The organization is a sum of three factors which are employees, structure and resources. All of these factors play important roles in achieving the organizations target. The researchers and theorists claimed that the organizations are primary affected by its employees because the employees used to make the plans, structure and convert the raw material into the finished goods. The organization used to undertake all those projects which are beneficial for the organization so if the organization is foreseeing that the projects at distinct location are beneficial then the organization will prefer to go to that location. However, it is not an easy task to conduct operations in other locations because of cultural differences and other business related issues (Von, Drost & Teagarden, 2002, pp. 130).
The world has recognized the need of effective human resource department. The role of human resource department has become a strategic role in modern world. This is the responsibility of the human resource department to fulfill the requirement of human capital. The role of human resource department is very high when the organization is going to conduct the business operation in other location because this is the responsibility of the human resource department to attract the talented pool and then managing the work force effectively. The report will critically analysis the managing of work force across the borders. The report will also focus on the existing literature review to build up a strong understanding of managing people across the borders. There are various issues that the human resource department witnessed in managing the work force across the borders (Caligiuri, et.al, 1995, pp. 500).
Literature Review
An appreciation of how to manage staff in an international context is critically important for businesses today. International human resource management in terms of a system: “a set of distinct activities, functions and processes that are directed at attracting, developing and maintaining the human resources of a multi-national corporation.” The domestic based term of human resource management covers “all the concepts, strategies, policies and practices which organizations use to manage and develop the people who work for them”. The only major difference between international human resource management and human resource management is the fact that one relates to multinational corporations and the other to domestic based firms. Historically, the last two decades have seen a gradual transition in style and substance from personnel management to human resource management, and recently to international human resource management. Almost two decades ago the personnel management role lacked strategic relevance because it was mainly an administrative-type role, whereas the modern concept of human resource management is much more strategic in scope. The researchers states that human resource management came about due to a “change in the functions, boundaries, substance and objectives” of the original personnel management function. Just as effective management of human resources plays a major role in the success of a domestic business; suggest that effective ...