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HRM in a global environment

The environment in which organizations operate is rapidly become a global one

Globalization requires HRM to: Align HRM processes and functions with global

requirements Adopt a global mindset Enhance capabilities and competencies to

become a business partner in acting on global business opportunities

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What is behind this expansion into global markets?

Foreign countries can provide new markets with millions (or billions) of new customers

Set up operations overseas because of lower labour costs e.g. BRICs offer both low-cost labour and fast-

growing economies Advances in technology Encouraged by trade agreements

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Employees in an international workforce

Home country Country in which an organization’s headquarters

is located Host country

Country (other than the home country) in which an organization operates a facility

Third country Country that is neither the home country nor the

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Levels of global participation

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Employers in the global marketplace Domestic organization

Significant share of workers may be immigrants International organization

Sets up one or a few facilities in one or more foreign countries

Multinational company Builds facilities in a number of different countries

Global organization Uses cultural differences as an advantage Needs a transnational HRM system

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