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The Globalization of Human Resource Management.

The rise of the global economy through globalization has led to increased need by various companies to effectively use their management and marketing skills through various functions such as the human resource to realize great levels of success. Globalization of human resource management means that the human resource functions of an organization will be incorporated into wide range of cultures across the world (Bradley, 2016). The first chapter of the book that is “The Globalization of Human Resource Management” gives an insight of Human Resource Management (HRM) in companies that have operations in foreign countries. The globalization of HRM followed the rapid integration of world economies over the first half of the last century, which in turn led to the rise of a multinational enterprise (MNE). As more organizations strived to invest in the global market, the need for adaptation of business functions such as human resource management also arose. Chapter one of the book introduces the concept of globalization and provides an overview of its evaluation and how it has affected the human resource management across the world. It is imperative to note that human resource management remains one of the most significant functions up-to-date in the global market due to its ability to offer companies a competitive advantage over the multiple aggressive competitors in the global market. The rate of global investment has recorded massive increase in the recent past, increased mergers and acquisition across different nations, and increased number of laborers and money moving one nation to another noting the increased rate of globalization (Briscoe & Schuler, 2004).

Companies, large, medium and small, from different countries across the world, are striving to go global by moving their operations such as production and functions such as human resource management to other nations. These organizations have to deal with customers and employees from different social backgrounds, cultures and languages (Bradley, 2016). Companies, mostly from the wealthiest nations that have attained remarkable successes in the current business world have done so through going global. However, despite various large companies from developing nations and SMEs from wealthy nations lacking international recognition, their presence in the global market play a very big role. As such, the book provides more insight into the role that these enterprises play in the global economy. An example that best explain IHRM and what SMEs go through across the globe is the Harry Ramsden decision to go international by moving his Fish and Chips firm from the United Kingdom (Briscoe & Schuler, 2004). The case study identifies some forces that warrant companies to globalize. These include; increased travel where individuals can easily move from one nation to another and have an opportunity to experience the goods and services in the foreign nation and develop a liking. They can decide to take some of the products with them back at home. The other driving interests for globalization are rapid and extensive global communication, advancement and transfer of technology, free trade and improving education, homogenization of cultures and pressure on costs (Briscoe & Schuler, 2004).

Thomas Friedman, a senior news correspondent for the New York Times, described globalization as an unstoppable integration of markets that allows companies and individuals to move to various nations (Briscoe & Schuler, 2004). Globalization has brought about positive effects to the international economics such as the improved connection between individuals, organizations, and nations. Additionally, globalization has ensured that international business continues to grow across different nations through foreign direct investments as well as improving trade between nations. Statistics by the United Nations estimates that close to seventy thousand transnational enterprises that have more than seven hundred raised approximately $20 trillion as total annual sales in 2005 (Briscoe & Schuler, 2004). Additionally, these companies provided employment opportunities to approximately eighty million individuals across the globe. Foreign direct investment (FDI) has also increased tremendously to an estimate of $9 trillion with the developed nations receiving the largest percent of FDI (Briscoe & Schuler, 2004). However, the IHRM experiences some challenges in operating in the global economy due to differed multiple national laws and cultures.

For multinational enterprises to be successful in the global economy, they have to develop effective strategies that will ensure they maximize the returns from the abundant global resources and markets. The IHR managers play a critical role in the success of the company as they are involved in the formulation of those strategies. A successful MNE has to have competent IHR managers who are skillful in the management of the organization’s operations in the foreign nation. The senior HR managers have a responsibility of representing the company in the senior executive council and making global strategies that will help the firms in different to achieve great successes. The senior HR additionally, has a role of managing talents in various functional areas. The global HR, on the other hand, has a responsibility of backing up the corporate strategic objectives. After that, each HR in the different business unit is tasked with making a work plan that ensures the company achieves its objectives (Briscoe & Schuler, 2004).

The international strategy that has been given a lot of attention regarding studies is the international orientation of high-ranking directors, which include ethnocentrism, regiocentrism, geocentrism, and polycentrism. The strategic issue that most firms that are subsidiaries of international companies face revolves around the issue the degree of domination in the company’s headquarters and other human resource practices. The dominations of a firm in the MNE’s headquarter determines, to a large extent, the level of autonomy that the subsidiary firm in its management operations and other human resource practices. The presence of Human Resource Management in the MNEs leads to the rise of IHRM, which deals with the learning and application of HRM activities in a bid to effectively manage the subsidiary firm in the global market (Briscoe & Schuler, 2004).

IHRM faces challenges such as difficulty in developing a global approach inside the firm’s human resource department, making the core human resource procedure and activities be consistent with each other, and enhancing international capabilities and aptitudes of human resource (Briscoe and Schuler). The other challenge that IHRM faces is the difficulty to adopt recruitment and retention strategies in different firms across the globe (Challenges for Human Resource Management and Global Business Strategy- Future HR Trends). The various forms of international human resource that exist in the MNEs include headquarters of MNEs, Domestic firms, Government agencies and Non-Governmental Organizations (Briscoe & Schuler, 2004).

The International Human Resource Management is different from the domestic HRM (DHRM) based on various factors such as the scope of activities where the IHRM is faced with more functions and activities domestic HRM. The other differences between IHRM and DHRM are that IHRM has a broader perspective and expertise, involves a greater degree of risk and a broader mix of employees among other functions.

The other issues that chapter 1 of the book highlights on include; the establishment of an IHR strategy where the MNE has to consider some issues such as country selection, compensation, global staffing, and enrolment and selection. The chapter also describes the integration of HR into the international strategy planning, factors that influence the international human resource management, and how the MNE strives to support its strategic objectives through the use of IHR services.

Chapter one of the book successfully gives the reader a brief understanding of the International Human Resource Management and overview of globalization. This is an important step to the understanding of the concept of IHRM as the student will be acquitted with adequate knowledge in the subject as he or she has understood what globalization is, the definition and overview of international human resource management and the difference between international human resource management and domestic human resource management.

Work Cited.

Bradley Jeremy. “Effects of Globalization on Human Resources Management”. N.p., 2016. Web. 1 October 2016

Briscoe, Dennis R and Randall S Schuler. International Human Resource Management. London: Routledge, 2004. Print.

“Challenges For Human Resource Management and Global Business Strategy- Future HR Trends”. Future HR Trends. N.p., 2016. Web. 1 Oct. 2016.