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 Administration of global human resources


An organization has a competitive edge when it has a productive workforce. Moreover, we are aware of the fact that a significant percentage of firms operate internationally. Thus, managing people globally is becoming more and more important. The success or failure of worldwide initiatives is significantly influenced by the management of global staff. Finding, hiring, and keeping personnel for multinational corporations has become difficult. When it comes to managing personnel from many nations and geographical areas, IHRM is absolutely essential.

The process of hiring, developing, and paying people in multinational and worldwide firms is known as international human resource management. An international firm is one that has branches outside of its home country that depend on the commercial know-how or manufacturing prowess of the parent company. Typically, an MNC is thought to have a number of enterprises in several nations that are all managed from the headquarters, which is situated in one nation.

Edwin B. Flippo stated that "domestic or international HRM encompasses the planning, organizing, directing and managing of the recruitment, development, remuneration, integration and maintenance of people for the aim of contributing to organizational, individual and social goals."


What are the main objectives of IHRM?


The goals for IHRM are the same as those for HRM in general.

Yet, because managing a worldwide workforce presents additional difficulties, international HR managers will have more focused goals aimed at overcoming these difficulties and reducing the risks associated with IHRM.

To control the organization's human resources while taking into account the many social, political, and economic contexts in which it functions.

To create and put into action strategies and procedures for personnel, development and training, pay and benefits, and performance management that complement the organization's global business strategy and goals.

 To find, nurture, and hold onto talent who possesses the abilities, expertise, and experience required to thrive in the organization's global operations.

Domestic HRM vs International HRM: what’s the difference? 

Managing human resources inside a company is a problem for both HRM and IHRM although their scope and complexity are different. IHRM stands for international human resource management, whereas HRM refers to the management of human resources in a local or national setting. Some of the main variations between the two are as follows:

Scope: IHRM covers managing employees across national boundaries, whereas HRM deals with managing people inside a single nation.

Complexity: Since it entails navigating many legal, cultural, and economic situations, IHRM is more complicated than HRM. Managing expatriates, or workers who are deployed to work abroad, is another aspect of IHRM.

Strategies: Developing and executing HR strategies that are suitable for the organization's domestic market is the main focus of HRM, whereas creating and implementing HR strategies that are suitable for the organization's international market is the main focus of IHRM.

Legal compliance:  IHRM demands adherence to international labor rules and regulations as well as cultural norms and customs, whereas HRM focuses primarily on compliance with national labor laws and regulations.

In conclusion, while both HRM and IHRM are focused on managing human resources, IHRM entails a more complicated set of tasks because of the nature of the workforce, which is worldwide, and the necessity to negotiate various legal, cultural, and economic situations.

What are the main challenges of IHRM?

Due to the complexity and dynamic nature of managing people across many nations and cultures, international human resource management (IHRM) has a number of issues. Some of the major difficulties include:

Cultural Variances: IHRM may face difficulties as a result of cultural variations across nations. These distinctions may have an impact on how people communicate, make decisions, and behave at work. While developing HR policies and procedures, IHRM must make sure that it is sensitive to these cultural variations and takes them into consideration.

Legal and Regulatory Disparities: There are varying labor, employment, and human rights laws and regulations in various nations. IHRM must make sure that it complies with these rules and legislation in every nation where it conducts business.

Language Barriers: IHRM may find it difficult to communicate with workers who speak various languages due to language obstacles. IHRM must make sure that it has strong communication plans in place to get over these obstacles.

Handling Diversity: IHRM may find it difficult to manage a varied staff that comes from many nations and cultures. IHRM must make sure that it cultivates a welcoming, courteous workplace that celebrates diversity and advances equal opportunity.

IHRM is an intricate and difficult task that is essential to the success of businesses doing business internationally. Companies must make an investment in creating IHRM strategies and policies that are effective if they want to successfully utilize their human resources in the global marketplace.

References :

Adhikary, M. (2019) International Human Resource Management: Introduction, activities, practices, PreserveArticles.com: Preserving Your Articles for Eternity. Available at: https://www.preservearticles.com/human-resource-management/international-human-resource-management/31191 [Accessed date 16 April 2023]

 

International Human Resource Management (no date) International Human Resource Management - an overview | ScienceDirect Topics. Available at: https://www.sciencedirect.com/topics/economics-econometrics-and-finance/international-human-resource-management [Accessed date 15 April 2023]



Trivikram, S. (2020) International Human Resource Management(IHRM), MyVenturePad.com. Available at: https://myventurepad.com/international-human-resource-managementihrm/[Accessed date 18 April 2023]


What is international human resource management? (2022) Global Online Courses at Manchester Metropolitan University. Available at: https://globalonline.mmu.ac.uk/news-and-events/what-is-international-human-resource-management#What_are_the_main_challenges_of_International_HRM [Accessed date 15 April 2023]


Comments

  1. Tharanga WanigasundaraApril 19, 2023 at 8:07 AM

    Effective global HR administration requires a blend of strategic planning, cultural sensitivity, and technical expertise with the right systems and processes in place, organizations can successfully manage their global workforce and drive business success. Well done.

    ReplyDelete
  2. Gamini EdirisingheApril 19, 2023 at 8:30 AM

    Administration of global human resources refers to the management of personnel across different countries and cultures. This involves developing and implementing strategies to recruit, train, and retain employees, as well as ensuring compliance with laws and regulations in each jurisdiction. It also involves addressing cultural differences, language barriers, and other challenges that can arise when managing a diverse workforce. Effective administration of global human resources requires strong communication skills, cultural sensitivity, and a deep understanding of the unique challenges and opportunities presented by different regions of the world.

    very good article .well done !

    ReplyDelete
  3. Sanduni KarunanayakeApril 19, 2023 at 9:13 AM

    As IHRM is an essential part of managing global business; organizations should apply strategies to mitigate challengers associate with IHRM like provide language training and cross clutural training programmes to reduce language barriers and understanding each other, establish effective compliance department to ensure organizational compliance with global and local laws and regulations, use effective HR strategy to address cultural , legal , language differences and use technology to improve communication (video conference , social media)

    ReplyDelete
  4. Anushka DarshanaApril 19, 2023 at 10:04 AM

    Pigors and Myers (2016) states that "domestic or international human resource management is a method of developing the potential of employees, so that they get the most out of their work and give the organisation their best efforts. IHRM involves the HRM issues and problems arising in global organisations and you pointed out the functions of each. good one.

    ReplyDelete
  5. M.Kamal PriyashanthaApril 19, 2023 at 11:07 AM

    International Human Resource Management (IHRM) is a specialized field of HRM that helps Multinational Companies (MNCs) manage their human resources across borders. It helps them adhere to the laws and regulations of the countries they operate in while effectively managing their workforce. Effective IHRM practices can lead to cost savings, improved global talent acquisition, and retention, which can ultimately lead to a competitive advantage for the company.
    Well done !!!

    ReplyDelete
  6. Rangana DilshanApril 19, 2023 at 9:12 PM

    As a result of globalization, IHRM concept has develop and spread world wide. To achieve the maximum productivity and engagement, MNCs should focus to manage their staff effectively where working in world wide. But for that as you have mentioned in the article barriers should be over come. I think main barriers are language and cultural barriers. Appreciated your effort.

    ReplyDelete
  7. Arjuna kangara April 20, 2023 at 2:54 AM

    Managing people globally is becoming more and more important for IHRM as finding, hiring, and keeping personnel for multinational corporations has become difficult. your have explained the situation very well.

    ReplyDelete
  8. Nuwan SampathApril 20, 2023 at 12:38 PM

    Administrative skills are important because they keep business processes running smoothly. Any successful, efficient organization should have both administrative professionals who have strong skills in this area, as well as individual contributors who have good administrative. good work

    ReplyDelete
  9. Uthpala RanasingheApril 22, 2023 at 7:14 AM

    IHRM is important because it enables businesses to successfully manage their human resources in a global environment. Companies can establish a happy and productive work environment, boost employee engagement and retention, and achieve their business objectives in foreign markets by understanding and tackling the specific challenges of managing employees in diverse nations and cultures. Important article

    ReplyDelete
  10. Dhanushka Jayanath April 22, 2023 at 8:28 AM

    The practice of caring for employees in a public or private corporation, for businesses that operate over more than one region or continent, is known as global human resource management.
    good article ,well done.

    ReplyDelete

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