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International Human resource management - Essay Example

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Internalization and globalization has opened up geographical boundaries for businesses that were initially operating in the local markets to expand and exploit the new global markets. It has however come with various human resource management challenges. Human resource…
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International Human resource management
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The enterprises that are able to effectively manage the human resources are the ones that are capable of competing well in the dynamic global market. Scholz & Zentes (2009) points out that even with the increased awareness on the global trends, multinationals are still having a lot of problems in expatriation and repatriation processes. This is basically as a result of the fact that the different countries in which such organizations are operating has diverse factors and concerns that determine how effective and profitable a business will be.

The factors may be economical, political, social, legal, technological and social. One of the main areas of concern is on the pay and conditions of the employment (Ferner & Quintanilla, 2001). Multinationals rely on two management approaches in the global arena to manage employees. They are the standardization and the adaptation approaches. The multinationals which use the standardized model of operations employ similar strictures for the employee remuneration and conditions of employment in all their areas of operations.

The standardized structure is aimed at streamlining all the operations of the business in the various markets and regions where it is operating in. Hilton Hotel is one of the corporations which uses this approach in all its branches worldwide. Ferner & Almond (2004) notes that adaptation, on the other hand, entails restructuring the human resources operations and approaches so that they conform to the prevailing conditions in the market or country where an enterprise is operating in. Such businesses, therefore, consider the various social, political, economic and cultural factors that may affect their human resource operations and integrate them in their operations.

Aguilera (2004) adds each of these approaches has its own pros and cons. Despite this being the case, multinationals

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