Discuss the key features of IHRM in SMEs, showing how each can be attained with the unique resources and processes available to SMEs. For full credit, each of the following key features should be mentioned, as well as at least one example for each, showing its effect on the SME: The owner/founder of the SME matters. A founder that has travelled widely in her student days may have a predisposition for and strong value placed on internationalizing the SME. She may also make more informed decisions because of her experiential market knowledge. Recruitment, selection, and retention. SMEs have less resources than larger MNEs, so they may have more difficulties recruiting. On the other hand, they may be able to advertise better working atmosphere, less anonymity, more opportunities to take charge; e.g., they may be able to better hire managers that are more highly motivated to acquire new knowledge. Because they have less resources in the first place, SMEs may be able to capitalize on other ways to retain employees besides financial compensation. In this way, international SMEs may share some similarities with NGOs. HR development and learning. Learning is especially important for SME cross-border alliances. Because of fewer resources, training and development tend to be rather short-term. However, because of the distinctive cultural features of small organizations, informal learning and tacit knowledge can be attained relatively efficiently. International SME staff may need span boundaries more than MNE expatriates, and this could, in turn, lead to better spread and fertilization of ideas. Limited HR resources, outsourcing and expatriate management. SME expatriate training is mostly language training, and when more cross-cultural training is needed, these employees are sent to external training organizations. SME HR staff is fairly small and limited to mostly administrative tasks. The most important HR decisions are taken by the founder/owner.Show more
