Managing human resources across borders

International Human Resource Management
By Anne-Wil Harzing and Ashly H. Pinnington.
Sage. Pages 641. Rs 695.
D. S. Cheema

In the next phase of competition in a knowledge-based economy, people are going to be the biggest assets, where they can make or break an organisation. Thus, it is very important to leverage on each and every employee’s ability and then synergise them in order to create a tremendous force to reckon with. And this has to be done in an environment of unlimited world economic growth and opportunity in a new, borderless, globalised economy.

International management is the process of applying management concepts and techniques in a multinational environment. Since the world is now connected electronically and more importantly, psychologically, it is difficult to imagine any organisation, business or non-business, which is not directly affected by globalisation. The management of human resources in this scenario is indeed an uphill challenge being faced by managers all over the world.

According to the World Economic Forum’s Global Trade Policy Enabling Index, India figures in the bottom tier of countries in terms of the extent to which its policies promote trade internationally. Also, attitude of Indians which tends to assert superiority of their culture is considered inimical to internationalisation, and hence growth. To overcome such handicaps, Indian students must study as part of their curriculum, an authoritative and cutting-edge text related to international management in general and human resources in particular.

This book presents integrated research-based perspectives on the management of people across borders. Humans are unique assets and, therefore, companies of today cannot continue to treat them in the age-old ways of profit centres by just paying them without understanding their specific needs, wants and desires. An insight into managing human resources in the context of today’s globalised world is of utmost importance for all organisations. The international human resources management (IHRM) is a new and rapidly changing field which has drawn the attention of all multinational companies (MNCs).

The book is divided into four parts and has 33 contributors in all, including eminent professors of international management. Some of the features, which make the book uniquely helpful to readers, are an overview of learning objectives, chapter outline, further reading, internet resources, case studies, self-assessment questions and companion website. The first part of the book, "Strategic, Comparative and Organisational Perspective on HRM", has five chapters that discuss the importance of suitable strategies for HRM along with the different approaches to IHRM adopted by different countries. All major MNCs employ strategic planning related with IHRM, a plan which results from a careful analysis of both the external and internal environment. The first part also finds differences in the culture of different societies and how flexibility in adopting other cultures becomes vital in managing any organisation today.

The second part, "International Assignments and Employment Practises", has four chapters that focus on MNCs, IHRM and a country’s approaches to HRM. This part explores the motivation of MNCs for international transfer of expertise and presents a framework of four key influences: country of origin effect, dominance effects, international integration and host country effects.

The third part reviews traditional and newer approaches to IHRM policies and practises. In this context managing knowledge or knowledge management in MNCs with emphasis on knowledge sharing issues have been discussed. The last part, "Developments in IHRM Policy and Practise", deals with the present and long-term issues of innovation in IHRM. One of the important aspects discussed is the dominating role women managers are playing in international assignments.

It goes to the credit of Harzing and Pinnington that the text at no place appears disjointed, although the book has contributions from a large number of authors. The book has a solid research base. It is very comprehensive with a broad and global coverage and provides a detailed overview of main ways that IHRM has been conceptualised and evolved over the years. It has maintained academic rigour and critical focus that have helped the authors to establish its reputation as the one of the most authoritative texts in international human resources management. This book has been very well received by teachers and students the world over. Unfortunately, there are hardly any books on international management by Indian authors for meeting specific needs of our students. To that extent, this book will be helpful, if used by the teachers and students in the backdrop of our culture and work ethos.





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