Globalization and Internationalization of HRM: A Comparative Analysis

This essay delves into the concepts of globalization and internationalization within the context of Human Resource Management (HRM). It begins by defining these terms and reviewing relevant literature, setting the stage for a comparative analysis of localization and standardization strategies. The essay then provides a detailed justification for both approaches, illustrating their practical application with examples from various multinational corporations. Companies like Airbnb, Netflix, Coca-Cola, and Apple are used to highlight the benefits and drawbacks of each strategy. The analysis considers factors such as cultural adaptation, market demands, and brand consistency. The conclusion synthesizes the key findings, emphasizing the importance of strategic decision-making in adapting HRM practices to a globalized business environment.

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GLOBALIZATION AND INTERNATIONALIZATION OF HRM
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Table of Contents
Introduction......................................................................................................................................2
Literature review of related concepts..............................................................................................2
Justification for localization............................................................................................................3
Justification for standardization.......................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
Globalization can be defined as a process that is able to integrate economies of different
countries and internationalization on the other hand is an improvisation based process that leads
to the expansion of business operations across various nations. The process is mainly based on
the ways by which the business operations are brought to various parts of the world.
Internationalization is considered to be a practice that helps in designing the products, internal
operations and services that offered to the consumers in various international markets (Asante,
2017). The statement that has been taken into consideration is mainly based on the challenges
that are being faced by the multinationals based on creation of a system which operates in
various countries in an effective manner (Crane et al., 2019). The report will be based on the
detailed analysis of various aspects that are related to standardization and localization aspects of
the organizations. The examples will be based on different organizations that implement
standardization or localization based activities.
Literature review of related concepts
Globalization is mainly based on the speeding up of the exchanges and movements in
various parts of the world. A major effect of globalization is related to the ways by which it is
able to promote and increase the levels of interactions between the various populations and
regions across the world. The enhancement of interdependence and interconnectedness of
countries and individuals is considered to be a major aspect that is related to the process of
globalization (Crane, Kawashima & Kawasaki, 2016). Globalization mainly includes two major
interrelated elements that include the opening of the international borders to enhance the fast
flow of the services, goods, people, ideas and finance. Globalization also plays a key part in the

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methods by which interdependence of the economies of the world can be increased along with
the flow of international capital in diverse parts of the world (Dau et al., 2019). This is also able
to influence the marketization and productive activities that are considered to be important
driving forces for the economic globalization based aspects.
Globalization can take place in various parts of the world based on different types that
include economic globalization, financial globalization, cultural globalization, political
globalization, sociological globalization, technological globalization, geographic globalization
and ecological globalization. Globalization is able to provide major levels of benefits that is able
to cover various areas. The developed and emerging economies in different parts of the world
have started increasing the cultural exchanges in an effective manner. The enhancement of
economic exchanges in different parts of the world have an impact on the economic growth on a
global basis (de Wit et al., 2017).
Internationalization is mainly a corporate strategy that mainly involves the development
of services and products that are adaptable in nature and can enter the various national markets
easily. The process of internationalization is mainly based on the assistance that is provided by
the experts in various subjects and the industry experts as well. In most of the cases the
companies first aim at internationalizing the products and then localizing them in different
countries or markets (Hamilton & Webster, 2018).
Justification for localization
Localization is considered to be the process of adaptation of the services or products that
are helpful for the firms so that they are able to meet the demands and needs of the customers in
different parts of the world. The products or services are considered to be successfully localized

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in nature if it appears to be based on the local culture. Different aspects that are mainly taken into
consideration for the purpose of proper development of the products include money, time zones,
national sensitivities, service or product name based translation (Karlsson, Cornett & Wallin,
2018). The process of language translation is considered to be an important aspect that is related
to localization. The services or products are mainly developed so that the localization can be
achieved easily. The products and services are mainly localized in order to fulfil the needs and
demands of the local people in various parts of the world. Localization is considered to be an
important part of the internatiolization process that is implemented by the organizations (Lowe &
Neubauer, 2019).
The example of Airbnb can be taken into consideration for understanding the concept of
localization. The organization has been able to disrupt the tourism and hospitality based industry
in around 34,000 cities and more than 190 countries of the world. The strong localization based
strategy of Airbnb has been able to improve the security and trust levels of the consumers
towards the brand. The user profiles of Airbnb are also depicted in local languages and the
organization has further added the translate button in order to allow the users so that they are
able to select the preferred languages (Neubauer & Edwards, 2019). The local payment based
options and sense of universal belonging to the community is also considered to be a major
aspect that is related to the localization strategy of Airbnb.
Another major example that can be taken into consideration for analyzing the concept of
localization is Netflix. Netflix has been successful in establishing itself as the leading internet
television provider in the world with the help of services that are provided to 75 million
consumers in more than 190 countries of the world. The organization has also experimented with
the tools and models related to localization in order to offer the services to consumers in different

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parts of the world. Netflix has also been able to become a huge cultural phenomenon of the
current generation as the organization has been able to understand the value that needs to be
provided to the viewers with the help of localized content that is offered to them (Papastergiadis,
2018).
Ikea can also be considered to be a major example of an international organization that
aims at the implementation of localization in order to offer the products to customers in different
parts of the world. The organization has developed its showrooms in such a manner so that the
furniture can be manufactured with respect to the demands and needs of local customers who are
visiting. The customizable furniture products of Ikea have been able to improve the levels of
localization of the organization (Vahlne & Jonsson, 2017).
Justification for standardization
Standardization is considered to be a process that is based on the proper application and
development of technical standards that are mainly related to the consensus of various parties
which include the users, firms, interest groups, governments and the standard organizations. The
standardization process can also help the organizations so that they are able to maximize the
levels of compatibility, repeatability, quality or safety. The standardization process is also able to
facilitate the levels of commoditization of the custom processes in order to develop the products
or services that are offered to customers in different parts of the world (Picciotto, 2017).
The example of Coca Cola Company can be taken into consideration for the purpose of
understanding the proper implementation of standardization process. Coca Cola has aimed at
implementing global standardization in the process of marketing by not implementing any
changes in the look of the products. The design based themes that are used by Coca Cola are

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based on different languages and are presented to the customers in different parts of the world.
The marketing of Coca Cola is also able to maintain a consistent theme that is able to help the
organization so that it is able to reinforce its image (Lowe & Neubauer, 2019).
Another example of a firm that can be linked with global standardization is Apple. The
products that are offered by Apple to the customers in various parts of the world are based on
similar standards. The company has aimed at maintaining its premium image in various countries
of the world with the help of the high priced and high quality based products. The store designs
of Apple in various countries of the world are also considered to be similar in nature and this is
able to influence the image that has been formed by the organization as well (Crane, Kawashima
& Kawasaki, 2016).
Conclusion
The report can be concluded by stating that globalization related factors have a major
impact on the operations of international firms in different parts of the world. The organization
that aim at offering their products in different country or market aim at implementing
localization or standardization for the purpose of developing the product base. Different
organization implement different strategies with respect to the types of products that they offer
and the vision that has been developed by them as well.

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References
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Crane, D., Kawashima, N., & Kawasaki, K. I. (2016). Culture and globalization theoretical
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Dau, L. A., Moore, E. M., Barreto, A. A., & Robson, M. A. (2019). Economic Nationalism and
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de Wit, H., Gacel-Avila, J., Jones, E., & Jooste, N. (Eds.). (2017). The globalization of
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Neubauer, D. E., & Edwards, S. (2019). Introduction: Contesting Globalization and Its
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