What is Global HRM..?
The preliminary function of global Human Resource
Management is that the organisation carries a local appeal in the host country
despite maintaining an international feel. Globalisation of itself
brings the HR function closer to the strategic core of the business and also
leads to considerable changes in the content of HRM (Pucik, 1992). As explained
by Ulrich (1998), Globalisation requires organisations to move people, ideas,
products and information around the world to meet local needs.
Sparrow et al. (2005) identified three
processes that constitute global HRM:
- Talent management/employee branding
- International assignments management
- Managing an international workforce.
(Video
1 : International HRM)
Three
reasons are forwarded for its inclusion under consideration of global HRM (Sparrow
et al., 2004),
- The corporate HR function is best placed to understand the new risks associated with employment-related behavior of contractors or firms that form part of the supply chain.
- HR has a historical strength in understanding the complexities of labor law. PR specialists often have a lack of understanding about labor laws where they relate to undesirable practices and the distinctly local and cultural context of people management. In making reputational promises that might not be capable of delivery as easily as assumed, they may make the firm a bigger target than before.
- Activity closer to the heartland of a global HR function, such as the attraction of global talent, is increasingly dependent on reputation management.
Perspectives on globalisation in HRM
International HR professionals need to
adopt a broad view of globalisation. Their organisations experience a wide
range of factors associated with it that are of an economic, political,
cultural, regulations and Technical.
(Figure 1 : Factors affecting Global
Human Resource)
A true understanding of global
operation must also incorporate learning from international family business
units, overseas networks of entrepreneurs and even illegal gangs, all of which
have found ways of operating more globally (Parker, 1998). Internationalization
connotes an expansion of interfaces between nations, the flow of business,
goods or capital from one country to another, that is, an action in which
nationality is still strong in the consciousness.
A global enterprise, by contrast
(Parker, 1998):
- draws resources from the world
- views the entire world as its home
- establishes a worldwide presence
- adopts a global business strategy
- transcends internal boundaries (of people, process and structure) and external boundaries (of nation, time and space).
The growth of global enterprises leads to increased permeability in the traditional business boundaries, which in turn leads to high rates of economic change, a growing number and diversity of participants, rising complexity and uncertainty.
References
- Parker, B. (1998) ‘Globalization and Business Practice: Managing Across Boundaries’, London: Sage.
- Pucik, V. (1992) ‘Globalizing Management’, London: John Wiley.
- Sparrow, P., Brewster, C. and Harris, H. (2004) ‘Globalizing Human Resource Management’, 1st edn., Taylor & Francis Group, London, p. 28.
- Sparrow, P., Brewster, C. and Harris, H. (2005) ‘Towards a new model of globalizing HRM’, The International Journal of Human Resource Management, 16(6), pp. 949-970
- Ulrich, D. (1998) ‘A new mandate for human resources’, Harvard Business Review, January-February, pp. 124-134.
- Figure 1: Southwestern College Publishing (2002) Factors affecting Global HRM, [Online] Available at : https://www.slideshare.net/Nenemane/managing-global-human-resource-management [Accessed on: 30 Sept 2018].
- Video 1 : International HRM (2018). [Online] Available at : https://www.youtube.com/watch?v=IdgNbPluyr4 [Accessed on: 30 Sept 2018].