INTEGRATIVE FRAMEWORK OF STRATEGIC INTERNATIONAL HUMAN RESOURCES MANAGEMENT

Phuoc D. Nguyen

Schuler and Tarique (2007) describe an Integrative Framework of Strategic International Human Resources Management (SIHRM) in multinational enterprises (MNEs) which is adapted from Schuler et al., 1993. This framework shows SIHRM issues included inter-unit linkage: control/variety; SIHRM functions included orientations, resources, and location; and SIHRM policies/practices included staffing, appraising, compensating, and developing. Based on Schuler et al. (1993) Schuler and Tarique (2007) describe the Thematic Framework of International Human Resources Management (IHRM) in MNEs: 2007 update and extension. This framework integrates Schuler et al.’s (1993) framework of SIHRM issues, SIHRM functions, and SIHRM policies/practices into IHRM issues, functions, policies, and practices including managing a global workforce, global leadership development, and global careers. These differences indicate the changes in SIHRM policies/practices, SIHRM issues, and SIHRM functions from the Integrative Framework of SIHRM. These changes given the changes of Schuler et al.’s (1993) framework’s MNEs Effectiveness included competitiveness, efficiency, local responsiveness, flexibility, and learning and transfer to the Thematic Framework of IHRM’s MNEs Effectiveness included monetary criteria and satisfying multiple stakeholders. Furthermore, the notion of SIHRM was changed to the notion of IHRM because Schuler et al.’s (1993) framework’s Strategic MNEs Components included inter-unit linkages and internal operations which were changed to Thematic Framework of IHRM’s Strategic MNE Components included strategic human resources management (SHRM) systems, IHRM systems, and cross-border alliances. This shows the input of the Thematic Framework of IHRM framework integrates SHRM systems and IHRM systems into an integrative IHRM system. We classify SIHRM policies/practices into traditional HRM including staffing, appraising, and compensating; and HRD including developing human resources. IHRM is classified into managing a global workforce as a function of IHRM and global leadership development and global careers as functions of international human resources development (IHRD). It is suggested that to complement IHRD’s sub-component include cross-cultural training and management, international HR strategic management, international knowledge management, expatriate management, and diversity management in the global workplace which is connected to cross-cultural management. These are possible future changes in the global landscape of HRM.

Shen, Edwards, and Lee (2005) suggest another integrative IHRM framework that includes components of IHRM Practices and Policies including strategic IHRM integration, recruitment and selection, training and development, performance appraisal, reward and compensation, and employee relations. (interplay between IHRM policies and practices). In comparison to the Thematic Framework of the IHRM framework’s strategic MNEs components SHRM systems and IHRM systems are integrated into the input of the IHRM process. While Shen, Edwards, and Lee’s (2005) integrative IHRM framework’s strategic IHRM integration is the outcome of the integrative IHRM framework. However, the integrative IHRM framework has not demonstrated this framework’s effectiveness.

Brewster, Sparrow, and Harris (2005) propose “The field focused on understanding those HR functions that changed when the firm went international and also began to identify important contingencies that influenced the HR function to be internationalized, such as the country that the MNEs operated in, the size and life-cycle stage of the firm and the type of employee.” (951). It is suggested that to add to the important contingencies such as the industry that the MNEs operated in, political occurrences, international talent and human capital management, and national human resources strategies and policies.