Globalization and HRM: From Discrepancies to Adaptation

Abstract

Organizations, in this phase of globalization, around the world are not confined within a specific territory. With the blessings of science and technology, ideas and practices of businesses reach throughout the world. As a result, globalization is creating a new dimension of competition in the global market. To survive in this intense competition, human resource management (HRM) of an organization possesses the key position, which is not beyond the influence of globalization again. The impact of globalization on HRM is mainly of two dimensions: firstly, globalization requires the organizations to standardize their HR practices in the international level; and secondly, the organizations have to adapt their HR activities with the local cultures and practices. As a result, organizations necessitate aligning their HR practices between the demand for standardization and the adaptation of local practices. Ulrich's HRM model provides four very crucial roles of HRM, a proper application of which considering the global and local demands can be a successful initiative. This paper, based on review of previous literatures, shows the implications of Ulrich's HRM roles incorporating Hoffstede's five cultural dimensions across cultures. Moreover, it reflects on possible ways the HRM transference may occur together with immanent constrains.