When conducting IHRM, there is the understanding that there is \"global standard

Question

When conducting IHRM, there is the understanding that there is "global standardization" or "global integration" of functions; however, this must be considered and compared to the "localization" of each group of employees' and regions' needs. Each approach has its strengths and weakness. For this discussion board, discuss how an organization's structure, strategy and stage of development can impact the decision to have globally standardized, or locally responsive IHRM practices. Be sure that your post conforms to the initial post guidelines.

Explanation / Answer

IHRM or international human resource management includes those activities that are aimed towards the efficient management of organizational human resources at an international level. The goal of IHRM is to achieve organizational objectives and competitive advantages both at the national as well as at the international level.

An organization’s structure, strategy and stage of development can impact the decision to have globally standardized, or locally responsive IHRM practices. For instance if a company is in its growth phase and hence is rapidly expanding in different countries then it will do well to have a globally standardized practice for higher efficiency. In such a case functions like recruitment and selection of employees, training and development, performance management, remuneration, and multi-cultural management will have a standardized approach. The company’s structure and strategy would have evolved (from its earlier initial days) and hence it will be in a position to develop a multicultural management for its advantage. Having a globally standardized approach will be necessary for such companies as they will need to have a super-organizational culture. Their HR policies and practices will have to be universally acceptable.

On the other hand if a company is in its initial stage and is slowly expanding its footprint then it will need to have a locally responsive IHRM practice. The company will have to account for cultural differences, different labor laws, different political climate, and different stages of technological advancement in different countries and locations. In such cases localization of IHRM is necessary as companies need to be more flexible, adaptive and locally responsive in its initial days when its structure and strategy are still evolving.

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