Challenges for human resource management and global business

Challenges for human resource management and global business strategy In Chapter 12, we have examined four key strategies in international business operations: localization strategy international strategy, global standardization strategy, and transnational strategy. In Chapter 17, we will see that success also requires human resource management policies to be congruent with the firm\'s strategy and organizational culture. In this final discussion assignment we look at the secrets of work cultures and their success and fallibility in global business. While transnational strategy imposes different requirements for staffing. management development, and compensation practices than a localization strategy, cohesive teamwork and collaboration is one ingredient that imbues organizational success. Firms pursuing a transnational strategy need to build a strong corporate culture and an informal management network for transmitting information and knowledge within the organization. A global mindset characterized by cognitive complexity and a cosmopolitan outlook, is the fundamental attribute of a global workforce to deal with high levels of complexity and ambiguity in the global environment. Now, more than ever, world companies need trusted, fair, and accurate works culture that challenges easy assumptions, clarify ambiguities, imbue accountability, and empower workers. DISCUSSION QUESTIONS Sweeping demographic changes place greater pressure on global businesses to come up with creative solutions to educate, integrate, and retain a rapidly changing and diverse workforce. Discuss these changes/challenges before global companies and how their human resource management (HRM) address them. SOURCE: What\'s Next: Future Global HR Trends e Evolution of Work and the Worker SHROM Foundation Chapter 17: Global Human Resource Management Global Business Today, 9th Edition

Solution

Most of the companies these days are eyeing to become multi national companies owing to the benefits from operating in third world countries due to labour intensive market. The advantages of having a reduced operational expenses have a direct impact on the firm\'s revenue with less expenses and more revenue. Though the company churns in more revenue it also comes with a lot of challenges accompanied by changes in company policies and strategy.

Since the third world countries are labour intensive the parent companies tend to make the labours work for extended hours with less pay which is against the labour standards. The parent organization will have to abide by the local laws and employment policies thereby ensuring that they retain the talented work force.

One of the most important challenge for the Human Resource department is the work and social culture of he host countries. Language is another big barrier when it comes to global companies. Most of the third world countries are still developing with less exposure to English and the International standards of employment.

Training is one of the most important aspects when it comes to global organizations. The policies are reframed to meet the host country work standards and the employees are trained on the same. Both the parent country employees and the host country employees come together as a result of diversified work force and they are both trained in each other\'s culture.

One simple example is that in western culture an individual greets another individual by a firm handshake or a hug whilst in third world countries, hugging an unknown person is not appreciated. So in this instance the parent country employees will be trained not to greet any one by hugging.

The human resource departments hence identify the challenges in the Global business scenario and tend to overcome it by framing policies and implementing them after proper training orientation.