Week 4 Assignment 1 - Assignment 1 HRM in an MNE Donnetta...

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Assignment 1: HRM in an MNEDonnetta FaisonProfessor Horner-SmithBUS 325 Global Human Resource ManagementMay 4, 2014
With the development of globalization, the blending and collision of domestic enterprisesand foreign enterprises is becoming fiercer. Foreigners are sent out of their own countries and work in another country. The increase of expatriates between one country and another country inevitably bring new challenges to human resource management, such as culture shock and the differences between domestic HRM and international HRM. Most firms undervalue the problems involved in international businesses, and do not pay enough attention to them. Evidences have been found and prove that business failures in the international arena are usually relative to poor human resource management (Dowling, Festing, & Engle, 2008, p.9). Some of the problems of international HR can be attributed to a few factors such as: human resource activities, more involvement in employees’ personal lives, and higher risks. There are two major factors which differentiate domestic HRM from IHRM. First, the complexities of operating in different countries and secondly, employing different national categories of workers. This means that international HRM is concerned with identifying and understanding how MNCs manage their geographically dispersed workforces in order to leverage their HR resources for both local and global competitive advantage. Globalization has brought new challenges and increased complexity such as the challenge of managing newer forms of network organization. IHRM has to manage the complexities of operating in, and employing people from, different countries and cultures. A major reason for the failure of an international venture is the lack of understanding of the differences between managing employees in the domestic environment and in a foreign one. Some of the reasons why IHRM ismore complex than domestic HRM are:
1.International HRM addresses a broader range of activities than domestic HRM. These include international taxation, coordinating foreign currencies and exchange rates, international relocation, and international orientation for the employee posted abroad. 2.Human resource managers working in an international environment face the problem of addressing HR issues of employees belonging to more than one nationality.3.International HRM requires greater involvement in the personal life of employees. The HR manager needs to assess the readiness of the employee’s family to relocate, support the family in adjusting to a foreign culture through cross-cultural training, and to help in admitting the children in schools.

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