Global human resources management strategies and practices

Global Human Resources Management

The objective of this work is to describe International Human Resources Management and concerns about effective human resources management in the global environment. The factors that most strongly influence HRM in international markets will be discussed as well as will differences among countries that affect HR planning at organizations with international operations. As well, this work will describe how differences among countries affect HR planning at organizations with international operations. This work will further describe how companies select and train human resources in a global labor market. Discuss challenges related to compensating employees from other countries. Explain how employers prepare managers for international assignments and for their return home.

Effective HR Management in the Global Environment

Development of the global workforce is critically important and it is necessary to acknowledge that these employees work in an environment that is multi-cultural or global and general awareness programs are reported to be assistive in helping employees with culture-specific needs. Because job titles and job responsibilities experience variation across cultures, it is necessary that the organization localize these and make them geographically appropriate. (ITAP International, nd, p.1)

II. Factors that Most Strongly Influence HRM in International Markets

The work of Palthe (2008) entitled "Managing Human Rights and Human Resources, The Dual Responsibility of Global Corporations" states that humans along with their "needs, development and aspirations" are "at the nexus of global expansion and trade liberalization." (p.1) There has been a lack in implementation of the model that has been developed for human rights and it is noted by Professor John Ruggie, Special Representative of the United Nations Secretary General for Business and Human Rights as follows: "The international community is still in the early stages of adapting the international human rights regime to the challenges posed by globalization." (Palthe, 2008, p.1) Reported is that the field of global human resource (HR) management is such that is gaining in "prominence as a major strategic tool to strengthen the competitive position of global corporations (Ulrich 1997). There is however, a growing global consensus that in addition to effective management of people within a firm, fundamental standards of corporate social behavior are vital to sustaining a business's competitive success as well. The notion of corporate social responsibility (CSR) has been having a major impact on corporate missions, marketing, and management in the U.S., U.K., and Europe." (Palthe, 2008, p.2)

CSR is defined by the World Business Council for Sustainable Development, a Geneva-based global association of companies, as "contributing to sustainable development by working to improve quality of life with employees, their families, the local community and stakeholders up and down the supply chain." (Palthe, 2008, p.2) The dual responsibility of organizations in regards to human resources and human rights is set out in the following table labeled Figure 1 in this study.

Figure 1

The Dual Responsibility of Organizations: Human Resources and Human Rights

Source: Palthe (2008)

It is reported in the work of Palthe (2008) that HR could well play "a leading role in helping to define the values and associated norms organizations should foster in order to generate a corporate culture that fundamentally respects, promotes, and protects the human rights of all its stakeholders. For example, HR departments could proactively build performance management systems that incorporate human rights values and principles in their behavioral expectations. HR can also develop CSR Management Systems that improve working conditions for employees and workforce health. Additionally, HR could integrate CSR with their efforts to eliminate forced labor and workplace discrimination, and reduce excessive overtime requirements." (Palthe, 2008, p.3)

III. Differences Among Countries that Affect HR Planning at Organizational with International Operations & Selection and Training in the Global Market

Recruitment and selection in the global organization presents a great challenge and it is necessary that job descriptions are well written and that competency models that "clearly delineate success behaviors" are in place. It is also necessary to understand cultural differences in the recruitment process as well as understanding what motivates employees in various cultures if the organization is to be successful. In the global competitive environment, the organization should pay attention to the candidate's perception of the organization. This requires an "extensive assimilation process" that is well planned in order to make the employee feel welcome into the organization. Assimilation plans should be designed for a period of six months to give the new employees time and structure needed for establishment of relationships that will be important to the employee and that will serve to anchor the loyalty of the employees to the organization. (ITAP International, nd, p.1) Palthe (2008) reports "HR could also play a leading role in helping to define the values and associated norms organizations should foster in order to generate a corporate culture that fundamentally respects, promotes, and protects the human rights of all its stakeholders. For example, HR departments could proactively build performance management systems that incorporate human rights values and principles in their behavioral expectations." (p.6) Haile (2002) writes that due to the growth of international business operations that there will be a requirement of "… effective international human resource management (IHRM)." (p.2) International HRM is stated to involve "moving people around the world." (Haile, 2002, p.2) Therefore, the job of the HR manager is "to formulate and implement policies and activities in the home-office headquarters." (Haile, 2002, p.3) Staffing international operations presents managers with a "confusing array of choices in recruiting and selecting from one of three types of employees of an international firm." (Haile, 2002, p.3) The three types are stated to include:: (1) the host-country where the subsidiary may be located, (2) the home country where the firm is headquartered, and (3) "other" countries that may be the source of labor or finance. (Haile, 2002, p.4) It is reported that there are differences in the cultural backgrounds of these types of employees and that this makes a requirement that managers "coordinate policies and procedures to manage from the firm's home country as well as in subsidiaries around the world in shaping international compensation and reward systems." (Haile, 2002, p.5) According to Haile (2002) "Failure to recognize differences in managing human resources in international environment frequently results in major difficulties in international operations." (p.6)

V. Challenges in Compensating Employees from Other Countries

The work of Haile (2002) entitled "Challenges in International Benefits and Compensation Systems of Multinational Corporation" reports The impact of the growth of international economy has become a major force in business in general and in human resource management in particular. These practices are important realities faced by MNCs doing business overseas. MNCs must coordinate policies and procedures that effectively balance the needs and desires of host country nationals (HCNs), parent country nationals (PCNs) and third country nationals (TCNs). Compensation is one of the most complex areas of international human resource management." (p.6) Pay systems are required to "conform of local laws and customs for employee compensation while also fitting into global MNC policies. It is also important for MNCs to consider carefully the motivational use of incentives and rewards among the employees drawn from three national or country categories." (Haile, 2002, p. 6)