Tuesday, June 22, 2010

“Global Human Resources Management (GHRM)” – Prof.M.S.Rao

With the changing times and technologies the businesses are endeavoring to adopt policies and practices of their human resources activities and operations as per the changing global business environment. As a result, there is growing emphasis on global human resources management these days. In this regard, let us briefly look at what is all about global human resources management.

What is Global HRM?

Global Human Resources Management is all about aligning the policies and procedures, rules and regulations pay and perks, trends and practices and benchmarking the standards of the home country on par with the global standards with a global mindset. In addition, it involves managing the diversified workforce globally. Succinctly Global HRM is all about blending the HR activities as per the global business environment by dreaming globally but acting locally.

Merits and Demerits:

There are number of advantages along with GHRM as there is more room for growth and expansion. The businesses can think of growing into several uncharted areas capitalizing on the current globalization. The world has become a small village integrating all people as one with the rapid growth of technology. When different people come under one roof and work, it leads to diversity which is the hallmark of GHRM. People learn to appreciate the similarities ignoring the cultural, ethnic, religious and regional differences. It is platform for growth and expansion and diversification.

However, when we look at the disadvantages, there will be cultural conflicts leading to differences among the people. There is lack of mobility of the people as well in some cases. There are several other complications and implications involved in GHRM.


Keeping the prevailing current business environment in view, it is essential to adopt what is best as per global conditions without compromising the needs at the local level. The companies must think globally and act locally to eat the cake and have it too. Therefore, global human resources management is the need for the hour for businesses to leverage the opportunities for ensuring their organizational effectiveness and excellence.

To conclude, GHRM is here to stay. People must mould themselves with global mindset. Companies must evolve their human resources policies as per global standards for availing the opportunities.

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