The successful operation of a multinational firm is contingent upon the availability of technology, technological know-how, capital and human resources. Without a highly developed pool of human resources (including managerial and technical talent), technology, technological know-how and capital cannot be effectively and efficiently allocated or transferred from corporate headquarters to the scattered subsidiaries. Developing and managing this managerial and technical talent is the function of international human resource management.

International human resource management has five main dimensions: first, the selection and recruitment of qualified individuals capable of furthering organizational goals; second, the training and development of personnel at all levels to maximize organizational performance; third, the assessment of employee performance to ensure that organizational goals are met; fourth, the retention of competent corporate personnel who can continue to facilitate the attainment of organizational goals; and fifth, the management of the interface between labour and management to ensure smooth organizational functioning.

Each of the five salient aspects of international human resource management noted above can affect organizational functioning. In the future, international human resource management will take on even greater significance in the overall strategic planning and management of multinational firms, for several reasons: the globalization of the world economy; the globalization of the workforce; and regional economic integration.

Rosalie L. Tung