Question

International Human Resource Management

4. In what ways do states operating under different modes of capitalism influence the management oflabour across national borders? need to be tailored for the effective management of labour under different national cultures

Answer 1

It is first important to understand the right meaning of "Labor Management" before looking into its influence across the border.

It's a discipline that involves the policies, rules and regulations that govern and regulate the workforce in an organisation. A workforce may include unskilled, semi-skilled and skilled human resources. If managed properly, it can help businesses in planning their daily work and processed in a better way for a better overall outcome.

The magnitude of impact on labor management varies from place to place depending upon their Political system and Economic system in any trade and industry. Both economic and political system impacts the workforce management in the form of wages inequality, workplace health and safety, political engagement and investment in human capital.   

Many industries these days look to install their facilities in the states where not only the taxes are not so high but also the cheap labor is available easily. Example, Many MNCs of USA and Europe are targeting to set up their manufacturing and distribution units in south Asia due to the huge number of cheap workers availability. Secondly, sometimes due to certain political disturbances, job losses may increase and dissatisfaction among the labors can also increase due to bad wage rates.

Furthermore, any political bias can cause inequality in wages and also the employment due to uneven capital investment in certain business sectors and industries. Similarly, economy crisis can contribute into huge unemployment and reduced wage hikes and job promotions. Therefore, the concerned stakeholders need to plan and execute their financial strategies very carefully. Workforce health and safety has always been a highly motivating factor among the labors. Any small negligence can cause fatal injuries at the work place. Therefore, all recommended safety precautions must be in place and the workforce must also be trained for any unforeseen event during the working hours.

Reducing unemployment has traditionally been an essential component of political economic growth. In many countries government has taken bold steps towards improving the employment growth rate. Example, government funding to small scale industries and also lesser interest rates on business loans to start ups.

Any industry seeking to establish or expand their business in a foreign territory, it must first make serious efforts to understand their culture because this way only they can identify the workforce requirements and standards. Based on the complete research only they should implement their company policies and standards. It may not necessarily be same in all the territories depending upon the demands and requirements of their culture.