This may mean that SHRM has the ability to change the way things are done in an organisation, effectively changing an organisation’s culture (Schein, 2004; Robbins, 2003). However, individual HRM strategies in themselves may not be strategic HRM, where SHRM is the “overall framework which determines the shape and delivery of the individual strategies” (CIPD, 2009).
Strategy exists in all organisations as it is concerned with defining the organisation’s behaviour and its existence in a given environment, where the role of SHRM is to explain how the human resources function influences organisational performance (Boxall and Purcell, 2003). Dyer and Holder (1998) give us the main features of SHRM, where SHRM at the organisational level is planned at the top, where decisions are made regarding goals, policies and allocation of resources; the focus of SHRM is then aimed at organisational effectiveness or better performance, where people are viewed as resources that need to be managed towards the achievement of strategic business goals; HR strategies are then seen as frameworks which are broad, integrative, unifying and contingency based, as they incorporate a whole lot of HR goals and activities which are designed to be in strategic fit with the environment (also see Mankin, 2009).
This particular study will focus on the role of SHRM in multinational organisations (MNCs), where the HRM function becomes international (IHRM). IHRM is a relatively recent addition to the field of human resources, developed mainly because of the rapid pace at which businesses are getting internationalised as a result of globalisation (Scullion, 2001). Even though IHRM’s operations are based on the same parameters of domestic HRM, it is much more complex as it deals with sensitive cross-cultural issues and calls for proper education of the local behaviour in terms of culture, values, business practices, and employment laws of the host country of a