Question

1. Explain what globalization in the workplace is and the impact it has on HRM. In addition, summarize how the growth in international business activity affects HRM.

2. Briefly explain how companies prepare expatriate employees for international assignments and for their return home.

3. Explain at least three challenges and considerations an HR department would need to manage when operating in today's global marketplace.

Answer 1

1. When a business expands its operation into other countries, the impact of globalization on human resource development and management is significant. Companies need to consider a diverse range of practical adjustments to be able to hire, train, retain and support a workforce that's often spread throughout several countries, which often have varying cultural identities. Human Resources departments must adapt their thinking and practices to include cultural differences, foreign regulations and technological developments. As a company extends its base to a foreign shore, the impact of that globalization on HR procedures will extend to current workers and also to new employees. The HR department will need to increase support of its current staff, as they transfer overseas to new positions. Assistance with visas, work permits, and housing will be required, as well as training in cultural issues and perhaps language acquisition. Global expansion is also affected by varying tax and labor laws. HR departments need to be prepared to deal with different tax rates, benefit requirements or labor and environmental regulations.

2. More and more organisations are using international assignments as part of the essential developmental experience of valued talent;

a. Have a compelling purpose and the right person- It is very important to analyse the business case before sending any one abroad. There should be a clear organizational need and a compelling reason that this need can’t be met through a local hire.

b. Providing sponsors to oversee the assignee’s experience on both ends- one at the home base and another at the destination. These individuals are the point people and mentors for ensuring the fit from the company perspective, the fit from the assignee’s perspective, and for co-managing the process throughout.

c. Stay in frequent contact throughout the assignment.

d. Make a plan for reintegration. Communication should include a conversation six months before the end of the assignment to discuss the reintegration process. This is a time for the employee to outline the top skills, qualifications, and insights achieved during the assignment and express how he or she would like to incorporate them at the home office (or in some cases on the next assignment).

3. Three challenges and considerations an HR department would need to manage are:

a. Continuing to build a global mindset and leadership ever more deeply into the organization and creating much better linkage between their international mobility and global talent management functions.

b. Transferring more skills and operations into host country operations.

c. Attracting the top talent remains a continual challenges for HR

d. One of the greatest challenges facing companies that have staff and operations across borders is having a centralized communication system that makes it possible to compare notes across physically distanced departments and branches.