinessEssay. "Theoretical Approaches to International Human Resource Management." December 22, 2022. https://business-essay.com/theoretical-approaches-to-international-human-resource-management/.