Global Mindset in Human Resource Management

Global Mindset in Human Resource Management

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Global Mindset and Human Resource Management

Human Resource Management or the HR-Function is within a „Global-Local -Dilemma“. Due to the internationalization process of Multinational Companies and Small- and Medium-sized (SMEs) firms the complexity of the HR tasks increases significantly.

 These are for example more HR activities, such that HR needs to take a broader perspective, that the HR representatives need to involve more in employees personal lives, they need to handle different employees such as Expatriates, Inpatriates and organize the Repatriation of employees.

The Headquarter (HQ) must decide which people to select for an international assignments. HR departments overall handle the Parent Country Nationals, Host Country Nationals and the Third Country Nationals. This is visible in the next Figure. 

 

The Headquarter (HQ) needs to organize internally more HR tasks such as:  

• International Taxation;
• International Relocation and Orientation;
• Administrative Services for Expatriates;
• Host-government Relations;
• Language Translation Services.
• Performance Management
• Human Resource Planning.
• International Staffing (Recruitment, Selection, Placement).
• Training and Development
• Compensation (Remuneration) and Benefits.
• Industrial Relations
• Assessments
• Transformation and Change-Management

With all of these HR-Tasks, the HR-employees need to handle the Global-Local-Conflict which means that some HR aspects can be globally standardized and globally integrated and some other specific aspects of HR tasks need to be locally adapted.

Some Factors drive Standardization in the HR Department are such as: 

• pursuing a multinational or transnational corporate strategy
• supported by a corresponding organizational structure; that is
• reinforced by a shared worldwide corporate culture and corporate DNA.
• Global core values, vision, mission, standards
• Diversity concepts
• Global IT platform, learning tools, knowledge management
• Career programs and development, succession planning

Some Factors in the HR Department which might drive Localization are such as:

• the cultural and institutional environment and features of the local entity itself.
• Local Training
• Language Classes
• Education Differences and Education at all
• Recruiting issues
• Legal issues
• Coaching and Mentoring, Cultural-Awareness Trainings

To put it simply, there should be a balance between Global Standardization and Localization of Human Resource Management. Therefore the coordination, commmunication and control process needs to be harmonized within these conflicting forces between the Headquarter and the Subsidiaries.

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