Human resource management can supply information regarding the organization’s internal strengths and weaknesses.
The strengths and weaknesses of an organization’s human resources can have a determining effect on the viability of its strategic options.
Concomitant with these developments has been increasing awareness that the management of a global workforce is a critical dimension of international business.
A major aspect of multinational corporations’ (MNCs) management relates to the area of strategic international human resource management.
This later area is more widely recognized as international HRM, involving same elements as HRM within a single country, yet added complexity due to diversity of national contexts and inclusion of different national categories of workers.
A major aspect of international HRM research has developed understanding of micro-level variables related to the cross-national transfer of employees and management practices.As explained by Greer (2000), there is greater recognition of the fact that a competitive advantage and distinguished competency can be achieved through developing employee skills, developing unique organizational culture and developing effective management systems.This paper targets some key multinational enterprises to get clarity over the alignment of corporate and business strategy with the human resource of the firm.Here it become important to discuss the changes brought due to globalization and key challenges that a multinational organization needs to face while considering the concept of strategic human resource management.Globalization has brought remarkable developments in the diversity and complexity of international business and multinational enterprises (MNEs).This research paper is about the effectively linking corporate and business strategy with the human resource strategy in order to achieve competitive advantage.In this chapter, a background to the research is presented along with the objective and need of this research.In addition, there has been intensification in the level of competition at domestic as well as international levels resulting in an increased emphasis on developing strategies that can ensure maximization of return on investments made on the human resources of a firm.Much research has been conducted and published on the importance of linking business strategy with the HR strategy of a firm (Bose, 2002).It has frequently been argued that leveraging the human resources of a firm can result in generating capabilities through which a firm can easily achieve success even in the toughest market conditions.However, all of us have seen that in the recent economic crisis many organizations selected the route of downsizing and other cost-cutting measures that negatively affected the employee value proposition.