The internationalisation of business has led to the creation of numerous challenges to organisations in terms of management, organisational structures, cultures and workforce utilisation. Globalisation is currently the buzzword in business circles due to the shrinking of distances brought about by the explosion in the usage of the internet, quest for new markets and increasing profit margins, slowing of domestic trade, resource requirements and related factors. The globalisation trend in today’s marketplace is prominent: the issue that needs to be contemplated from a HRM perspective is its effect on the various functions of HRM. IHRM issues that a global organisation inevitably faces are such as the debate over the selection, recruitment, compensation, legal and regulatory requirements of the emerging ‘global workforce’. This paper will address issues such as the factors influencing IHRM policies, practices, approaches, similarities and differences between HRM and IHRM, pros and cons of the standardisation of compensation packages and related issues such as validating the effectiveness of standardising pay packages for the global workforce. The main objectives are to provide the reader with a clear understanding of the various features and aspects of IHRM. The paper is divided into two main parts: firstly, covering issues related to IHRM such as its purpose, requirements, approaches and the development of IHRM models, similarities and differences with regards to HRM. The second part will deal with the standardisation of compensation debate including its pros and cons while providing suitable alternative IHRM methods of determining compensation. Aspects regarding IHRM through the observations made by eminent experts and through the provision of suitable case scenarios will be elucidated. The debate regarding the standardisation of pay packages will be dealt with from a neutral position through the usage of suitable arguments.
|Keywords:||Globalisation, International, Compensation, Standardisation, Global Workforce|
Senior Lecturer, Unitec Business School, Unitec New Zealand, New Zealand
Professor, Department of Business Management, North-West University, South Africa, South Africa
Student, School of Management and Entrepreneurship, Unitec New Zealand, Auckland, New Zealand
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