Question

decide between a standardization or localization approach to your HRM practices and the factors driving each.

Answer 1

With the globalization, firms have been expanding to other countries for business opportunities and new customer base while minimizing cost of labor etc. To ensure that the firm hires, trains and retains the best talent in the organization globally, it is important that it have strong human resource management policies and practices to ensure standardization where required at the global level.

Below are the factors driving standardization of human practices -

1. To ensure equal employee benefits and other practices

2. For ease of management without frequent changes

3. Centralized management of the firm's operations

Localization involves catering to the needs and requirements of the specific countries or business units and it depends on the below factors -

1. Law of the land with respect to employee rights etc.

2. Local requirements depending on the industry standard wages, benefits etc. in the specific unit or country

3. Type of work being handled by the unit(s)