Human Resources and Globalization

HUMAN RESOURCES AND GLOBALIZATION

Today's rapidly changing work environment has companies facing many issues that they have not seen in the past. The understanding of doing business outside the United States (U.S.) has brought on a new set of problems to be solved for those involved with managing the human resources of companies that have opened office in foreign countries. Opening the eyes of how business is conducted as well as the difference in cultures between the home office and their new division offices overseas. This paper will speak of some of the issues that the Human Resources Management (HRM) faces with global business.

Differences in Resources

Present day operations for companies in the U.S. may or may not have to deal with labor unions when staffing for a company. The pay scale and benefits can differ somewhat from employer to employer and industry to industry. Many of the employees have been exposed to benefits of training and health because these are offered by many companies as part of their employment package. Sharing of profits and retirement plans are also available from many U.S. companies to their employees.

When companies expand their operations to open offices overseas many of the individuals that are seeking employment in that country have never been exposed to training or heath benefits, let alone a possibility of a profit sharing plan. Understanding how the company that employs those workers and benefits offered is a primary job for those in human resources. Many countries have differing standards for vacation and severance packages for the those employed in that country and U.S. companies will need to comply with these standard when offering vacation or terminating an employee as well.

Competitive Edge

HRM must help the company's leadership team maintain a competitive edge with the changing landscape and the government regulations in those countries they have offices in as well as that of the global economy (Freidman, B.A., July, 2007). HRM must stay abreast of changes and assist management in developing a plan to communicate how they will adapt to these changes to their stakeholders to achieve the goals they have set forth.

The establishment of goal setting and a reward system that can motivate employees to accomplish the goal and reward them for their performance while overcoming fellow employee's resistance to change can be a key area that HRM can present to the company's leadership for approval and implementation to increase company profitability. This move can help change the minds of the staff and have them get onboard to improve their position with the company for the long haul by seeing that the company needs them as bad as they need the job to support their family.

Changing Roles

Today's business is done on a global scale and this includes manufacturing, sales, and technical support. Companies around the world are in business to turn a profit and do it better than their competitor(s). To do this they must do it the cheapest way possible, be it through material resources, labor, and transportation. Outsourcing to countries that any or all these elements are available is an ideal way to cut cost. There are challenges that come with outsourcing and HRM's will play a major role in meeting the issue head on.

Finding the right personnel to employee for given task may require balancing the individuals talents to the need to be