Last Updated 13 May 2021

Importance of HRM in International Business

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Importance of human resource management is now globally recognized and business growth is related to better management of human capital of a company. The present research proposal, henceforth, sets ground to investigate the importance of managing, running, and stabilizing human resource in order for the growth of business. It aims to contribute to the existing research of human resource management (HRM) by organizing secondary sources and relating it specially to the expansion of business across borders that has come to be known as multinational companies operating in a number of different countries (INVESTOR, 2008).

The paper also examines various facets and implications of across border business activities that aim to take place majorly due to HR issues such as mergers, acquisition, and so on (Chapman,  2001). Another important aspect of HR and business spreading over the international boundaries is cultural aspects of a specific region, country, or state that a business venture must come to recognized as a valid component. It is important to realize that in the flourishing of withering of a business local culture plays a decisive role. Related to this is the issue of workplace culture where, as in today’s global workplace, workers come from different cultures and backgrounds to work together. Hence it is highly critical to understand their individual status and address the issues of their cultural background in a way to make their capabilities more productive for a global business venture (Numerof & Abrams, 1998). Thus, the intended research is multidimensional and aims to address complicated issues with regard to international business and its stable growth from a number of aspects and issues.

The intended research is basically an exploratory study of the already existing research data and aims to organize the data into a cohesive whole that addresses the issues given in the outline. As such, it is not the focus of the research to test a preformed hypothesis or test the validity of a theoretical model. However, basing on its basic aim, the research aims to answer the following research question: What are the important aspects of operating a business internationally regarding HRM?

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Statement of the Approach to Research

The intended research aims to explore, examine, and analyze a diverse number of aspects with relation to human resource management in the context of international business, its growth, important issues related to its stable productivity, and effective management of its human capital with regard to issues that address different aspects like culture, economic underpinnings, and so forth. Hence, the present paper is intended to keep in view the secondary sources by which existing research can be organized in a way in which these issues are highlighted and an addition to quality reference work is made by this document.

Outline of Literature Review

For the research, literature to be reviewed is on HR. However, major areas related to global business activities and HR will be covered. There are at least five major areas that the present research is aimed to cover. These are discussed as follows.

A company’s strategies to maintain, stabilize, and operate its human capital in global context. This area is viewed as being highly significant for a company’s global growth. This relates to how a global business venture undertakes its beliefs and focuses on future operations and a number of other matters such as company’s culture, its change and growth, and so on (Tichy, 1983).

What are the issues and challenges of multinational companies (MNCs) that are operating in the global context of the present day and how they maintain their human capital. This area is important for the present study for two reasons: one is to bring forward the salient features of the multinational organizations and the other is to point out the areas in which there is a need for improvement. This examination will include the way these MNCs perform a number of diverse functions from initiating agreements to make use of resource in a host company and linking all the operations with the parent company; this is an ideal aspect for this study to examine for critical insight (Cray, 85, 1984).

Cross border acquisitions and mergers is a very important area to investigate how effectively HRM can be done for the growth of a global business. This is HRM that has a number of activities to perform with regard to halting turnover, loss of productivity, distress and so on. Cross border acquisitions and mergers are a strategy to cope up with these and other numerous challenges that help companies maintain their stature and HR proves vital to all these functions (Schmidt, 2001).

The fact that culture does play a vital role in shaping and reshaping the overall is recognized in global business literature; different HRM strategies result in different culture of an organization  (Tanure & Duarte, 2007). This aspect will be explored from different perspectives. How global workforce is globally managed and its challenges is the last major area that will be reviewed with an aim to bring forth an in-depth insight to contribute to the existing literature.

Submission of Research

The research will be conducted and submitted in the given deadline.


  1. Chapman, J. A. (2001). ‘HR Know-how in mergers and Acquisitions’. Leadership & Organization Development Journal 22, no. 7/8 (January 1): 346-347. Accessed on November 20, 2008 from:
  2. Cray, D. (1984). ‘Control and coordination in multinational corporations’. Journal of International Business Studies (pre-1986) 15, no. 000002 (October 1): 85.  Accessed on November 20, 2008 from:
  3. INVESTOR (2008). Globalization. Accessed on November 20, 2008 from:
  4. Numerof, R.E. & Abrams, M.N. (1998). ‘Integrating corporate culture from international M&As’. HR Focus, June 1, 11-12. Accessed on November 20, 2008 from:
  5. Schmidt, J. A. (2001). ‘The correct spelling of M&A begins with HR’. HR Magazine, June 1, 102-108.  Accessed on November 20, 2008 from:
  6. Tanure, B., & Duarte, R.G. (2007). ‘Managing people in radical changes (M&As): The adoption of intrinsically consistent HRM strategies in Brazilian companies’. International Journal of Manpower 28, no. 5 (July 10): 369-383. Accessed on November 20, 2008 from:
  7. Tichy, N. M. (1983). ‘Managing Organizational Transformations’. Human Resource Management (pre-1986) 22, no. 1/2 (April 1): 45. Accessed on November 20, 2008 from:

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