This week we discussed the international perspective of human resources. For your initial post, you must do the following:
1. Identify the main HR challenges of international business for you.
2. Select and illustrate a function of HR which you consider to be the most important for an international business.
Textbook Reading: Dessler, G. (2020). Human resource management (16th ed.). Pearson Education. Chapter 17: Managing Global Human Resources
HR managers of international companies face unique challenges that are associated with operating in foreign markets. Human resource managers face issues related to cultural, political, and economic factors in the host country. One of the major human resource challenge for HR managers operating in international markets is legal risk. When operating in a foreign market, HR managers have to comply with the laws of the host country regarding labor practices. Such laws may be significantly different from those of the home country. It is necessary for human resource managers operating in international environment to understand the legal consequences of various HR functions. Furthermore, the changing political environment in foreign markets could pose risks and challenges for international human resource management. For instance, Brexit and the recent wars in Ukraine change the dynamics of human resource management as labor mobility become an issue. Diversity and cultural differences can also be a challenge for any human resource manager operating internationally. Human resource managers have to deal with multiple cultural groups; people with diverse attitudes and perspectives; varying values and interests; and different languages. HR managers have a role to play in training employees to understand and appreciate the impact of culture in workplace interactions.
One function of HR that I consider to be the most important for an international business is recruitment and selection. This staffing function requires human resource managers to identify and select talented individuals who match the company’s staffing needs. In the international environment, recruitment becomes a challenge because there is constant competition for labor. HR managers go about searching for talents in a pool of many candidates with diverse skills, attitudes, cultures, values, and interests. Finding the right person to fill a specific position and match the job description is challenging because there could be so many applicants who do not necessarily meet the required skills and knowledge. Therefore, recruitment and selection is a critical and most important HR function for international businesses because it determines whether the company can be able to attract and retain talented individuals who match the organization’s requirements.