Every organization has a department entrusted to manage human capital. The duties of the department include payroll and compensations, talent management and training. This department is referred to as the human resource department. When it comes to a global perspective of human resource department, it switches to global human resource management or global HRM. Global HRM is the umbrella that covers all aspects of HR in an organization, globally. The practice has come into being due to the coming together of the world's nation to carry out business on a global market. The growing linkages of companies around the globe call for a strategic global HRM software. It is important for organizations to understand the importance of this pillar. For this reason, John Drakes has made a YouTube video that covers the topic, as will be discussed in this paper.
When trying to understand the importance of Global HRM, one must first understand how it comes to be. Companies are growing at a fast rate and spreading their services to other counties around the globe. What drives an organization is its strategy, vision, values, and mission. The senior most employees of the organization will expect all branches are upholding these driving factors, irrespective of the location. Unfortunately, an organization should also have a flexible strategy that allows it to fit in anywhere. Therefore, it becomes difficult for it to have the same practices in two different countries with different cultures. For example, some values that are acceptable in America may be rejected in Africa. The company has to find ways to make sure it adjusts the values to penetrate the foreign market. Corporate and local managers will then influence the practices of the organization depending on jurisdiction (Drake, 2011).
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At this point is when global human resource managers come in as explained by Drake. The global human resource managers will have the task of coming up with new and flexible programs that suit the needs of the employees in the new location. They must also be careful not to deviate too much from the core values of the primary organization. There are many aspects to be handled when coming up with the new programs. These include management of benefits, ethics, and compensation. Also, the global human resource managers should be aware of the different labor laws in different nations. Thus, this should also be put into account (Drake, 2011). Other factors that count are cultural norms that can define the working culture of the organization and their dress code. For example, an organization that sets up a new branch in a country dominated by Muslims should take into account the Islam laws on work and dress code.
In his YouTube lecture, John Drakes points out that the most significant practice that can make global HRM prosper is understanding cultural diversity. A global human resource manager with the understanding of the different cultures of people has an easier time implementing the organization’s values while making sure the needs of the employees are met. On the other hand, arrogant leadership can easily lead to the fall of an organization. The problem with many global organizations is that they rarely practice what they preach. They ill advocate for diversity inclusivity yet have rigid values and poor understanding of different cultures. For a company to succeed in penetrating foreign markets, it has to accommodate the different cultures so that people conform to it (Drake, 2011).
Besides market penetration, another advantage of understanding different cultures is identifying the best talent. The first step is being warm to the local people of the new location which can be achieved by CSR activities. Once the people feel the impact of the organization they will be willing to work within the organization. In doing so, a human resource manager can filter out a local employee with the best skill set. Drake emphasizes the importance of employing a person who is self-driven as opposed to just looking for skills. He continues to point out that having a firm with employees with a bad attitude cannot lead to success, even if they have the best skill set. An employee without drive will always be pushed around and may not be innovative in their line of work, making them cumbersome to work with. The human resource manager has to be aware of such a factor when employing new staff members (Drake, 2011).
In conclusion, Drake emphasizes that global HRM has a high influence on the success of an organization. The department plays a vital role in ensuring that an international company has the local feel in its operations. Just like any other human resource department, their tasks include hiring, compensating and offering training. However, they are also supposed to ensure they appeal to the local community without compromising the organization's global identity. Global human resource managers should also ensure that the local managers are practicing cultural sensitivity and working well with the local employees. Productivity is always increased if the employees are satisfied with the workplace.
References
Drake, J. (2011). Global human resource management . [Video File]. Retrieved from https://www.youtube.com/watch?v=n2ZAmwpwMFg
