With the advent of globalization, organizations

- big or small have ceased to be local, they have

become global! This has increased the
workforce diversity and cultural sensitivities
have emerged like never before. All this led to
the development of Global Human Resource
Management.

Globalization, the process of integrating a

business's operations and strategies across a wide
array of cultures, products and ideas, is having an
impact on the role of human resource managers.
Once concerned with the impact of local issues on
employees, human resources must now consider
the effects of workforce diversity, legal restrictions
and the interdependence between training and
professional development on the organization. As
such, the five main functions of global human
resource management are vital concepts to the
strategic operation of a business.

The preliminary function of global Human

Resource Management is that the organization
carries a local appeal in the host country
despite maintaining an international feel.

Create a local appeal without compromising

upon the global identity.
Generating awareness of cross cultural
sensitivities among managers globally and
hiring of staff across geographic boundaries.
Training upon cultures and sensitivities of the
host country.

Decision Making: There is a certain degree of

centralization of operating decision making.
Compare this to the International strategy, the
core competencies are centralized and the rest
are decentralized.
Co-ordination: A high degree of coordination
is required in wake of the cross cultural
sensitivities. There is in addition also a high
need for cultural control.
Integrating Mechanisms: Many integrating
mechanisms operate simultaneously

RANK

COUNTRY

World

POPULATION

% OF
WORLD
POPULATION

6.7 billion

100%

Peoples
Republic
Of China

1.3 billion

19.9%

India

1.1 billion

17.04%

United States

.3 billion

4.57%

Indonesia

.2 billion

3.47%

Brazil

.18 billion

3.81%

Pakistan

.16 billion

2.46%

Some of the largest international firms are

owned by families, especially in China,
Taiwan, Thailand, Hong Kong, Indonesia,
Malaysia and Singapore
Growing numbers of Small Multinationals
(SMEs)

In Germany there are 350 SMEs that dominate their

market niche

Increased travel
Rapid and extensive global communications
Rapid transfer of new technology
Growing trade, foreign competition
Improving education
Emigration of large numbers of people

Operation of parent-country firms

Operation of foreign firms in the home country
Operation of Third party nationals
Employment of foreign citizens (or recent
immigrants and/or their families

TRAINING AND MANAGEMENT DEVELOPMENT

Training begins where selection ends and it focuses

upon preparing the manager for a specific job

Management development is concerned with

developing the skills of the manager over his or her
career with the firm

key issue in international labor relations is the

degree to which organized labor is able to limit the
choices available to an international business

A firm's ability to pursue a transnational or

global strategy can be significantly constrained by
the actions of labor unions

Helping organisational employees recognize

that they work in a multi-cultural environment
or a global environment so that they can
undersatnd the expectations of Different
Cultures.

The meaning of job titles and job

responsibilities vary across cultures.HR Dept.
helps the employees in adapting local practices
which makes them appropriate for various
geographies in which they work.

i.

ii.

iii.

The global leadership competencies required for

success include:
The flexibility to work and manage across
cultures
The ability to be the voice of the local culture to
home office while being the voice of home office
to the local employees
Understanding of and ability to adapt to cultural
differences as they impact business practices