Globally line managers are strategic partners with HR executives and actively take part in high level business decisions that bring human resource prospective to the global management of a business organization.
Basically the function of global human resource executive is concentrated on being decision maker and strategic business partner. Simply as the global business enterprises developed similarly human resources that support them evolved.
The Stages of International Involvement
There are five stages through which business organizations progress while internationalize their operations.
See Also: Traits of Leadership
More HR practices required to be adapted to diverse cultural, political, economic and legal environments as the stage is higher. Following are the evolution of global business stages.
- Exporting: Selling abroad either indirectly or directly by keeping distributors & foreign agents.
- Licensing: A foreign business organization is granted by business organization the right to employ intellectual properties such as copy rights, patents, trade names and manufacturing processes for a specific time period.
- Franchising: A business organization is granted by parent company the right to do business in a prescribed manner. Stricter operational guidelines must be followed by franchisees than do licensees. Franchising is usually popular with service business organization like hotels & restaurants whereas licensing is generally limited to manufacturers.
- Multinational Corporation (MNC): A business organization that is located in one country and provides services or produces goods in one or more foreign countries.
- Global Corporation: There are corporate units attached with the global corporation that are integrated to function as one organization worldwide in many countries.
Global Human Resource Management
The use of global human resources to accomplish organizational goals without regard to geographic boundaries is known as international human resource management.
An integrated human resource management system similar to that experience domestically is develop and work through by those engaged in management of global human resources.
Global Staffing
In order to achieve the goals of a global organization, it must have qualified individuals at specific places in specific jobs and times. Through human resource planning, recruitment and selection, this process involves obtaining such people globally.
Human Resource Development
- Expatriate Development: The development process should begin as quick the work force is chosen, and if possible before starting of the global operations.
- Repatriation Orientation & Training: Prior to repatriation orientation & training is essential, which is the process of taking back expatriate home.
Global Compensation and Benefits
Because of high wage pressure that threaten their ability to compete on a global basis which is the main reason that organizations relocate to other areas of the world.
See Also: Role of HR Department in Employee Separation
Fundamentally, the compensation levels are generally much reduced on global basis. When establishing global compensation packages living costs, variations in laws, tax policies and other factors all must be considered.
Global Safety & Health
Because workers who work in a safe environment and enjoy good health are more likely to yield long term benefits & be productive to the organization as clear that safety & health aspects of job are important. Adequate safety & health programs are advocated & implemented by progressive global managers.
