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MANAGING HUMAN RESOURCES IN

GLOBAL BUSINESS
Umesh Adhikari (Leader), Nisha Dhakal, Yashpreet Kaur, Sapana Karki, Susma
Adhikari, Rishu Gautam, Uma Pandey

HROB 5000
Management of Human Resources in Healthcare

Prof. Michelle Martinez

June 04,2024
Managing Human Resources in
Global Business
• Global human resource management involves
overseeing and coordinating HR activities across
multiple countries and cultures.

• It requires a strategic approach to address the


unique challenges and opportunities of a diverse
workforce and ensure compliance with local
regulations.
• IHRM refers to the human resource
management concepts and
techniques employers use to
manage the HR challenges of their
international operations, including
acquiring, training, appraising and
compensating employees, and
attending to their labour relations,
health and safety, and fairness
concerns (Dessler, 2020).
Why is global human resource management important?

• The best business opportunities – be they foreign or domestic –


can fail if HR is not managed well.

• In fact, most companies say that HR-related issues are among the
most challenging barriers to international expansion. 1
• The effective management of HR internationally is
increasingly being recognized as a major determinant of
success or failure in international business (Scullion
1995).
• Research evidence demonstrates that business failures
in the international arena may often be linked to poor
management of HR. (Brewster et al., 2011, p. 14).
Competitive Advantage

a.Talent Acquisition: Attracting and retaining top


talent worldwide enables organizations to harness
diverse skills and perspectives, driving innovation
and competitive edge.

b. Adaptability: A well-managed global HR strategy


helps organizations adapt quickly to changing
market conditions and cultural environments.
Key Functions of Global Human Resource
Management

Strategic Talent Organizational Regulatory


Alignment Management Development Compliance
Ensure HR initiatives are Attract, develop, and Foster a collaborative, Ensure adherence to local
closely aligned with the retain a high-performing, inclusive culture that employment laws and
organization's global diverse global workforce. empowers global teams to global best practices.
business objectives. thrive.
Talent Acquisition and Retention Strategies

Employer Branding Localized Recruitment


Cultivate a strong global employer brand to attract Leverage local networks and resources to identify
top talent worldwide. and hire the best candidates in each region.

Competitive Benefits Career Development


Offer a comprehensive, globally competitive Provide meaningful opportunities for growth and
compensation and benefits package to retain top advancement to keep employees engaged and
performers. motivated.
Training and Development for
Global Teams
Continuous
Virtual Learning
Collaboration
Foster a culture of
Master the tools and
Cross-Cultural technologies to enable
ongoing skill-building
Competence seamless remote
and knowledge

teamwork.
Leadership sharing.
Development
Develop cultural
awareness and Empower global
adaptability to work leaders to inspire and
effectively across guide diverse,
borders. distributed teams.
Performance Management and Development

Goal Setting
Establishing clear, measurable, and achievable goals is essential for
aligning individual and organizational objectives, particularly in a
global context.

Feedback and Coaching


Providing ongoing feedback and coaching is crucial for supporting the
professional growth and development of global employees.

Career Pathing
Offering clear career development opportunities is a powerful way to
retain top talent and build a strong, globally-minded leadership
pipeline.
Compliance and Regulatory
Compliance and Regulatory
Considerations
Considerations
Labor Laws Tax Obligations
Labor Laws Tax Obligations
Ensure adherence to local employment
Properly
Ensure adherence to local employment withhold and remit
regulations, taxeswithhold
Properly for employees
and remit taxes for employees in
regulations, such as minimum wage, overtime, and
intermination
such as minimum wage, overtime, and each country of operation.
each country of operation.
termination policies.
policies.

Data Privacy Ethical Standards


Data Privacy Ethical Standards
Implement robust data protection measures to Uphold a strong code of conduct and ethical
Implement robust data protection measures to comply
comply with global privacy regulations. practices across the organization.
with global privacy regulations.
Challenges
Challenges ofof Managing
Managing aa
Diverse
Diverse Workforce
Workforce
Communication Barriers
Navigating language and cultural differences can make
effective communication a challenge in global teams.
Communication Barriers Navigating language and cultural differences can make
HR policies and practices
effective must beatailored
communication to local
challenge lawsteams.
in global
Adapting Policies and customs in each country of operation.
HR policies and practices must be tailored to local laws
Adapting Policies and customs in each country of operation.
Fostering Inclusion
Fostering Inclusion • Promoting a sense of belonging and equity across a
geographically dispersed workforce requires intentional
efforts.

• Maintaining equity across distributed workforces while


ensuring compensation packages are competitive and
compliant in each market
Strategic HRM when viewed in a global context

• Strategic HRM is a framework through which human resource


strategies are developed and implemented – including the hiring,
management, and development of staff – to support an
organisation long-term goals.

• SHRM is a bridge which connects human resources to the goals


of the company; goals such as entering a new international
market.
Though there is no one-size-fits-all model for strategic HRM,
there are three major types of strategy which can be effective
to the overall framework in different situations. These are:

• Change strategy
• Reinforcement strategy
• Innovation strategy
Change strategy

• A type of strategy which seeks a new direction from an existing


HR policy, without completely reinventing the wheel.
• Change strategies could be employed to aid global business
expansion where weak areas can feasibly be strengthened.
• For example, changing the focus of hiring from favouring people
living near the business’s HQ, to local people living in the
overseas market.
Reinforcement strategy
• A type of strategy which seeks to strengthen existing practices
and policies identified as already being strong.
• Such strategies could include strengthening the company’s ability
to hire remote talent by partnering with a global payroll provider to
ensure your remote workers are paid fairly and efficiently.
• This may free-up human resources in payroll and finance to
refocus their efforts on making the global expansion as cost-
effective as possible.
Innovation strategy
• A type of strategy which demands the introduction of completely
new ideas and original processes.
• Let’s say, for example, that your business is new to operating
internationally and has no existing framework for facilitating
overseas production and distribution of goods – with the goal of
increasing annual revenue by 50%.
• Using strategic HRM, you could innovate with what you do have
experience in – producing and distributing locally – to facilitate the
same abroad.
For decades, Unilever has given HR a seat on its board’s executive committee,
with a focus on developing in-house talent. As a result,
over 95% of Unilever’s international managers are ‘home grown', or in other
words have been hired, trained, and raised to their positions using strategic
human resource management.

Similarly, in 1995 IBM effectively reversed its internal and international HR strategy of cutting
costs by cutting jobs abroad. The giant multinational revised its HR policies using strategic
HRM with a global twist, and realised that it instead it could invest in the value of its people
and so increase profits because, in the words of IBM’s director of international mobility, “We
are a growing service business -- our people are what our customers are buying from us.”
CONCLUSION
In conclusion, effective HR management in the global business
landscape requires a multifaceted approach that addresses the
unique challenges and opportunities presented by an
interconnected world. By embracing these key strategies and best
practices, organizations can build a strong, diverse, and engaged
global workforce that drives innovation, productivity, and long-term
success.
References
• International Human Resource Management. (n.d.). Google Books.
https://
books.google.com/books/about/International_Human_Resource_Management.html?id=j-zcDgA
AQBAJ

• Human Resource Management. (2020b, September 15). https://


www.pearson.com/en-us/subject-catalog/p/human-resource-management/P200000005876/9
780135637289

• G-P Meridian Core | Global Employer of Record Suite. (n.d.). Globalization Partners.
https://www.googleadservices.com/pagead/aclk?

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