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What role do HRM practices play in a business decision to expand internationally?
The existing tendency for the globalization of the world economy offers new challenges to Human Resource Management. Under such conditions, many global corporations have to rethink their strategies for managing people (Harris 1). The problem is emphasized by the difference in the active legislation in different countries. What is normal for one state is inappropriate for another. This problem is particularly acute for companies that carry out their activities in many countries. As Kramar puts it, «understanding HRM in a globalized world requires acknowledging the complexity and the co-existence of institutions with competing approaches” (par.11).
In any organization, the primary purpose of the HRM is to identify whether its human resources are used efficiently. With this purpose, HR professionals perform various planning activities, aiming at the development of a definite organizational strategy. The HRM practices undertaken by organizations may vary depending on many macro-level factors, such as cultural differences, local requirements, environmental changes, and social dimensions (Krishnan and Singh 25). For international organizations, HR practices should correspond to both the legislation of the native country and the needs of the host country.
What are some of the key environmental variables that you see changes in the business world today? What impact will those changes have on the HR function in the organization?
Each company depends upon the environment. Contractors, customers, and governments influence not only a companys external activity but even its internal structure. In the era of globalization, the rapid development of technologies takes place. For human resources management, the appearance of new technologies means new managerial approaches (Moustaghfir 29). For instance, the development of telecommunications and wireless technologies provides remote workplaces, which in turn means less direct contacts between the staff of the company and less supervision. At the same time, technologies provide additional opportunities for staff training.
Now it is possible to observe the shift from the industrial age to the information society. “This servitization of physical products” (Griffin 24) creates the urgent demand for highly developed professionals, especially in the sphere of digital technologies. Nevertheless, there is the prevailing opinion that “over the next decade, companies will find the right balance of technology and people” (“The Future of the HR Profession” 11).
Works Cited
Griffin, Ricky. Management fundamentals, Mason: South-Western Cengage Learning, 2012. Print.
Harris, Hilary. n.d. The Role of International Human Resource Management. Web.
Kramar, Robin. n.d. The Challenges and Opportunities for Human Resource Management in a Globalized World. Web.
Krishnan, Sandeep and Manjari Singh. n.d. Strategic Human Resource Management: Three-Stage Process and Influencing Organizational Factors. Web.
Moustaghfir, Karim. Strategic Human Resource Management: An HR Planning Toolkit. Ed. Dermol, Valerij, and Anna Rakowska. Bangkok: To Know Press, 2014. Print.
The Future of the HR Profession 2002. Web.
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