01. The Global Context for HRM
Definition to Global HRM
International employers use global HR to manage the linguistic, cultural, and geographic differences in their workforce in order to maximize engagement and productivity. Its principal duties consist of:
- Recruiting suitably skilled employees
- Supporting regulatory compliance
- Standardizing processes and systems
- Analyzing metrics between markets
Organizations, large and small, have become global in nature as a result of globalization. Due to this, there is now more diversity in the workforce and a greater awareness of cultural sensitivity than ever before. Global Human Resource Management came about as a result of all of this.
According to Amit Kumar Sharma (nd, P3), enumerate the objectives of global HRM as follows:
- 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.
The Impact of Technology on Global HRM
Technical evolution is intimately
connected with the development of service center models. Consequently, more and
more service center activities can now be put online in order to develop the
ethos of employee self-service or self-reliance. Operations behind the scenes
to handle this service may be managed in-house or may be outsourced to firms
that have the technological expertise to offer such services at low cost, but
the ability to answer employee questions on behalf of the employing organisation
(Ulrich, 2000).
(Figure 1: Impact of Information
Technology on HRM)
Ghoshal and Gratton (2002) express four
important integration activities that the corporate HR center can make a unique
contribution as noted below,
- Operational integration through standardized technology. - e-enablement of HR on a global scale. Portals can provide a common front to employees and help integrate the HR function around common processes. This is a form of information-based integration within the HR function.
- Intellectual integration through the creation of a shared knowledge base. - By focusing on creating, sharing and exchanging knowledge both within and beyond the HR community, corporate HR functions can ensure that the intellectual capital of the function is rapidly codified and shared across constituent HR functions.
- Social integration through the creation of collective bonds of performance. This is where the function develops a clear sense of what it wants to achieve and how it wants to achieve this goal. The shift within global HR towards working through global networks is an example of new patterns of social integration.
- Emotional integration through a sense of shared identity and meaning. This concerns the mobilization of hearts and minds behind change processes. Examine the need for international HR professionals to act as guardians of national culture as they negotiate a new balance between the application of global rule-sets to HR processes and the need for local responsiveness to cultural imperatives.
(Video
1:Introduction to Global HRM)
References
- www.adp.com(2020) what is globle HRM [Online] available at https://www.adp.com/resources/articles-and-insights/articles/w/what-is-global-hr.aspx [Accessed on 09 November 2023]
- Global HRM (nd), [Online] Available at : https:/https://ebooks.lpude.in/management/mba/term_4/DMGT548_GLOBAL_HRM.pdf [Accessed on 09 November 2023].
- Sparrow, P. R. and Hiltrop, J. M. (1997) ‘Redefining the field of European human resource management: A battle between national mindsets and forces of business transition’, Human Resource Management, Vol. 36 (2), pp. 1-19.
- Ulrich, D. (2000) ‘From eBusiness to her’, Human Resource Planning, Vol. 20(3), pp. 12–21.
- Figure 1: Nelson, (2005) Impact of Information Technology on HRM, Thomson Canada Limited, [Online] Available at : http://hesed.info/blog/hrm-technologies.abp [Accessed on 09/11/2023].
- Video 1: Introduction to Global HRM, [Online] Available at : https://www.youtube.com/watch?v=eeH4YyzkJ1U [Accessed on 09 November 2023].
Dear Sanath,
ReplyDeleteGlobal HRM plays a critical role in managing diverse workforces across borders, striving for local appeal while maintaining a global identity, and embracing technological advancements to enhance operational, intellectual, social, and emotional integration. It's essential to balance global standardization with local cultural sensitivity.
How can organizations effectively balance the need for global standardization and local cultural sensitivity in the context of Global HRM to optimize workforce productivity and engagement?
Thanks Sudhesh for your valuable comment. Actually, Human resource management (HRM) is a crucial function for any organization, but especially for multinational corporations (MNCs) that operate across different countries and cultures. MNCs face the challenge of balancing standardization and localization of HRM, which means finding the optimal degree of consistency and adaptation of their policies and practices to the global and local contexts.Here are some tips and examples to help you.
Delete01. The first step is to understand the drivers of standardization and localization of HRM in MNCs.
02. The second step is to assess the dimensions of standardization and localization of HRM in MNCs.
03. The third step in HRM standardization and localization for MNCs is to choose the appropriate approach.
04. The fourth step is to evaluate the outcomes of standardization and localization of HRM in MNCs.
05. The fifth step is to adapt to the changes in standardization and localization of HRM in MNCs.
Balancing standardization and localization of HRM in MNCs is not an easy task, but a vital one for the success and sustainability of the MNC and its subsidiaries. By following these steps, you can find the optimal balance that suits your MNC's industry, strategy, structure, culture, and environment, and that maximizes your MNC's efficiency, effectiveness, equity, and engagement.
Dear Kumara,
ReplyDeleteA very interesting topic. I would like to know that an organization may face various problems while moving to global HRM. What steps can be taken to overcome such as an organization?
Thank you very much Mithini for your feedback. Here are steps an organization can take to overcome challenges during the move to global HRM.
Delete* Evaluate the organization's current HR capabilities and identify gaps in global readiness.
* Assess the cultural, legal, and regulatory differences in the countries where the organization operates or plans to expand.
* Create a comprehensive global HR strategy that aligns with the overall business strategy.
* Consider how global HR practices can support organizational goals and address challenges specific to international operations.
* Provide training to HR staff and employees on cultural differences and sensitivities.
* Promote cross-cultural communication and understanding to foster a global mindset.
* Standardize core HR policies and procedures globally to maintain consistency.
* Localize certain policies to comply with specific legal and cultural requirements in different regions.
* Implement global talent management strategies to attract, develop, and retain a diverse workforce.
* Identify and nurture high-potential employees on a global scale.
* Implement global HR information systems (HRIS) to streamline HR processes and ensure data consistency.
* Use technology for global communication, training, and performance management.
* Establish a standardized performance management system that aligns with the organization's goals.
* Implement regular performance reviews and feedback processes globally.
* Define key performance indicators (KPIs) for global HR functions.
* Monitor and analyze metrics to identify trends and areas for improvement.
The primary responsibilities of Global HR revolve around addressing these unique challenges to achieve maximum productivity, engagement, and organizational success. What are the current difficulties we are facing in Global HRM.
ReplyDeleteThank Dinesh for your valuable comment. As per my knowledge, Global Human Resource Management (HRM) was facing several challenges & here are some of the difficulties faced in Global HRM.
Delete* Managing a diverse workforce with employees from different cultural backgrounds can be challenging. Understanding and respecting cultural differences while fostering a cohesive organizational culture is crucial.
* Many industries are facing a shortage of skilled talent globally. Recruiting and retaining qualified employees, especially for specialized roles, can be a significant challenge for HR professionals.
* Implementing and integrating HR technology across various locations can be challenging. This includes global HR information systems, talent management platforms, and other tools to streamline HR processes.
* Economic instability and uncertainty in different regions can impact HR planning, budgeting, and workforce management. HR professionals need to be adaptable to changes in economic conditions.
Dear kumara interesting to talk about global HRM aspects and would like to add importance of changing HR department accordance with the global aspects ijoness.com article said that HR departments are changing as a result of the many complicated difficulties and opportunities that modern businesses must take advantage of. The modern HR revolution is a direct response to the swift changes that are occurring within businesses as a result of factors like workforce diversity, technological advancements, globalization, intense market competition, shrinking margins, shifting customer demands, and changes in the political and legal landscape. The duties and responsibilities of HR professionals have undergone a paradigm shift as a result. Organizational decision-making has grown more complex and nuanced in the current global commercial environment
ReplyDeleteijoness.com. (n.d.).
reference
ijoness.com. (n.d.). Publishers Panel. [online] Available at: https://ijoness.com/resources/html/article/details?id=190614&language=en accessed 2023.11.12
Hi Roshan, Thanks for sharing very valuable information.
DeleteThis comprehensive article on Global HRM is truly enlightening. It provides a clear understanding of the challenges and responsibilities faced by international employers in managing a diverse workforce. The discussion on the objectives of global HRM, cultural sensitivity, and the impact of technology is particularly insightful. The integration activities highlighted by Ghoshal and Gratton add depth, emphasizing the importance of technology, knowledge sharing, and emotional bonds in achieving global HR success. A well-rounded exploration of the subject.
ReplyDeleteThank you very much for sharing your ideas dear.
DeleteDear Kumara,
ReplyDeleteIt is timely topic, we should be aware of and how we can overcome the challenges faced through impacts of Technology on Global HRM ?
Exactly Amodinee. It is timely topic. Actually, The impacts of technology on Global Human Resource Management (HRM) come with both opportunities and challenges. Overcoming these challenges requires strategic planning, adaptation, and a proactive approach.
DeleteHi Friend.
ReplyDeleteGlobal HRM efficiently manages linguistic, cultural, and geographic workforce differences for optimal engagement. Focused on recruitment, compliance, process standardization, and cross-cultural training, it adapts to globalization challenges, emphasizing a shared global identity. Technological advancements enhance self-service capabilities, fostering operational, intellectual, social, and emotional integration for organizational success.
Thanks Sudarsha for adding your point of views for this article.
DeleteDear Sanath,
ReplyDeleteThis topic is quite relevant and timely, especially considering the ongoing globalization that's transforming how businesses operate across borders. Understanding how Global Human Resource Management navigates cultural diversity and geographical differences is crucial in today's interconnected and diverse work environments.
Thanks Sumedha for your valuable ideas.
Delete