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The demands of international human resource management
The significance of international human resource management
The significance of international human resource management
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This paper includes the critical evaluation of one of the three approaches to International Human Resource Management with the help of proper academic research based on theoretical framework.
According to Storey, HRM has a very different approach to employment which looks for competitive advantage by strategic deployment of highly committed workers. Therefore, this includes structural, cultural and different personnel techniques. HRM includes many activities such as HR planning, staffing, training and development, compensations and benefits, labor relations and performance management.
According to Morgan, Many activities will change when Human Resource Management will go global based on the types of employees, countries where operations will be held and different human resource activities used. Whereas Desatnick and Bennet stated that, the complexities and issues in employment of different categories of workers and operating in different countries is the main variable that distinguishes local and international HR not the different human resource activities used.
There are many differences between International and Domestic Human Resource Management. Some of them were stated by Brewster and Bennet (2010). These include differences in laws and regulations, organizational structure, cultures, skills and performance management. Related to this, Harris, Brewster and Sparrow (2003+) has characterized three approaches of International Human Resource Management.
The first approach is cross cultural approach which focuses on human behavior in different organizations considering international perspective. The early work in this field was supported by Adler. The second approach emphasized on aspects of Human Resource Management in m...
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... and priorities of a person that will affect the way of managing human resources internationally. Hofstede in 2001 stated that it is necessary for managers to identify how workers will be affected culturally, when they will be affected and how can managers overcome the problems in an effective manner since cultural considerations have an impact on HR management.
To conclude this we can say that cultural environment is an essential variable that reduces differences between domestic and international human resource management. Research has shown that there are differences in values, beliefs, attitudes and cultural environments with the increase in internalization of employment. Therefore, in order to form a top management multicultural team having cultural expectations, strategic objectives and managing styles is necessary and can lead to success as stated by Roth.
While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the following:
In today’s fast-paced, highly-competitive global marketplace, many companies are embracing the less cumbersome and more flexible decentralized human resource approach. However, there are advantages to centralization and some business professionals point out that in the global marketplace:
In today’s business environment, the complexity of international business has increased and international competition has been highlighted as an essential element for multinational firms (MNCs). Thus, in order to gain competitive advantage, various resources are utilized, such as financial capital, technology location or human resource (HR). Moreover, HR could be seemed as one of the most important resource which has also become a focus of attention of senior managers in MNCs. As suggested by MacMillan(1984), MNCs can gain competitive advantage through use of HR practice, such as training, compensation, socialization, selection, performance appraisal and career development, as long as other firms are unable to duplicate their efforts easily and quickly. However, while HR practices and policies are performing across countries, culture would be a key point. Culture can be defined not only at the national, but also at the group, organizational, and even international level. All these cultures have certain effects on the choice and efficiency of HR policies and practices. Between national and other types of culture, therefore, need to be divided clearly because national culture makes a unique contribution to understanding HR policies and practices. Therefore, there is no doubt that national culture is a key factor on HR practices or polices, as a functional activity in international business. In this paper, the role and effects of national culture in HR will be discussed firstly. And then the potential problems that MCNs may have if they do not consider national culture as a key factor in HRM success. In the final stage, the solution of those problems will be presented in this paper.
Triandis, H., & Wasti, S. (2008). Culture. In D. Stone, & E. Stone-Romeo, The influence of culture on human resource management processes and practices (pp. 1-24). Psychology Press
Geert Hofstede was one of the first researchers to analyse the influence of national culture on management practices. According to Geert Hofstede, “There is no such thing as a universal management method or management theory across the globe.” (Summary of Cultural Dimensions Theory 2014). He furthermore developed his initial statement by stating “Management is not a phenomenon that can be isolated from processes taking place in society. It interacts with what happens in the family, at school, in politics, and government.” (Hofstede's Cultural Dimensions: Summary, Forum and Expert Tips 2014). Based on extensive research from 1967 to 1973, Hofstede developed the cultural dimension theory is a framework for cross-cultural management. Culture is “total of the beliefs, rules, techniques, institutions, and artifacts that characterize human populations or “the collective programming of the mind.” (Understanding Cross-Cultural Management, Browaeys et al. 2011, pp131). Hofstede developed the original model after using factor analysis to examine the results of world-wide survey of employee values by IBM in between the 1960s and 1970s. The theory was one that could be used to observe differences between different cultures in a wide range of disciplines, including international management. The original theory proposed only just four dimensions; they include individualism/collectivism(IDV), power distance(PDI), uncertainty avoidance(UAI) and masculinity/ femininity(MAS).Hofstede(1991) stated that these dimensions concern “four anthropological problem areas that different national societies handle differently: ways of coping with inequality, ways of coping with uncertainty, the relationship of the individual with her or his primary group, and...
I. Introduction People are important to any organization’s success, and the variety of cultures, especially here in the United States, that are within an organization should be considered carefully when it comes to human resource management. In the U.S., we have a multitude of different races, religions, cultures, and lifestyles that complete our society. Organizational culture is essential to Human Resource (HR) management. According to Jackson and Mathis (2009), Organizational culture entails a pattern of shared basic beliefs and values invented, discovered, or developed in order to give members of an organization meaning and provide them with rules for behavior that give members of an organization meaning and provide them with to assist in adjusting problems of external adaptation and internal integration.
Changing the Roles. Traditionally, HR has been an administrative position — processing paperwork, benefits, hiring and firing, and compensation. However, recently HRM has moved from a traditional to a strategic role, with the emphasis on catering to the needs of consumers and workers. Before, HR was seen as the enemy and employees believed that HR’s main purpose was to protect management. Now, the position requires HRM to be more people-oriented and protect their human capital, the staff.
Industry characteristics: Industry characteristics also influence HRM practices in various ways. Manufacturing, retail, food and health and construction sectors create their own HRM policies as per the requirement. Many sectors are quite sensitive to needs of human resource and few may not require it at all, considering the skills and abilities of their human resource. The companies need to follow and consider competitive practices in order to retain human talent in their
In today's global business environment, managing diversity in human resources has become a very important and crucial issue. Human resources management has a lot to deal with managing workers/employees from different countries and nationalities. Managing multinational human resources becomes an issue not only in the multinational corporations, having their offices or plants in different countries, but also in the domestic companies, with domestic workforce becoming more and more diverse each day. Creating an HR that has the ability to recruit and select the right people and the ability to effectively socialize and train employees will allow multinational companies to excel in all business aspects.
According to this definition, we can see that human resource management should not merely handle recruitment, pay, and discharging, but also should maximize the use of an organization's human resources in a more strategic level. To describe what the HRM does in the organization, Ulrich, D. & Brocklebank, W. (2005) have outlined some of the HRM roles such as employee advocate, human capital developer, functional expert, strategic partner and HR leader etc.
Willy McCourt & Derek Elridge (2003), Global Human Resource Management, pp 311 - 315. Edward Elgar publishing.
In dynamic, global competitive markets, successful organizations are likely to be staffed with managers capable of adapting to constantly evolving roles, and with the capacity to achieve and sustain optimal levels of performance. The global market place has currently impacted the practice of human resources management in the United States and will continue in the next ten years.
An organizational human resources department utilizes the hiring and firing process to meet the organization’s personnel needs. Organizational human resource departments are charged with the oversight of an organizations administration department. The practice of hiring and firing people is a process employer’s conducts on a daily basis. This process has to be done in a proper manner and not in haste. The implication that can occur from the improper hiring and firing process could and can have a positive or negative impact on an organization. Therefore, employers must carefully evaluate their decision to hire/fire individuals and its impact on the organizations’ workplace environment and others employees. Human Resource Management is important for an effective organization. In today’s organization, HRM is valuable to the organization because of increase legal complexities and its known for improvement in productivity. However, management should realize that poor human resource management could result in an outburst of hiring process followed by firing or layoffs. According to (Satterlee 2013, p. 194), “Hiring the best candidate who is also a good fit for the organization is crucial for the success of an organization, because a poor hiring decision will have repercussions across the entire organization”. Satterlee made a valid point because poor hiring could have an impact on the bottom line performance of the firm. In other words, HRM is the contributing factor to the success of the organization including motivating and maintain the staffs. The purpose to the motivation is to ensure that all employees grow to a full potential. According to (Sims 2006, p. 5), “HRM efforts are planned, systematic approaches to increasing organizati...
Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.
The work of HR specialist is not only affected by the internal factors, there are also external environmental factors that influence how HR specialist operates. In this section, I am going to discuss factors that influence the Practice of HR in organizations, from outside the scope of the organization. The factors include Political, Legislation and Regulations, Actions of Competitors and Economy of the country