GLOBALIZATION AND INTERNATIONAL HUMAN RESOURCE MANAGEMENT PRACTICES

 

Globalization is a concept that people use when referring to many different phenomena. Of particular relevance to our discussion are expansion of world trade, intensified competition among firms, the potential to reach many more customers around the world, and the array of individuals worldwide who now comprise a global labor market (Schuler, et al., 2011).

International HRM examines the way in which international organisations manage their human resources across these different national contexts. The international context adds extra complexity to the management of people beyond that found in a purely national setting. The organisation that manages people in different institutional, legal, and cultural circumstances has to be aware not only of what is allowed and not allowed in the different nations and regions of the world, but also of what makes for cost-effective management practices. To take one often-quoted example, a performance appraisal system which depends upon US-style openness between manager and subordinate, each explaining plainly how they feel the other has done well or badly in their job, may work in some European countries. However, it is unlikely to fit with the greater hierarchical assumptions and 'loss-of-face' fears of some of the Pacific countries. It may even be unlawful in some states. The literature is replete with examples of such home-country practices that may be allowed in other countries but which depress rather than improve productivity and effectiveness (Harris, et al., 2003).

Significant Procedures in IHRM

Recruitment and selection	Select candidates through headhunting. Cross-cultural advertising for expacts. E-recruitment (Employee Automation).
Training and Development	International graduation programs External Experts for Coaching Events. Close monitoring on training programs. Facilitate management development.
Compensation and Benefits	Competitive salary schemes. Tax equalization policies for expat employees. Benefits according to location and culture. (Retirement plans, Insurances, Travel allowances)
Performance Management	Establish goals and objectives that will align with global strategies. Implement performance metrics compared to global as well as local employee capacities. Arrange an appraisal system that will suit cross-culture and diversity among organizations.
Expatriate Management	Facilitate international transfers as well as commute job assignments. Providing resources to expats to adjust to the new environment.
Compliance with International Laws	Be cautious about taxation, data privacy, and labor laws in organization compliances.

People are employed by organizations under certain institutional structures, laws, and cultural norms. This implies that while deciding on their HR policies and procedures, organizations must continue to be mindful of these variations. Furthermore, it indicates that different countries have different ideas on what constitutes acceptable HRM practices.

Common Issues that arise on IHRM 

The organization that manages people in different institutional, legal, and cultural circumstances must be aware not only of what is allowed and not allowed in the different nations and regions of the world, but also of what makes for cost-effective management practices. To take one often-quoted example: a performance appraisal system which depends upon US-style openness between manager and subordinate, each explaining plainly how they feel the other has done well or badly in their job, may work in some European countries. However, it is unlikely to do it with the greater hierarchical assumptions and ‘loss-of-face’ fears of some of the Pacific countries. It may even be unlawful in some states. The literature is replete with examples of such home-country practices that may be allowed in other countries, but which depress rather than improve productivity and effectiveness (Brewster, et al., 2016).

Success Story of DAMRO

DAMRO is one of the world’s largest Sri Lankan furniture manufacturers offering a diverse range of contemporary and traditional furniture. Damro has experienced rapid success since its founding in 1986, and has expanded to more than 235 showrooms worldwide, including now 167 showrooms island wide Damro's success has been enhanced by its ability to produce superior furniture at value strong outstanding customer service.

The employees of Damro are diversified and spread throughout Southeast Asia. It highlights its global talent management capabilities. The HRM professionals in Damro have consolidated all logistics operations and improved cooperation and communication between international teams. By adding individuals with experience in fundraising and consulting to its boards, the corporation has shown that it is committed to making wise decisions to grow its operations internationally. Its variety of infrastructure demonstrates its capacity to adapt and change while retaining its competitiveness in global markets. 

 

Conclusion

The concept of international human resource management is more supported in the present day due to globalization. IHRM plays a huge role in meeting organizational goals and objectives among multinational companies. 

References

Brewster, C., Sparrow, P., Vernon, G. & Houldsworth, E., 2016. International Human Resource. s.l.:CIPD.

Harris, H., Brewster, C. & Sparrow, P., 2003. International Human Resource Management. s.l.:s.n.

Schuler, R. S., Jackson, S. E. & Tarique, I, 2011. Global talent management and global talent challenges: Strategic opportunities for IHRM. Journal of World Business.