Let's discuss Global HRM

HRM in Global Context

HRM in Global Context

by FOO CHEN LING . -
Number of replies: 0

(1) How did HR evolved into a global context?

The question should be when did globalization begin and made an impact on HR decisions? 

Many scholars believe that globalisation started with Columbus's voyage to the New World in 1492. It was during that era that developed countries would "employ"; or more less colonised villages from less developed nations to provide raw materials such as rubber, wheat and tea to their home countries for capitalisation. 

However, as globalisation continue to evolve and as a the modern companies extends its base to a foreign shore, the real impact of that globalization on HR procedures extends to current workers and also to new employees that work both locally and internationally. For example, with the adoption of the Internet, companies can employ their workers from overseas, and after the Covid Pandemic, companies can employ "work from home" employees that continue working from overseas. 

Companies need to consider a diverse range of practical adjustments to be able to hire, train, retain and support a workforce that's often spread throughout several countries, which often have varying cultural identities. Human Resources departments must adapt their thinking and practices to include cultural differences, foreign regulations and technological developments.

(2) What are the key features described about global HRM?

The information gathered regarding the adoptation of human resource management globally is broad. However, it is easily summarised by the word 'perception' and 'adaptation'. Companies that wishes to expand themselves offshore have to change their perception from a local point of view to an international one in regards to their management systems. Before, they were concerned with local issues, but HR must now consider the effects of workforce diversity, legal restrictions and the interdependence between training and professional development on the organization. Some of these issues for example are work culture. In Japan, although now heavily scrutinized by many, employees used to be overworked and underpaid. When and if a Japanese Traditional company were to expand overseas and recruit employees internationally, they may face prejudice from the potential recruit if they did not adopt a different mindset when treating their offshore workers. 

Which brings to light on the term adaptation. 

While the management of benefits and compensation is a given for human resources, the globalization of companies in the twenty-first century meant that HR must now adapt to new ways of providing benefits to an organization's employees. Ensuring legal compliance with labor and tax law is a vital part of ensuring the organization's continued existence. The federal government as well as the state and local government where the business operates impose mandates on companies regarding the working hours of employees, tax allowances, required break times and working hours, minimum wage amounts and policies on discrimination.