Standardization is the implementation and adoption of identical procedures throughout the organization, regardless geopolitical or cultural differences. Stone et. al., 2020. Localization is the adaptation of company structures to market specifics. The challenges surrounding standardization and localization have an impact on compliance with host market legislation and the promotion of cultural diversity in HR practices (Armstrong & Taylor, 2020). Standardization assumes some practices will be recognized internationally. This can create compliance issues, particularly for countries that consider them to be immoral. Accepting diversity in hiring LGBTQIA members to the workforce is legal in the United States. However, restrictions in Middle Eastern countries such as Saudi Arabia make it more difficult. Standardization also shows that an organization does not value the culture in which it operates. Asians, Africans, and others, value the importance of group and collective responsibility. This allows the company to adapt to community needs and cultural norms. The HR division can solve the various concerns by assuring compliance with local market requirements (Macpherson & Antonacopoulou, 2013). The importance of compliance is acknowledged by HR departments to improve the company’s image. The HR department should also structure the culture of its employees to be in line with the expectations and cultural norms of their host country.
Standardization can be difficult because it does not take into account the cultural differences of each country. Some workers feel that the institution is ignoring their culture and forcing them into accepting new traditions. This can lead to resistance or sabotage. It is accurate that standardization disregards the individuality of each market by stressing operational efficiency through organized control systems (Stewart & Brown, 2019). Businesses must demonstrate their support for diversity by matching their business processes to those of other local businesses. Recognizing local cultures is a benefit that organizations should do an economic analysis. Localizing can lead to brand equity increases, high-caliber local staff, and exceptional performance.