How has increased globalization influenced the way HRM is practiced in the Unite

by | Jan 13, 2022 | Human Resource Management | 0 comments

How has increased globalization influenced the way HRM is practiced in the United States?
Globalization and HRM practices :
Globalization has enabled companies to establish offices and manufacturing plants in different parts of the world. It has led to the expansion of the workforce and diversity among employees. Moreover, due to time differences, the companies are able to operate 24×7. No doubt, due to this effect, the HRM department needs to adapt to remain relevant. Following are the broad trends of HRM
a. Support for employees :
Globalization has expanded the options for companies to transfer their employees to various locations. Earlier, companies used to maintain offices within a small geographical area, and most employees are known to each other. However, this is not the case now. In order to fulfill critical tasks overseas, expert employees are sent to foreign locations. As part of the HRM team, it is their duty to ensure that the transition to a foreign location is smooth and convenient. Hence, the modern HRM team not only has to take care of employee job satisfaction but also his extended family. The HRM team should be available readily to answer queries of the employees on how to adopt and other related cultural issues
b. Employment rules and tax laws :
Expansion into foreign locations means, the company has to adapt to local rules and regulations. Among the many rules, the two most demanding are employment rules and tax laws. The HRM team has to keep updated on the latest happenings and adjust the company rules accordingly. Any adverse effect will have a devastating impact on the company’s future. They need to become experts on taxation and must be in a position to assist the employees.
c. Cultural Differences :
One of the major obstacles to expanding overseas is the cultural difference in the particular country. Especially a US-based company that tries to expand into Asia needs to be aware of the cultural barriers that prevail there. For example, many Asian countries are conservative and do not easily adapt to the Corporate culture of American companies. In such cases, the HRM team needs to conduct workshops and seminars to make the local employees understand the company culture so that they can perform to their fullest potential.
References
Kennedy, Kate, and Vanessa Gray. “Business and Human Capital Challenges Today and in the Future.” A Research Report by the Society for Human Resource Management, 2015, https://www.shrm.org/about-shrm/press-room/press-releases/documents/shrm%202015%20business%20human%20capital%20challenges.pdf.

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