Final answer:
Managing human resources in a global organization faces challenges like sourcing talent, compensation strategies, standardization versus localization, and preparing expatriates. Outsourcing and offshoring have reshaped labor markets and raised concerns about wage disparity and workers' rights. Companies must balance cost-saving measures with ethical labor practices and cultural sensitivities.
Step-by-step explanation:
A major challenge in managing human resources in a global organization includes finding good talent in overseas locations, determining compensation and benefit programs, balancing standardization with local customization, and preparing expatriate employees for their assignments. Professional human resource strategies help to reduce biases in hiring, as evidenced by research on employer discrimination in Canada. Larger organizations appear to have more sophisticated measures in place to ensure diversity and fairness in recruitment. Yet, even well-intentioned Multinational Corporations (MNCs) often struggle with maintaining oversight on working conditions and wages due to practices like subcontracting and offshoring.
The phenomena of outsourcing and offshoring have become integral to global business practices, allowing companies to save costs by hiring outside firms or moving operations overseas. While outsourcing refers to hiring outside firms to perform tasks, offshoring involves relocating operations to access cheaper labor markets. Both practices have reshaped the global labor market and led to issues such as structural unemployment in developed countries while providing higher wages compared to local standards in developing countries. However, globalization has prompted various human rights concerns around immigrant workers and the abuses they sometimes face, such as in the case of Saudi Arabian foreign workers.
Furthermore, globalization has sparked debates about structural unemployment and xenophobia due to competition between high-wage workers in developed nations and the low-wage labor pool in less developed ones. The pursuit of bottom-line profits sometimes fosters a climate of xenophobia, which corporations seek to mitigate by marketing strategies like 'Americanizing' foreign-made products. Ultimately, global human resource management must navigate complex and culturally sensitive labor landscapes, addressing the myriad challenges that come with a diverse and international workforce.