Understanding the Functions of Global Human Resource Management
Organizations today are faced with the dilemma of how to manage their employees from a global perspective. International trade is at an all new level, resulting in a highly globalized business milieu. Hence, constant changes in how organizations employ and manage human talent requires practices and systems that are well conceived and effectively implemented to ensure high performance and continuous success. The need to develop a global perspective on human resource management (HRM) has been part of the managerial landscape for a while now.
The functions of global human resource management are classified under five main categories:
- Staffing and Recruitment
Finding, retaining and developing a superior workforce is one of the biggest challenges in a global organization. Understanding cultural differences in the recruitment process, in the selection of candidates and in what motivates employees is crucial in the staffing and recruitment processes for any international operations and ultimately to the success of global organizations. The skills required to operate these businesses need to be matched with the available local talent.
- Salaries and Other Rewards
While fixing salaries and compensation packages, it is imperative that adequate care is taken to see that local standards are met. Overall organizational requirements should be met concurrently as well. Insurance, pension and other benefits need to be considered in conjunction with the present policies of the company. Local laws regarding minimum wages, bonuses, tax compliance services and other employee benefit services also have to be structured into the packages.
- Training and Development
To reduce costs, the possibility of developing in-house training should be considered. If local facilities for training and development of staff are not adequate, sending staff to other countries may need to be considered. This also helps employees recognize that they work in a multi-cultural environment. The additional costs and benefits of such training should also be carefully studied.
- Administration of Personnel
The administration of HR and related matters need to take into consideration the varying working conditions of each area of international operations. A company’s strategy will impact its employees, and it is necessary to have HR support staff that not only understand the global landscape but also have a thorough knowledge of global business and what it takes to establish companies in new geographies.
- Human Relations
When contemplating global human resource management, every sphere of international operations needs to follow specified religious and national festivals that may require certain actions to be taken by the HR department. Functions of global human resource management take on these additional aspects when a company is globalized.
When developing global HRM strategies, HR teams need to closely ascertain the business strategies the company intends to adopt in the domestic market as well as the global market. Many multinational companies are making significant endeavors to harness the value of diversity to give them a truly global culture.
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