International Human Resources Management Strategies - Essay Example

Some companies tend to lack the knowledge that globalization is closing the gap on how we relate to others. This paper on International HRM aims to assess various key issues associated with the management of human resources in a global environment, such as the key strategies or challenges faced by companies operating in international locations; the most effective approach recommended for global companies to operate successfully in an international environment; etc. For the purpose of this study, Nike Inc.

, is chosen for discussion and analysis. International HRM strategies: Nike Inc. Nike Inc., is an international footwear, sportswear and equipment supplier headquartered in Washington, U.S.A, and having branches all over the globe. The company truly reflects the characteristics of a truly global multinational brand, due to its successful operations in international markets. Nike’s international HRM strategies involve introduction of market driven policies aimed at profit maximization. Led by visionary Phil Knight, Nike Inc.

's phenomenal success in international markets was achieved by outsourcing majority of its manufacturing operations to low-wage countries such as Indonesia, Vietnam and China. The company received flak for its outrageous HRM policies whereby young children and other workers in the Nike factories were made to work for long durations in unsafe work environments, raising alarm in the international community (Aswathappa & Dash, 2007). However, ever since the company has focused on improving its working conditions and rewired its approach to human resource management by introducing polices focusing on an integrated and multi-disciplinary team to support and monitor its outsourcing operations.

The company today focuses on worker safety and sustainable business as its core business strategy and vision (Nike Inc., 2012). Global challenges of IHRM: A significant number of organizations have internationalized their operations over the past couple of decades. This new trend has given rise to global challenges with regard to the management of human resources across international borders. The key challenges faced by managers today, with regard to International HRM include aligning its resources and work practices with those of the host nations; increasing risk of global terrorism; change in patterns of hiring and staffing; ethical and CSR challenges; strategic challenges etc (Dowling, Festing, and Engle, 2008).

However one of the most pressing issues faced by multinational companies today is to monitor and supervise the code of conduct and HRM practices in the host countries. Various multinational companies such as Nike, Benetton, Levi Strauss, Reebok, Adidas etc., among many others have faced severe criticism in their home country for their unethical work practices. These companies have been accused of child labor and violation of human rights thus resulting in a serious negative impact on its brand image.

Similar challenges were faced by companies like Google for its questionable ethical practices in China; Coca Cola for its CSR practices; Allure Cruise Lines' strategic challenges etc (Dowling, Festing and Engle, 2008; Deresky, 2007). Some of the other key challenges faced by the multinational related to international HRM include those associated with ethnocentric, polycentric, geocentric and/ or region centric approaches. Ethnocentricity refers to