TRENDS IN IHRM
Global business process redesign, the pursuit of a global centre of excellence strategy
and the global re- distribution and re-location of work.
Absorption of acquired businesses, merging of existing operations on a global scale,
the staffing of strategic integration teams, and attempts to develop and harmonize core
HR processes within these merged businesses.
Rapid start-up of international operations and organisation development as they
mature through different stages of the business life cycle.
Changing capabilities of international operations with increased needs for up-skilling
of local operations and greater complexity.
Need to capitalize on the potential that technology affords the delivery of HR through
shared services, on a global basis, whilst ensuring that local social and cultural
insights are duly considered when it is imperative to do so.
Learning about operating through formal or informal global HR networks, acting as
knowledge brokers across international operations, and avoiding a “one best way” HR
philosophy.
Identity problems faced by HR professionals as they experience changes in the level
of decentralization/ centralization across constituent international businesses.
MAJOR CHALLENGES IN GLOBAL HRM
Employee and family adjustments: More involvement for parent-country & third-
country nationals, Housing arrangements, Health care, Remuneration packages, assist
children left behind in boarding schools and local regulation and tax policies.
Selecting the right person for the foreign assignments: International placements should
involve right person with KSAA (Knowledge, skill, attitude, ability) to adapt and to
manage international assignments
Communication: HR Managers crucial role is to help employees deployed in the foreign
country learn the local language and also assist them to learn the gestures and body
language.
Handling Multicultural / Diverse Workforce: Dealing with people from different age,
gender, race, ethnicity, educational background, location, income, parental status,
religious beliefs, marital status, geographical locations, ancestry and work experience can
be a challenging task for HR managers. With this, managing people with different set of
ideologies, views, lifestyles and psychology can be very risky. Effective communication,
adaptability, agility and positive attitude of HR managers can bind the diverse workforce
and retain talents in the organization.
Managing Change: Bringing change in organizational processes and procedures,
implementing it and then managing it is one of the biggest concerns of HR managers, as
the ideology and mindsets of employees are affected by change. Business environment is
so volatile. Technology keeps changing every now and then. All thanks to globalization.
Upgrading the existing technology and training people for them is a real headache for HR
department. The success rate of technology change depends how well HR Department
can handle the change and manage people issues in the process.
Retaining the Talents: Globalization has given freedom to working professionals to
work anywhere in the world. Now that they have endless lucrative opportunities to work,
hiring and retaining the best industry talent is no joke. Maintaining harmonious relations
with them, providing excellent work environment and offering more remuneration and
perks than your competitors can retain and motivate them.
Conflict Management: HR managers may it be domestic or global HRM should know
how to handle employee-employer and employee-employee conflicts without hurting
their feelings. Although it is almost impossible to avoid conflicts among people still
handling them tactfully can help HR managers to resolve the issues. They should be able
to listen to each party, decide and communicate to them in a convincing manner in order
to avoid future conflicts.
Managing Attrition: Attrition has become a major global challenge for companies like
the IT major, Infosys that has seen unprecedented attrition among its employees in recent
months. The situation has deteriorated to the extent that the company is having to address
investor and analyst queries about this issue and has had to come up with a plan to tackle
the same. The point here is that attrition in well-known companies affects their brand
value and their brand image and considering the fact that companies like Microsoft and
Unilever as well as P&G are respected globally for their HR practices, attrition in these
companies dents the carefully crafted image of being people friendly. This is the reason
why the blue-chip companies take attrition seriously and to the point where Steve Balmer
(the former head of Microsoft) is reported to have gone through all the exit interview
forms of the employees.
