International Business Essay Example | Topics and Well Written Essays - 3000 words - 24

International Business - Essay Example An international firm implements various strategies such as Geocentric, regiocentric and ethnocentric in addressing challenges faced by them in managing their diverse workforce. Many challenges are faced by MNCs in addressing global workforce management issues. These issues are found related to ethnocentrism, expatriation and poor knowledge transfer. MNCs are finding out ways to manage complex global structures in the context of international HRM and knowledge management. International human resource management (IHRM) wholly spotlights on controlling human resources in the global organizations. It is understood to be the process of performing HRM activities such as recruiting, compensating, organizational expansion, performance evaluation, employee motivation in the global context (Dowling, Festing and Engle Sr, 2008). IHRM is considered to be a complex procedure in many MNCs. The international operations of MNCs have many complexities which are often underestimated by the firms and hence it can be gathered that firms tend to overlook the relevance of IHRM. The failure of the business in global environment is a result of faulty human resource management practices. Increasing international competition among the organizations has led to the increasing importance of developing IHRM practices. There is a shortage of international managers which serves to be a problematic situation for the international firms (Quintanilla and Ferner, 2003). The MNCs fails to realise that the success and failure of the firm depends on how efficiently a firm applies its human resource management strategies. In order to achieve organizational goals, the MNCs need to fabricate integration among the human resource practices of its subsidiary firms located in different parts of the world (Tsai, 2001). The MNCs requires ensuring a considerable amount of flexibility in their IHRM