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    MSC INTERNATIONAL BUSINESS

    INTERNATIONAL LEADERSHIP AND

    HRMSESSION 1

    The Nature of International HRM

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    Welcoe to Se!!ion On

    Aims and Learning Outcomes: Outline the diferences betweenpersonnel management and humanresource management,

    Domestic and international HRM a Discuss the variables that moderatthese diferences.

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    Denitions

    Human Resource Management !HRM" is a di#cult tas$ as t

    man% competing denitions.

    &his arises because o' the debate centred over whether HR

    diferent 'rom, or an advance upon, the more traditional te

    Per!onnel Mana"eent#

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    Per!onnel Mana"een

    ()ersonnel Management( has been den

    responsibility for all those who manage pwell as being a description of those employed as specialists; that is, It is tha

    management which is concerned with pwork and with their relationship wenterprise.

    + nstitute o' )ersonnel and Development

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    Per!onnel Mana"een

    -owada%s, personnel managers ocposts at the most senior level and messential contribution to polic% 'orm

    &heir advice must, however, be bas

    $no%le&"eand e'(erienceand mseen as valuable, and pre'erabl% asessential i' it is to be listened to.

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    Per!onnel Mana"er!

    &he% are involved in three main areas o' wor$:

    1# E(lo)ee Re!ourcin"

    Recruitment election

    Remuneration

    /ob 0valuation

    Human Resource !manpower" planning and 'orecasting terms and conditio

    Managing staf turnover and retention

    Record+$eeping

    Health and a'et%

    1el'are

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    Per!onnel Mana"er!

    *# E(lo)ee Relation! 2 &his covers+

    ndustrial Relations

    ndividual and collective relationships at wor$

    3ollective 4argaining

    -egotiation

    3onsultation

    n'ormation

    3ommunication

    )articipation

    Redundanc%

    Dismissal

    5rievance Handling

    06ual Opportunities

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    Per!onnel Mana"er!

    ,# E(lo)ee De-elo(ent

    . nduction

    &raining needs anal%sis

    Design o' training programmes

    Direct &raining

    0valuation o' training

    Managing training consultants

    0ducation+4usiness lin$s

    Management development

    3areer development and succession planning

    Appraisal o' per'ormance and potential

    3ounselling and 3oaching

    THIS IS B/ NO MEANS AN E0HAUSTIE LIST2 BUT IT CERTAINL/ COMPRISES A ER/ W

    ACTIITIES WHICH ARE WITHIN THE PURIEW O4 MAN/ PERSONNEL DEPARTMENTS#

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    Ori"in! an& De-elo(ent of Per!onnel Mana

    /ear E-ent

    151, 1el'are 1or$ers Association 'ounded

    1516 -ame changed to 3entral Association o' 1el'are 1or$ers

    1515 -ame changed to 3entral Association o' 1el'are 1or$ers !industrial"

    1515 -ame changed to 1el'are 1or$ers nstitute

    15*7 -ame changed to nstitute o' ndustrial 1el'are 1or$ers ncorporated

    15,1 -ame changed to nstitute o' Labour Management

    15,7 taf Management Association 'ormed as an a#liated group

    1578 -ame changed to nstitute o' )ersonnel Management

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    Ori"in! an& De-elo(enPer!onnel Mana"een

    &here have been various attempts to describe these develthese, 3uming !789" describes 'our main stages:

    1el'are )eriod

    cientic Management

    ndustrial Relations

    Manpower )lanning

    4rie;%, the origins o' personnel management lie in the 78th cre'orm movement 'or the improvement o' wor$ing and living and the religious movements concerned with the wel'are o' inwor$ers

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    4ro Per!onnel to Huan Re!ource Mana"ee

    &he availabilit% o' computers to assist planning, and the concern 'or core wor$'orce, pushed personnel in the direction o' s%stematic and strategic mo' the human resource + Huan Re!ource Mana"eent#

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    Di:erence!+ Per!onnel an& Huan Re!ource Mana"

    &he degree o' identication with management interests

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    There are a nu;er of (o!!i;le cau!e!%hich can ;e u!e& to e'(lain the!e

    &i:erence!#

    An increasing identication with management interests, rather than emplocan be traced to two 'actors:

    &he changing role o' line managers.

    &he concern o' personnel specialists to establish their own power base wiorganisations + Role A;i"uit)< Lo% Statu! an& Lac$ of Po%er an& Aetc#

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    The Mo-e To%ar&! a More Strate"ic A

    &here has been an increasing emphasis on planning, monitoring, and contthan re+ghting and problem solving

    &he availabilit% o' computer applications in the area o' computerised persin'ormation s%stems !3)" can ta$e personnel administration be%ond me$eeping.

    An increasing 'ocus on (human resources( rather than (emplo%ees( is againto the process o' ac6uisition, merger, and corporate restructuring over the

    %ears. &he 3hanging 0mplo%ment Relationship

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    I! HRM reall) &i:erent fro Per!oMana"eent9

    ... HRM is a strategic approach to the ac6uisition, motivation,and management o' the organisation(s human resou

    =Ar!tron"2 Per!onnel Mana"eent2 4e;ruar)

    &here is no complete consensus, and indeed 6uite a considerto the precise content o' HRM, and even as to whether it is

    distinct in practice 'rom sophisticated personnel manag

    I! HRM reall) &i:erent fro Per!onnel Mana"

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    I! HRM reall) &i:erent fro Per!onnel Mana"

    @Ol& %ine in ne% ;ottle!@+ Here HRM is >ust seen as relabelling o' personnel management >obs withcorresponding change in roles.

    HRM i! a reection of the chan"in" en-ironent of ;u!ine!!+ 1ith the increased competitiveness o' the 78?@s, and the appearance o'management(, (the new realism(, and the (new right(, HRM is an attempt tshi't awa% 'rom the pluralistic perspective o' personnel management to th'ramewor$ that assumes that the interests o' the business and its emplo%necessaril% be congruent !eeno%, )ersonnel Review, Bol. 78

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    HRM i! not nece!!aril) i&eal for all or"ani!ation!

    everal observers claim that there is ample evidence that diferent busineenvironments and 'unctions need diferent organisational structures and c!owler, )ersonnel Management, /anuar% 78?9"

    HRM ta$e! a !tereot)(e& -ie% of the (rece&in" (er!onnel (ractic

    )eople management has alwa%s been a responsibilit% o' line managers ane=clusive preserve o' the personnel pro'ession.

    The central concern! of HRM are not ne%

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    Denin" International HRM

    HRM re'ers to the activities which an organisation must utilise to manage resource efectivel%.

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    The "ure @A o&el of IHRM@ (re!ent! three $e) IHRM &ien!ion!+

    HR activit% including procurement, allocation and utilisation.

    &he national or countr% categories involved in HRM activities.

    &he three categories o' emplo%ee o' an international rm.

    HR Acti-itie! inclu&e+

    Human resource planning

    ta#ng

    Recruitment

    election )lacement

    &raining and development

    3ompensation !remuneration" and benets

    ndustrial relations

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    The Ne% Huan Re!ourceMana"er

    The) 4ocu! More on Strate"ic2 Bi".Picture I!!ue!

    &he% ocus on mproving )er'ormance

    The) Mea!ure HR Perforance an& Re!ult!

    U!e E-i&ence.Ba!e& Huan Re!ource Mana"eent

    The) A&& alue

    The) U!e Ne% Wa)! to Pro-i&e HR Ser-ice! The) Ta$e a Talent Mana"eent A((roach to Mana"

    Re!ource!

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    Di:erence! ;et%een Doan& International HRM

    Domestic and International HRM differs beca

    Are more HR activities.

    s the need 'or a broader perspe

    s more involvement in emplo

    lives.

    Are changes in emphasis as the

    o' e=patriates and locals varies.

    s ris$ e=posure.

    Are broader e=ternal in;uences

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    &his gure highlights 'our $e% elements that crediferences between domestic and international

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    3hanges in the operating environment challenge and dstrategic responses 'rom management. &hese responseo'ten dramatic changes to the global wor$ environmenprocess is displa%ed in the gure below.

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