Localization of HR Activities

Localization of HR Activities

Introduction

The global human resource management (HRM) model that have been developed in the decade gone by follow a contextual analysis of standardization or global integration of multination companies. These models have shaped the human resource practices of these multinationals by enabling them to localize the activities according to the host nation's practices and cultures. In this paper, we shall discuss how human resource activities are localized and the impact of Hofstede's cultural dimensions on these multinational corporations.

When a multinational corporation enters into a new market to serve, it takes into account the culture and practices of the country. With the rise of globalization, companies are now becoming more sensitive to the local practices of the country. This means that standardization must be swept aside in the sense that human resources practice must keep in mind the ground realities of the country. By adhering to the locals, companies are now practicing global integration in the truest sense of the term. Factors that play a significant role in localization of human resource activities are as below (Gilmore & Williams, 2009);

Culture

Culture plays a vital role in the localization of human resource practices. It has been witnessed in several cases; standardization of recruitment and selection policies has left firms unable to leave a positive image on the minds of the locals. One of the practices of the company may be acceptable in its home country while it may be offensive in another. Companies need to keep in mind the cultural changes that exist from one nation to the other.

Social Values

Social values also play a significant impact on the changes that take place in a firm's human resource activities. Like culture, social values differ from one nation to another. For example, in the United States, it may be ...