Over the past several decades there has been an unprecedented increase in the number of companies that have globalized their business. We’ve experienced different phases of globalization, thanks to the speedy development of internet and the emergence of e-commerce, the global market for almost all different industries has become more and more integrated. Under this trend, the international movement of labor that has been concomitant with such expansion of international business has meant the increasing importance of the international human resource managers. At the same time, the challenges of international human resource management (IHRM) have spread into different dimensions. ...view middle of the document...
Besides the challenges for IHRM emerging from the global macroeconomic environment, the challenges from internal organizational changes due to companies’ globalization is another field this paper will examine. The objective of this paper is to provide a thorough analysis of both external and internal influential factors leading to various challenges for human resource management, and at the same time give human resource managers a better understand on how to tackle these expanded and constantly changing situations.
This study will be comprised of three major parts, (i) analyze how macroeconomic changes in more and more complex and integrated global market bring challenges to International Human Resource Management, and which types of change they are (ii) when listing the changes in global macroeconomic environment, I’ll also analyze what kind of challenges these changes bring to IHRM; (iii) after analyzing the challenges brought to global companies, this study will lead to the future trend of IHRM and what kind of structure a global company need to prepare itself in future global markets.
We’ve noticed that most industrialized countries are experiencing the aging work force. Take US as an example, the baby boomers are about to retire in less than 10 years . The gap between current experienced work force and the inexperienced young generation will bring a huge challenge for most companies in the country. For other developed countries, such as Germany and Japan, they also have the same challenges in their society structure. How to maintain a smooth transition under this special circumstance is a big challenge for human resource management. Not mentioning that most companies are under pressure to expand their business to expand or maintain current competitive advantages. Through this research study, this paper will give you a better understanding of what the challenges are for IHRM, and how human resource managers could prepare themselves to better fit to a constant changing global market.
The Nature of the Working force
IHRM Challenge: adapting to a changing work force profile
Dramatic demographic changes in both developed and developing countries around the world will place much greater pressure on the public and private sectors to initiate and implement creative solutions to educate and retain a rapidly changing and diverse working population. According to the reports from US News in 2014, most developed countries like US, Germany, Japan, and France are experiencing work force aging problem . The baby boomers in US are looking to retire in droves, and by 2030, most baby boomers will turn to over 65 years old, which accounts for over 20% of the whole US population.
With this fast retirement in next two decades, there will be a big gap in US work force. The baby boomers are currently working as experienced managers in middle / high level. At the time they retire, it’s pretty hard to find that many successors...