1. Q: Which of the following two concepts is more critical for international Human Resource Management: understanding the cultural environment or understanding the political and legal environment? Why? Include key terms and concepts from the textbook.
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:
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“Perhaps the most systematic study of national values was undertaken by Dutch scholar Geert Hofstede, who studied cultural differences among managers in fifty-three countries” (DeNisi & Griffin, 2014, p. 56). Those five dimensions are as follows: “power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance; and time orientation” (pgs. 56- 57). While the United States is highly recognized for its individualism compared to other countries, they faired quite low in the rest of the five dimensional areas compared to its competitors in other countries. It shows that Hofstede’s research theory provides useful insight as to the cultural differences countries face when interacting with differences within these cultures throughout the world. Although all of these concepts are critical, there is one more cultural factor that is significant; and that is the children. Child labor to be exact, affects many countries such as Bangladesh where their children are required to help supplement the family income; through working for low wage entities. Instead of getting an education they work to help care for their loved ones by seeking work at a young age. While this may be acceptable, and followed as part of their customs in some countries, others prefer to apply other strategies in helping with the clarifications of how International Resource Management policies differ; and to which procedures actually work in that
Research differentiates the domestic human resource management strategy as, “simpler and easier for manager structure because the business is done on a particular territory, inside specific national culture and business environment,” (Slavić, Berber, & Leković, 2014). On the other hand, globalized companies have trouble with such things as observing the host country’s national cultures, their local regulations, and working around the impact of any new technologies that are required to do the job. Both strategies require effective communication, implementation, and performance
Communication and decision-making processes (including models and methods). Basic control functions (strategic planning and implementation of strategies to build the organization, motivation, monitoring, and coordination). Group dynamics and leadership. The effectiveness of the company's activity (personnel management, production, marketing, performance management as a whole). Moving employees from it's operational and strategic role in international organizations, development and use of competitive advantages of the company in various countries and appropriate use of economic, social, demographic, cultural, etc., of these countries, is the main role in the research and practice of international human resource
What are the HR Strategies that management must undertake and support to create a successful global presence to insure the success of an organization in meeting its goals and mission?
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.
Meanwhile, Hofstede stating that national culture distinguishes the members of one group from another thought having a unique characteristic. Basically human resource strategies and policies would differ in the manner of management at which they achieve their objectives in the global aspect varying from country to country. Culture has its own history, therefore it tends to have an effect towards certain views HRM may frown upon and at the same time undiscovered opportunities from HRM practises. The national culture in countries most especially developing countries, tend to have a positive effect on achieving an organisations objective. But at the same time shows a dual effect on HRM policies. These policies are implemented towards an organisations strategy t...
In recent years due to the factors like globalization and removal of trade restrictions have created fierce competition in the domestic market for the well-established domestic firms. So, this competition has encouraged many domestic producers to enter into the international business through exporting their product to the different parts of the world or licensing or joint ventures to gain higher profit. By following the paths of international business may encounter the new challenges that are coming along with international human resource management. International human resource management is the set of distinct activities, functions and processes
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...
Analysis of how the HR-function should be organized according to HRM-theories and the way the HR-function is organized in practice within different organizations.
Employee benefits coordinator play a significant role in Human Resource Management. Employee Benefits coordinators are responsible for assisting with employee benefits, maintaining employee data base, managing all insurance billings and maintain employee files, sick pay, vacation and retirement. This study explores the importance of employee benefits to corporations, government agencies and non profit organizations. This paper also researches the effects on the management team and on individual employees’.
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.
The internationalisation of the organizations has made the International human resource management function (HRM) complex. The IHRM has many functions that are the same as that of HRM. However, due to the internationalisation of the companies these IHRM functions must be accommodated to manoeuvre on the large scale while keeping in view, the more complicated and diverse business goals of the respective MNC (Dowling et al., 2009).This essay gives an insight into different roles of the IHRM in the multi-national companies (MNCs) and how these roles differ between the MNCs. Although IHRM performs significant activities in the (MNCs), the jobs performed by IHRM vary in different MNCs depending upon the strategy and structure of the respective MNC that is the degree of integration and centralisation. Also, the IHRM’s role differs between the MNCs on the basis of the size, nature of the business and the institutional and cultural context of the MNC. First, the essay briefly describes the terms that would be relevant to the essay. Second, it
International Human Resource Management (IHRM) has gained more attention due to the increase in number and competition among MNCs. IHRM focuses on policies and regulations and looks into all aspects of HRM in MNC’s while setting up of an MNC in a different country. The study of IHRM helps in international career and knowledge management and framing of international policies. The cultures and business systems are different within and between Asia, Europe and America. Hence IHRM has a vital role in understanding these institutional as well as cultural differences while framing the policies and practices for
Globalization of human capital is where, human resources are sook after by companies from all over the world. Due to the increased demand for skills at a lower cost, companies will tend to look for employees to work in their premises from all over the world (Webforum, 2015). In this regard, since companies are extending their operations the entire world over, human capital globalization is inevitable since they will need to work with people from these countries for them to successfully exploit global markets.
Vance, C. M., & Paik, Y. (2006). Managing a global workforce : Challenges and opportunities in international human resources management. Armonk, NY, USA: M.E. Sharpe, Inc. Retrieved January 4, 2014, from http://site.ebrary.com/lib/ncent/docDetail.action?docID=10178050
Willy McCourt & Derek Elridge (2003), Global Human Resource Management, pp 311 - 315. Edward Elgar publishing.