As the paper declares an international organisation can only perform effectively through interactions with the broader external environment of which it is part. The structure and function¬ing of the international organisation must reflect, therefore, the nature of the environment in which it is operating. Factors such as uncertain economic conditions, fierce world competition, the level of government intervention, scarcity of natural resources and rapid developments in new technology create an increasingly volatile environment.
As the essay stresses contemporary developments show that IHRM is that part of the process of management that is concerned with the maintenance of human relationships and ensuring the physical well being of employees so that they give the maximum contribution to efficient working. Another contemporary development is called strategic IHRM. It “encompasses a strategic perspective and use their framework as a contemporary description of HRM”. Effective leadership should ensure human resources policy is adhered to and department activities are successfully carried out. It is essential that every manager and supervisor is aware of the principles of IHRM. International human resources management is vulnerable to a greater extent if its work can be devolved back to other national managers. In the light of these developments it is not surprising to find many theories which attempt to outline and explain cultural similarities and differences among societies.
2. The current state of the IHRM is described (Barham, Conway 1998) as homogeneity, which have obscured the real challenge of managing across cultures in the world. It is unlikely there will ever be a truly single homogeneous HR in the European HRM in the sense of there being a single, homogeneous culture. While this has led to some to argue that the proposed benefits of the IHRM greater opportunities for achieving economy of scale, improve efficiency and stimulate innovation can never truly be realised, they are perhaps missing the point. The cultural diversity need not be considered as a barrier to achieving wide objectives, but a facilitator of achieving