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Editing Human Resource Management - Essay Example
In order to critically and comprehensively discuss the major variables influencing the difference between domestic and international human resource management (IHRM) we must examine the effects of globalisation which instigated the transformation of the world economic order and gave prominence to one global economy during the 1980s to 1990s…
In the 1980's large firms instigated the fourth generic growth strategy of internationalisation (Ansoff, 1965;Dollar, [n.d]), as the rise of world trade, foreign direct investment (FDI), mergers & acquisitions and technological expansion gained ever increasing momentum (Hawawini et al. 2004). The opening of foreign markets, trade liberalisation and developments in new technologies, including the onset of e-commerce is changing the way businesses operate (Bladwin & Wypolsz, 2004). The non-stability of monetary policy among other environmental changes, contributed towards global recession throughout the 1980's affecting all economies and corporations. The UK shifted in employment, from manufacturing to a service sector economy (Hirschey, 2000). The environmental transformation has proliferated competition creating awareness for organisational responsiveness, flexibility and quality with the financial bottom line justified (Harzing & Ruysseveldy, 2004).
An analysis by Storey (2002:6) recognises that "HRM emerged on the scene as a historically-situated phenomenon" in the 1980's, responding to the new competitive diversity, as confidence fell with traditional management practices and thereby securing a position in strategic management. ...