What Role Do Hrm Practices Play in a Business Decision to Expand Internationally?

Topics: Human resource management, Human resources, Management Pages: 4 (1319 words) Published: April 20, 2013
What Role Do HRM Practices Play In A Business Decision To Expand Internationally? Ilein Arteaga
Florida International University

Human Resource practices play a great role in the international expansion of businesses. With globalization being the current trend in businesses all over the world, success of international business units depends heavily on the effective performance of the Human Resource department (Edwards & Rees, 2006). Globalization or the international expansion of business involves the integration of an organization`s operations, business processes and strategies into diverse cultures, ideas, products and services. Business operations transverse regional and geographical boundaries, while having to deal with diverse cultures in their area of operation; ranging from customer relation to recruitment of employees (Edwards & Rees, 2006). Transnational businesses have to also strategically deal with their foreign markets which involves understanding concepts of multi-culturalism which can be effectively handled by the Human Resource Management. Most importantly however, is the role of Human Resource Management in cultural sensitivity that will determine the success of a business beyond its borders (Jackson, Schuler & Werner, 2012). Human Resource planning is essential in the success of any business. HR planning is the strategic process of forecasting future human resource needs of an organization, and ensuring that structures are established to align these needs with the goals that a business envisions to achieve. This process is especially important in the international expansion of businesses, as the success of a business is highly dependent on this management of this resource (employees). This critical practice of HR management will ensure an organization is equipped with accurate information and data on human resource before it ventures into any foreign...
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