A Conceptual Analysis of Global Human Resource Practices: Challenges and Prosp

Abstract

With the advent of globalisation, all firms, large or small have become global, they ceased to be local. Even those organisations who consider themselves immune to transactions across geographical boundaries are connected to the wider network globally and this has encouraged many multinational companies to extend their operations to other countries by establishing subsidiary companies in other countries. For these companies to do well, sound human capital management practices must be embraced. This paper therefore examines the trends in global
human resource management practices, as well as the functions and challenges. As a conceptual paper, it is based on review of scholarly articles with a focus on creating a local appeal without compromising the global identity; generating awareness of cross-cultural sensitivities among managers globally and hiring of staff across geographical boundaries; and upon cultural sensitivities, training and development for the host communities. It concludes that success lies in a firm’s ability to build a unique competitive advantage against others. This competitive advantage will last longer if it is within the human capital of the organization rather than just a technology that others can buy. To become and remain competitive globally, it is recommended that a multinational enterprise acquaint itself with the various environmental settings that are likely to inhibit its success and design ways to beat them in advance.
Keywords: HRM, staffing policy, labour relations, inter-country differences, Global HR System