chapter  7
18 Pages

HRM across national boundaries

Over the past 40 years or so, we have seen rapid increases in globalization. Factors such as world trade agreements, membership of the expanding European Union (EU), the need to fi nd new markets and reduce costs, global communication, the development of new technology, and increased travel and migration have led to the increasing interaction, interconnectedness, and integration of people, companies, cultures, and countries (Briscoe et al . 2012 ). As internationalization continues to increase, fi rms operate more across national borders and, as such, foreign direct investment and the number of multinational corporations (MNCs) is also growing. In many of the economies suffering from recession and long run decline in manufacturing, the hopes for economic recovery are based on the expansion of exports, and are very dependent upon countries such as China and India, the USA, and on the EU’s economy. This raises questions about how the context at the country or regional level impacts on the management of people? How countries can improve their people management practices is a vital aspect of HR strategy development. Since there are few technological advantages over the competition which can be maintained for long, one of the critical sources of competitive advantage comes from the way people are managed.