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Unit 13: GHRM Trends and Future Challenges

practices but also in the central operations and policies of multinationals. So, now we will Notes
understand the developments of international business ethics and the challenges they raise for
HR professionals.
To exist in international environment, the HRM strategies need to be redefined, some of them
are discussed in the unit.

13.1 Global HRM Trends and Future Challenges

The human resource functions in a global arena follows some trends and challenges as discussed
below:

 The importance of globalisation and integrating markets: Companies will become larger
and more global in the coming years, handling operations in more countries than they do
today. We’re living in an increasingly borderless world.
 Talent management: Finding and retaining quality talent continues to be essential to
business sustainability. Finding and retaining quality talent continues to be essential to
business sustainability, though its importance in relation to other challenges differs by
location. There are more contingent workers, and the rationale behind work force
investment is changing and moving in multiple directions.
Most industries and countries are to experience a widening talent gap, notably for highly
skilled positions and for next generation of mid and senior leaders.
 Working virtually: Working virtually across functions and geographies will intensify,
with implications for intercultural communication, business ethics and organisational
effectiveness.
Localising management of overseas operations is the key, but a global outlook is just as
important as local knowledge. Businesses need to find new ways to connect people to each
other and to information, both internally and externally. The expectation of having an
“always-available” employee varies around the world.
 Tentative global employee engagement: Companies that have implemented multiple layoffs
have eroded a sense of security in the global work force. There is a disconnection between
what companies currently have to offer employees and what employees really value.
Retaining valued talent is more important, but the drivers to retain that talent are different
depending on the type of market (growth opportunity is paramount in growth markets;
new or challenging responsibilities is paramount in mature markets).

The gap in creative leadership, executing for speed, and managing ‘collective intelligence’
must be addressed. Employee engagement has suffered; companies are now trying to
restore pride and trust.

 The economic crisis and fewer existing business opportunities: The crisis and fewer
opportunities create a high demand on the global HR function to demonstrate greater
adaptability.
Human Resource (HR) will be an important link between corporate headquarters and
overseas operations. HR is conducting too many initiatives, with mediocre outcomes.
Companies need to reform their HR function and boost resources devoted to HR.
 Economic uncertainties: They fundamentally change motivators that attract and retain
employees. There is an unbridged disparity between what companies have to offer
employees and what employees really value.

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