Major challenges, which must be managed and resolved by a global corporation, Human Resource Management.

Essay by mainiacUniversity, Master'sA+, January 2005

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Based on the exhibit 4 - 2, (pg. 105, John M. Ivancevich). What are some of the mistakes that human resource managers make in employee selection and when providing services to employees assigned to work with international operations? How does the challenges compare to setting up human resource management operations in the domestic environment?

With the emergence of the North American Free Trade Agreement (NAFTA), a more powerful European Union (EU), the opening of China to trade and foreign investment, and the influence of entities such as the General Agreement on Tarrifs and Trade (GATT) and the World Trade Organization (WTO), the world has become a more competitive market, abroad and domestically (Ivancevich, 2004).

While driving, I listened to a commentator on National Public Radio that Germans are doing business with China, while American companies are lacking behind. One of the factors cited was that German organizations were more atuned and sensitive toward Chinese culture.

Also, again by listening to National Public Radio, it was announced that our current stand on the war in Iraq hurt American businesses in Europe. The Disney World theme park close to Paris was in the red numbers, and the parent company had to bail it out. This trend may be prolonged, depending on the political climate. This is a prime example on how politics and policies, including our own, can have an effect on organizations. Having lived in Germany for two years and being married to a German, I've learned that labor unions have a strong influence in that country; our so called "benefits" are a given in that country, i.e. health, dental insurance. My wife received regular Christmas bonuses and even "vacation money". 30 days vacation (not counting weekends), unlimited sick leave, as long as you have a doctor's note, was the...