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Managing Global Human Resources
Erol Baki
Management 330 ? Theory, Practice, & Application
John Lemire
May 13, 2005
The environment in which business competes is rapidly becoming globalized. More and more companies are entering international markets by exporting their products overseas, building plants in other countries, and entering into alliances with foreign companies. Global competition is driving changes in organizations throughout the world. Companies are attempting to gain a competitive advantage, which can be provided by international expansion. Deciding whether to enter foreign markets and whether to develop plants or other facilities in other countries is no simple matter and many human resource issues surface. (Noe, Hollenbeck, Gerhart, and Wright; 534)
Doing business globally requires that adaptations be made to reflect cultural and other factors that differ from country to country and from continent to continent. The nature and stability of political systems vary in character and stability, with contracts suddenly becoming unenforceable because of internal political factors. Human resource regulations and laws vary among countries in character and detail. In many countries in Western Europe, laws on labor unions and employment make it difficult to reduce the number of workers because required payments to ex-employees can be very high. Equal employment legislation exists to varying degrees. In some countries, laws address issues such as employment discrimination and sexual harassment.
Cultural forces represent another important concern affecting international human resource management. Culture is composed of the societal forces affecting the values, ...