The world has become a global village due to the increasing human population, which forces people to move to different regions searching for opportunities. The advancements in transportation and communication technologies have facilitated the movement even more. The shift in ideas from nationalism to a global community has impacted the business positively as businesspersons can locate their business wherever they see opportunities across the world. International business operations, however, lead to issues that discourage entrepreneurs from abroad business ventures, including how to manage a global workforce. Entrepreneurs, therefore, must address questions concerning technology, cultural differences, leadership, and legislative factors to succeed in creating a better global workforce.
Technology and Information System
Technology continues to facilitate international expansion of companies as it fosters communication and transportation and must be addressed for easy connection between employees in different facilities and the management headquarters (Noe et al., 2017). Common logistics require that all employees within an organization operate on the same system for easy sharing of information, uniformity of standards, and to enable the management to track and analyze data from all the facilities easily. Human resources professionals collect and analyze HR data globally to provide insights into new markets and necessary adjustments like reshuffling employees.
Some of how an organization can address the issue of technology include selecting an appropriate workforce automation system that is easy to use and which has an immediate ROI. The ROI helps to minimize labor costs, promote workforce productivity, and lower compliance risks. Organizations should also acquire workforce management systems that are easy to own and localize and which enhances the accessibility of information. Streamlining and consolidating systems helps the HR to assume a more strategic role which requires less daily transactional requirements.
IHR and global firms must deal with the challenges of understanding cultural norms and integrating workers into the organizational structure despite the differences. Understanding the rules helps avoid clashing with cultural expectations while at the same time, not compromising the organization. For example, some countries prioritize male leaders and thus employing a female leader may cause conflicts in society. Organizations must also align the tools of operation with the corporate culture to avoid challenges that may arise when trying to change the organizational culture to fit the available tools.
Companies can overcome cultural differences by integrating continuous learning of the organization’s culture. An organization can overcome the challenge by hiring experienced consultants to help in the transition and align the corporate culture with the local culture. Global companies must also ensure a balance between standardization and localization in the different locations they operate in. The integration can be achieved by organizing workshops, where the employees are trained and taught of the organization’s culture. Global companies should ensure to include embracing diversity and encouraging cultural competence as the values of the company (MacGillivray & Golden, 2007).
The governance structure of an organization also influences how the organization executes globally. Global companies should encourage leadership structures that encourage more decisions to be made locally (Radda, Majidadi & Akanno, 2015). This helps in situations where consumer tastes and preferences are an important factor in production. Moreover, leaders are meant to inspire employees to recognize and exceed their potentials, and they must be people of a specific personality and with the right managerial skills. Organizational leaders with vast experience in running companies abroad are more likely to lead a global company to success as compared to leaders with limited experience. More qualities of leaders include excellent communication, flexibility, and perceptiveness. A leader should also have the vision to help the company grow to its full potential. Organizations should, therefore, develop a culture that promotes decision-making at the grassroots levels and employ leaders with the right skills and who can motivate, and formulate motivational strategies suitable for the local culture.
Organizations can only globalize their workforce if they can adhere to the local laws and regulations of different countries. This can be achieved by complying with international regulations that vary from one country to another. Some of the significant considerations include the minimum wage laws, which consist of pay regulations of any given country. Many states also have laws regarding special employee allowances and statutory employee benefits that global companies must pay. Failure to comply with business regulations leads to legal liabilities to the company (Gostin & Katz, 2016). Adherence to the tax laws of a country also influences the relationship between the company and the government.
Organizations can handle legal requirements by enquiring about the laws, learning, understanding and following them. Experts advise companies to automate compliance by embedding regulatory requirements into scheduling and payment processes. Organizations should also make audit information accessible.
The expansion of companies to global markets requires extensive planning and strategies for the business to succeed. To manage a global workforce successfully, companies require an efficient technology and information system and to integrate the local and corporate cultures. Companies also need skilled managers working under a conducive managerial structure that discourages micromanagement. The organization should ensure to abide by the regulations of the companies they operate in to avoid legal liabilities.
Gostin, L. O., & Katz, R. (2016). The International Health Regulations: the governing framework for global health security. The Milbank Quarterly, 94(2), 264-313.
MacGillivray, E. D., & Golden, D. (2007). Global diversity: Managing and leveraging diversity in a global workforce. International HR Journal, 4(1), 38-46.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.Radda, A. A., Majidadi, M. A., & Akanno, S. N. (2015). Employee engagement: The new model of leadership. Indian Journal of Management Science, 5(2), 17.
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