Why is global HRM more difficult than domestic HRM? How can staffing a foreign
facility with locals alleviate some of these HRM difficulties?
Chapter 20 Global
Management of Human Resources
#Daniels #15edition #
GlobalManagementofHumanResources
#GlobalHRM #HRM #Chapter20International Business: Environments and Operations, 15e, Global Edition (Daniels et al.)
Daniels, 15edition, Global Management of Human Resources, GlobalHRM, HRM, Chapter20
Answer: HRM is far more difficult for the MNE than its domestic counterpart. Besides dealing with situations in the home market, an MNE adjusts its HRM practices for the political, cultural, legal, and economic differences in foreign markets. For example, leadership styles and management practices vary from country to country, causing difficulties between people at different units—say, headquarters and a local subsidiary. Similarly, labor markets vary in the mix of workers, costs, productivity, and regulations. Regarding the latter, local labor laws often require that MNEs change their workplace standards. Adjusting labor management practices complicates decision making. Finally, dual career and family obligations, among other issues, make it tough to convince executives to take a foreign assignment. Consequently, MNEs continually evaluate how to staff international operations, fine-tuning the mix of recruitment, training, compensation, transfer, and retention programs that persuade and prepare executives to work abroad. The greater the need for local adaptations, the more advantageous it is for companies to use local managers, as they presumably understand local conditions better than expatriates would. When the host country feels animosity toward foreign-controlled operations, local managers may be perceived locally as "better citizens" because they presumably put local interests ahead of the company's global objectives. This local image may play a role in employee morale as well, because many subsidiary employees prefer to work for someone from their own country.
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