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HUMAN RESOURCES

ABROAD

This paper focuses on the impact of globalization when a company decides to


expand internationally. Globalization is commonly interpreted as the spread of
production, communications and innovations business around the world.
Rapid globalization is a growing phenomenon and with todays mentality,
growing awareness regarding human rights is not only bringing humanity into
mainstream affairs being major stakeholders indirectly but also greater
expectations. Globalizations impact might often be understood better at a
local level. The theme of globalization can be debated but whether it is an
advantage or a setback, the process and its effects cannot be ignored.
Globalization has an important relationship with employment, and it depends
on the countries policies on how it influences. The goal of this paper is to
analyze this impact and how the company can prevent these problems.

LETTER OF TRANSMITTAL
From: Karen Aguilar, Human Resources
Abroad
To: Companies in Globalization
Subject: Human Resources Abroad
Globalization is commonly interpreted
as the spread of production, communications
and innovations business around the world.
Rapid globalization is a growing phenomenon
and with todays mentality, growing
awareness regarding human rights is not only
bringing humanity into mainstream affairs
being major stakeholders indirectly but also
greater expectations. Globalizations impact
might often be understood better at a local
level. The theme of globalization can be
debated but whether it is an advantage or a
setback, the process and its effects cannot be
ignored. Globalization has an important
relationship with employment, and it depends
on the countries policies on how it influences.
The goal of this paper is to analyze this
impact and how the company can prevent
these problems.
The goal is to inform consumers of the
lack of training and prepares of taking a
company
abroad.
Through
different

BUSINESS ANALYTICAL REPORT

experiences make the companies aware of the


importance of international and cultural
training before moving abroad. With the
following questions, the goal should be
attained:
What should a company do to avoid
conflict on human resources issues
abroad?
Should
companies
invest
in
International adaptation programs for
their employees?
Which labor laws are considered when
a company is making business abroad?
What are the laws for expatriates?
Globalization is commonly interpreted as the
spread of production, communications and
innovations business around the world and its
impact might often be understood better at a
local level. According to the article by
SHRM, only a small percentage of companies
deal with the appropriate training for the
Human Resources managers send abroad. The
theme of globalization can be debated but
whether it is an advantage or a setback, the
process and its effects cannot be ignored.
Globalization has an important relationship
with employment, and it depends on the
countries policies on how it influences.

EXECUTIVE SUMMARY
Introduction
Globalization is commonly interpreted
as the spread of production, communications
and innovations business around the world.
Rapid globalization is a growing phenomenon
that is not only bringing humanity into
mainstream affairs being major stakeholders
indirectly but also greater expectations... The
theme of globalization can be debated but
whether it is an advantage or a setback, the
process and its effects cannot be ignored.
Globalization has an important relationship
with employment, and it depends on the
countries policies on how it influences. The
goal of this paper is to analyze this impact and
how the company can prevent these problems.
Purpose
This formal reports purpose is to
educate the reader on the impact of
globalization when a company decides to
expand internationally. The interpretation of
globalization can be widely debated, with
supporters and opponents, each trying to
support their own arguments. The various
surveys and articles found disparities in the
preparation of the managers being send
abroad before an assignment some including
very little details about the cultural
differences.
Scope
The goal is to inform consumers of the
lack of training and prepares of taking a
company
abroad.
Through
different
experiences make the companies aware of the
importance of international and cultural
training before moving abroad. With the
following questions, the goal should be
attained:
What should a company do to avoid
conflict on human resources issues
abroad?

Should
companies
invest
in
International adaptation programs for
their employees?
Which labor laws are considered when
a company is making business abroad?
What are the laws for expatriates?

Methods
The information in this formal report
has been researched from online articles,
academic articles, and current organizations.
The best supporting material comes from the
website for the Society of Human Resources
Management also known as SHRM. Through
various experiences of companies that have
successfully and unsuccessfully gone abroad
is the article going to support research data to
the previously mentioned questions.
Limitations
The information in the report is
limited to the noted seventeen references, a
survey and a statistical reference from the
SHRM research found on their website.
Conclusion and Recommendations
Globalization is commonly interpreted
as the spread of production, communications
and innovations business around the world
and its impact might often be understood
better at a local level. According to the article
by SHRM, only a small percentage of
companies deal with the appropriate training
for the Human Resources managers send
abroad. The theme of globalization can be
debated but whether it is an advantage or a
setback, the process and its effects cannot be
ignored. Globalization has an important
relationship with employment, and it depends
on the countries policies on how it influences.

Table of Contents
BUSINESS ANALYTICAL REPORT

Abstract.....Cover
Page
Letter of Transmittal.....1
Executive Summary...2
Table of Contents...3
Introduction..4
Study Focus One...................................5-6
Study Focus Two:.....................................7-8
Study Focus Three:.....8-10
Results Discussion.....10
Conclusions and Recommendation....11
References..12
Table of Figures:
Figure 1. SHRM Logo......4
Figure 2. Brazil.............5
Figure 3. Globalization.5
Figure 4. Reduction in Job6
Figure 5. Relocation.6
Figure 6. Factors of Globalization............7
Figure 7. Percentage...7
Figure 8.
Factors affecting HRM in
International Markets..9
Figure 9. Labor Management9
Figure 10. Global HR solutions....10

BUSINESS ANALYTICAL REPORT

INTRODUCTION
Companies are going global in todays
society, and a very big issue is the process of
adaptation that a company has to go through.
Human Resources departments are affected
by US labor laws when companies are going
abroad. The Society of Human Resource
Management (SHRM), mentions that
companies
Figure 1: SHRM Logo
have what is
known as HR
global
strategies and
practices. The
rapid rise of
www.shrm.org
companies into
the
global
economy has led to a greater interest and
demands in the developing of strategies for
companies human resources. The main issues
of Human Resources abroad are: adapting to a
rapidly
changing
worker
profile,
understanding the subtleties of workers
qualifications and retaining and engaging a
changing workforce. Only a small percentage
of companies can be successful abroad, it is
important for a company going abroad to
understand the culture, values and regulation
differences. An example of this is how labor
rates vary from country to country and how
this affects the company. Some questions that
going global may cause are, Can you over
work employees? How is overtime treated in
specific countries? What are other countries
custom to (lunch breaks, work hours)?
The problem is the challenges companies
face in regards to the different policies in
human resources when the company goes
abroad. This is a problem that is being faced
more in todays society because of the amount

BUSINESS ANALYTICAL REPORT

of companies going global and challenges


must be established in order to address them.
Knowing the main issue this are some
questions research will answer:
1. What should a company do to avoid
conflict on human resources issues
abroad?
2. Should
companies
invest
in
International adaptation programs for
their employees?
3. Which labor laws are considered when
a company is making business abroad?
What are the laws for expatriates?
This paper focuses on the impact of
globalization when a company decides to
expand
internationally.
Rapid
globalization is a growing phenomenon
and with todays mentality, growing
awareness regarding human rights is not
only bringing humanity into mainstream
affairs being major stakeholders indirectly
but
also
greater
expectations.
Globalizations impact might often be
understood better at a local level. The
theme of globalization can be debated but
whether it is an advantage or a setback,
the process and its effects cannot be
ignored. Globalization has an important
relationship with employment, and it
depends on the countries policies on how
it influences. The goal of this paper is to
analyze this impact and how the company
can prevent these problems.

STUDY FOCUS ONE: AVOIDING HUMAN RESOURCES


ISSUES ABROAD

BUSINESS ANALYTICAL REPORT

The article Few Companies Succeed


Going Global by Christian Stadler mentions
the relation between companies percentage of
success from going global to staying local.
The article talks about what companies have
done in order to move abroad positively, but
it also mentions how sometimes it is better,
financially, for the company to stay local to
be more successful. Stadler, mentions,
Global expansion is also more complicated
to manage 12It then provides an example of a
company expanding to Brazil. Stadler then
mentions, operations in Brazil, however,
turned out to be much more difficult than
expected because of regulatory, political, and
cultural differences 3 Companies do not plan
and coordinate the necessary training to
successfully manage a company abroad. Like
the article mentions, considering the countrys
regulatory, political and cultural differences is
key for a successful international business.
The Brazilian company fixed this problem
and avoided conflict by sending more
managers and giving the company more
management attention, including frequent
trips to Brazil, took far more time than for
similar plants at home 4 In order for a
company to avoid the most issues, the
company needs to consider the interpretation
of certain concepts when deciding on going
global. For example, an article on Challenges
1 Sadler, C. (2015). Few Companies Actually Succeed
at Going Global. Retrieved, from
https://hbr.org/2015/03/few-companies-actuallysucceed-at-going-global
2 Sadler, C. (2015). Few Companies Actually Succeed
at Going Global. Retrieved, from
https://hbr.org/2015/03/few-companies-actuallysucceed-at-going-global

and Opportunities of Globalization for the


Development of Human Rights in Pakistan
2010-2014 by Muhammad Arshad Watoo
mentions that Globalization has paradigm
changing effects on the norms of human
rights in all over the world Human rights
norms can be measured at different levels like
individual, societal state and international. 5
The article mentions that a key problem is the
different interpretations and definitions of
certain words when doing business
internationally. Companies have looked into
the idea of promoting globalization in a more
liberal way with movements which would
benefit and improve human rights. A report in
the article by Watoo later reveals that
millions of people around the globe are still
deprived off their basic fundamental rights,
which are freedoms of speech, thought,
movement, expression, assembly and
associations6. These problems can be address
with the creation of a universal definition and
with setting an understanding that if the local,
state or national government fail to take
provide responsibility or explanation to the
company, then an agreed international
organization (third party) would play the due
role and fill in the blanks for the company
going abroad. Resuming the topic of the lack
of
cultural
integration,
an
article
Organizational Culture in the Age of
Globalization by Emanoli Muscalu, mentions
that to avoid problems related to the
importance of organizational culture for
global integration, the organization will pay
particular attention to the following: the need
for differentiation vs. integration; control vs.
autonomy and limits of corporate control vs.
national.7

3 Sadler, C. (2015). Few Companies Actually Succeed


at Going Global. Retrieved, from
https://hbr.org/2015/03/few-companies-actuallysucceed-at-going-global

5 Rashid, A., & Watoo, M.A. (2015). Challenges and

4 Sadler, C. (2015). Few Companies Actually Succeed


at Going Global. Retrieved, from
https://hbr.org/2015/03/few-companies-actuallysucceed-at-going-global

6 Rashid, A., & Watoo, M.A. (2015). Challenges and


Opportunities of Globalization for Development of
Human Rights in Pakistan 2010-2014. South Asian
Studies (1026-678X), 30(2), 215-229.

BUSINESS ANALYTICAL REPORT

Opportunities of Globalization for Development of


Human Rights in Pakistan 2010-2014. South Asian
Studies (1026-678X), 30(2), 215-229.

7 MUSCALU, E. (2014). ORGANIZATIONAL


CULTURE IN THE AGE OF GLOBALIZATION.
Bulletin Stiinfic, 19(2), 120-125.

BUSINESS ANALYTICAL REPORT

The article then goes into explaining the


main
difference
starting
with
differentiation vs. integration, in
summary the differentiation measures
the
preferred
method
for
the
organization to integrate into the global
environment; therefore, one can say one
is follow by the other. The next
comparison is between control vs.
autonomy, understanding how a specific
culture feels about hierocracy and how
they value conformity are very important
key points for any negotiation. Lastly the
comparison between national vs.
corporation it is important for the
company to be aware of all the
community and family identity of the
country the company is trying to target.
Globalization can generate out of control
changes and what happens in one part
can affect another part. Cultural factors
can be a barrier to development and
following the previously mentioned
examples can help the company avoid
any conflicts. Another issue that
companies must avoid when thinking of
doing business internationally, is the
reduction in force (RIF). An article by
the Society of Human Resources
Management mentions that in order to
avoid global reductions in the force the
company most carefully plan and
implement strategies. Procedures that
would take a day locally can take
months
when
taken
globally.
Companies must as mentioned in the
article protect the organization is to
plan ahead while bearing in mind the
requirements of each jurisdiction
involved.8
Like this the company
must be aware of the price and the time

dedicated to the reduction of personnel


abroad. Lastly, as the research for
important topics a company must avoid
in order to be a successful international
company, the article survey: Companies
Fail to train Managers for Overseas
Assignments mentioned that
Most
expat failures are attributed to a
mismatch of the individual's spouse, or
family members and believe that preassignment
training
and counseling will fix Figure 5: Relocation
the problem.9
A
company when hiring
an employee for an
international
assignment
must
consider that in order
for them to execute Source:
flawlessly the family relocationmagazine.com
must be willing and capable of
relocation , like the article mentions an
expat failure can be attributed to the
family members, therefore a company
that oversees and avoids this issue may
be more successful.

8 Global Reductions in Force: A Practical


Checklist. (2016). Retrieved from
https://www.shrm.org/resourcesandtools/legaland-compliance/employment-law/pages/globalreductions-in-force.aspx

9 Global Reductions in Force: A Practical


Checklist. (2016). Retrieved from
https://www.shrm.org/resourcesandtools/legaland-compliance/employment-law/pages/globalreductions-in-force.aspx

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