Global HRM

 

What is Global HRM


Global HRM can be defined as set of activities aimed managing organizational Human Resources at International level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level

International HRM is the process of Procuring, allocating, Effectively utilizing human Resources, in a multinational cooperation, while balancing the integration and differentiation of HR activities in foreign locations

What is Globalization

Globalization is a term used to describe how trade and technology have made the world into a more connected and interdependent place. Globalization also captures in its scope the economic and social changes that have come about as a result 

(Nationalgeographic ,https://education.nationalgeographic.org/resource/globalization/)

Globalization Impact in HRM

Globalization and technical improvements in business are seen to be transforming human resource management swiftly. Globalization has increased worker diversity and cultural sensitivity. Globalization and multinational commerce have a huge impact on human resource management. Thus, firms develop and implement innovative human resource strategies to satisfy global needs. 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).

 

Definition

The human resources Management is concerned with the human resource problems of Multi National Firms in foreign subsidiaries with the unfolding of HR Issues that are associated with the various stages of the internationalization process (Boxell,1995)

Objective of IHRM

  • To reduce the risk of International Human Resource
  • To avoid cultural risk
  • To avoid regional disparities
  • To manage diversifies human capital

 

A Model of IHRM

  • Host-Country Nationals (HCNC) -Belongs to the country where the subsidiary is located  
  • Parent -Country Nationals (PCNs)-Belongs to the country where the firm has it headquarters 
  • Third - Country Nationals (TCNs) -Belongs to any other country and is employed by the the firm

Difference between Domestic HRM and IHRM


https://www.theseus.fi/bitstream/handle/10024/349355/Glazyrina_Mariia.pdf

Summary

  • More HR activities
  • The Need for a broader perspective
  • More involvement in employees personal live
  • Changes in emphasis as the workforce mix of expatriates and local varies
  • Risk Exposure
  • Border external influences

 Functions Of  IHRM

  • Human resource Planning
  • Employee Hiring
  • Training and development
  • Compensation
  • Performance Management
  • Industrial Relations
  • More HR activities

Key Challanges  in IHRM

  • Staff shortages
  • Failed expatriate assignments
  • Localization vs. standardization of HR practices
  • Ethical challenges in multinational corporations
  • The evolution of digital HRM

(Manchester Metropolitian University ,https://globalonline.mmu.ac.uk)

 

Main Approaches to Global staffing in IHRM

  •    Ethnocentric: Highly centralized. HQ controls PCNs dominate
  •   Polycentric: Decentralized. Each subsidiary has some degree of decision-making autonomy. HCNs manage subsidiaries    
  •   Geocentric : Ignores nationality in favour of ability and competence needs in a worldwide integrated business strategy     

Conclusion 

HR managers are concerned about the effects of cultural differences and problems with the workforce in organizations that have gone global. As the world gets smaller, being able to work in a cross-cultural setting becomes a valuable skill for any executive. Understanding, managing, and even taking advantage of cultural differences could mean the difference between success and failure in many business situations.   

Reference 

Cooray.(2021), The Global Context for HRM, linkedin article, [Online] Available athttps://www.linkedin.com/pulse/global-context-hrm-jennifer-sulakshi-cooray?trk=public_profile_article_view (Accessed on 18th April 2023)

Manchester Metropolitan University ,What are the major challenges of International HRM in 2022?[Online] Available at https://globalonline.mmu.ac.uk/news-and-events/what-are-the-major-challenges-of-international-hrm-in-2022/#:~:text=As%20common%20reasons%20for%20failure,strategy%20that%20mitigates%20these%20problems. (Accessed on 18th April 2023)


Nationalgeographic(No date),Globalization, Resource article,[Online] Available at https://education.nationalgeographic.org/resource/globalization/(Accessed on 18th April 2023)


[Online]Available at https://www.slideshare.net/anamikapandey32/introduction-to-global-hrm(Accessed on 18th April 2023)

[Online] Available at https://slideplayer.com/slide/9819952//(Accessed on 18th April 2023)


PDF Education(2021),Concept of International Human Resource Management (IHRM),
[Online] Available at https://pdfeducation.com/concept-of-international-human-resource-management-ihrm/(Accessed on 18th April 2023)

Theintactone(no date),Global Staffing Practises,[Online]Available at https://theintactone.com/2020/01/17/global-staffing-practices/(Accessed on 18th April 2023)

 

 


 

 

 

 

 

 

 

Comments

  1. The Human Resource Insider20 April 2023 at 10:56

    Good effort, Amila. However, this article could be improved and expanded further, by adding more substance to the items you have listed down. Some real world examples would also help to add a lot of clarity to this write-up.

    ReplyDelete
    Replies
    1. K.P.AMILA SUDARSHANA PERERA21 April 2023 at 04:20

      Thank you very much for your comments, and I agree with your thoughts. As I have explained through this article about the global HRM definition, theories, models, functions, and challenges, I should have included some practical examples under HRM models as most of the employees are not from their home country. (Global Human Resource Management: Work and Challenges,https://study.com/). Further, it is great if you can share some real-world examples.

      Delete
  2. Udesh Guruge20 April 2023 at 21:02

    I completely agree with this article. HR managers and executives must have a thorough understanding of cross-cultural management and communication in today's international corporate environment. Cultural variations can affect worker dynamics, decision-making processes, and communication, and they may lead to miscommunications or confrontations. Organisations can gain a competitive edge and boost performance, nevertheless, by embracing and managing these variances. HR managers can be crucial in promoting intercultural awareness and assisting staff in acquiring the skills needed to function well in a varied workplace. The capacity to function in a cross-cultural environment is turning into a crucial skill for all executives and workers as the world grows more interconnected.

    ReplyDelete
    Replies
    1. K.P.AMILA SUDARSHANA PERERA21 April 2023 at 04:55

      Thank you very much for your valuable comment . Further In an international business context, what is common and accepted for a professional from one country could be very different for a colleague from overseas. You need to recognize and understand how culture affects international business, and there are three core areas: communication, etiquette, and organizational hierarchy, which will help you avoid misunderstandings with colleagues and clients from abroad and excel in a globalized business environment.(Reynolds,(no date), https://www.hult.edu/blog/cultural-differences-impact-international-business)

      Delete
  3. Chaminda Dias21 April 2023 at 00:33

    Your summary provides a clear and concise overview of global HRM and its relationship to globalization, as well as the objectives, functions, and challenges of international HRM. The inclusion of a model and approaches to global staffing in IHRM provides additional context for readers to better understand the practical applications of these concepts. Overall, your use of references and sources to support your statements is commendable

    ReplyDelete
    Replies
    1. K.P.AMILA SUDARSHANA PERERA21 April 2023 at 05:20

      Thank you very much for your valuable comment, and as you explained, all global HRM-related things have been discussed in this article, which will help with staffing as you explained as staffing is one of the biggest issues facing companies moving into the global market today. Best practices and leading approaches, drawing on research from a range of disciplines including international strategy, management, HRM, and organizational theory. (Collings,2006)

      Delete
  4. Jothi 22 April 2023 at 06:29

    Globalization has brought about economic growth, job creation, increased access to goods and services, and cultural exchange. However, it has also presented challenges such as cultural differences, labor standards, environmental concerns, economic inequality, and political instability. HRM professionals must have a deep understanding of cultural differences, be adaptable, and have the ability to navigate complex legal and regulatory environments to address these challenges.

    ReplyDelete
  5. Thusantha Bandara22 April 2023 at 08:44

    Global HRM plays a critical role in managing human resources at the international level to achieve organizational goals and gain a competitive advantage over competitors. The impact of globalization on HRM is significant, leading to increased employee diversity and cultural sensitivity. The functions and key challenges of IHRM are also discussed along with key approaches to global staffing. As the world becomes more connected and interdependent, cross-cultural skills are becoming increasingly important for executives in the global business environment.

    ReplyDelete

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