Description
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
qwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopa sdfghjklzxcvbnmqwertyuiopasdfg ‘Tesco PLC’ International and IHRM CHALLENGES hjklzxcvbnmqwertyuiopasdfghjklz INTERNATIONAL HUMAN RESOURCE MANAGEMENT xcvbnmqwertyuiopasdfghjklzxcv bnmqwertyuiopasdfghjklzxcvbnm qwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopa sdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklz xcvbnmqwertyuiopasdfghjklzxcv bnmqwertyuiopasdfghjklzxcvbnm qwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmrtyuiopa
6/27/2011 Zarmina siraj
TITLE:
Tesco PLC’ International and IHRM CHALLENGES
2
TABLE OF CONTENTS: Authenticity statement............................................. 4 1. Introduction...............................................5 Purpose of the Report......................5 Objective/Delimitations........................5 Significance of the Report.................5 Research Methods.........................................5,6 2. Questions................................................. Question 1........................7 Question 2........................8 Question 3........................9 Question 4........................10 Question 5........................11 Question 6........................12 Question 7........................13 Question 8........................14, 15 3- Bibliography............................................16
3
STATEMENT OF AUTHENTICITY: By signing this, I am certifying that my writing is the sole creation of my own efforts and ideas. I understand that plagiarism is a crime defined as the use of another’s words, ideas or expressions without acknowledging their source. I further understand that plagiarism is grounds for immediate disqualification. I certify that all statements and information contained herein and in all my application materials submitted by me are true, correct and accurate to the best of my knowledge and belief. I further certify that the writing was written solely by me and is my original work.
Signature of writer: ------------------------------------------------Student ID: ……………………………………………………
4
INTRODUCTION: Writing in the mid-1980s on the state of the field of International Human Resource Management (IHRM), Laurent (1986) concluded that “the challenge faced by the infant field of international human resource management is to solve a multidimensional puzzle located at the crossroad of national and organizational cultures” . The aim of this paper is to examine developments in the field of IHRM and to see if any progress has been made towards completing the puzzle noted by Laurent. In doing so this paper will draw on work which has been completed over the last ten years with a number of colleagues–initially with Randall Schuler (New York University) and more recently with Helen De Cieri (University of Melbourne), Denice Welch (Norwegian School of Management), Marion Festing and Wolfgang Weber (University of Paderborn).1 Specifically, three issues are examined: first, the various approaches which have been taken to the study of IHRM; second, the variables which moderate differences between domestic and international HRM; and third, recent work which examines the topic of strategic human resource management in multinational enterprises (MNEs).TESCO PLC is a pioneer company in this report I will be discussing the managing of business relation with TESCO PLC,in ambit of an human resource manager.
A- PURPOSE OF REPORT:
The field of international HRM has been characterized by three broad approaches. Early work in this field emphasized a cross-cultural management approach and examines HUMAN RESOURCE MANAGEMENT behavior within organizations from an international perspective
B- OBJECTIVE:
Our objective has been to explore the implications that the process of internationalization has for the activities and policies of HRM. In particular, we are interested in how HRM practiced in multinationals. Each approach takes a somewhat different view of IHRM and in my view it is essential to identify the approach which a researcher is taking to the subject as the approach taken influences what is defined as IHRM. One only has to look at the diversity in the program at the various International HRM conferences to see that there are multiple definitions of what constitutes international HRM.
C- SIGNIFICANCE OF REPORT:
To summarize, this paper has endeavored to meet three objectives: First, to outline the various approaches which have been taken to the study of IHRM; second, to discuss the variables which moderate differences between domestic and international HRM; and third, to briefly outline recent work which examines the topic of strategic human resource management in multinational enterprises. Attention to these three points will, I believe, take us some way to completing the puzzle of International HRM which Laurent has described.
D- RESEARCH METHOD:
The review of the theoretical global relevant literature would provide a snapshot of the state of the current affairs regarding employees and human resource managers preparing for and going on international assignments. Research engines such as Google, Emerald, published works by
5
top level theorists and gurus in this field would be used. It would also identify possible research topics to provide more clarity in future over a longitudinal research period to identify new trends and themes
6
1. How does the role of the HR manager operating within the purely domestic UK business environment differ from that of the international human resource manager operating within a global remit? You should be clear with your country chosen while supporting your arguments for the scenario
•
Introduction
Managing human resources in overseas locations poses different problems and challenges for HR managers, than if employees were based in the home base. The growth of global trade has driven the trend for internationalization and the proliferation of expatriate assignments. There is a need to effectively manage this for the benefit of both the company and the individuals. • Underpinning knowledge
Domestic hr managers in UK or in any country are placed within the national boundaries. They have Less number of Rule and Regulations to be managed. And mostly follow employment and taxation rules of the home country. They have uniform policy in administration. There is No special attention into the personal life. Confined to crèche and cultural interactions. Challenges are confined to the situation of a particular country. Special Training is not required for Socio Cultural adaptation. IHR manger work outside their national boundaries. They have to follow Very high number of rules and regulations which are related to taxation, employment rules, language translating services, work permit etc. • Applied knowledge
In order to build, maintain, and develop their corporate identity, multinational organizations need to strive for consistency in their ways of managing people on a worldwide basis. Yet, and in order to be effective locally, they also need to adapt those ways to the specific cultural requirements of different societies. While the global nature of the business may call for increased consistency, the variety of cultural environments may be calling for differentiation • Conclusion
The global industry is not merely a collection of domestic industries but a series of linked domestic industries in which the rivals compete against each other on a truly worldwide basis… In a multi domestic industry, then, international strategy collapses to a series of domestic strategies. The issues that are uniquely international revolve around how to do business abroad, how to select good countries in which to compete (or assess country risk), and mechanisms to achieve the one-time transfer of know-ho
7
2. What are the essential differences between the international, Euro and global manager? What are the implications of the differences between these three different types for the international human resource development manager for your business? • Introduction
In order to keep up with the pace, human resource managers will have to have a global vision of how to manage their people effectively both at home and abroad. Managing international human resources enables a business to compete more successfully in the world market place, and is an excellent developmental tool for its employees. • Underpinning knowledge
Global Management is a capability that multinational businesses value and need in the international marketplace. Companies that operate across international borders need executives and managers who understand cross-cultural customs and business practices and how to promote efficiency and optimize profitability in a global environment, euro management euro management is somehow a Strategic management and is a level of managerial activity under setting goals and over Tactics in euro area .euro Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies.IHR manger work outside their national boundaries. • Applied knowledge With the increase in global activities of both domestic and multinational companies, managers need a good understanding of business and marketing area they are dealing with. As per to my perception as an enterptnuer or hr representative from a fir I would prefer the team up all of these three. • Conclusion The role of human resource management is now faced with a new dimension with the onset of globalization. Businesses are expanding, some outside of the national boundary, and this affects all components of the business. Human resource management, as an integral part of the business, has to keep up. In order to enhance the competitive advantage of global firms
8
3. How important is an understanding of the role of ‘culture’ to the international manager when devising staffing strategies for this overseas assignment?
•
Introduction
With the increase in global activities of both domestic and multinational companies, managers need a good understanding of culture. People’s cultural backgrounds influence their assumptions about how work and interactions with other people should proceed. Culture’s influence, although profound, often goes unseen. This results in deep and difficult conflicts, but also in untapped potential. In this issue of Perspectives for Managers we provide a tool for understanding management behavior across cultures. • Underpinning knowledge
Culture provides two functions that affect global management. First, culture provides software for the group’s interactions, or a sort of oil that greases the machines of the society. The shared cultural system allows members to interact with each other efficiently without questioning every motive or action, and with a relatively smooth flow of activity. Culture provides guidance for decision making: basic criteria need not be discussed at length. • Applied knowledge Four types of situations require that managers understand their own culture and how it differs from others (see Figure). In each of these situations, decisions must be made and Implemented across cultural boundaries. At the individual level (Arenas 1 and 2), managers must interact effectively with individuals from other cultures. People from different cultures will bring with them diverse expectations about the interaction, and effectiveness depends on understanding and building on these differences. At the organizational level (Arenas 3 and 4), managers must design systems of interaction that guide the coordinated behavior of many people. It is important for managers to know whether these systems will be consistent or contradictory with the cultural system in place. In one-way transactions (Arenas 1 and 3), managers need to take something that has been developed in one culture and put it into another one. Successful execution is based on an understanding of how things will be interpreted in the new context. In multi-way transactions (Arenas 2 and 4), managers must take into account many cultural systems at the same time. Unless the differences are understood, the situation will be characterized by conflict and division.
9
•
Conclusion
If the cultural system is not shared enough, it functions neither as software nor as identity. People interact together in chaos with multiple subgroups developing and destroying each other quickly and there is a marked lack of productivity. Societies in transition, such as Russia today, and organizations and subunits going through mergers have these characteristics.
10
4. Is it still necessary, in this global managerial environment where the concept of a ‘posting’ may no longer be relevant, to think in terms of compensation packages for the international managers? • Introduction Compensation can be linked to business structure and employee recruitment, retention, motivation, performance, feedback, and satisfaction and are typically among the first things potential employees consider when looking for employment. For employees compensation is the equivalent not to how they are paid, but ultimately, to how they are valued • Underpinning knowledge The impact of the growth of international economy has become a major force in business in general and in human resource management in particular. These practices are important realities faced by MNCs doing business overseas. MNCs must coordinate policies and procedures that effectively balance the needs and desires of host country nationals (HCNs), parent country nationals (PCNs) and third country nationals (TCNs). Compensation is one of the most complex areas of international human resource management. Pay systems must conform to local laws and customs for employee compensation while also fitting into global MNC policies. It is also important for MNCs to consider carefully the motivational use of incentives and rewards among the employees drawn from three national or country categories. • Applied knowledge
Compensation packages can be considered total rewards systems, containing nonmonetary, direct, and indirect elements. 1. Non-Monetary Compensation: any benefit an employee receives from an employer or job that does not involve tangible value. 2. Direct Compensation: an employee’s base wage which can be an annual salary or hourly wage and any performance-based pay that an employee receives. 3. Indirect Compensation: far more varied, including everything from legally required public protection programs such as Social Security to health insurance, retirement programs, paid leave, child care or moving expenses. By combining many of these compensation alternatives, progressive managers can create compensation packages that are as individual as the employees who receive them. Your farm may benefit from: tenure bonuses for long-time employees, equipment repair incentives to encourage good equipment maintenance, or bonuses for arriving at work on Time • Conclusion This paper explores how international benefits and compensation systems have become complex in actual practice in MNCs. As the prospect for international business growth worldwide increases, some key problems confronting MNCs? HR managers are regarding who should manage their subsidiaries in overseas operations and how to compensate them.
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5. How would you devise an appraisal process for staff operating for this business? How would you ensure that whatever process you selected maintained the essential criterion of equity or at least the perception among those exposed to the process that equity was a paramount consideration?
Introduction: An appraisal is commonly a formal meeting between you (or the supervisor responsible) and the employee where a performance evaluation can be made with the comments and opinions of both. The evaluation is recorded and a copy is kept by yourself and the employee who will use it as feed-back to act on anything that has been suggested or commented on. The evaluation that has been recorded will further be used in the next formal appraisal to determine the level of improvement by the employee during that period • Underpinning knowledge
A performance system will work only if you plan and implement it properly. Consider the following points:
•
• • • •
Make sure that you know what an employee's job involves. Written job descriptions, conducting job evaluations, or analyzing and grading jobs within your company, might be useful. Try to keep the appraisal system simple as this will save you time and money. Design appraisal forms so that results are presented in writing in a standard format. Make sure all managers are committed to the system and are aware of the acceptable standards each employee will be expected to achieve. Discuss what is proposed with employees, or unions if appropriate, before you implement an appraisal system. Applied knowledge
•
There are four key elements in a good performance and appraisal system:
1. Set objectives - decide what you want from employees and agree these objectives with
them. If appropriate, set timescales for achieving them.
2. Manage performance - give your employees the tools, resources and training they need
to perform well. Regularly monitor performance against agreed objectives and take steps to help staff improve if you think they aren't performing as required. 3. Carry out the appraisal - review and assess your employees' performance, discuss those assessments with them and agree on future objectives. 4. Provide rewards/remedies - consider pay awards and/or promotion based on the appraisal and decide how to tackle poor performance. However, there can be dangers as well as benefits of linking rewards to performance.
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6. What different staffing strategies are available to you as an international manger or entrepreneur in conjunction with an international HR specialist when staffing established overseas operations? • Introduction
Strategic staffing begins with assessing the business's employee needs in the context of one’s business priorities. Hire employees based on your staffing strategy which is a mindset rather than a process. Identify everything that may affect the efficiency and profitability of your business's operations and not just in the short term • Underpinning knowledge
To get one started, here are some of the key questions that one and other people in one’s company should answer before one make one’s next staffing move: What are your business's long-term strategic goals?? What are the key competitive trends in your industry? What kind of culture currently exists in your business? And what kind of culture do you ultimately want to create? What are the values you want the company to stand for? • What knowledge, skill sets, and attributes (in general) are required to keep pace with those goals and, at the same time, remain true to your company values? • How the current level of knowledge, skill does sets, and attributes among your present employees match up with what will be necessary in the future? • Applied knowledge
• • •
First, let’s clarify our terms. I define “strategic staffing” as the process of identifying and addressing the staffing implications of business plans and strategies, or better still, as the process of identifying and addressing the staffing implications of change. The impact on staffing should be defined (or at least discussed) whenever changes to business plans are being considered (whether near-term or longer-term). Others call the process “strategic workforce planning,” but to me, “strategic staffing” emphasizes the longer term, business orientation of the process. By any name, this effort typically includes: Defining the number (staffing levels) and types (capabilities) of employees who will be needed at a particular point in the future to implement plans effectively (often including how that staff should be organized and deployed); Identifying the staffing resources that are currently available; • Conclusion Strategic staffing is about more than just hiring more employees. It involves making the best staffing choices available to address the core business needs you have identified. If you're thinking of filling an existing position, consider how the business's most critical needs have changed since the last time the job was open, rather than immediately searching for a candidate to fill the vacant position.
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7. Consider the importance of ‘language’ in its broadest sense for the global manager when communicating with colleagues, business partners and competitors within your chosen global business environment. Identify at least three different situations where the failure to communicate can be attributed to a dearth of appropriate skills and competences in managing a particular situation? • Introduction Language is socially constructed and therefore embedded in the culture. Understanding the embedded meanings requires mastering the language, a process that can be extremely time consuming and difficult. Misinterpreting the words or the cultural meaning associated with them may negatively affect the entire interchange. In the case of a business deal, it may be a dealbreaker. In this situation, a good interpreter can become a major asset. He or she may even construct bridges and open doors that would not be opened to an outsider or at least that could not be opened without a great deal of effort, pain, and time. • Underpinning knowledge Language, of course, is knowledge, and in our world today knowledge is one of the key factors in competitiveness. Brains and knowledge are what create the prosperity and growth we tend to take for granted. In an advanced industrial society in an increasingly interdependent world, the knowledge of other languages becomes indispensable. Just think of how the advent of the Internet has changed our lives. For the last few years, millions of people across the world, who share common interests, are able to communicate with each other and exchange ideas. • Applied knowledge One of the first barriers that companies face on the path of internationalization is differences in natural languages. Surprisingly though, language in international business remains an ignored research field. Part of the reason may be that business researchers and linguists alike have been deterred by the cross-disciplinary nature of the subject. 2. Another factor may be the pre-eminence of Anglophone researchers who have a reduced perception of the importance of language. 3. A third factor might be the enormous influence of Hofstede. His work has dominated cultural research for the past decades and has been developed into a system for measuring cultural distance (Kogut & Singh, 1988,).
1.
• Conclusion While there is a comfort level in staying within your own language and cultural parameters, you may miss some wonderful and profitable opportunities if you do so. In this global economy, opportunities often exist world-wide, even for smaller businesses. But you must be prepared to move beyond the comfortable environment of your known world.
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8. With reference to the above question, what can you as an IHRM or entrepreneur, with line responsibility for overseas staff, do to overcome the problem that you have identified? • Introduction Organizations, across the globe, are implementing ethics programs but with mixed results. This issue becomes more complex for multinational enterprises operating in several different economies simultaneously. In this chapter, we extensively review the literature on ethics programs in the US and the international context to suggest ways of better understanding the role of international human resource management in the success of ethics programs in multinationals.. • Underpinning knowledge
Managing human resources in overseas locations poses different problems and challenges for HR managers, than if employees were based in the home base. The growth of global trade has driven the trend for internationalization and the proliferation of expatriate assignments. There is a need to effectively manage this for the benefit of both the company and the individuals. This paper examines issues of adjustment, culture, remuneration, contracts and agreements in the deployment and return of nationals in multinational organizations. The authors propose a transition model from domestic to international HR management, and discuss implications and recommendations for HR managers, which involve cultural research, the integration of HR systems, and the functions of selection, training, performance management and remuneration. • Applied knowledge
In these times of internationalization and globalization, international human resource management is becoming an important concept for human resource practitioners to be aware of and to practice. This is vital for human resource managers in multinational corporations and international joint ventures, and also for domestic based human resource managers who import staff from overseas. In order to keep up with the pace, human resource managers will have to have a global vision of how to manage their people effectively both at home and abroad. Managing international human resources enables a business to compete more successfully in the world market place, and is an excellent developmental tool for its employees.
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BIBLIOGRAPHY:
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Harzing, A.W.K.; Köster, K.; Magner, U. (2011) Babel in Business: The language barrier and its solutions in the HQ-subsidiary relationship, Journal of World Business, vol. 46, no. 3, pp. 296-304. Zander, L.; Mockaitis, A.; Harzing, A.W.K. et al. (2011) Standardization and contextualization: A study of language and leadership across 17 countries, Journal of World Business, vol. 46, no. 3, pp. 279-287. Akkermans, D.; Harzing, A.W.K.; Witteloostuijn, A. van (2010) Cultural Accommodation and Language Priming. Competitive versus Cooperative Behavior in a Prisoner’s Dilemma Game, Management International Review, vol. 50, no 4, pp. 559-584. Aguilera, R.V., 2004. The Role of HRM in Cross-Border Mergers and Acquisitions. International Journal of HRM, 15, 8, 1355-1370. Barthelemy, J., 2003. The Seven Deadly Sins of Outsourcing. Academy of Management Executive, 17, 87-98. Bigelow, J.D., 1994. International Skills for Managers: Integrating International and Managerial Skill Learning. Asia Pacific Journal of Human Resources, 32, 1, 3-11. Black, B. 1999. National culture and labour-market flexibility. The International Journal of Human Resource Management, 10 (4), 592-605. Bland, V., 2006. Developing Business Relationships with Asia. Employment Today, 108,36- 38. Bonache, J., & Fernandez, Z., 1997. Expatriate Compensation and its Link to the Subsidiary Strategic Role: A Theoretical Analysis. International Journal of HRM, 8, 4,457- 475. Caliguiri, P., & Cascio, W., 2002. Challenges, Myths and Solutions.Wor ldat work Journal, 9 (2), 128. Carr, D.F., 2006. Gotcha! Deploying a Common Global System. Baseline, 54, 42.
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doc_723540574.doc
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
qwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopa sdfghjklzxcvbnmqwertyuiopasdfg ‘Tesco PLC’ International and IHRM CHALLENGES hjklzxcvbnmqwertyuiopasdfghjklz INTERNATIONAL HUMAN RESOURCE MANAGEMENT xcvbnmqwertyuiopasdfghjklzxcv bnmqwertyuiopasdfghjklzxcvbnm qwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopa sdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklz xcvbnmqwertyuiopasdfghjklzxcv bnmqwertyuiopasdfghjklzxcvbnm qwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmrtyuiopa
6/27/2011 Zarmina siraj
TITLE:
Tesco PLC’ International and IHRM CHALLENGES
2
TABLE OF CONTENTS: Authenticity statement............................................. 4 1. Introduction...............................................5 Purpose of the Report......................5 Objective/Delimitations........................5 Significance of the Report.................5 Research Methods.........................................5,6 2. Questions................................................. Question 1........................7 Question 2........................8 Question 3........................9 Question 4........................10 Question 5........................11 Question 6........................12 Question 7........................13 Question 8........................14, 15 3- Bibliography............................................16
3
STATEMENT OF AUTHENTICITY: By signing this, I am certifying that my writing is the sole creation of my own efforts and ideas. I understand that plagiarism is a crime defined as the use of another’s words, ideas or expressions without acknowledging their source. I further understand that plagiarism is grounds for immediate disqualification. I certify that all statements and information contained herein and in all my application materials submitted by me are true, correct and accurate to the best of my knowledge and belief. I further certify that the writing was written solely by me and is my original work.
Signature of writer: ------------------------------------------------Student ID: ……………………………………………………
4
INTRODUCTION: Writing in the mid-1980s on the state of the field of International Human Resource Management (IHRM), Laurent (1986) concluded that “the challenge faced by the infant field of international human resource management is to solve a multidimensional puzzle located at the crossroad of national and organizational cultures” . The aim of this paper is to examine developments in the field of IHRM and to see if any progress has been made towards completing the puzzle noted by Laurent. In doing so this paper will draw on work which has been completed over the last ten years with a number of colleagues–initially with Randall Schuler (New York University) and more recently with Helen De Cieri (University of Melbourne), Denice Welch (Norwegian School of Management), Marion Festing and Wolfgang Weber (University of Paderborn).1 Specifically, three issues are examined: first, the various approaches which have been taken to the study of IHRM; second, the variables which moderate differences between domestic and international HRM; and third, recent work which examines the topic of strategic human resource management in multinational enterprises (MNEs).TESCO PLC is a pioneer company in this report I will be discussing the managing of business relation with TESCO PLC,in ambit of an human resource manager.
A- PURPOSE OF REPORT:
The field of international HRM has been characterized by three broad approaches. Early work in this field emphasized a cross-cultural management approach and examines HUMAN RESOURCE MANAGEMENT behavior within organizations from an international perspective
B- OBJECTIVE:
Our objective has been to explore the implications that the process of internationalization has for the activities and policies of HRM. In particular, we are interested in how HRM practiced in multinationals. Each approach takes a somewhat different view of IHRM and in my view it is essential to identify the approach which a researcher is taking to the subject as the approach taken influences what is defined as IHRM. One only has to look at the diversity in the program at the various International HRM conferences to see that there are multiple definitions of what constitutes international HRM.
C- SIGNIFICANCE OF REPORT:
To summarize, this paper has endeavored to meet three objectives: First, to outline the various approaches which have been taken to the study of IHRM; second, to discuss the variables which moderate differences between domestic and international HRM; and third, to briefly outline recent work which examines the topic of strategic human resource management in multinational enterprises. Attention to these three points will, I believe, take us some way to completing the puzzle of International HRM which Laurent has described.
D- RESEARCH METHOD:
The review of the theoretical global relevant literature would provide a snapshot of the state of the current affairs regarding employees and human resource managers preparing for and going on international assignments. Research engines such as Google, Emerald, published works by
5
top level theorists and gurus in this field would be used. It would also identify possible research topics to provide more clarity in future over a longitudinal research period to identify new trends and themes
6
1. How does the role of the HR manager operating within the purely domestic UK business environment differ from that of the international human resource manager operating within a global remit? You should be clear with your country chosen while supporting your arguments for the scenario
•
Introduction
Managing human resources in overseas locations poses different problems and challenges for HR managers, than if employees were based in the home base. The growth of global trade has driven the trend for internationalization and the proliferation of expatriate assignments. There is a need to effectively manage this for the benefit of both the company and the individuals. • Underpinning knowledge
Domestic hr managers in UK or in any country are placed within the national boundaries. They have Less number of Rule and Regulations to be managed. And mostly follow employment and taxation rules of the home country. They have uniform policy in administration. There is No special attention into the personal life. Confined to crèche and cultural interactions. Challenges are confined to the situation of a particular country. Special Training is not required for Socio Cultural adaptation. IHR manger work outside their national boundaries. They have to follow Very high number of rules and regulations which are related to taxation, employment rules, language translating services, work permit etc. • Applied knowledge
In order to build, maintain, and develop their corporate identity, multinational organizations need to strive for consistency in their ways of managing people on a worldwide basis. Yet, and in order to be effective locally, they also need to adapt those ways to the specific cultural requirements of different societies. While the global nature of the business may call for increased consistency, the variety of cultural environments may be calling for differentiation • Conclusion
The global industry is not merely a collection of domestic industries but a series of linked domestic industries in which the rivals compete against each other on a truly worldwide basis… In a multi domestic industry, then, international strategy collapses to a series of domestic strategies. The issues that are uniquely international revolve around how to do business abroad, how to select good countries in which to compete (or assess country risk), and mechanisms to achieve the one-time transfer of know-ho
7
2. What are the essential differences between the international, Euro and global manager? What are the implications of the differences between these three different types for the international human resource development manager for your business? • Introduction
In order to keep up with the pace, human resource managers will have to have a global vision of how to manage their people effectively both at home and abroad. Managing international human resources enables a business to compete more successfully in the world market place, and is an excellent developmental tool for its employees. • Underpinning knowledge
Global Management is a capability that multinational businesses value and need in the international marketplace. Companies that operate across international borders need executives and managers who understand cross-cultural customs and business practices and how to promote efficiency and optimize profitability in a global environment, euro management euro management is somehow a Strategic management and is a level of managerial activity under setting goals and over Tactics in euro area .euro Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies.IHR manger work outside their national boundaries. • Applied knowledge With the increase in global activities of both domestic and multinational companies, managers need a good understanding of business and marketing area they are dealing with. As per to my perception as an enterptnuer or hr representative from a fir I would prefer the team up all of these three. • Conclusion The role of human resource management is now faced with a new dimension with the onset of globalization. Businesses are expanding, some outside of the national boundary, and this affects all components of the business. Human resource management, as an integral part of the business, has to keep up. In order to enhance the competitive advantage of global firms
8
3. How important is an understanding of the role of ‘culture’ to the international manager when devising staffing strategies for this overseas assignment?
•
Introduction
With the increase in global activities of both domestic and multinational companies, managers need a good understanding of culture. People’s cultural backgrounds influence their assumptions about how work and interactions with other people should proceed. Culture’s influence, although profound, often goes unseen. This results in deep and difficult conflicts, but also in untapped potential. In this issue of Perspectives for Managers we provide a tool for understanding management behavior across cultures. • Underpinning knowledge
Culture provides two functions that affect global management. First, culture provides software for the group’s interactions, or a sort of oil that greases the machines of the society. The shared cultural system allows members to interact with each other efficiently without questioning every motive or action, and with a relatively smooth flow of activity. Culture provides guidance for decision making: basic criteria need not be discussed at length. • Applied knowledge Four types of situations require that managers understand their own culture and how it differs from others (see Figure). In each of these situations, decisions must be made and Implemented across cultural boundaries. At the individual level (Arenas 1 and 2), managers must interact effectively with individuals from other cultures. People from different cultures will bring with them diverse expectations about the interaction, and effectiveness depends on understanding and building on these differences. At the organizational level (Arenas 3 and 4), managers must design systems of interaction that guide the coordinated behavior of many people. It is important for managers to know whether these systems will be consistent or contradictory with the cultural system in place. In one-way transactions (Arenas 1 and 3), managers need to take something that has been developed in one culture and put it into another one. Successful execution is based on an understanding of how things will be interpreted in the new context. In multi-way transactions (Arenas 2 and 4), managers must take into account many cultural systems at the same time. Unless the differences are understood, the situation will be characterized by conflict and division.
9
•
Conclusion
If the cultural system is not shared enough, it functions neither as software nor as identity. People interact together in chaos with multiple subgroups developing and destroying each other quickly and there is a marked lack of productivity. Societies in transition, such as Russia today, and organizations and subunits going through mergers have these characteristics.
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4. Is it still necessary, in this global managerial environment where the concept of a ‘posting’ may no longer be relevant, to think in terms of compensation packages for the international managers? • Introduction Compensation can be linked to business structure and employee recruitment, retention, motivation, performance, feedback, and satisfaction and are typically among the first things potential employees consider when looking for employment. For employees compensation is the equivalent not to how they are paid, but ultimately, to how they are valued • Underpinning knowledge The impact of the growth of international economy has become a major force in business in general and in human resource management in particular. These practices are important realities faced by MNCs doing business overseas. MNCs must coordinate policies and procedures that effectively balance the needs and desires of host country nationals (HCNs), parent country nationals (PCNs) and third country nationals (TCNs). Compensation is one of the most complex areas of international human resource management. Pay systems must conform to local laws and customs for employee compensation while also fitting into global MNC policies. It is also important for MNCs to consider carefully the motivational use of incentives and rewards among the employees drawn from three national or country categories. • Applied knowledge
Compensation packages can be considered total rewards systems, containing nonmonetary, direct, and indirect elements. 1. Non-Monetary Compensation: any benefit an employee receives from an employer or job that does not involve tangible value. 2. Direct Compensation: an employee’s base wage which can be an annual salary or hourly wage and any performance-based pay that an employee receives. 3. Indirect Compensation: far more varied, including everything from legally required public protection programs such as Social Security to health insurance, retirement programs, paid leave, child care or moving expenses. By combining many of these compensation alternatives, progressive managers can create compensation packages that are as individual as the employees who receive them. Your farm may benefit from: tenure bonuses for long-time employees, equipment repair incentives to encourage good equipment maintenance, or bonuses for arriving at work on Time • Conclusion This paper explores how international benefits and compensation systems have become complex in actual practice in MNCs. As the prospect for international business growth worldwide increases, some key problems confronting MNCs? HR managers are regarding who should manage their subsidiaries in overseas operations and how to compensate them.
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5. How would you devise an appraisal process for staff operating for this business? How would you ensure that whatever process you selected maintained the essential criterion of equity or at least the perception among those exposed to the process that equity was a paramount consideration?
Introduction: An appraisal is commonly a formal meeting between you (or the supervisor responsible) and the employee where a performance evaluation can be made with the comments and opinions of both. The evaluation is recorded and a copy is kept by yourself and the employee who will use it as feed-back to act on anything that has been suggested or commented on. The evaluation that has been recorded will further be used in the next formal appraisal to determine the level of improvement by the employee during that period • Underpinning knowledge
A performance system will work only if you plan and implement it properly. Consider the following points:
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Make sure that you know what an employee's job involves. Written job descriptions, conducting job evaluations, or analyzing and grading jobs within your company, might be useful. Try to keep the appraisal system simple as this will save you time and money. Design appraisal forms so that results are presented in writing in a standard format. Make sure all managers are committed to the system and are aware of the acceptable standards each employee will be expected to achieve. Discuss what is proposed with employees, or unions if appropriate, before you implement an appraisal system. Applied knowledge
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There are four key elements in a good performance and appraisal system:
1. Set objectives - decide what you want from employees and agree these objectives with
them. If appropriate, set timescales for achieving them.
2. Manage performance - give your employees the tools, resources and training they need
to perform well. Regularly monitor performance against agreed objectives and take steps to help staff improve if you think they aren't performing as required. 3. Carry out the appraisal - review and assess your employees' performance, discuss those assessments with them and agree on future objectives. 4. Provide rewards/remedies - consider pay awards and/or promotion based on the appraisal and decide how to tackle poor performance. However, there can be dangers as well as benefits of linking rewards to performance.
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6. What different staffing strategies are available to you as an international manger or entrepreneur in conjunction with an international HR specialist when staffing established overseas operations? • Introduction
Strategic staffing begins with assessing the business's employee needs in the context of one’s business priorities. Hire employees based on your staffing strategy which is a mindset rather than a process. Identify everything that may affect the efficiency and profitability of your business's operations and not just in the short term • Underpinning knowledge
To get one started, here are some of the key questions that one and other people in one’s company should answer before one make one’s next staffing move: What are your business's long-term strategic goals?? What are the key competitive trends in your industry? What kind of culture currently exists in your business? And what kind of culture do you ultimately want to create? What are the values you want the company to stand for? • What knowledge, skill sets, and attributes (in general) are required to keep pace with those goals and, at the same time, remain true to your company values? • How the current level of knowledge, skill does sets, and attributes among your present employees match up with what will be necessary in the future? • Applied knowledge
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First, let’s clarify our terms. I define “strategic staffing” as the process of identifying and addressing the staffing implications of business plans and strategies, or better still, as the process of identifying and addressing the staffing implications of change. The impact on staffing should be defined (or at least discussed) whenever changes to business plans are being considered (whether near-term or longer-term). Others call the process “strategic workforce planning,” but to me, “strategic staffing” emphasizes the longer term, business orientation of the process. By any name, this effort typically includes: Defining the number (staffing levels) and types (capabilities) of employees who will be needed at a particular point in the future to implement plans effectively (often including how that staff should be organized and deployed); Identifying the staffing resources that are currently available; • Conclusion Strategic staffing is about more than just hiring more employees. It involves making the best staffing choices available to address the core business needs you have identified. If you're thinking of filling an existing position, consider how the business's most critical needs have changed since the last time the job was open, rather than immediately searching for a candidate to fill the vacant position.
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7. Consider the importance of ‘language’ in its broadest sense for the global manager when communicating with colleagues, business partners and competitors within your chosen global business environment. Identify at least three different situations where the failure to communicate can be attributed to a dearth of appropriate skills and competences in managing a particular situation? • Introduction Language is socially constructed and therefore embedded in the culture. Understanding the embedded meanings requires mastering the language, a process that can be extremely time consuming and difficult. Misinterpreting the words or the cultural meaning associated with them may negatively affect the entire interchange. In the case of a business deal, it may be a dealbreaker. In this situation, a good interpreter can become a major asset. He or she may even construct bridges and open doors that would not be opened to an outsider or at least that could not be opened without a great deal of effort, pain, and time. • Underpinning knowledge Language, of course, is knowledge, and in our world today knowledge is one of the key factors in competitiveness. Brains and knowledge are what create the prosperity and growth we tend to take for granted. In an advanced industrial society in an increasingly interdependent world, the knowledge of other languages becomes indispensable. Just think of how the advent of the Internet has changed our lives. For the last few years, millions of people across the world, who share common interests, are able to communicate with each other and exchange ideas. • Applied knowledge One of the first barriers that companies face on the path of internationalization is differences in natural languages. Surprisingly though, language in international business remains an ignored research field. Part of the reason may be that business researchers and linguists alike have been deterred by the cross-disciplinary nature of the subject. 2. Another factor may be the pre-eminence of Anglophone researchers who have a reduced perception of the importance of language. 3. A third factor might be the enormous influence of Hofstede. His work has dominated cultural research for the past decades and has been developed into a system for measuring cultural distance (Kogut & Singh, 1988,).
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• Conclusion While there is a comfort level in staying within your own language and cultural parameters, you may miss some wonderful and profitable opportunities if you do so. In this global economy, opportunities often exist world-wide, even for smaller businesses. But you must be prepared to move beyond the comfortable environment of your known world.
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8. With reference to the above question, what can you as an IHRM or entrepreneur, with line responsibility for overseas staff, do to overcome the problem that you have identified? • Introduction Organizations, across the globe, are implementing ethics programs but with mixed results. This issue becomes more complex for multinational enterprises operating in several different economies simultaneously. In this chapter, we extensively review the literature on ethics programs in the US and the international context to suggest ways of better understanding the role of international human resource management in the success of ethics programs in multinationals.. • Underpinning knowledge
Managing human resources in overseas locations poses different problems and challenges for HR managers, than if employees were based in the home base. The growth of global trade has driven the trend for internationalization and the proliferation of expatriate assignments. There is a need to effectively manage this for the benefit of both the company and the individuals. This paper examines issues of adjustment, culture, remuneration, contracts and agreements in the deployment and return of nationals in multinational organizations. The authors propose a transition model from domestic to international HR management, and discuss implications and recommendations for HR managers, which involve cultural research, the integration of HR systems, and the functions of selection, training, performance management and remuneration. • Applied knowledge
In these times of internationalization and globalization, international human resource management is becoming an important concept for human resource practitioners to be aware of and to practice. This is vital for human resource managers in multinational corporations and international joint ventures, and also for domestic based human resource managers who import staff from overseas. In order to keep up with the pace, human resource managers will have to have a global vision of how to manage their people effectively both at home and abroad. Managing international human resources enables a business to compete more successfully in the world market place, and is an excellent developmental tool for its employees.
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BIBLIOGRAPHY:
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Harzing, A.W.K.; Köster, K.; Magner, U. (2011) Babel in Business: The language barrier and its solutions in the HQ-subsidiary relationship, Journal of World Business, vol. 46, no. 3, pp. 296-304. Zander, L.; Mockaitis, A.; Harzing, A.W.K. et al. (2011) Standardization and contextualization: A study of language and leadership across 17 countries, Journal of World Business, vol. 46, no. 3, pp. 279-287. Akkermans, D.; Harzing, A.W.K.; Witteloostuijn, A. van (2010) Cultural Accommodation and Language Priming. Competitive versus Cooperative Behavior in a Prisoner’s Dilemma Game, Management International Review, vol. 50, no 4, pp. 559-584. Aguilera, R.V., 2004. The Role of HRM in Cross-Border Mergers and Acquisitions. International Journal of HRM, 15, 8, 1355-1370. Barthelemy, J., 2003. The Seven Deadly Sins of Outsourcing. Academy of Management Executive, 17, 87-98. Bigelow, J.D., 1994. International Skills for Managers: Integrating International and Managerial Skill Learning. Asia Pacific Journal of Human Resources, 32, 1, 3-11. Black, B. 1999. National culture and labour-market flexibility. The International Journal of Human Resource Management, 10 (4), 592-605. Bland, V., 2006. Developing Business Relationships with Asia. Employment Today, 108,36- 38. Bonache, J., & Fernandez, Z., 1997. Expatriate Compensation and its Link to the Subsidiary Strategic Role: A Theoretical Analysis. International Journal of HRM, 8, 4,457- 475. Caliguiri, P., & Cascio, W., 2002. Challenges, Myths and Solutions.Wor ldat work Journal, 9 (2), 128. Carr, D.F., 2006. Gotcha! Deploying a Common Global System. Baseline, 54, 42.
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