1. What are the basic HRM issues to be addressed by an international business? (Hint: DeNisi & Griffin (2019) identify four broad areas that international businesses must consider.) 2. Which do you think is more critical for International HRM: understanding the cultural environment or understanding the political and legal environment?

Principles of Management
OER 2019th Edition
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax
Chapter11: Human Resource Management
Section11.3: Performance Management
Problem 2DQ: Why might compensation programs and hiring practices need to have local adaptation? What would be...
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Question
1. What are the basic HRM issues to be
addressed by an international business? (Hint:
DeNisi & Griffin (2019) identify four broad
areas that international businesses must
consider.)
2. Which do you think is more critical for
International HRM: understanding the cultural
environment or understanding the political and
legal environment?
Transcribed Image Text:1. What are the basic HRM issues to be addressed by an international business? (Hint: DeNisi & Griffin (2019) identify four broad areas that international businesses must consider.) 2. Which do you think is more critical for International HRM: understanding the cultural environment or understanding the political and legal environment?
Expert Solution
Step 1

What are the basic HRM issues to be addressed by an international business?

There are four main factor in International businesses that are political and legal, cultural and social, economic and geographical factors. The basic Human Resource Management should cater to these factors and the issues that needs to be addressed by international businesses are as follows

  • Cultural Diversity - Cultural diversity is the most important issue that needs to be addressed in any international business. People come from different cultural background, have different set of beliefs, dress code etc. Different business location require custom business ethics to successfully manage the global work force
  • Language Barrier - Language barrier is also a major issue in international business. Language barrier can hinder smooth communication, thus affecting the business transaction. Also something may not be acceptable in different countries and employees may get offended.
  • Legislature and labor rights - Different countries have different labor rights. The work of HR is to manage different laws and regulations related to any country
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