Global Human Resource Mangement

7/24/2019 Global Human Resource Mangement

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INTERNATIONAL HUMAN RESOURCEMANGEMENT

Boxall, P. (1992) defned International Human ResourceManagement (IHRM) as 'concerned it! t!e !uman resource"ro#lems o$ multinational frms in $oreign su#sidiaries (suc! asex"atriate management) or more #roadl%, it! t!e un$oldingHRM issues t!at are associated it! t!e &arious stages o$ t!einternationalisation "rocess.

IHRM is concerned it! HRM issues t!at cross national#oundaries or are conducted in locations ot!er t!an t!e !omecountr% !eaduarters.

IHRM is concerned it! t!e relations!i"s #eteen t!e HRMacti&ities o$ organisations and t!e $oreign en&ironments in !ic!t!e organisations o"erate.

IHRM includes com"arati&e HRM studies e.g. dierences in !ocom"anies in *a"an, +!ailand, ustria and -iterland "lan $oru"grading o$ em"lo%ee s/ills and so on.


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IHRM APPROACHES

ETHNOCENTRIC: /e% "ositions flled #% nationals o$"arent com"an%

POLYCENTRIC: !ost countr% nationals recruited to

manage su#sidiar% in t!eir on countr%

GEOCENTRIC: #est "eo"le recruited, !ate&er t!eirnationalit%

REGIOCENTRIC: #est "eo"le recruited it!in region in

!ic! t!e su#sidiar% o"erates (e.g. 0, -).


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OBJECTIVES OF INTERNATIONAL HRM

3reate a local a""eal it!out com"romising u"on t!e glo#al

identit%.

4enerating aareness o$ cross cultural sensiti&ities amongmanagers glo#all% and !iring o$ sta across geogra"!ic #oundaries

+raining u"on cultures and sensiti&ities o$ t!e !ost countr%.

+!e STRATEGIC ROLE OF HUMAN RESOURCES MANAGEMENTinsuc! a scenario is to ensure t!at HRM "olicies are in tandem it!and in su""ort o$ t!e frm5s strateg%, structure and controls.-"ecifcall%, !en e tal/ o$ structures and controls t!e $olloing#ecome ort! mentioning in t!e context o$ 4lo#al HRM.

Decision Makin:+!ere is a certain degree o$ centraliation o$o"erating decision ma/ing. 3om"are t!is to t!e Internationalstrateg%, t!e core com"etencies are centralied and t!e rest aredecentralied

Co!o"#ina$ion: !ig! degree o$ coordination is reuired in a/e


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' MAIN FUNCTIONS OFINTERNATIONAL HUMAN RESOURCE

MANAGEMENT

()RECRUITMENT

6inding, retaining and de&elo"ing a su"erior or/$orce is one o$t!e #iggest c!allenges ina glo#al organiation. nderstandingcultural dierences in t!e recruitment "rocess, int!e selectiono$ candidates and in !at moti&ates em"lo%ees is crucial in t!esta7ng andrecruitment "rocesses $or an% international

o"erations and ultimatel% to t!e success o$glo#al organiations.+!e s/ills reuired to o"erate t!ese #usinesses need to #ematc!edit! t!e a&aila#le local talent.


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*) SALARIES AND OTHER RE+ARDS

8!ile fxing salaries and com"ensation "ac/ages, it is

im"erati&e t!at adeuate care ista/en to see t!at localstandards are met. &erall organiational reuirementss!ould #emet concurrentl% as ell.

Insurance, "ension and ot!er #enefts need to #econsidered incon:unction it! t!e "resent "olicies o$t!e com"an%. ;ocal las regarding minimumages,#onuses, tax com"liance ser&ices and ot!er em"lo%ee#eneft ser&ices also !a&eto #e structured into t!e"ac/ages

,) TRAINING AND DEVELOPMENT

+o reduce costs, t!e "ossi#ilit% o$ de&elo"ing in


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4. ADMINISTRATION OF PERSONNEL

+!e administration o$ HR and related matters need to ta/e intoconsideration t!e &ar%ingor/ing conditions o$ eac! area o$international o"erations.

com"an%s strateg% illim"act its em"lo%ees, and it isnecessar% to !a&e HR su""ort sta t!at not onl%understand t!eglo#al landsca"e #ut also !a&e a t!oroug! /noledge o$ glo#al#usinessand !at it ta/es to esta#lis! com"anies in negeogra"!ies.

') HUMAN RELATIONS8!en contem"lating glo#al !uman resourcemanagement, e&er% s"!ere o$ internationalo"erations

needs to $ollo s"ecifed religious and national $esti&alst!at ma% reuirecertain actions to #e ta/en #% t!e HRde"artment. 6unctions o$ glo#al !umanresourcemanagement ta/e on t!ese additional as"ects!en a com"an% is glo#alied.8!en de&elo"ing glo#al

HRM strategies, HR teams need to closel% ascertain t!e#usinessstrategies t!e com"an% intends to ado"t in t!e


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MAIN CHALLENGES IN IHRM

> Hig! $ailure rates o$ ex"atriation and re"atriation> ?e"lo%ment @ getting t!e rig!t mix o$ s/ills in t!eorganiation regardless o$ geogra"!ical location> Anoledge and inno&ation dissemination @ managingcritical /noledge and s"eed o$ in$ormation o> +alent identifcation and de&elo"ment @ identi$%ca"a#le "eo"le !o are a#le to $unction eecti&el%> Barriers to omen in IHRM> International et!ics> ;anguage (e.g. s"o/en, ritten, #od%)Different labor laws

Different political climate Different stage(s) of technological advancement

Different values and attitudes e.g. time, achievement, risk

taking


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IHRM V-S HRM

n IHRM o"erates #e%ond national #orders !ile domesticHRMs o"erate it!in t!e #orders

IHRMs !a&e more $unctions and are su#:ect to morestringent international rules and are moreex"osed to aider arra% o$ acti&ities as o""osed to domestic HRMs.

In an IHRM, t!ere5s constant c!ange $or a #roader set o$"ers"ecti&es.

In an IHRM, t!ere5s more attention gi&en to t!e associate

or ex"atriateem"lo%ee5s "ersonal ell


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CONTINUE.

?omestic HRM is concerned it! managingem"lo%ees #elonging to one nation and IHRMisconcerned it! managing em"lo%ees #elonging toman% nations (Home countr%, !ost countr% andt!irdcountr% em"lo%ees)

?omestic HRM is concerned it! managing limitednum#er o$ HRM acti&ities at national le&eland IHRM!as concerned it! managing additional acti&itiessuc! as ex"atriate management

?omestic HRM is less com"licated due to lessinuence $rom t!e external en&ironment. IHRMis&er% com"licated as it is aected !ea&il% #%external $actors suc! as cultural distanceandinstitutional $actors.

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Global Human Resource Mangement