Factors Affecting Human Resource Management in International Markets
Factors Affecting Human Resource Management in International Markets
A global organization needs a transnational HRM system that features decision making from a global perspective, managers from many countries, and ideas contributed by people from a variety of cultures. Decisions that are the outcome of a transnational HRM system balance uniformity (for fairness) with flexibility. This balance and the variety of perspectives should work together to improve the quality of decision making. The participants from various countries and cultures contribute ideas from a position of equality, rather than the parent country’s culture dominating. Organizations that operate in more than one country must recognize that the countries are not identical and differ in terms of many factors. The four major factors affecting HRM are:
• Culture
By far the most important influence on international HRM is the culture of the country in which a facility is located. Culture is a community’s set of shared assumptions about how the world works and what ideals are worth striving for. Cultural influences may be expressed through customs, languages, religions, and so on. Culture is important to HRM for two reasons. First, it often determines the other three international influences. Culture can greatly affect a country’s laws, because laws often are based on the culture’s definitions of right and wrong. Culture also influences what people value, so it affects people’s economic systems and efforts to invest in education.
• Education and Skill Levels
Countries also differ in the degree to which their labor markets include people with education and skills of value to employers. Educational opportunities also vary from one country to another. In general, spending on education is greater per pupil in high-income countries than in poorer countries. Poverty, diseases such as AIDS and political turmoil keep children away from school in some areas. A concerted international effort to provide
A global organization needs a transnational HRM system that features decision making from a global perspective, managers from many countries, and ideas contributed by people from a variety of cultures. Decisions that are the outcome of a transnational HRM system balance uniformity (for fairness) with flexibility. This balance and the variety of perspectives should work together to improve the quality of decision making. The participants from various countries and cultures contribute ideas from a position of equality, rather than the parent country’s culture dominating. Organizations that operate in more than one country must recognize that the countries are not identical and differ in terms of many factors. The four major factors affecting HRM are:
• Culture
By far the most important influence on international HRM is the culture of the country in which a facility is located. Culture is a community’s set of shared assumptions about how the world works and what ideals are worth striving for. Cultural influences may be expressed through customs, languages, religions, and so on. Culture is important to HRM for two reasons. First, it often determines the other three international influences. Culture can greatly affect a country’s laws, because laws often are based on the culture’s definitions of right and wrong. Culture also influences what people value, so it affects people’s economic systems and efforts to invest in education.
• Education and Skill Levels
Countries also differ in the degree to which their labor markets include people with education and skills of value to employers. Educational opportunities also vary from one country to another. In general, spending on education is greater per pupil in high-income countries than in poorer countries. Poverty, diseases such as AIDS and political turmoil keep children away from school in some areas. A concerted international effort to provide