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Challenges Of International Human Resource Management

3922 words - 16 pages

The purpose of this research paper is to define the most difficult challenges of international human resource management, such as cultural diversity and the problem of managing people in different cultures and environments, convergence and divergence and the variety of international organizational models that exist. This paper proves that human resource managers of global organizations can not afford to ignore challenges of international human resource management, in order to ensure company’s success. Moreover, this work focus on investigating the correlation between these problems, that also must be understood.

During the past fifty years, technological advances in transportation and ...view middle of the document...

The most difficult challenges of international human resource management are: cultural diversity and the problem of managing people in different cultures and environments, convergence and divergence (the extent to which Human Resource Management policy and practice should vary in different countries), and the variety of international organizational models that exist. Human resource managers of global organizations can not afford to ignore challenges of international human resource management, therefore to ensure company’s success, HR professionals need to

put special attention to understanding these problems, while taking as a priority investigating the causes of these problems, and how to tackle them. The literature describes in detail the complex nature of these problems. Specifically, the link between the problems of managing people in different cultures and the extent to which Human Resource Management policy and practice should vary in different countries, what in consequence creates the variety of international organizational models that are avaliable.
What many Human Resource professionals may fail to realize is that culture and environment diversity is a key issue in international human resource management. Researches and many studies have proven the requirement for understanding ways in which cultural diversity affects Human Resources. To ensure multi-national companies successes, HR professionals should know the scope of the problem of the cultural diversity, and consider ways to solve it. All over the world multi-national companies have to deal with different cultural orientations, and it is due to the fact that when people of different cultures interact with one another cultural differences cause conflicts. As described by Dartey-Baah (2013), these differences are behaviors patterns, norms, beliefs and values typical to individuals belonging to some organizational or national culture. Furthermore the nature of organizational culture is largely influenced by the cultural orientations of the individuals forming it. In a consequence the universality of human resource practices has been questioned. Human resource policies that may be successful in one jurisdiction may be unsuccessful in another. For instance, in an attempt to reach a desired outcome in human resource practice, salary structures, or may be effective in one country and proves ineffective in another. In a study that become a classic in the study of cultural differences, Hofstede (1980) investigated value differences between over 11,000 employees in some 40 countries employed by International Business Machine (IBM). His study focused on the influence of national culture on the sub-cultures of the worldwide organization. Hofstede proposed four dimensions along which cultural values that were analyzed: individualism-collectivism; uncertainty avoidance; power distance (strength of social hierarchy) and masculinity-femininity (task orientation versus...

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