Managing Global Human Resources Essay Research Paper

Managing Global Human Resources Essay, Research Paper

The environment in which business competes

is rapidly becoming globalized. More and more companies are entering international

markets by exporting their products overseas, building plants in other

countries, and entering into alliances with foreign companies. Global competition

is driving changes in organizations throughout the world. Companies are

attempting to gain a competitive advantage, which can be provided by international

expansion. Deciding whether to enter foreign markets and whether to develop

plants or other facilities in other countries is no simple matter and many

human resource issues surface. (Noe, Hollenbeck, Gerhart, and Wright; 534)

Doing business globally requires that adaptations

be made to reflect cultural and other factors that differ from country

to country and from continent to continent. The nature and stability of

political systems vary in character and stability, with contracts suddenly

becoming unenforceable because of internal political factors. Human resource

regulations and laws vary among countries in character and detail. In many

countries in Western Europe, laws on labor unions and employment make it

difficult to reduce the number of workers because required payments to

ex-employees can be very high. Equal employment legislation exists to varying

degrees. In some countries, laws address issues such as employment discrimination

and sexual harassment.

Cultural forces represent another important

concern affecting international human resource management. Culture is composed

of the societal forces affecting the values, beliefs, and actions of a

distinct group of people. (Mathis & Jackson, 171) Cultural differences

certainly exist between nations, but also between countries. Getting individuals

from different ethic or tribal backgrounds to work together may be very

difficult in some parts of the world. Culture is important to human resources

for two reasons. It determines the other factors . political-legal, economic,

and education-human capital factors. Culture affects human capital, because

if education is greatly valued by culture, then members of the community

try to increase their human capital. (Noe, Hollenbeck, Gerhart, and Wright;

537) Economic conditions vary also from country to country. Many lesser-developed

nations are receptive to foreign investment in order to create jobs for

their growing populations. In many developed countries, especially in Europe,

unemployment has grown, but employment restrictions and wage levels remain

high.

The internationalization of U.S. corporations

has grown than the internationalization of human resource management. International

human resource management differs from domestic human resource management

in several ways. In the first place, it places a greater emphasis on functions

and activities such as relocation, orientation, and translation services

to help employees adapt to a new and different environment outside their

own country. Assistance with tax matters, baking, investment management,

home rental while on assignment, and coordination of home visits is also

usually provided by the human resource department. Larger corporations

have a full-time staff of human resource managers devoted to assisting

globalization. For example, McDonald.s has a team of HR directors who travel

around the world to help country managers stay updated on international

concerns, policies, and programs. The human resource department in an overseas

unit must be particularly responsive to the cultural, political, and legal

environments. Companies such as Shell, Xerox, Levi Strauss, Digital, and

Honeywell have made a special effort to create codes of conduct for employees

throughout the world to make certain that standards of ethical and legal

behavior are known and understood. (Sherman, Bohlander, and Snell; 633)

A growing number of organizations that

operate only within one country are recognizing that they must change and

develop a more international perspective. Organizations may pass through

three stages that are import-export (national) companies, multinational

enterprises (MNE), and global organizations. National companies do not

become global companies immediately. Involvement in international HRM depends

greatly on a company’s phase of globalization. Import-export firms. Firms

in the first phase of globalization simply move products across national

boundaries. The firm does not employ people in other countries, except

a few managers responsible for negotiating business agreements. These agreements

usually involve buying or selling complete products or services. Import-export

firms need to understand their trading partners’ cultures and usually must

overcome communication barriers to negotiate agreements. Negotiations are

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