Question

Name and discuss the four factors that affect HRM in global markets. Which of them do you think is the most important factor?

Answer 1

The factors which affect Human Resource Management in global markets are:

• Government Regulations: Every country has different laws and regulations and a company operating there has to follow it.

For e.g.- India and US has different labour laws and the HRM practices at both the places also differs.

If any company is not adhering to the rules and regulations framed by that sovereign it will be forced to shut its operations.

• Economic Conditions: It is one of the most important factors affecting HRM practices all over the world. The economic conditions from country to country are different and which affects the talent pool as well as the ability of companies to hire in a particular country.

For e.g. If a county's economic conditions are not in good shapes the companies may freeze the hiring process or even lay off some of the employees because of low economic activities.

• Technological Advancements: When new technologies are introduced it increases the efficiency of the organization and which in turn affects the overall HRM practices of the organization. Technology is revolutionizing the way businesses operate and not just from a consumer standpoint, but from an internal view point also. HRM is also a practice which came into practice because of technology.

• Workforce Demographics: As the older generation retires and newer generation joins they bring with them the new ideas and a new thought. The ways to manage the new work force is also changing. The changed demographics also brings a challenge for the HR department as the newer generation has to be attracted and retained.

I think the most important factor is the technological factor as in the recent years we have seen a lot of change in the global HRM practices because of change and up gradation in the technology.