Doing Domestic Business Globally
In the process of transforming a domestic business into global business involves complexity due to decentralization process. The process involves management of human resource which has varied backgrounds, wide variety of customers and suppliers. In addition, it also involves adapting to different local demands and cultures. When a firm commences its international operations, it develops new visions and missions and designs new global strategies to achieve them. Global HR strategies must be designed in a way that it matches the corporate strategies of the firm.
The HR strategy is developed according to the current and future opportunities of the organization which depends on its capabilities and potential. It is essential for me, the HR manager to have the ability to identify and plan for desired level of competencies. In addition to that, the skill is needed to design appropriate expatriate compensation programs. My firm’s mission and strategy determines its organizational structure, the level of centralization or decentralization and the recruitment strategy of the firm.
The various global human resource activities include normal HR activities like human resource planning, performance management, compensation management, training etc. The HR activities which are specific to global human resource management include expatriate assignment management, expatriate training, and management of cross cultural work teams, cross cultural training etc. Activities like compensation management and performance management have to be done with precision to ensure that there is equality and coordination in employees worldwide.