Globalization effects on international hrm

Diversity Recruitment With the rise of globalization, companies of all sizes are now interacting with customers and stakeholders from diverse cultures, languages and social backgrounds. Hiring employees at branch locations in different locations might change the requirements on minimum wage, tax allowances or working hours.

Additionally, human resource management should make certain that they are not taking advantage of labor laws that may be more lax in other countries than those in their native country.

Effects of Globalization on Human Resources Management

Management of Laws Across Jurisdictions A final effect of globalization on human resources management is the need for businesses to understand and apply the laws of many different jurisdictions to the particular business.

Human resources management for a multi-national corporation with subsidiaries that operate in multiple countries presents many cultural and socio-economic challenges.

Labor Force Implications Globalization has a significant effect on the labor force of a company. Human resource managers must adapt to the different customs and cultures when hiring employees in different countries.

In response, many human resources managers seek to hire employees from equally diverse backgrounds. For example, child labor is illegal in the United States, but in different countries, this is not the case. Meaning, the negative events in major industrial nations such as the United States has a significant impact on the economies in other countries.

The employees feel as though the organization is concerned with providing a range of skills and competencies for their employees. Push for Professional Development A further effect of globalization on HR management is a push for professional development. Human resources should have proactive procedures in place that address such morale issues.

Effects of Globalization on Human Resource Management

It allows for more diversity within the corporation as well as economic growth for the countries in which the company is hiring. However, unless the corporation is creating new jobs in different countries and not simply moving existing jobs from one country to another, job growth for one country equals job losses for another.

Understanding the effects of globalization on human resources can help managers to better equip their organizations for the increasingly global business environment. Training, however, tends to be focused on the needs and professional competencies of groups of employees within the organization.

Selling products in Europe, for example, might mean that a company has to impose a Value-Added Tax on its goods.

Human resources manager should be aware of the negative effect downsizing can have on employee morale because decreased morale often leads to decreased production.

If the company does not address such barriers, it can make the recruitment process increasingly time-consuming and difficult. The federal government sets out a number of tax and labor laws that businesses operating in the United States must comply with, but there may also be local and regional laws that apply to companies that operate in different states or different countries.Global HRM refers to Human Resource Management practices that deal with managing a diversity of workforce from all around the world.

The following challenges are being faced by HR managers in terms of globalization: Managing diversity of workforce.5/5(8). International Human Resource Management MGMT Assoc. Prof. Dr. Cem Tanova Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

If you continue browsing the. Impact of Globalization on HRM(Determine the challenges that organizations face when trying to globalize their HR function and practices.) Determine what organizations are doing to institute a consistent corporate culture across all locations/offices. Because of its emphasis on diversity, globalization also has a deep impact on the way companies manage their employees.

Understanding the effects of globalization on human resources can help managers to better equip their organizations for the increasingly global business environment.

Q1) Answer- International HRM (IHRM) is the process of procuring, allocating, and effectively utilizing human resources in a multinational corporation, while balancing the integration and differentiation of HR activities in foreign locations (Briscoe et al, ).

Effects of Globalization on Human Resource Management by Sue-Lynn Carty - Updated September 26, The human resources management of any company is an integral party of its success.

Globalization effects on international hrm
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