City University: BAMG3117 Globalization and International HRM Essay

This essay examines the impact of globalization on international Human Resource Management (HRM). It begins with an introduction highlighting the complexities of operating in diverse nations and the significance of distinguishing between domestic and global HRM. A literature review explore...Read More

Globalization and International hrm

Globalization and International HRM 1
Contents
Introduction...........................................................................................................................................2
Literature review...................................................................................................................................2
Evaluation and differences between domestic and international HRM..................................................2
Conclusion.............................................................................................................................................3
References.............................................................................................................................................4

Globalization and International HRM 2
Introduction
The globalization has enabled companies to operate in different nations but it is accompanied
by some complexities. The intricacy of functioning in diverse nations and retaining diverse
national categories of workers is a significant variable that discriminates domestic and global
HRM. The variations remain between nations. A company set up in the new nation requires a
new jurisdiction, appropriate knowledge, and assistance to attain the aims. The companies
operating on a global basis have to employ the different categories of workers therefore it has
become a key variable in distinguishing domestic and international HRM.
Literature review
According to Chung, 2018, the factors which drive the intricacy of functioning in different
nations comprise legislative changes, reporting requirements, labour laws, penalties for
noncompliance, and accounting and tax requirements. Dalton and Bingham, 2017, stated that
the legislative changes are becoming more common in a nation to become more appealing for
investment. Although the intention behind the legislative changes is generally positive. The
reporting requirements are becoming more severe to drive transparency and investor
confidence in tax evasion and undertaking money laundering.
As per the opinion of Cooke, 2018, labor laws have a great role in the driving complexity of
operating in different countries as companies are integrated as a legal entity and major sprints
for the companies. The penalties imposed are regarded as disproportionate high in several
jurisdictions. Other than this, it has been observed that domestic companies propose their
own reporting formats like VAT refunds are exposed to several treatments relying on the tax
office. For instance, Lego faced serious financial problems while operating in different
nations. The company had to reduce expenses and revitalize sales in order to remain viable.
Therefore, the company decided to transform its supply chain. Lego even decided to do
special care in opting for locations of manufacturing and distribution facilities. The company
is having a major distribution center in Prague and operates warehouses in Denmark, Mexico,
and Eastern Europe. Lego chooses the location of selecting locations of its manufacturing and
distribution facilities and serves quickly by continuing facilities in spite of outsourcing
production to Asia.

Globalization and International HRM 3
Evaluation and differences between domestic and international HRM
The domestic and internal HRM are differentiated on the basis of indicators like increased
functional activities, functional heterogeneity, enhanced involvement in the worker’s
personal lives, increased risks and progressed influence of the external environment
(Horwitz, 2017). The domestic HRM functions within the set, local and national borders.
Whereas international HRM follows more rules and regulations comprising strict global
policies such as policies concerning taxation at the global sites, employment protocols and
distinct work certifications (Farndale, et al. 2019).
On the other side, in the case of domestic HRM, the rules and guidelines are just about the
local taxation and usual employment-related matters. The international HRM has a wide
perspective as it caters to diverse types of workers like HCNs, PCNs, and TCNs (Farndale,
ET AL. 2019). When it comes to managing human resources internationally, the functional
activities of HR departments increase multi-fold. Such activities comprise cross nation
relocation, dealing expatriation, global taxation and more (Bretos, Errasti and Marcuello,
2018).
Conclusion
The internal HRM activities are prejudiced by the larger number of external factors than the
domestic HRM. The international HRM is likely to host in several nations, therefore, has to
pact with political figures, minister and various social and economic interest groups. The
international HRM has more functions and adheres to strict global rules.

Globalization and International HRM 4
References
Bretos, I., Errasti, A. and Marcuello, C., 2018. Ownership, governance, and the diffusion of
HRM practices in multinational worker cooperatives: C ase‐study evidence from the M
ondragon group. Human Resource Management Journal, 28(1), pp.76-91.
Chung, C., 2018. Making sense of global integration and local responsiveness in international
HRM research. International Journal of Multinational Corporation Strategy, 2(2).
Cooke, F.L., 2018. Concepts, contexts, and mindsets: Putting human resource management
research in perspectives. Human Resource Management Journal, 28(1), pp.1-13.
Dalton, K. and Bingham, C., 2017. A social institutionalist perspective on HR diffusion:
historical and cultural receptivity to HRM in a post-communist context. The International
Journal of Human Resource Management, 28(6), pp.825-851.
Farndale, E., Horak, S., Phillips, J. and Beamond, M., 2019. Facing complexity, crisis, and
risk: Opportunities and challenges in international human resource
management. Thunderbird International Business Review, 61(3), pp.465-470.
Horwitz, F., 2017. International HRM in South African multinational companies. Journal of
International Management, 23(2), pp.208-222.