This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
The objective of this paper is to unfold the current business environment in relation to the international view of human resources management. The major trends of the current business environment has to do with uniting the world business in the name of globalization, globalization is explain as a process that integrate people from all nations of the world together into a single global village that is linked by the vast network of communication technologies. As globalization continues, effective international HRM becomes increasingly important as stated by Ulrich's(1997) that stated how HRM model presents a framework that explains the globalization effect on each human resource role. Globalization trigger managers to grapple with complex issues as they seek competitive advantage sustenance.
THE NEW BUSINESS ENVIRONMENT
More so, globalization of business has increased the international competition rapidly,
as a result of the globalization trends, the human resources managers need to be proactive with such trends as to ensure a readily workforce to meet up with the global standard in order for their firms to meet up with the vogue challenges and activities going on in the global market. Luthans, Marsnik and Luthans, (1997) "stated that the complexities of operating in different countries and of employing people of different nationalities and culture are the main issues that differentiate domestic and international HR management".
Currently, globalization has drastically facilitates the rise in the requirement of skill among managers and employees at large to the extent that people does not only concentrate on the locally made products or search for jobs in their hometown but spread their tentacles globally in the aspect of selling and consumption of services which has had a great influence in the HRM in the business world of today. Schramm (2006), contribute to state that HR managers reported that the company wiliness to expand globally, increased cross cultural awareness and economic growth in Asia were possible to have a major influence on the workplace. (Schramm and Burke 2004) further states how the HR managers identified the increase in international trends that later led to globalization: the rises exporting of United States white-collar jobs and manufacturing, rises in cultural differences awareness , and the introduced employment policy for the European Commission.
The increase in the globalization had really led to a massive competition in world employment that HRM considers looking outward to search for the best candidate which will ended up in competitive advantage. To achieve the best outcome in line to competitive advantage, HRM and organizations as a whole needs to adapt to inevitable Employ Response Rights, changes in the competitive landscape, government regulations and global economy. Changes they say is unavoidable in the global world, for this reason HRM must establish an intensive practices that will assist managers in monitoring and react to changes in their business environment. HRM also need to provide assistance to managers in the development and disseminate a legible visions of the future, develop a positive amendment that will motivate and reward employees towards goal achievement, and overcome change resistance by employees. As a result of this, Human Resources Management are taking proactive measures that enhances searching what skills and qualification is expected from every prospective employee. At the same time, the fact that what is acceptable and appropriate in a country may be considered unusual or even offensive in another other countries
In the new business world, culture plays a very important role that influences the HRM decision because history had shown that cultures are slow to change. Globalization has resulted in attracting different people from different background in the same company, this development has really made the current business environment a complex one and influenced a rapid change and affect the role of HRM coupled with how the twenty-first business world is managed. Hofstede's (2001) explore the influence of cultural differences and show how other cultures operate to conclude that employee and staff can be more effective when interacting with people from other countries of the world. It further divides the cultural dimension into five which involve individualism, masculinity, power distance index (PDI), uncertainty avoidance index and long term orientation. (Zhang 2003; Ferner 1997) also added that differences in culture often influence how HR roles are executed across borders. The five cross-cultural dimensions are uncertainty avoidance, masculinity-femininity, individualism-collectivism, power distance, and short-long term orientation Therefore, since HRM practices is not worthy for general cultures, cultural diversification has to be given consideration by the HRM.
In the current context of globalization, organizations often seek flexibility in staffing levels via alternatives compare to the conventional employment relationship:
flexible work schedules - including shortened work weeks
moving employees to different jobs to meet changes in demand
outsourcing, temporary, and contract workers
allowing employees to adjust work hours to meet personal and family needs
As a result of these flexibilities in staffing condition , international HRM is a best option in order to make a fair justice to such challenges.
Workforce Diversity is another factor that influences international HRM in the world global village. Workforce happens to be the building block of every company but globalization had led to workforce diversity most especially in the twenty first century which is due to their place of origin, world branches spread out employees that can be subdivided into:
a. Parent-country national - permanent resident of the country where the company is headquartered.
b.Â Host-country national-permanentÂ resident of the country where the operations of the company are located.
c. Third-country national - permanent resident of a country other than the parent country and the host country.
Further, workforce diversity can be seen in the context of employee mobility from a country to another for performing tasks. As a result of this, an employee can be categorize in one of the following:
Expatriate -aÂ parent country national sent on a long-term assignment to
the host-country operations.
Inpatriate -aÂ host-country national or third-country national assigned to
the home country of the company where it is headquartered.
Repatriate -anÂ expatriate coming back to the home country at the end
of a foreign assignment.
Workforce diversity require the needs to integrate categories of employees not
only bring their-skills and expertise but also their attitudes from different part of the world and such objective can be attain through international HRM.
Furthermore, Language Diversity is another reason for the needs to establish international HRM in the current business world, since employees are often attracted from different countries with different languages. The current business environment would not have influenced the international IRPM if the whole world speaks a common language, but there is no common language that adequately covers the entire world, not even English and French. As a result of this international HRM surfaced to eliminate such challenges and proffer an alternative of getting multilingual employee for effective dissemination of information. So, with the introduction and influence of international HRM the employees can interact and disseminate information to any customer of the world and ensure adequate coverage.
Economic Diversity also induce the establishment of international HRM into what I will express as in term of per capita income and the type of host government. This can be linked with compensation management like salaries and wages and other causing a locational shift in business activities, resulting in new trends in the global supply chain management. India is reported to be emerging as a global R&D hub. India and several other developing countries are large sources of IT personnel. In short, the labour changing labour market characteristics have been causing global, restructuring of business processes and industries. And this causes a great challenge for strategic HRM accumulated financial compensation received in different countries. The influence of International HRM aid the possibility of equity payment to the employees which is one of the fundamental principle when paying employees, this responsibility is really difficult for global company to practise because of its spread operations. International IRPM came to rescue such problem through an established parity that is based on the cost of living of each and every country. In addition to this, government economic policies and business practices do vary substantially from one country to the other, with the influence of International HRM can access and understand different government policies to know the perfect training that will be given to such workers and right employee that can suit a particular country policies." Mergers and acquisitions that cross country borders are likely to accelerate the blending of domestic and international HR activities" (Numerot and Abrams, 1998), therefore concrete establishment of International HRM should not be undermine.
Conclusively, with the 1990s enormous changes in the world international trade and business, most organisations aggressively jostling for their share against both domestic and foreign competitors. As a result of this, increasing number of firms, a large proportion of the workforce is located in other countries, so, HR departments have to get familiar with the latest developments and every aspects of operating across countries and cultures. The HR department needs to engage in various activities that are not present in a domestic environment, such as: international relocation and orientation, international taxation, expatriates administrative services and language translation services for them to operate efficiently in an international environment (Scullion and Starkey, 2000). As a matter of time, HR professionals will appreciate the effectiveness of international HR work is required for success in their profession, particularly those that cut across international borders.