The global human resource management should develop and implement such policies & practices that are according to the host countries. The influence of global variations on human resources should be considered by the global human resource management. Also there are number of challenges or barrier in the ways of global human resource management, which influence its over all credibility. Here are some barriers that come in the way of effective global human resource management.
Barriers to Global Human Resource Management
- Political & Legal Factors
Throughout the world, the political & legal systems are diversified. The organizations deal with the political & legal systems that are fairly stable, particularly in the developed countries of Europe. On the other hand, in certain other countries, there are relatively unstable political & legal systems. The governments of certain countries face coups, corruption & dictatorial rules that are all badly affecting the legal & business environment. Due to internal politics, the legal systems in certain countries are also becoming unstable. In this way the variations in the political & legal systems around the world become as a hurdle in the effective global human resource management.
- Cultural factors
Every country has its own unique culture which is slightly similar to the cultures of other countries of the world. The global human resource management should apply such policies & procedure in the organization which are in accordance with the local culture of the country or region. Even most of the employees of the foreign subsidiary should be hired from the host country. There may be certain cultural norms that are allowed in one country but are prohibited in another country. So, cultural factor becomes a barrier for the smooth working of the global human resource management of any organization. Therefore the expatriates of the organization should also take into account the cultural norms & values of the host country to some extent. The management should make ensure that the implemented wider corporate culture is being followed in all the subsidiaries of the globally operating organization.
- Economic Factors:
The economic factor is also regarded as a barrier for the effective global human resource management because there is not any single economic system operating globally. In case of the capitalist system, the efficiency & productivity are focused by the management of the organization by making such policies & procedures that promote efficiency. On the other system of economics, which is the socialist, the elimination of unemployment is concentrated by the management of the organization by sacrificing the productivity & efficiency which is definitely harmful for the organization. So before development & implementation of any human resource policy or practice of the management of the organization, the economic barrier of the global operations should be properly comprehended by the organization. Moreover, the difference in the labor costs around the world becomes a serious problem for a global business.
- Labor/Management Relations Factor:
The policies & procedures of the global human resource management are affected by the relations of workers & employees with the management because the nature of these relations varies from one country to another country of the world.
The Challenges of the Expatriate Assignments
It is a big challenge for an international organization to effectively manage its expatriate workforce.
Reasons of Failure of International Assignments
The ratio of the failure of the assignments of the expatriate workforce is estimated to lie in between 20% to 40%. Following are the six factors that are responsible for such failures.
- Career Blockage
- Culture Shock
- Lack of Cross Cultural, Pre-departure Training
- Overemphasis on Technical Qualifications
- Getting Rid of Bothering Employee
- Family Problems
Difficulties on Return
There are some additional issues that are faced by the expatriates on arrival at the home. These problems are as follows.
- Lack of Respect for Obtained Skills
- Loss of Status
- Improper Planning for Return Position
- Reverse Culture Shock
Effective Management of Expatriate Assignments
The global Human Resource Management should develop and implement those policies & procedure that cover the fundamental issues of the expatriate assignments. These effective HR policies must be related to the selection, training, career development & compensation.
The selection of a suitable employee for the expatriate assignment is a sensitive decision. The management should select the best employee for the international assignment. Following are the guidelines for the management in this regard.
- The cultural sensitivity should be emphasized as a criterion of selection
- A selection board should be established for expatriates.
- The previous international experience is required.
- The foreign-born employees are focused to hire.
- The spouses and families of the candidates are screened out.
People belong to different cultures & countries respond differently to the same symbols, images and slogans. So the cross cultural training is provided to the selected candidates that should cover the local customs, culture, tax laws, language & government.
- Career Development
The career development opportunities offered by the management of the organization also serve as a basis for the motivation of the expatriate employee to perform well on his given assignment.
The effectiveness of the expatriate employees is enhanced through attracting compensation packages by the management of the organization. However, in certain cases, these special compensation packages for expatriate employees create conflict in the local employees of the organization. When local employees compare their compensation packages with the packages of expatriate employees, the local employees consider this policy of the management as unfair & hence conflict is generated in the organization.