The International Human Resource Management (IHRM) is responsible for the following: (1) Recruitment and selection; (2) Training and development; (3) Compensation and performance management; and (4) Management of expatriates. Through them, staffing, training and compensation for global operations can be achieved. Staffing operations vary based on the strategic orientation.
For international, an ethnocentric approach is needed, for multidomestic setting, a polycentric approach is required, for regional, a regiocentric approach is more appropriate to use and lastly for transnational, a global approach is needed. In order to succeed in the international market, the IHRM needs to train and develop expatriates to help them adapt to various cultural settings. The execution of the IHRM’s role in organizations will determine their success or collapse in the global business setting.
However, there are times wherein expatriates are not able to carry out their duties due to the following factors: selection based on headquarters criteria, inadequate preparation, training, orientation, alienation or poor support from headquarters, inability to adapt to the local culture, problems with spouse and children, insufficient compensation and financial support, poor programs for career support and repatriation.
Nevertheless, this can be avoided if global managers are given appropriate and effective training techniques that focuses on area studies, culture assimilators, language training, sensitivity training, field experiences and host-family surrogate. More so, compensation should also be taken into consideration when ensuring the success of the ventures of expatriates. This can be done through the balance sheet approach, tax equalization and including salary, taxes, allowance and benefits in the compensation package.