What Are the Five Main Functions of Global Human Resource Management?
The processes involved in redeveloping a company's procedures and tactics to fit a global market has forced human resource managers to reassess their roles and practices. The methods of adapting a company to a global environment, a process known as "globalization," has caused human resource staffers to study the effects of a diverse workforce population, various legal jurisdictions and the relationship between employee training and professional development. To deal with these changes, human resource managers employ five primary functions to keep their departments on task.
The primary functions of human resource managers involve the recruitment, hiring and retention of skilled and qualified employees. The tasks involved in executing these functions include preparing a job description, interviewing potential candidates, extending employment offers and discussing compensation packages. International human resource operations call for a complete understanding of the occupational methods required in each region, an assessment of the skill levels and availability required to carry out the job tasks, and the physical and educational abilities of the local workforce.
Globalization has forced human resource managers to adapt to new methods of offering compensation and benefits to a company's employees. The balance between compensation and benefits for the firm's employees is a crucial human resources function that involves developing an awareness of the desires and needs of a diverse workforce. Human resource management also involves educating employees about nontraditional benefits packages, such as telecommuting, flex time, parental leave for parents of newborns and tuition compensation for adult students.
The training and development of employees is crucial to their professional success. Human resource managers must ensure that employees have the time and materials to learn about the company's processes and methods. For companies undergoing globalization, human resource managers must also carry out the function of teaching employees about the legal and cultural differences in their new environments. An effective training program can increase the efficiency of operations in multiple locations and reduce the dangers that can arise from cultural miscommunications.
Human resource managers must understand how to accomplish the various administrative tasks that come with overseeing a global workforce. Human resource staffers often act as a buffer between management's decisions and the impact on employees. These staffers must communicate the processes behind payroll enrollment, expense reports, vacation time and health insurance benefits to employees when they come on board and when management decides to change these procedures. They must also deal with reassigning or terminating employees whose job functions are no longer required.
A major function of human resource management in a global company involves an understanding of local labor laws that regulate practices such as minimum wage, workweek hours, health benefits and paid vacations. Human resource managers must also develop an understanding of employment tax law in their jurisdiction. National, regional and local governments may choose to impose employment taxes on the company, so the human resources manager must grasp these laws and communicate their impact to senior management.