THE GLOBAL CONTEXT FOR HRM


THE GLOBAL CONTEXT FOR HRM



INTRODUCTION

Strong competition leads most organization towards globalization to achieve competitive advantage. However internationalization has a set of challenges of its own such as legal knowledge, labour market knowledge, political and economic challenges. Organization requires to perform certain changes in how they do business to meet the local countries' requirements, including (but not limited to) the management of human resource in a geographically dispersed workforce.



DEFINITION OF HRM


“According to Byars & Rue (2006 )Human resource Management is defined as a system of activities and strategies that focus on successfully managing employees at all levels of an organization to achieve organizational goals. It is the philosophy, policies, procedures, and practices related to the management of people within the organization.


                                                  https://www.youtube.com/watch?v=kqr8r8r95x0
What is International HRM? It is "the process of employing, developing and rewarding people in international or global organizations. It involves the world-wide management of people, not just the management of expatriates." (Armstrong, 2006).



"the culture of observed countries is one of the most important factors that must be taken into account in the case of entering at the international business scene. Consequently, the national too. The fact culture becomes a very important factor when it comes to designing the content of international human resource management (IHRM)" (Dordevic, 2016)



All multinational company needs to find the right balance between international consistency and local autonomy. The balance of 'converge' - be the same at different international locations and 'diverge' - differentiate to meet local requirements.



Cross-cultural management is understanding of deep-based values and beliefs of employee to determine their thinking and behaviour is crucial for the success in internationalised businesses.



Hofstede (1980) cite in Armstrong (2006) produces the cultural dimensions to consider in International HRM:

  • Equality Vs inequality
  • Certainty Vs uncertainty
  • Individualism Vs Collectivism
  • Materialistic Vs Personalisation
                                              
https://www.youtube.com/watch?v=GiTseeMVkRE



ISSUES OF HRM IN GLOBAL CONTEXT



1.Political issues – Investment in overseas by any form will be identified as a foreign company by the local people and the host country’s government because of that its human resource policies will carefully and strictly monitored when compared to the local firms. Anything related to livelihood of people will be a political sensitive issue. This is the reason human resource policies critically examined in the foreign context.

2. Employee – Employer issues – Industrial relations plays important and effective role for maintaining beneficial industrial relations as forming labor unions, structure of industrial relations varies from country to country.

3. Work culture – intercultural adaptations are essential as the culture differences. Matching of work culture between the local people or workers with firm’s working style.

 CONCLUSION

It is natural to expect different thinking and behavior by employees hired locally in the oversea based offices as the culture background is different to that of the head office country.  Therefore it is important in HRM and with line managers, to while meeting the values and standard of behavior of the headquarter, to also consider the values and behavior the locals are accustomed to; this will ensure higher organizational commitment and increase in performance.



References

Armstrong M. (2006) ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE. 10th Edition. [Online] London: Kogan Page

https://www.academia.edu/25474379/Byars_Rue_Human_Resource_Management_Seventh_Edition_Front_Matter_Preface

Byar,Rue,Human Resource Management.7th Edition,Front matter reference

Limited. Available from http://www.academia.edu/9026115/Michael_Armstrong_th_edition_10_HUMAN_RESOURCE_MANAGEMENT_PRACT_ICE [Accessed 22 December 2017]

Dordevic B. (2016) Impact of National Culture on

International Human Resource Management, Economic Themes 54(2)281-300 [online]. Available from https://www.degruyter.com/downloadpdf/j/ethemes.2016.54.issue-2/ethemes-2016-0014/ethemes-2016-0014.xml [Accessed 22 December 2017]

Comments

  1. Rajan PradaphJune 22, 2020 at 6:12 PM

    Good job manjula, He had given a clear idea on HRM ,And further he had discussed the pros& cons on the global context which makes it interesting. HRM develops a productive and a motivated organizational culture . And will use the existing resources effectively well.Also will improve the work life on employees.

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