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International and Comparative HRM - Essay Example

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Impacts of Globalisation on National Human Resource System Introduction Globalization is the growth of a business entity into the international market in both its operations, economy of scales and the market share it controls. The extension of the markets for a local business into a foreign environment and the establishment of new units of operation make up the concept of globalisation (Ashton, 2006)…
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International and Comparative HRM
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"International and Comparative HRM"

Download file to see previous pages HRM is a discipline that deals with the recruitment, management, training and promotion functions of people in an organisation. The expansion of operations for a business into the global sphere presents a number of issues that have to be adequately addressed by a business for it to succeed. Multinational organizations continue to handle challenging situations on their human resource management approaches as it varies significantly from the domestic market (Friedman, 2007). Globalisation and Human Resource Management Today, most organizations that are operating in the international and global markets have more employees on their foreign subsidiaries than at home (Poor, 2004). This calls for a change in approach used in the management of the people for the organization to grow and develop its people. This paper gives a detailed analysis of the implications that globalization and the advancement in the international has had on human resource management. The new trends and emerging management practices that have been adopted because of globalisations will also be critically analysed and their potency evaluated. A number of factors have been attributed to the growing globalisation and the need for a larger scale of operation. With raging unemployment and financial crisis, the developed world has been faced with an acute shortage of qualified personnel. This has been attributed to the large number of retirees with fewer graduates into the job market. The emerging economies also provide a better source of low cost labour. This makes it cheaper for international organisations to recruit employees from developing economies (Ibrahim, 2004). The international market is currently characterised by an expanding pool of talented individuals who are more mobile and willing to take up jobs in various parts of the globe. The diverse trainings and educational curriculums of the diverse countries make the nature of training and exposure diverse. As a result, management graduates from the United States and those from the United Kingdom may have different approaches to the same management problem. Such scenarios present a number of challenges to international human resource managers who operate in different parts of the globe (Poor, 2004). Organisations, which decide to adopt polycentric approach in international human resource management practise, also have a number of changes that they must make to their policies. Polycentric approach involves the use of the locals from where the subsidiary is located in the management and operation of the unit as highlighted in the works of Howard Perrlmutter, a scholar in internationalization of multinationals corporations (Schuler et al, 2002). Such individuals are thus well trained and made to understand and integrate the organisational culture of the business into their business practises. Polycentric approach in international human resource management has been applauded as the best practise as it is far much cheaper to maintain and operate as compared to the use of expatriates (Kayode, 2012). However, polycentric approach also significantly affects the practises of the human resource managers. This is because the organisation has to come up with terms of engagement and remuneration according to an organisation’ ...Download file to see next pagesRead More
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