Globalization in human resource management involves applying HR principles on a global scale, integrating HR departments in international companies, accommodating host country culture, and contributing to the well-being of the host community.
The role of globalization in human resource management is how the basic principles of human resource (HR) management as a whole can be applied on a global scale to make the coordination of these practices more effective. That is, issues such as employee selection, training and development, promotion issues, welfare, labor laws and other concerns such as corporate social responsibility are applied on a more global basis. This all applies more to companies that have more of an international presence than a strictly domestic one.
An international company with branches, points of sale and subsidiaries in several countries needs to integrate its main human resources department, which may be located at the company’s headquarters, with other HR departments in its branches. Sometimes the process of coordinating issues requires some tact and diplomacy to match the culture and environment in which the company is operating. Concerns may arise, for example, when weekends and national holidays apply to customs followed by the host country. Depending on the religion or main religion, the weekend starts on Friday in some countries and on Saturday in others. This is a conflict that Human Resources must manage and implement to reflect the various holidays and weekends in its branches and subsidiaries around the world.
Host country culture is also an important consideration for the impact of globalization on human resource management. HR departments should change their policies to accommodate host country culture to avoid any inadvertent acts that could potentially create a conflict. The department must also work with applicable unions and leaders in the country in order to avoid unnecessary conflicts with workers regarding employment practices.
Human resource management also plays a role in corporate responsibility and the host community’s perception of the company. To maintain a good relationship with the host culture, HR must study the environment in order to discover ways in which it can contribute to the well-being and development of people. Not only will this help the business to be viewed positively by the host, but it can also be used as a strategic marketing and promotion platform, which the business can also benefit from.
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