Strategic human resource management (SHRM) entails the process of developing and enacting human resource programs whose main aim is addressing and resolving business-related problems. HRM mainly deals with recruiting and managing employees in an organization, activities which are continuous, hence making the process to be future-oriented (Westover, n p). Various individuals have claimed that SHRM is known to have quite an essential role in building and developing global capabilities, global market, and global employer brands. Therefore, this paper aims at discussing human resource management at a global level focusing on globalization as the main factor and multinational organizations.
Globalization has increased in recent years due to several factors, including the development of technology. It has been advantageous to the business world as organizations have easily expanded to different geographic locations. With globalization, there is an interdependence of different nations and integration across national boundaries, hence providing opportunities to link ideas, diffuse knowledge, and allow labor mobility. Although globalization is known to have had a variety of positive outcomes, it has also brought about negative outcomes. Therefore, in the context of SHRM, multinational organizations are supposed to ensure that they attain global integration and local responsiveness. The corporations have a big task as they must think from a global perspective and conduct activities locally.
Examples of business-related problems include uncertainties regarding competency and recruitment of the right talents, future, customer service, and performance monitoring. In a global context and especially for organizations that are international, these challenges are severe as they determine the success of the company and the duration of the company in the market. Many people tend to assume that if a certain business has been successful in one region, it will automatically be successful in any other region. This is not the case considering that people in different regions have different beliefs and perceptions regarding the products offered by the corporations. Individuals from different nationalities tend to portray different behaviors, which need to be keenly studied to ensure accurate treatment of the workforce based on different regions.
When starting a business or organization, individuals tend to do so based on the future basis, such as they intend to make more profits and revenues in the future. The success of a company is therefore related to the performance of the employees, which is in turn related to the environment and working conditions. The human resource in an organization tends to be productive based on their superiors’ treatment. This means that if the employees and the general workforce are treated correctly, they will be more efficient and effective; giving the company more chances to expand.
Multinational companies with branches in various countries are required to be very careful while recruiting and managing their workforce. This is because even though globalization has given corporations more freedom to explore international markets, aspects such as cultures and beliefs of the people residing in the foreign land matter a lot. Before the expansion, companies need to conduct thorough research to determine the preferences of the citizens and the rules and policies put in place by the government regarding the human resource of the foreign businesses, among other factors.
Different multinational organizations make varying decisions based on implementing values to use in their different branches and locations. While some corporations choose to implement values based on their parent company, others choose to implement values based on the culture of the different regions and the location of their operations. This brings about the aspect of global staffing, which is associated with the issues of multinational organizations (Rees, Gary, and Paul, n p). There are different approaches that the firms in recruiting the workforce can use. Some organizations tend to prefer the ethnocentric approach where the key positions are given to nationals of the home country in the corporate headquarters and the subsidiaries. Other corporations prefer the transnational approach, which focuses on seeking the most qualified individual for the position regardless of nationality. In contrast, other corporations prefer the polycentric approach, which focuses on the local employees filling key positions.
Business problems are mostly related to human resources as they are essential in the production, manufacturing, and provision of the services and products of the company. The approaches used by a multinational corporation in a foreign country tend to be crucial in raising problems. Those using the ethnocentric approach are trusted less by the locals in the country. In deciding on the best approach to use, an organization needs to do some research regarding the culture and norms of the host country to determine the best approach to use.
The delivery of a service in a host county by a multinational corporation is dependent on a number of factors. According to Ulrich’s model, there are three structural components: shared service centers, business partners, and centers of excellence. The corporation’s business partners are considered to be among the most important components as they are aware of the business environment in the host country. The company is responsible for deciding how they will choose their business partners as the role depends on the job holder’s confidence and capabilities. The relationship between the shared service centers and the multinational corporation in the host country is considered a client and service provider relationship. The role of the center of excellence is considered to be designing the programs and services of the strategic HRM and developing the technological tools and processes of the multinational corporations.
The host country’s government also plays a significant role as the two countries must have a good relationship for a multinational corporation to expand into the host country (Bailey et al., n p). It is impossible for countries whose governments have bad relations to conduct business together. For instance, in the present conflict between Russia and Ukraine, as Russia has been blamed for attacking Ukraine and starting a third world war, many multinational corporations have withdrawn their products and services. It is important for the multinational corporation to consider the rules and regulations placed by the host country’s government regarding the specific products they are offering, whether they are legal or not.
In conclusion, strategic human resource management is mostly concerned with globalization and multinational corporations. There are several factors that need to be considered before expanding the services and products to a foreign country. Therefore, multinational corporations need to consider all the factors before expanding to avoid risks that may occur with a lack of following the various factors. The culture and government of the host country are the most significant as they determine whether the operations of the corporation will be successful in the new location.
Works Cited
Bailey, Catherine, et al. Strategic human resource management. Oxford University Press, 2018.
Rees, Gary, and Paul Smith, eds. Strategic human resource management: An international perspective. Sage, 2021.
Westover, Jonathan H. Strategic human resource management. Leading Innovative Org., 2019.