Global human resources management the planning selection, training, employment, and evaluation of employees for global operations. GHR managers serve in an advisory or support role to line managers by providing guidelines, searching, training and evaluating employees. How a firm recruits, trains, and places skilled personnel in its worldwide value chains sets it apart from competition. The combined knowledge, skills, and experiences of employees are distinctive and provide myriad advantages to the firm’s operations worldwide.
Definition of Global Human Resources Management
According to P.V. Morgan___ International HRM is the result of interplay among the three dimensions-human resources activities, types of employees and countries of operation. The complexity of operating in various countries and employing different national categories of workers is an important variable that differentiates domestic and international HRM, rather than any major differences between HRM activities performed.
Generally speaking, there are three sources of employees for an international assignment. The organization might choose to hire:
- Host Country Nationals: Also called local nationals, they are the employees of the local population. A worker from Bihar employed by an American firm operating in India would be considered a host country national.
- A parent or Home Country Nationals: Also called expatriates, they are the people sent from the country in which the organization is headquartered. And American manager on assignment in India is an expatriate.
- Third Country Nationals: T firm employs a manager from Great Britain at facilities India, he would be considered a third country national.
Activities of International HRM
Before offering a definition of international HRM, we should first define the general field of HRM. Typically, HRM refers to those activities undertaken by an organization to effectively utilize its human resources. These activities would include at least the following:
- Human resource planning
- Performance management
- Training and development
- Compensation and Benefits
- Labor relations
Global Human Resource Management is a process concerned broadly with recruiting of persons, training them and putting them to the most productive uses. It is also concerned with maintaining of congenial international industrial relations. It is the essential prerequisite for the success of the international firm owning to its complexities.
Functions of Global Human Resources Management
- Recruitment: Attracting, hiring and retaining a skilled workforce is perhaps the most basic of the human resources functions. These are several elements to this task including developing a job description, interviewing candidates, making offers and negotiating salaries and benefits. Companies that recognize the value of their people place a significant amount of stock in the recruitment function of HR. There is a good reason for this-having a solid team of employees can raise the company’s profile, help it to achieve profitability and keep it running effectively and efficiently.
- Training: Even when an organization hires skilled employees, there is normally some level of on-the-job training that the human resources department is responsible for providing. This is because every organization performs tasks in a slightly different way. One company might use computer software differently from another, or it may have a different timekeeping has the main function of providing this training to the staff. The training function is amplified when the organization is running global operations in a number of different locations. Having streamlined processes across those locations makes communication and the sharing of resources a much more manageable task.
- Professional Development: Closely related to training is HR’s function in professional development. But whereas training needs are centered around the organization’s processes and procedures, professional development is about providing employees with opportunities for growth and education on an individual basis. Many human resource departments offer professional development opportunities to their employees by sponsoring them to visit conferences, external skills training days or trade shows. The result is a win-win it helps the employee feel like she is a vital and cared-for part of the team and the organization benefits from the employee’s added skill set and motivation.
- Benefits and Compensations: While the management of benefits and compensations is a given for human resources, the globalization of companies in the twenty-first century has meant that HR must now adapt to new ways of providing benefits to an organizations’ employees. Non-traditional benefits such as flexible working hours, paternity leave, extended vacation time and telecommuting are ways to motivate existing employees and to attract and retain new skilled employees. Balancing compensation and benefits for the organization’s workforce is an important HR function because it requires a sensitivity to the wants and needs of a diverse group of people.
- Ensuring Legal Compliance: The final function of human resource management is perhaps the least glamorous but arguably of utmost importance. Ensuring legal compliance with labor and tax law is a vital part of ensuring the organization’s continued existence. The federal government as well as the state and local government where the business operates impose mandates on companies regarding the working hours of employees, tax allowances, required break time and working hours, minimum wage working to keep the organization completely legal at all times is an essential role of human resources.