International Human Resource Management

International business environments are rapidly changing and “the cause of yesterday’s success may be the cause of tomorrow’s failure” (Kim, 1999). Every country or region has a specific culture which is due to similarities in religion, language, beliefs and values. This could result in a “cultural challenge for international management” caused due to varying cultural features of different countries (Harris and Moran, 1996). Managing people from distinct cultures requires knowledge of their distinct value systems, traditions and the manner in which they perceive goals and strive to achieve them. These differences could lead to specific problems in a local or regional (host) companies in which strategic policies are drafted by the management of the parent company without considering the specific local or regional culture of the people.

Businesses need to function in accordance with these cultures in order to succeed which is the reason why it is becoming increasingly important for multinational companies to trade effectively by becoming “culturally sensitive and globally minded” (Kim, 1999). Research indicates that management techniques used in one nation by management teams could be the reason for success in a particular country but these techniques are “not portable” necessitating a desperate need for “cultural-specific training” in multinational companies (Kim, 1999). Therefore it is vital for multinational businesses to “think globally and act locally” by applying and implementing business tactics depending on the culture of the country or region in which the business is placed, rather than the culture of the parent company.

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