Human Resources as the Global Business Environment

Human Resources

As the global business environment continues to grow and flourish, the field of international human resources management is emerging as a vitally important area of study and competency. Managing the resources -- and hiring the best people -- that are available has become pivotal to success in the highly competitive world. Understanding the critical role that international human resource management (IHRM) dynamics can bring to an organization is the first step, and implementing that knowledge base is the second step. This paper reviews and critiques the literature on IHRM and presents the needs for changes in the field of IHRM.

IHRM -- Challenging Organizations to Grow in Global Sophistication

What is the key to understanding the challenges that IHRM presents to organizations when they prepare to go international? In approaching this question, some of the terms and jargon need flushing out. "Expatriate" is a person that is working in a foreign country for a firm that has expanded its operations to that foreign country, according to Chapter 1 in the text The Multinational Context. An "inpatriot" is actually a foreigner that has been brought into the U.S. To work in that U.S.-based international organization.

The issues that face HR managers when the time comes for that organization to become international are several, and dealing with them is key to the successful change. One, there are important travel, work permit and taxation issues (relocation and orientation); and two, providing ethically valid administrative services in the foreign country is hugely important and necessary. There are more critical matters as well, including the issue of whether or not to hire married employees for overseas assignments; while HR doesn't want to be discriminatory, there are rules in foreign countries regarding marital status, and the HR department may have to provide "suitable housing and schooling" for a married employee's children -- as well as help the children of employees that prefer to stay behind in the U.S. while the parent is relocated to the international assignment (p. 9). There are other matters to take into consideration, for example a host government "can… dictate hiring procedures" and the HR manager must be fully updated on cultural and economic issues in the host country. "Cultural awareness" cannot be casually approach by the HR department because one major slip-up resulting from "ignorance or misguided beliefs" regarding the local culture and its customs and values can cause "international business failure" for the company (p. 14).

Alert readers paying close attention to all the components that go into taking a firm into the global playing field can see there are a myriad of important matters to deal with. One aspect that stands out in the materials presented above is the value of having a thorough understanding of the culture in the new country, and accepting the way of life in that country without making value judgments or clumsy moves that can be more than embarrassing for you and the company you work for.

Meanwhile, an organization that is learning -- and willing to change and "transform itself," as Ajay Agarwal puts it in his article -- is also a company that is on the move. And the human relations professionals and other key managers that can "awaken workers" to the power of learning and change, are the leaders that can help an organization: a) "disperse power" (not just "empower" employees but share the power); b) achieve "systemic understanding" (having a good grasp of the system one is working within); c) "conversation" ("more important than computers"); and d) create a "voluntary follower ship" (which is more about cooperative integration of employee efforts rather than an obsession with achieving power within the organization) (Agarwal, 1993).

Agarwal offers page after page of helpful ideas and resources for organizations that are willing to grow and learn, and woven into his narrative are the overriding concepts that people are the power in organizations, that meaningful conversation among all employees is vital to fostering change, that diversity (in ethnicity, sexual orientation, education, and gender) is highly important, and that learning helps a company ramp up towards a successful and profitable future. The author lists some reasons for building a learning organization that seem obvious on the surface, but at second glance make good pragmatic sense. The skills needed by individual employees before transitioning into a learning environment for an organization include: being able to leave "old myths" behind and move forward; being understanding of the organization's culture; finding a way to multitask effectively, to change speeds when necessary and to find human and relax when needed (Agarwal).

Most people like to believe that have the skill sets necessary to be effective, but by Agarwal's assessment, there are challenges for even the most efficient, alert employee. Can you insulate your "hot buttons and fears" and remain smoothly, unemotionally connected to your tasks? Can you put yourself in the shoes of an anthropologist and carefully examine the dynamics of leadership, what they are thinking, what they measure ad how they evaluate? If not, perhaps you're not ready, if Agarwal's narrative is to be respected and believed.

Robert J. Lavigna's article is focused on the enormous challenges that governments are facing in the new global environment. "Seldom, if ever, have the world's governments confronted a more daunting set of challenges that affect every nation" no matter what political system or social structure is at play in that nation (Lavigna, 2004). Hence, selecting the right people for public jobs and positions is paramount in order to meet the challenges -- like terrorism, technological changes, a "rapidly-changing labor market" and the economic competition all across the international marketplace (Lavigna, p. 1). This article was written seven years ago, but its applications -- especially related to the developed world -- are very appropriate in 2011. In the first place Lavigna points out correctly that "…trust and faith in government is at or near an all-time low," and so it's harder than ever to recruit good quality people that are civic-minded and not just out for a profitable career (p. 2).

Given the fact mentioned in the last sentence, what are the best steps for the HR manager to take in terms of getting the best talent on board? "Reversing the Erosion of the Public Service Ethic" is probably number one, Lavigna explains. That entails creating a positive public image for the government, no easy task. But every change has an important beginning, and for government organizations, it begins with good civic education in public schools (every new generation of students need to be shown the "critical role that public workers play" in the life of the community (Lavigna, p. 3).