Monday, December 18, 2023

Strategies in Global Human Resource Management




Global human resource management (HRM) stands as an important pillar within multinational organizations, intricately involved in effectively managing human resources on a global scale to achieve organizational strategic objectives (Dowling et al., 2008). This exploration looks deeper into each strategic approach—Ethnocentric, Polycentric, Geocentric, and Career Development.

 

Ethnocentric Approach



The ethnocentric approach, which involves hiring people from the parent company for key positions, helps to keep the company's culture stable (Perlmutter, 1969). However, cultural blindness could be a problem because it makes it harder to understand and communicate with people from other cultures (Perlmutter, 1969). Perlmutter's important work shows how ethnocentrism can be hard, especially when trying to fit in with different cultures.

 

Polycentric Approach



The polycentric method, on the other hand, gives control of subsidiaries to people from the host country. This reduces cultural myopia and makes the most of the skills of local managers (Perlmutter, 1969). Still, it could be a problem for local managers because they won't be able to move up in their careers as easily, which could make them unhappy at work and make them feel alone (Briscoe et al., 2009). Briscoe et al. use real-life cases to show how important it is to use context-specific strategies to deal with these problems.

 

Geocentric Approach



The geocentric method promotes hiring people from around the world based on their skills, with the aim of building a strong company culture (Perlmutter, 1969). However, implementation is slowed down by problems caused by immigration rules, which makes the process more difficult and expensive (Dowling et al., 2008). The study by Dowling et al. shows how important a company's resources and dedication to diversity are for implementing geocentric tactics effectively.

 

Career Mobility and Development Approaches


Cross-functional training and foreign assignments are two examples of career development programs that are very important for building skills and a global mindset (Stroh et al., 2005). Stroh et al. found that these programs not only help people from different cultures communicate better, but they also help find employees with a lot of promise. In a global setting, it's important to have effective career development to find, keep, and grow talent in a wide range of locations and roles.

 

Programs for career growth, like cross-functional training and international assignments, are very important for building skills and a global mindset (Stroh et al., 2005). According to Stroh et al., these programs not only help people from different cultures communicate better, but they also help find employees with a lot of promise. Effective career development is essential for attracting, keeping, and developing talent across a wide range of roles and locations in a global setting.

 

 

References:

 

Briscoe, D. R., Schuler, R. S., & Tarique, I. (2009). International human resource management: Policies and practices for multinational enterprises. Routledge.

Dowling, P. J., Festing, M., & Engle, A. D. (2008). International human resource management. Cengage Learning.

Perlmutter, H. V. (1969). The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4(1), 9-18.

Stroh, L. K., Gregersen, H. B., & Black, J. S. (2005). Closing the gap: Expectations versus reality among repatriates. Journal of World Business, 40(4), 383-398.

12 comments:

  1. It's great that you raised cross-functional training. Now most companies in Sri Lanka feel just providing an on the job training would be sufficient, there are some that don't understand that getting the best out of employee means investing in them to make them better so that they can do better.

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    1. I was thinking the same thing! In depth training is so important!

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    2. I think that cross-functional training does improve the versatility in employees and make them better managers in long the long run.

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  2. Agreed cross functional and international training will create more creativity and knowledge, also it will create networking a
    team building which will makes employee flexible at work. According to NATO (2023) "Moving away from traditional silos and stovepipes and towards a collaboration mind-set is key. With so many diverse subjects and concepts, stakeholders at Allied Command Transformation must have a culture of cross-functionality, which will be built on a strong baseline of knowledge, and transformed through improved interactions,” said by Lieutenant Colonel Jozsef Lengyel.

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    1. Absolutely. Networking is a vital aspect in a person grooming to become a leader one day. Cross Functional and International trainings does provide a good exposure and plays a pivotal role when it comes to personal development.

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  3. The application of the three approaches depends on the context. For instance, Ethnocentric can be applied for a designation such as Manager for administrative persons from the parent company's country while having local employees from the host country.

    To be developed as a versatile leader is to have a global view. That is the person needs to be working in different positions around the world to harness the skills required to be a global leader. This will enable to understand the different cultures, religions and languages. Such challenges will harness the person to be able to manage diverse teams in a localized company.

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  4. Agreed. All these approaches have pro's and con's. Further, none of these approaches could be applied alone in the practical scenario. When it comes to the reality, we should be flexible enough to adopt each one of these as and when required to ensure our survival.

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  5. Agreed. The strategies in Global Human Resource Management (GHRM) touch on crucial aspects like cultural sensitivity, talent acquisition, and technology integration. These concise guidelines encapsulate the essence of managing a diverse global workforce effectively.

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  6. You have pointed out some great approaches. Specially professional development is a great timely approach that is ongoing and applied to practice which is known as a lifelong learning. Because it includes reflecting, planning, learning, applying, and evaluating, it goes beyond traditional continuing education. These activities are referred to as “self-directed, ongoing, systematic, and outcomes-focused.” Over the past ten years, as the profession has changed, so too have the habits and perceived value of CPD.

    Early career development and organization of CPD habits enable a deliberate, adaptable approach to career mobility. In addition to helping with their current practice and supporting their career goals, pharmacists can guarantee their continued competence by actively engaging in both formal and informal learning activities. Following the creation of a career plan, novice practitioners ought to pinpoint particular opportunities for professional growth that are targeted at reaching their predetermined objectives. (Ochoa et al, 2020)

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  7. The polycentric approach draws attention to possible obstacles to career advancement for local managers. How can businesses solve these issues and guarantee that skilled local professionals are satisfied and stay with the company?

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  8. True Pandula. That is why a mixed approach based on the requirement and other critical factors, should be the tactic.

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Strategies in Global Human Resource Management

Global human resource management (HRM) stands as an important pillar within multinational organizations, intricately involved in effective...