Question

Besides cultural differences, what other factors affect human resource management in an organization with international operations?

Answer 1

There are a lot many challenges that affect the Human resource management in an Organization with International Operations when it steps on a global footprint especially because of the lack of uniformity in the international commercial law governing that particular country. There could be a basic cultural difference of two or more countries that could influence the business activities in a major way. For example, the US culture differs fairly from that of India. Hence, the business operations taken place these two countries will undergo a marked difference in terms of the advertising activities that can help establish an emotional connect with the people of that state, marketing of the services and products based upon various geographic and psychographic considerations, etc. and negotiating the sales in such two countries. Here there shall be a distinction in the commercial laws governing the marketing field.

The political and legal systems are one of the most guiding factors that may either encourage or discourage a business to be set up or operate at an international level. When coming to the domestic business, it is rather easier to understand the rules and regulations that supervise the businesses in the domestic front for the marketers. Often the Government may give relevant incentives for setting up and operating the business in the home country in the form of various tax subsidies and incentives. However, when in case of international business, the legal formalities are more complex in nature. While one has to comply by the home country rules and legal procedures, on the other side, it becomes challenging to understand the legal issues governing the business at some other country where one would like to set up the business. There even could be certain adverse impact of such legal affairs upon the business operation in the international business.