The role of human resource management is present in all organizations. Human resource management (HRM) can be used strategically by organizations to develop and implement processes that enhance organizational objectives. The strategy of HRM should be to link the human resource process to specific objectives that impact how employees should effectively be managed. As an organization grows from operating domestically to internationally, the role of HRM functions must expand into new and broader responsibilities. When a domestic organization expands to foreign markets the HRM function must adapt to changing and far more complex environments. This paper will discuss the strategic role of HRM in the global business environment.
Organizations often have people in roles as 'business partners' whose role is to provide advice to senior managers on aspects of HRM, and to be a source of consultancy and executive decisions (Tyson, 2007). Business partners are generally very close to the day-to-day operations, business models, and development expectations of the organization.
Most often, they are aware of the factors affecting customers, structures, prices, costs, and staff and provide data to assist the organizational growth (Tyson, 2007).
Business partners who face global expansion have the need to understand some basic concepts such as employment laws, pay structures, and similar practices in host countries. With HRM, the organizations and HR managers need to understand the degree to which shared influences occur in host countries and understand the impact of other uncommon influences such as child labor laws and civil or political unrest in the host country. To accomplish this, the HR manager of a global organization has to possess knowledgeable resources such as peers or other experts in the host country. The HR manager must also possess credible demographic, cultural, legal and marketing data or specialized training relative to the host country (Dowling...