Globalization has forced companies to compete in the international market. While many companies are thriving, some are failing due to increased global competition. The difference in these companies’ performance is attributed to human resource management practices. Free trade agreements, technological advancements, and information technology platforms' development necessitate integrative HRM practices (Snell et al., 2012). Therefore, organizations moving from an international form to a multinational, global, and transnational form must consider managing practices, training and development, compensation, and performance appraisals across borders.
One major issue that companies must consider when changing form is staffing. The company might choose to employ home-country nationals, host-country nationals, or third-country nationals. Staffing considerations are dependent on whether the host country has policies and incentives that encourage staffing from the local labor market (Snell et al., 2012). While recruiting internationally, HR has to consider the cultural, political, and legal environments, which influence employees’ legal and ethical behavior. Companies can develop an international ethics program in different languages to help employees develop cultural sensitivity.
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Another important issue is the regulatory environment regarding recruitment and training, pay and incentives, and retirement provisions. For example, some countries allow criminal background checks while others do not. Selecting international employees requires HR managers to have intimate knowledge of the local market and hiring customs (Yamamoto & Lloyd, 2019). When choosing transnational teams, offering cross-cultural training could help them overcome language and cultural barriers (Tenzer et al., 2017). Training and development is another crucial HR issues that organizations must consider. Training develops competence and attracts employees. Different countries have different employee compensation practices. Compensation is one of the most complex HR issues companies should consider when expanding internationally. Lastly, companies should consider performance appraisals of employees working abroad (Snell et al., 2012). Considering these issues ensures that the organizations can maintain a competitive advantage in the global context.
Conclusion
Considering major HR issues as organizations move from an international form to a multinational, global, and transnational form determines their success. The labor environment differs worldwide, from recruiting and compensation practices to performance appraisals. Organizations must create integrative HR management procedures and policies that allow them to adapt to differing labor environments and maintain productivity.
References
Snell, S. A., Morris, S. S., & Bohlander, G. W. (2012). Managing human resources . Cengage Learning.
Tenzer, H., Terjesen, S., & Harzing, A. W. (2017). Language in international business: A review and agenda for future research. Management International Review , 57 (6), 815-854. https://doi.org/10.1007/s11575-017-0319-x
Yamamoto, K., & Lloyd, R. A. (2019). Ethical considerations of Japanese business culture. The Journal of Business Diversity , 19 (2), 113-122. https://search.proquest.com/openview/a1953e2b85c2f8cf868972880daabda4/1?pq-origsite=gscholar&cbl=1576345
