ABSTRACT
One of the challenges for IHR is to become organizational architects of the global firm. Global organizations need appropriate structure in order to effectively conduct business in the chaotic and complex global economy. Not only does the MNE need to be organized to achieve the strategic objectives of the firm, but IHR also needs an appropriate organizational structure to effectively become a business partner, itself. The first chapter looked at the foundations of strategic IHRM and its relation to strategic international business. This chapter examines the reasons for internationalization and the ways in which organizations “go international,” particularly the use of cross-border acquisitions, international joint ventures, and alliances or partnerships, and the central role that IHRM plays in the implementation of these choices. And, then, the chapter examines how these choices influence the design of the organizations that global firms use to carry out their international activities. The notion that “structure” always follows “strategy” implies that once an internationalization strategy has been developed by the firm, effective organizational structures need to be identified to support the attainment of that globalization objective. It is the role of this chapter, then, to describe the organizational designs and business structures that MNEs (and their IHR managers) evaluate in carrying out their internationalization mandates and provide a summary of the kinds of concerns that IHRM must consider in order to ensure effectiveness in the carrying out of these decisions.
