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Opportunity –Establishing Joint Ventures

Basically, management issues in international organizations are particularly complex, and take in an ability by managers to form a cooperative relationship between the joint venture partners while multiple national cultures, corporate cultures, and partner strategies are combined. More particularly in the realm of HRM, Cascio and Serapio (1991) found trust building, job design that develops learning, well-defined recruitment and staffing policies, as well as training programs and fair compensation policies to be significant issues in joint ventures.

Although lots of these issues are also pertinent in wholly-owned companies, involvedness is added to how HRM operates while multiple parent firms are implicated. For this reason, early planning in joint ventures is particularly important consecutively that differences in cultural and management styles between the parents and the venture are considered (Datta and Rasheed, 1989).

Further, in globally focused companies, there exist special requirements for learning, innovation, and transformation. As Parkhe (1991) describes, in strategic alliances a capability to learn is vital to the attainment of organizational successes. HRM systems can either support or limit an environment for learning (Pucik, 1988).

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