Emerging Motivations for Global HRM Integration

For many years, the field of international human resource management (IHRM) has struggled with the question of whether or not it is better for a multinational firm (MNC) to integrate its IHRM practices across the various geographies in which it operates. The debate revolves around two issues: whether it is desirable, and whether it is possible. The obstacles to integration are obvious, and include such barriers as the vast array of labour law regimes, the enormous divergence in labour market characteristics and highly divergent cultures, all of which impede global integration of HRM. Yet MNCs, and the IHR function within them, are likely to become ever more intent on overcoming the many barriers that exist to integrating their HRM practices on a global basis. In short, global integration of HR is becoming more desirable. There are two emerging trends in particular that are creating strategic imperatives for greater HRM global integration. These two trends are the increasing need to focus on the creation of social capital within the MNC’s global internal network, and the growing need to focus on sustainability as part of the company’s global strategic imperative. Interestingly, and fortuitously for MNCs and their management, achieving these two goals is a mutually reinforcing process.