Strategic human resource managementStrategic human resource management is used to explicitly link HRM with thestrategic management processes of the organization and to emphasize co-ordination orcongruence among the various human resource management practices. Thus, SIHRM(strategic international HRM) is used explicitly to link IHRM with the strategy of theMNE. (Taylor, 1996) Adler and Ghadar (1990) suggest that organization willinevitably develop through certain stages and will have to follow very different IHRMpolicies and practices according to the relevant stage of the international corporateevolution which they identify as domestic, international, multinational and global. Butthis model is not useful in today’s world.Wright and McMahan (1992) state that SHRM is the pattern of planned humanresource management and activities intended to enable a firm to achieve its goals. AndSchuler et al (1993) define strategic IHRM as human resource management issues,functions and policies and practices and result from the strategic activities ofmultinational enterprises and that impact on the international concerns and goals ofthose enterprisesIn the Schuler SIHRM framework, there are two major strategic components ofMNEs that give rise to and influence strategic international human resourcemanagement: inter-unit links and internal operations. Multinational enterprise isconcerned with operating effectively in several different countries. So that howmanage the various unit to be differented and integrated has become more important.Because it will influence the effectiveness of the organization. At the same timeMNEs concerned about the internal operations of the units as well. In the MNEs eachunit expect working together it has to work within the confines of its localenvironment, its laws, politics, culture, economy and society. Both the inter-unit linksand internal operations are under the heading of the SIHRM issues.SIHRM issues address an MNE's inter-unit and within unit and needs and challenges.

Although the MNE is separated across several nations it is a single enterprise. It needsto consider how to balance the needs for differentiation and integration. As an MNE,it needs to decide how much control it will exert over the internal operations of thelocal unitSIHRM functions represent three areas: the human resource orientation, the resourcefor operating the human resource organization in MNE and the location of thoseresource. In the MNE can elect to manage in one of server ways to manage its unithuman resource. Such as can range from allowing the units to manage independentlyto decide that the units will be managed the same as they are at the center (i.e., theheadquarters) of the MNE. And the MNE should spent time, energy and financial inmanaging their human resource. Like management training and development.SIHRM policies and practices involved staffing, flexibility, compensating anddeveloping. While the MNE has been influenced by exogenous factors andendogenous factors. The external factors include: industry characteristics such as typeof business and technology available; nature of competitors; the extent of change andcountry or regional characteristics such as political, economic and socio-cultureconditions and legal requirements. And the internal factors include: the structure ofinternational operations, the international orientation of the organization’sheadquarters, the competitive strategy and the MNE’s experience in managinginternational operations.The last portion of the integrative framework of SIRM is ‘MNE concerns and goals.There are five concerns and goals cost –effectiveness, efficiency, localresponsiveness, flexibility and learning and transfer. As Bartlett and Ghoshal (1991)suggest, while these concerns and goals are important to MNEs, their degree ofimportance and the nature of how the importance is constructed may vary with thespecific MNE. Being globally competitive for an MNE that is really in a global

industry has implications for competitive behavior that are different from an MNEthat is in a multidomestic industry. And MNE also need think about efficiency forexample use the most appropriate methods and processes to make and deliver theirproducts and services worldwide. MNEs also need to be concerned with beingflexible to changing conditions, whether from local conditions or from technology,strategy, or nature of the competition. Lastly, a major goal of MNEs is facilitatinglearning and the transfer of this learning across units. Because the MNEs face morecompetition so they must encourage new learing and transfer and sharing the newknowledge.