Global Human Resource Management

If an organization wants to build a sustained competitive advantage in this new world, it would have to have world-class human capital. People and their acquired skills were the foundation of competitive advantage. Organizations that rely on technological or manufacturing innovations alone cannot be expected to dominate their markets indefinitely. The quality and strategic deployment of human capital is what separates winner from also-rans.

To execute strategy, organization needs to create global product divisions. And to yield that new strategy, Human Resource Management must be aligned with that.  Organization should have global approach to managing and deploying its human capital.

Global human resource management is the process of employing, developing and rewarding people in international or global organizations. It involves the world-wide management of people. Global HRM mostly emphasis on functions and activities such as relocation, orientation, and translation services to help employees adapt to new and different environments outside their own countries and to help local employees adapt and integrate into the foreign companies in which they were hired.  Many larger corporations and even smaller ones doing business in key international markets have full time HR managers, devoted solely to assisting with the globalization process. Many organizations have a team of HR directors who travel around the world to help country managers stay updated on international concerns, policies and programs.

The HRM function, through its staffing, training, compensation, and performance appraisal activities, has a critical impact on the people, culture, incentive, and control system elements of the firm’s organizational architecture

HRM professionals have a critically important strategic role. It is incumbent on them to shape these elements of a firm’s organizational architecture in a manner that is consistent with the strategy of the enterprise, so that firm can effectively implement its strategy. Human resource management can be a sustained source of high productivity and competitive advantage in the global economy.

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