Global Context for HRM


1.     Globalization

Globalization is the process in which people, ideas and goods spread throughout the world, spurring more interaction and integration between the world's cultures, governments and economies.
The term is most frequently used in reference to create an integrated global economy marked by free trade, the free flow of capital and corporate use of foreign labor markets to maximize returns. However, some use the term globalization more broadly, applying it to the movement of people, knowledge and technology across international borders; some also apply it to the free flow of cultural, environmental and political discourse.

2.     Global context for HRM



With the impact of the globalization, all big or small organizations have ceased to be local, they have become global. This caused to increase the workforce diversity and cultural sensitivities and these reasons led to the development of Global Human Resource Management.

2.1 Objectives of global HRM

below are few additional objectives that should apply for global HRM
·         Create a local appeal without compromising upon the global identity.
·         Generating awareness of cross cultural sensitivities among managers globally and hiring of staff across geographic boundaries.
·         Training upon cultures and sensitivities of the host country.
·         Meeting the International Legal Compliance
·         Manage international diversity
·         Decision Making: There is a certain degree of centralization of operating decision making. Compare this to the International strategy, the core competencies are centralized and the rest are decentralized.
·         Co-ordination: A high degree of coordination is required in wake of the cross cultural sensitivities. There is in addition also a high need for cultural control.
·         Integrating Mechanisms: Many integrating mechanisms operate simultaneously.

2.2 Challenges in Global HR

·         There are challenges specifically affect the practice of international as distinct from domestic HRM.
·         The impact of globalization
·         Influence of environmental differences
·         cultural differences
·         Extent to which HRM policy and practice should vary in different countries (convergence or divergence)
·         The approaches used to employ and manage expatriates.
·         Managing challenges of global efficiency and multinational flexibility
·         Diversity and volatility of the global environment
·         Managing through technology throughout the different countries

Global HRM is a very challenging front in HRM. If one is able to strike the right chord in designing structures and controls, the job is half done. Subsidiaries are held together by global HRM, different subsidiaries can function operate coherently only when it is enabled by efficient structures and controls.

·         Expatriates are people working overseas on long-or short-term contracts who can be nationals of the parent company or ‘third country nationals’ (TCNs) –nationals of countries other than the parent company who work abroad in subsidiaries of that company.
·         Expatriates are expensive; they can cost three or four times as much as the employment of the same individual at home.
·         They can be difficult to manage need to adopt right policies



References

Anon., n.d. Management study giude. [Online]
Available at: https://www.managementstudyguide.com/global-hrm.htm
[Accessed 06 01 2019].


Comments

  1. IshanJanuary 6, 2019 at 2:00 AM

    Good share with globalisation effects on HRM & challenges in a summarised way

    ReplyDelete
  2. UnknownJanuary 6, 2019 at 6:03 AM

    Very good.You have talk about challenges in a very practical way

    ReplyDelete
  3. Sampath W D NJanuary 6, 2019 at 6:56 AM

    This is a very informative & useful post. 👍

    ReplyDelete

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