Globalization is the integration of production and sales into foreign countries. Globalization is resorted to as the need for expansion arises with a need to gain new market, marketing channels, cheaper production facilities, access to new technology, skills and financing. Over the years, Globalization has created extensive benefits to many people, including the parent and Host countries. Procter and Gamble is a multinational company, with its headquarter situated at Cincinnati Ohio, Procter and Gamble was founded on October 31st 1837 under the Joint ownership of William Procter and James Gamble. The company has of over 129,000 employees and over 300 brands of product globally, its line of products include, personal and health care products, cleaning supplies, prescription drugs, baby and family care etc. Over the years as demand exceeds the capacity of production at the Cincinnati factory, Procter and Gamble began the process of integrating into other countries in order to broaden its level of production and increase in sales volume, this move involves the establishment of their presence in other countries aimed at manufacturing and product sales. Procter and Gamble became an International company in 1930 with the acquisition of the Thomas Hedley Co. and afterwards branched out their line of production into other countries by various acquisitions of other manufacturing companies and building of production facilities globally. At this stage Procter and Gamble is faced with a difficult task of managing a multicenter network subsidiaries, with each subsidiaries having extended areas of local suppliers, customers, competitors and host government policies.
Assess the impact of globalization, cultures, and labor markets on the human resource management function of your selected MNE.
As Procter and Gamble presence Grew internationally, so does its HRM activities, going global poses the issue of utilizing its human resources and this includes, human resource management, training and development, compensation, industrial relations, and staffing. Although IHRM and domestic HRM activities are same, Human resource management is concerned with employee recruitment and selection, performance evaluation, compensation and benefits, professional development, safety and health, forecasting, and labor relations, as well as management of diversity, job analysis and job design (Lipiec, 2001), but domestic HRM is only concerned with its domestic employees within its national boundary or the parent company national and lacks the expertise or know how of handling or managing multicultural issues. One critical area of concern between HRM and IHRM is the movement of employees from one national boundary into series of positions internationally in the companies foreign establishments, as Procter & Gamble continued to increase in production and expand facilities in foreign countries, managers who are knowledgeable and can direct the affairs of their subsidiaries are selected and these employees are known as expatriates, expatriates are staffs moved across national boundaries into series of roles or positions within the international firm’s foreign operations. These expatriates are still currently employed and under the payroll of their parent company ,but will be relocating temporarily to a foreign country for the duration of their assignment. The duration of their official assignment varies and it can either be short or long term or extended period of time. International assignments are the basic reasons why there is need for expatriates and these assignments is purposely for the transfer of knowledge and organization values. The corporate HR takes on the responsibility of expatriate management. HR functions include pre-departure training, compensation and most importantly cross cultural training. Cross-cultural training is imperative when moving employees across national boundaries. Employees with different national...
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