5 functions of global human resource management
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
May 7, 2022
5 functions of global human resource management
The functions of human resource management are designed to recruit potential
employees, hire and train them, and then support them in improving their performance so they
can reach their full potential and help the organization achieve its targets. Put simply, it is
important to find the right people, develop their skills over time, and create an environment
where they can do their best work.
No matter the industry or the size of the organization, human resource management plays
a lead role in the success of the business and its people. Here are five of the functions of human
resource management.
1. Recruitment and hiring
One of the most well-known functions of human resource management is recruitment
and hiring. To remain competitive in the industry, businesses need to attract and retain top
talent.
The HR team typically meets with a hiring manager to learn more about open positions
and gain a detailed understanding of the kind of people that will fit best in those roles. While
they also consider education, experience, and skills, HR must look at personality traits and
working styles to increase the chances of long-term compatibility.
A strategic HR department has a long-term recruiting and hiring plan that aligns with the
company’s growth goals. This plan includes creating job postings and sharing them through
their networks, screening incoming applications, conducting interviews, performing reference
and background checks, and finalizing hiring paperwork.
Recruitment is the process of captivating, screening, and selecting potential and qualified
candidates based on objective criteria for a particular job. The goal of this process is to attract
the qualified applicants and to encourage the unqualified applicants to opt themselves out.
Before starting the process of recruitment, the companies must execute proper staffing
plans and should grade the number of employees they are going to need. Forecasting of the
employees should depend upon the annual budget of the organization and short-term and
long-term goals of the organization.
Recruitment and selection process is very important to every organization because it
reduces the costs of mistakes such as engaging incompetent, unmotivated, and underqualified
employees. Firing the unqualified candidate and hiring the new employee is again an expensive
process.
2. Onboarding and ongoing training and development
Once a company hires employees, it is vital to properly onboard and train them so they
have the tools to excel in their roles. Human resource management provides onboarding for
new employees, which can include sharing the company mission, vision, and values, in addition
to internal policies and procedures. It may also include safety training, depending on the
workplace.
In addition to onboarding, HR also facilitates ongoing professional development through
training, seminars, workshops, and certifications. They may create internal training or
outsource it to training experts. Investing in employees’ professional development helps build
loyalty and reduce turnover, not to mention increasing performance and productivity.
Many organizations do not provide a thorough orientation to the new employees. This is
the fundamental step to help a new employee to adjust himself with the employer and with his
new job. Employee orientation program should include the objectives and goals of the
organization and how the employee can help to achieve the long-term and short-term goals of
the organization.
Giving intensive orientation to the employee is one of the major functions of human
resource management. The program should help the employee to know his assigned duties and
his exact job description, job role, and the relationship of position to other positions in the
organization. It gives clarification to the employee to take an active role in the organization.
3. Managing employee and employer relationships
A company’s success relies on its people, so human resource management must focus on
fostering healthy relationships among all levels of employees.
This can include conflict resolution during tense situations or negotiating positive
outcomes for all involved parties. It may also include providing specific types of training, such as
anger management or mindfulness, to ensure employees have the resources to manage
themselves effectively in the workplace.
Employees are the pillars of any organization. Employee relationship is a very broad
concept and it is one of the crucial functions of human resource management. It also helps to
foster good employee relations. They have the ability to influence behaviors and work outputs.
Management should Organize activities which will help to know an employee at the
personal and professional level. Well-planned employee relations will promote a healthy and
balanced relation between the employee and the employer. It is the key for the organization to
be successful.
4. Creating a rewarding company culture
One of the most overlooked functions of human resource management is developing an
engaging company culture. Keeping employee morale high does not happen only during team
lunches or after-work drinks. It happens through the ethos of the company — the mission,
vision, and core values.
Another HR responsibility includes making sure employees have competitive pay and both
tangible and intangible benefits. The department should identify potential negative workplace
cultural issues that could create problems among employees and help steer the organization in
the right direction.
It is the responsibility of the human resource management to provide good working
conditions to the employee so that they may like the workplace and the work environment. It is
the fundamental duty of the HR department to motivate the employees. The study has been
found that employees don’t contribute to the goals of the organization as much as they can.
This is because of the lack of motivation.
Human resource management should come up with a system to provide financial and
non-financial benefits to the employee from the various departments. Employee welfare is
another concept which should be managed by HR team. Employee welfare promotes job
satisfaction.
5. Overseeing disciplinary action
A difficult aspect of human resource management is disciplining employees when
required. HR professionals must have a disciplinary process in place and must ensure all
employees are aware of it as part of their onboarding.
If an incident occurs that requires disciplinary action, HR may need to notify the employee
with a written warning and include it in their file. It may even be necessary to suspend, demote,
or terminate the employee, depending on the issue. It is best to have a legal expert on the HR
team who can ensure the company follows all labor laws properly in terms of disciplinary
actions.
Functions of human resource management can also include meeting compliance
regulations and industry safety standards, maintaining the integrity of employee data, and
overseeing employee benefits. Above all, the goal is to support employees in performing to
their full potential to help the company reach its objectives.
Training and development are the indispensable functions of human resource
management. It is the attempt to improve the current or future performance of an employee
by increasing the ability of an employee through educating and increasing one’s skills or
knowledge in the particular subject.
The concept of International Human Resource Management (IHRM) is pretty simple to
understand. This term can be apt for any organization that manages HRM activities like
recruitment, selection, onboarding, training, etc. at an international level.
With the global talent shortage, the popularity of IHRM operations is expected to increase
further in the coming years. Did you know that 45% of employers are unable to find the
skills they’re looking for? Hence, with the widespread digital revolution, it is expected that
these employers will search for new talents in other countries. In that case, it is necessary for
HR professionals to possess an in-depth understanding of IHRM operations.
In this article, we’ll explain the idea of IHRM and various other concepts associated with it.
So, without further ado, let’s get started.
What Is International Human Resource Management?
International Human Resource Management is all about the regular HRM activities but at
the international level. IHRM helps an organization manage its objectives without sacrificing its
competitive advantage in an international scenario.
The idea behind global human resource management is much similar to regular HRM. An
IHRM professional is typically responsible for handling activities like hiring new talents,
onboarding and training them, managing appraisals to expedite global HRM operations.
Multi-National Companies (MNCs) have an active IHRM team that manages the
requirements of their universal employees at an international level. Wondering about the types
of employees that IHRM departments handle?
Let’s find out.
The employees residing in your home country
This means the employees who are living in the home country of an organization where
its headquarters are situated. For instance, Wal-Mart is a US-based company and the citizens of
the US are its home country employees.
The employees residing in the host country
By this, we mean the employees of that very country where an MNC’s subsidiary is
located. For instance, Wal-Mart has 2000+ stores in Mexico. Hence, the employees working in
these stores will be the host country employees.
Any third-country employee
Employees who are neither from the home country nor from the host country have been
hired additionally, fall under this category. For example, an Australian employee is working in
the corporate headquarters of Wal-Mart, in the US. This person is a third-country employee of
Wal-Mart.
Most of us are familiar with the term ‘human resources’, usually abbreviated to
‘HR’. We’re also likely to know the term refers to a department that handles the needs of
employees. However, the full remit of an HR department is often less understood – and
global human resource management adds another level of complexity to this important
function.
Increasing accessibility to the internet, along with the rapid advancement of technology
in general, has made the world more connected than ever. Even the smallest, most niche
companies can have not only a global audience, but a global workforce.
Globalisation is creating companies that are more diverse and international than ever
before, and with this comes a new set of considerations that employers must face.
Enter global human resource management.
What makes global HRM different?
Global human resource management addresses the familiar requirements of an
organisation’s workforce, along with the additional factors introduced by businesses operating
on global platforms, and on global scales.
From recruitment to retention, to compensation and company culture, this function
considers how global variations (both subtle and pronounced) are taken into account. These
can include:
Legal factors: complying to different political conditions and legalities across countries,
along with helping the company adapt to changes in said systems.
Economic factors: analysing differences in labour costs, which includes the value of non-
traditional compensation / benefits such as flexible hours or travel schemes.
Cultural factors: understanding how a country’s unique culture might affect any given
employee’s experience with the company, and working to alleviate barriers or imbalances that
might have been created by this.
Why does global HRM matter?
Put simply, global human resource management helps companies realise their global
business goals. These will vary significantly across organisations – but is testament to
the substantial impact HR can have on a business.
For example, multinational corporations with offices in host countries may wish to
balance their international appeal with a more local feel that’s catered to their employees. Such
situations will fall under the remit of the global HRM team. This demands a unique approach to
encouraging a healthy, productive workforce – for as we all know, no company can
flourish without one.
And while different offices will develop their own specialised processes, centralised
decision-making is still essential for an international workforce. A successful global HRM team
will be able to set up systems to enable this.
Relatedly, an effective function will help coordinate different cultural and geographical
differences during these communications. This even extends beyond working practices,
to include wellness programmes such as team building.
Essentially, global HRM ensures that a company’s policies and processes fully
support its worldwide vision - providing the knowledge, tools, and oversight needed to create a
successful working environment across a diverse set of employees and teams.
Such a function empowers workforces to perform at their highest level, which in
turn enables businesses to meet their goals while operating seamlessly and ethically.
