Role of Strategic Global Human Resource Management

The dramatic and discontinuous changes taking placeThere is a body of academic research employing
in the global environment have contributed to thenetwork analysis to examine the structural and
evolution of traditional multinational corporations (MNCs)relational aspects of global strategy implementation.
into global organisations that are more of a networkNetwork analysis is a well established theory used in a
nature (Gimeno & Woo 1996, Wolf 1997, Galunicvariety of situations in the business literature. While at
& Rodan 1998, Westney 1999). The globalthe same time, the strategic human resource aspects
network form of organizing roles and activities infusesof creating and maintaining global organisations and
into the firm a heightened need for cross-functionalnetworking processes have, curiously, been neglected
interdependence, which in turn, can increase rolein the past research in the strategic international human
ambiguity for a human resource manager (Grimmresource management (i.e., SIHRM) literature.
& Smith 1997).The purpose of this paper is to develop a theoretical
On the one hand, an important function of a globalframework for flexible modes of strategic human
human resource manager is to shape a culture ofresource management within a global network
developing external linkages (i.e., to local organisationsorganisation configuration. A model of the SGHRM
and critical stakeholders) for a global organisation. Onsystem, developed from a combined
the other hand, it is vital the global human resourceknowledge-based view and relational contracting
manager facilitates the integration of internal functionaltheoretical perspectives, is proposed for empirical
(i.e., international human resource management) andresearch and practical use in global organisations. In
crossfunctional (i.e., global marketing, R&D andaddition, specific barriers and competencies, associated
operations) relationships within the various competencywith role transformation of human resource managers
centres of the global organisation (Mudambi &in global organisational networks, are identified. In
Helper 1998). Moreover, the expanded number ofconclusion, practical implications of the SGHRM system
relationships needed in both the internal and externalfor assignments in global organisations, as well as
global network settings further increases thevarious approaches and challenges to the empirical
complexity of establishing an appropriate global humanresearch of SGHRM systems, are discussed.
resource system (Zucker 1987).