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Strategic human resource management Strategic human resource management is used to explicitly link HRM with the strategic

management processes of the organization and to emphasize co-ordination or congruence among the various human resource management practices. Thus, SIHRM (strategic international HRM) is used explicitly to link IHRM with the strategy of the MNE. (Taylor, 1996) Adler and Ghadar (1990) suggest that organization will inevitably develop through certain stages and will have to follow very different IHRM policies and practices according to the relevant stage of the international corporate evolution which they identify as domestic, international, multinational and global. But this model is not useful in todays world. Wright and McMahan (1992) state that SHRM is the pattern of planned human resource management and activities intended to enable a firm to achieve its goals. And Schuler et al (1993) define strategic IHRM as human resource management issues, functions and policies and practices and result from the strategic activities of multinational enterprises and that impact on the international concerns and goals of those enterprises In the Schuler SIHRM framework, there are two major strategic components of MNEs that give rise to and influence strategic international human resource management: inter-unit links and internal operations. Multinational enterprise is concerned with operating effectively in several different countries. So that how manage the various unit to be differented and integrated has become more important. Because it will influence the effectiveness of the organization. At the same time MNEs concerned about the internal operations of the units as well. In the MNEs each unit expect working together it has to work within the confines of its local environment, its laws, politics, culture, economy and society. Both the inter-unit links and internal operations are under the heading of the SIHRM issues. SIHRM issues address an MNE's inter-unit and within unit and needs and challenges. Although the MNE is separated across several nations it is a single enterprise. It needs to consider how to balance the needs for differentiation and integration. As an MNE, it needs to decide how much control it will exert over the internal operations of the local unit SIHRM functions represent three areas: the human resource orientation, the resource for operating the human resource organization in MNE and the location of those resource. In the MNE can elect to manage in one of server ways to manage its unit human resource. Such as can range from allowing the units to manage independently to decide that the units will be managed the same as they are at the center (i.e., the headquarters) of the MNE. And the MNE should spent time, energy and financial in managing their human resource. Like management training and development. SIHRM policies and practices involved staffing, flexibility, compensating and developing. While the MNE has been influenced by exogenous factors and endogenous factors. The external factors include: industry characteristics such as type of business and technology available; nature of competitors; the extent of change and country or regional characteristics such as political, economic and socio-culture conditions and legal requirements. And the internal factors include: the structure of international operations, the international orientation of the organizations headquarters, the competitive strategy and the MNEs experience in managing

international operations. The last portion of the integrative framework of SIRM is MNE concerns and goals. There are five concerns and goals cost effectiveness, efficiency, local responsiveness, flexibility and learning and transfer. As Bartlett and Ghoshal (1991) suggest, while these concerns and goals are important to MNEs, their degree of importance and the nature of how the importance is constructed may vary with the specific MNE. Being globally competitive for an MNE that is really in a global industry has implications for competitive behavior that are different from an MNE that is in a multidomestic industry. And MNE also need think about efficiency for example use the most appropriate methods and processes to make and deliver their products and services worldwide. MNEs also need to be concerned with being flexible to changing conditions, whether from local conditions or from technology, strategy, or nature of the competition. Lastly, a major goal of MNEs is facilitating learning and the transfer of this learning across units. Because the MNEs face more competition so they must encourage new learing and transfer and sharing the new knowledge.

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