Hr Strategies From Bric Countries : Hr Policies And Strategies Are The Backbone Of The Hr Department Essay

HR Professionals must understand the business and culture for which they serve and the HR strategy must be aligned to this.

Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,

National companies do not become global companies immediately. Involvement in international HRM depends greatly on a company 's phase of globalization. Import-export firms. Firms in the first phase of globalization simply move products across national boundaries. The firm does not employ people in other countries, except a few managers responsible for negotiating business agreements. These agreements usually involve buying or selling complete products or services. Import-export firms need to understand their trading partners ' cultures and usually must overcome communication barriers to negotiate agreements. Negotiations are usually done by expatriate representatives, but expatriates are not employed as extensively by import-export firms as by multinational enterprises. HR policies and practices remain relatively unchanged from the company 's traditional home-base practices. (HR Magazine,06-01-1995)

Nowadays, with the increased level of globalization and advance in technology, new markets and international business have grown dramatically in the whole world. As a consequence, firms are now experiencing fierce competition at both national and international level. Under this circumstance, today’s HR practitioners are encountering several strategic challenges when operating in multinational and transnational

Leading companies in India are actively seeking ways of leveraging their "human capital" to develop a strategic advantage. They are moving from a departmental focus on human resources to a far more strategic and expansive focus on human capital management. Roles and responsibilities are in ever-changing as companies explore new ways of building and leveraging talent.

In the modern world, every organization and/or business carries out their business in several countries. Multi-national companies will and can adopt different strategies through the people, their employees. The ethical challenges, political and economic instabilities, and globalization are issues that are also faced by today business firms are what Human Resource management is all about. In this diversity of Human Resources Management (HRM), the organizations adopt the practices and policies according to the environment and culture.

Therefore, to strengthen the labour markets, multinational companies should focus their human resource management mainly on how management practices varies from one region to another and talent development. This report is intended for global managers of HSBC Holdings as one of multinationals that operates in many countries. Generally this report’s purpose is identifying how management practices can be varied and talent development issues in one of the biggest emerging markets, namely India. As management practices can be diffused or in need to be altered to suit the local country and also what the global managers of HSBC need to be aware of in developing the talent of their labours, global managers need to look upon the local’s context of HRM in this case is India. India opened their markets for foreign firms to enter their market in the early 1990s that was due to the liberalisation of their economy. These foreign firms tend to have superior and more efficient HRM systems than India’s firms. Budhwar & Varma (2010) state:

The ‘universalistic perspective’ approach of HR strategy is a model of set of activities, which outlines specified rules of HR practices. These strategies are expected to provide superior outcomes in any situations in an organization. Proponents of this model emphasize that ‘internal or horizontal alignment’ of HR activities assist in significantly improving the performance of an organization (Youndt, Scott, Dean, & Lepak, 1996, pg. 836). Considering the idea that internal fit is important to universalistic ideals, the central problem is the means of determining the HR system that can blend well in giving higher performance. The mechanism for developing this strategy depends on different issues, which interact to affect goals of an organization. The contingency approach focuses on the fit between the strategies of a business and HRM strategies, policies and implications that the schemes of a business swill follow the HRM policies

The challenge of examining Human Resource Management (HRM) practices across countries provides further understanding of cultural and country specific factors shaping the dynamics of HRM strategies (Budhwar and Khatri,

Before proceeding with an overview of current theories of SIHRM, it is important to distinguish between international human resource management (IHRM) and strategic international human resource management (SIHRM). In keeping with Schuler and colleagues ' (1993) and Lado and Wilson 's (1994) work, we define the MNCs IHRM system as the set of distinct activities, functions, and processes that are directed at attracting, developing, and maintaining an MNCs human resources. It is thus the aggregate of the various HRM systems used to manage people in the MNC, both at home and overseas. By including headquarters (HQs) in this definition, we recognize that the parent company can become simply another one of the units of the MNC (cf. Hedlund, 1986). Strategic Human Resource Management (SHRM), in contrast, is used to explicitly link HRM with the strategic management processes of the organization and to emphasize coordination or congruence among the various human resource management practices (Schuler & Jackson, 1987; Wright & McMahan, 1992). Thus, SIHRM is used to explicitly link IHRM

Human resource development is a broadly used term that refers to the helping employees develop their personal and organizational skills, knowledge, and abilities (The Balance. N.p.). The term has different connotations as it may refer to development of human capacities with the aim raising profit in business but also, especially in developing countries, with the aim of achieving personal and societal advancement (Cengage Learning, 2016.). Human resource development can be used by both public organizations, such as governments, and private corporations (Cengage Learning, 2016.). The focus of all aspects of human resource development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers (The Balance. N.p.). Also, it is the framework for the expansion of human capital within an organization through the development of both the organization and the individual to achieve performance improvement (Boundless Business, 26 May 2016.).

Globalisation, as an integrated and independent world economy, has contributed to the rapid expansion of international trade and world’s economic growth (Paik & Vance, 2006; Mutsuddi, 2012). The increase presence of global firms is shifting domestic HR towards global HR in addition to carry out a wider span of HR responsibilities (Losey, Meisinger & Ulrich, 2005; Rao, 2010; Jie, 2011; Mutsuddi, 2012). The generation of cross-border labour market also had brought human resource management into an international context (Mutsuddi, 2012).

Human Resource Development (HRD) is the driving force behind any prospering business. It is the compass that calculates the direction in which the business will need to take based on the available resources, people, and short and long term goals to achieve its mission. HRD gives the organisation guidance on how to create strategic advantage over competitors in the market through the use of training and development provided to its employees to increase their knowledge, skills, education, and abilities. Managers are the frontline directors of HRD in the day to day operation of the business hence the significance of developing tools that can effectively be relayed to management to then be communicated and actioned to the employees. Google is a multinational, publicly-traded organization built around the company 's hugely popular search engine. The firm applied HRD into their business mix to support their dominance in the technology market. Overview into how HRD can be used by managers to increase individual performance thus leading to organisational performance will be analysed using Google as a case study.

If properly devised, HR policy formulation can make an essential contribution to corporate success. However, it has to be considered that if the department devises a wrong strategy it could slow down corporate development and thus future corporate success.

• Due to the dynamic nature of environment – technological change, globalization, change in nature of job, OD, shortage & requirement of critical skills led to importance of HRP