The video talks about an understanding of Human Resource Management (HRM) shifting to the global level and expounds on the characteristics of global HRM. Transformation of managers of human resources through the globalization of HRM.
1) From Domestic to Global: The HR activities in Drive Global were only driven by the local environment. Nevertheless, when the firm set up its first overseas subsidiary, it became a multinational company, and this required changes in HRM to cater for overseas operations.
2) Impact of Globalization: Process like globalization has seen firms such as Drive Global venture into foreign nations. Reduced trade barriers, improved transport costs and cheaper communication costs have made it easier for organizations to integrate markets and technologies.
3) Increased Complexity: HR activities in Drive Global have also become more challenging because organizational operations have become global, and the company has a culturally diverse human resource.
Key Features of Global HRM
1) Cultural Diversity: Global HRM has to work with employees originating from diverse cultures. HR must always consider cultural differences because people will have little variance in their needs concerning values in the workplace, appreciation, and remuneration.
2) Global Talent Management: The HR team is involved in a global talent management process, which entails identifying the right talented workers within specific countries and occasionally having expatriates relocate to different nations. This includes choosing, developing, and defending expatriates and their dependants while undergoing their transfers.
3) Knowledge Management: Knowledge becomes central, and people are inherently handling knowledge and need to be managed through a Global Knowledge Management System. The human resource department must ensure that the intellectual capital is made available to the employees irrespective of the geographical location.
4) Compliance with Local Regulations: Global HRM must pay attention to the political and economic environment and the social, technological, legal, and ecological issues that differ from country to country. Operation in many countries exposes HR to various labour laws, taxation and many other regulations.
5) Increased Complexity and Diversity: Due to these challenges, HR professionals such as Lisa are expected to perform typical operations of human resource management together with handling of challenges that arise when managing a global workforce and fulfilling the needs of diverse employees.
In conclusion, the globalisation of HRM stresses flexibility, cultural sensitivity and international management of human capital and organizational learning.