Activities that a human resource department must engaged to operate in an international environment are described below:
Managers in the twenty-first century are being challenged to operate in an increasingly complex, interdependent, and dynamic global environment. Those involved in global business have to adjust their strategies and management styles to those regions of the world in which they want to operate, whether directly or through some form of alliance.
To compete aggressively, firms must make considerable investments overseas – not only capital investment but also investment in well-trained managers with the skills essential to working effectively in a multicultural environment.
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In any foreign environment, managers need to handle a set of dynamic and fast – changing variables including the all-pervasive variable of culture that affects every facet of daily management.
Global management then is the process of developing strategies, designing and operating systems and working with people around the world to ensure sustained competitive advantage.
As more firms move outside their domestic borders into the dynamic world of international business, the globalisation of world markets appears to be gaining momentum. This globalisation of business is forcing managers to grapple with complex issues as they seek to gain or sustain a competitive advantage.
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Effective human resource management (HRM) is essentially, especially where international expansion places additional stress on limited resources.
To operate in an international environment, a human resource department must engage in a number of activities that would not be necessary in a domestic environment.
Activities
1. International Taxation:
Expatriates are subject to international taxation, and often have both domestic and host-country tax liabilities.
Therefore, tax equalisation policies must be designed to ensure that there is no tax incentive or disincentive associated with any particular international assignment.
2. International Relocation and Orientation:
Involves arranging for pre-departure training; providing immigration and travel details; providing housing, shopping, medical care, and recreation and schooling information.
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Many of these factors may be a source of anxiety for the expatriate and considerable time and attention is required to resolve potential problems successfully.
3. Administrative Services:
A multinational firm also needs to provide administrative services for expatriates in the host countries in which it operates.
Providing administrative e services can often be a time-consuming and complex activity because policies and procedures are not always clear cut and may conflict with local conditions.
Ethical questions can arise when a practice that is legal and accepted in the host country may be at best unethical and at worst illegal in the home country.
4. Host-Government Relations:
Represent an important activity for an HR department, particularly in developing countries where work permits and other important certificates are often obtained more easily when a personal relationship exists between the relevant government officials and multinational managers. Maintaining such relationships helps resolve potential problems that can be caused by ambiguous eligibility and or compliance criteria for documentation such as work permits.
5. Provision of Language Translation Services:
Though English is a well established international language yet, provision of language translation service for internal and external correspondence is necessary especially if the organisation has branches in non-English speaking countries.