3as cultural, socio-economic, institutional, and political dissimilaritiesacross countries. Schuler et al. (1993) define IHRM as, “human resourcemanagement issues, functions, and policies and practices that result fromthe strategic activities of multinational enterprises and that impact theinternational concerns and goals of those enterprises.” In a multiculturalcontext, IHRM comprises four critical components :1.
A firm’s various environments or context (both inside and outside of the firm);2.
The IHRM function (activities of finding, allocating, developing andvaluing human resources plus supporting systems and processes);3.
Employees involved in work that transcends borders (mode of international interaction. Level / type, and “source) and4.
Outcomes or contribution of HRM.These components of IHRM create a three-part framework or process of diagnosing organizational environments, designing and managing humanresources activities, systems, and processes in organizations that operateacross borders and evaluating IHRM’s contribution.In a multicultural context, IHRM function focuses on activities, polices andpractices of managing human resources. Four types of human resourceactivities include: Finding, allocating, developing and valuing employees.1.
Finding consists of planning for, recruiting, and selecting employees(Kane and Stanton, 1991).2.
Allocating includes issues relating to staffing, promoting, demoting, andtransferring employees (Gregersen and Black, 1992).3.
Developing employees embraces policies and practices associated withpreparing employees for current and future jobs in terms of formal andinformal training, development programmes, and career management(Evans, 1992).