The Global Context for HRM

Today, human resource management is considered to be change rapidly due to globalization and with the technology advancements in the modern business world. Globalization has increased the workforce diversity and cultural sensitivities have emerged like never before. International dimensions of business and the globalization of business have a significant impact on human resource management. Thereby, the organisations create and adopt for the new human resource concepts to match the global requirements. In the global context, human resource management, could create a pathway to reach the top levels of the global market with the effective utilization of the human resources (Armstrong, 2009).


Similarly, Global HRM is the process of recruiting, distributing and efficiently utilising human resources in transnational corporations across national borders. Companies operating in international markets face different conditions and competencies. Multinational corporations are characterized by the interdependence of resources and responsibilities in all business units, regardless of national boundaries (Armstrong, 2009). These companies have to deal with large flows of components, products, resources, people and information among their subsidiaries, and this requires a complex Notes coordination and collaboration process, which includes integration devices between strong units, a strong corporate identity and a world well developed throughout the world. Management perspective National cultural characteristics also play an important role in doing business, influencing customer preferences and values, beliefs and employee behaviour (Harvey, Novecevic and Speier, 2000).

Accordingly, Armstrong (2009) stated that in global human resource management, there are several concepts that are used in order to identify and thereby get use of the human resources. Moreover, as indicated by the HR Gurus’, the types of employees are recognised as home country national, host country nationals and third country nationals. In recruiting, there are several approaches that would be used by the organisations namely, ethnocentric approach, polycentric approach and geocentric approach.

However, when considering human resource management in global context, the organisations should adhere to different jurisdictions. The organisation requires to be familiar with Visa processes, calculate of tax rates, documents required by the immigration department of that particular country. Accordingly, the organisation should have a sound knowledge on these Laws and Regulations of the other country whom the organisation going to deal with. Many organisations failed in global human resource management due to lesser understanding of the laws and regulations pertaining to employments (Harvey, Novecevic and Speier, 2000).


Conclusion

As mentioned above it is crucial to develop strategies to look into human resource management in global context. Accordingly, there are many benefits which may support the organisation in getting the host country nationals, third country nationals or the expatriates as those employees may have a better exposure in getting the things right.

Videos:
Importance of global HRM



Links:
Impact of Globalization on Human Resource Management
http://www.jimsjournal.org/6%20Bhushan%20Kapoor.pdf


Reference
Armstrong M (2009), ‘Armstrong’s Handbook of Human Resource Practice’ 11th edn., India

 Harvey, M G, Novecevic, M M and Speier, C (2000), Strategic Global Human Resource Management: The Role of Inpatriate Managers, Vol. 10,No. 02, pp. 153 -175

Comments

  1. Namila4 October 2019 at 20:20

    Nice article..Thanks for sharing.

    ReplyDelete
  2. Jinendran5 October 2019 at 04:40

    Due to globalization the multinational companies are expanded their operations beyond boarders and the major barriers they are facing while operating in other countries is culture and legal requirements, so to overcome this the International HRM is essential. Thanks for sharing.

    ReplyDelete
  3. Malintha Gannile6 October 2019 at 08:20

    As you stated International dimensions of business and the globalization of business have a significant impact on human resource management.Nice article.Thanks for sharing.

    ReplyDelete
  4. Anupama Kankanamge7 October 2019 at 00:17

    Agree that in the global context organization can create path ways to top level in the global market utilization of the human resources. Good one.

    ReplyDelete
  5. Anupama Kankanamge7 October 2019 at 00:34

    This comment has been removed by the author.

    ReplyDelete

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