Understanding the Functions of Global Human Resource Management

Understanding the Functions of Global Human Resource Management
Page content

There are 5 main functions of global human resource management. These are:

  • Staffing
  • Salaries and other rewards
  • Training and development
  • Administration
  • Employee Relations

When operations of a company become globalized, the parameters of these functions expand. They are driven by efficiency, information exchange, international legal provisions, convergence of business processes, experience in internationalization and adapting the company’s HRM policies to local conditions.

Globalizing the Functions

Staffing and Recruitment

Recruitment for international operations requires a thorough understanding of the business processes involved in that part of the globe and the skills required to operate them. These must then be matched to available local talents and skills; your recruitment policies have to be amended to fit these criteria. Each area may require a separate evaluation as educational levels may vary. Requirements for physical standards may also change, and this factor may have to be considered while recruitment is being done.

Salaries and Compensation Packages

While fixing up offer packages, care has to be taken to see that local standards are maintained while at the same time overall organizational requirements are also met. Local laws regarding minimum wages, bonuses and other benefits have also to be structured in to the packages. Insurance, pension and such benefits should be reviewed as they relate to the present policies of the company.

Training and Development of Staff

Local facilities for training and development of staff need to be kept in view. If these are not adequate, sending staff to other countries may need to be looked at, and the additional cost and benefits of such training need to be carefully studied. Possibilities of developing in-house training should be examined to reduce costs.

Administration of Personnel

Working conditions may vary in each area of international operations. Administration of HR and related matters remain intrinsic in the decision-making process. Working hours must follow minimum local laws and the start or end times of work may have to match with international operations in certain important functions.

Human Relations

When considering global human resource management, each area of international operations may need to comply with certain religious and national festivals.

Overall Strategies

While keeping all these functions in mind, a business still needs to link its various international operations and make sure that all HRM policies fit within the overall intentions of the parent organization. A constant interchange of information on actions and policies being taken by each local HR department will do the trick here. Customization of the policies to fit local requirements would have to fit the overall strategy of the organization. Policies may have to be framed for recruitment of expatriates and international employees who would be able to freely move about in the various areas of operation without causing any problems in relocating. Policies for temporary posting needed to start new operations or to facilitate training may also need to be worked out.

Image Source: Wikimedia: International Operations