Human resource management challenges in Netflix's international expansion

HRM Issues in Global Business Expansion

Introduction to Human Resource Management

In the last several decades, human resource management (HRM) has evolved into a major component of modern business organizations (George & Jones, 2008). In principle, HRM functions have always been part of professional business management; however, it became a distinct professional field with dedicated specialists only since the latter part of the 20th century. Generally, HRM consists of all of the processes and functions that relate to personnel management, from the entire cycle in between recruitment and retirement or alternative ends of careers such as voluntary departure and involuntary termination. More specifically, HRM departments typically handle the hiring process, new-employee orientation and training, the resolution of personnel issues and conflicts, benefits administration, employee performance review, and post-employment debriefing processes (George & Jones, 2008).

Contemporary Human Resource Management in the Age of Globalization

In the age of globalization, HRM departments must address myriad potential issues that ordinarily do not arise within strictly domestic business operations (Robbins & Judge, 2009). For example, business organizations intending to expand into other sovereign nations must comply with applicable laws and public policies that may differ substantially from those that apply in the domestic business environment. More generally, social norms, values, expectations, and practices also vary substantially from country to country. That means practices and behaviors considered normal and appropriate domestically could violate social etiquette and informal business protocols in other nations and vice-versa.

Human Resource Management Considerations in International Expansion

Some examples of the tremendous differences in local culture and the way they determine business practices in relation to HRM include concepts of civil liability in connection with fairness in hiring practices, social equality, gender norms, and even dietary rules (Halbert & Ingulli, 2008; Robbins & Judge, 2009). Business organizations accustomed to American law and social policies may have to consider the domestic liability implications of the foreign business environment. For example, female American citizens employees by companies based in the U.S. are entitled to the protection of U.S. employment (and other civil) laws when working abroad. If they encounter certain practices that are considered appropriate in other cultures with respect to gender interrelations in the workplace, those interactions could very well trigger liability on the part of the American-based employer (Halbert & Ingulli, 2008; Robbins & Judge, 2009). Likewise, various forms of social behavior, such as manner of dress, driving privileges, and even expressions of affection between romantic partners in public could result in criminal charges in certain foreign nations (Robbins & Judge, 2009).

Therefore, contemporary HRM departments must maintain comprehensive awareness of a wide variety of issues and factors that could necessitate nation-specific hiring, staffing, and supervisory decisions. They might also have to develop country-specific employee training programs and cultural awareness and sensitivity training programs to ensure the success of their business operations abroad, wholly apart from ordinary business management considerations more generally.