Human Resource Management

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Global Perspectives of Human Resource Management

Global Perspectives of Human Resource Management


Human Resource Management is a relatively new area of study and perfectly applicable to any type or size of organization. Human Resource Management aims at providing human capabilities required by an organization and develop skills and abilities of individuals to be more satisfactory to himself and the community in which it operates. The unstoppable process of globalization of the economy poses enormous challenges to HRM, to both large multinational corporations and domestic firms.

The steady trickle of mergers and strategic alliances, growing willingness of international agencies to establish and enforce rules set minimum international labour practices increases the challenges for MNCs to effectively manage the human resource (Armstrong, 2010). The processes of regional political integration with consequent requirements of harmonization of social policies and social security systems, the emergence of labour markets by developing virtual internet are examples of the complexity of the environment in which firms must make strategic decisions today (Vance, 2010).

MNCs and small firms are increasingly facing intense competition. In this context, managing a global workforce raises significant concern in the minds of global human resource management (Armstrong, 2010). This change in mentality can be subtly in the behaviour of many global and domestic companies. They need to be constantly active in innovative markets because of recession or market by being 'shaken' by new competitors or new aggressive behaviour (Jackson, 2002). In this regard the companies want to change the employees' role in the company through extensive participation, and change of identity relative to decision making boundaries.

This paper examines the global human resource management practices of Swedco, a Swedish multinational firm. It explores the unique business management practices and how does the company depart from the traditional Swedish practice in areas of global human resource management.

Challenges in Global Human Resource Management and Swedish Factors in Swedco

There are numerous factors that affect the strategic planning of an organization in a global context. HR planning and organization's global operations management terms are interrelated, since human labour is the most crucial input of any company. The planning of the organization involves broader aspect of human resources human because it takes into account all resources such as capital, raw materials, equipment, land, as well as human labour. It is now practically impossible for to multinational companies to escape from the effects of globalization (Caligiuri, 2010). Although markets remain local in every country operations, dependence on major supply chains and networks, and their forced submission to rules and directives issued by supranational bodies (e.g. EU), as well as the growing diversity of the workforce result in the migration of LDCs to the developed countries, which directly affect the policies and practices of MNCs.

The case study clearly highlights a number of factors that increases the challenges for MNCs and shaped the human resource management system of Swedco as Swedish in global markets (Anderson, 2010). This enabled the company to focus on addressing the Swedish business system on IHRM and the transfer ...
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