Q1) Answer- International HRM (IHRM) is the process of procuring, allocating, and effectively utilizing human resources in a multinational corporation, while balancing the integration and differentiation of HR activities in foreign locations (Briscoe et al, 2009). IHRM should function in a way it should avoid cultural risks, regional disparities and must manage diversified human capital.The managerial responsibilities must include developing a global “mindset” by weighting on informal control mechanism, fostering horizontal communication, using cross-border and virtual teams and using international assignments. They should create cultural synergy and use cross-cultural skills daily and must treat foreign colleagues as equals and use …show more content…
Armstrong (2001) identifies the following functions for IHR managers: * Apply all possible approaches of Employment policies. * fill all key positions with parent country nationals * appoint home country nationals * appoint the best people regardless of nationality. * Recruitment and Selection should be without any partiality and the following criteria should be applied in that- 1 persons who show better competency – technical, language skills, motivation etc. 2 applicants who have previous overseas experience will be an asset for the organization. 3 persons who show cultural adaptability and evidence that the person shares the values of the culture in which he or she might work. 4 family circumstances should be considered– both the person and spouse/partner adaptable to working overseas. * International Employee Development should be adopted– the aim is to enable people to become more effective in their present job in an overseas location; account will need to be taken of cultural factors (in terms of how development programmes are delivered), and the extent to which there is central direction of programmes from the organisation, although they may be delivered locally. (Almond et al, 2004) Thus it is clear that Domestic HRM is only concerned with managing limited number of HRM activities at national level, where as IHRM has concerned with managing additional activities such as expatriate management. IHRM is very
Competing in global markets entail many factors and centralization of its human resource practices is certainly vital to improve global competitiveness and empower employees for global assignments. To achieve success in global marketplace, the challenge of all businesses regardless of their size is to understand global corporate cultural differences and invest in human resources which includes selecting and retaining talented employee, training and development whilst encouraging employees to be innovative and creative. Employees selected to work in foreign locations should be prepared beforehand with adequate cross-cultural training. For an organization to be successful in the international marketplace, it must be concerned with this fit from both an internal and
The recruitment and selection process have different stage that all have to be to follow, to select the right candidates for the job vacancies.
Performance criteria and goals are best established by combining the values and norms of each local environment with the home-office’s performance standards. An individual country profile should be developed and should take into account the foreign subsidiary’s environment. This profile should be used to review any factors that may have an effect on the expatriate employee’s performance. Such factors include language, culture, politics, labor relations, economy, government, control, and communication.
International Human Resource Management (IHRM) is the management of Human Resource in business operations in at least two nations and IHRM issues are the HRM issues and problems arising from the internationalization of business, and the HRM strategies, policies and practices which firms pursue in response to the internationalization process (Rajan, 2013).
I feel that working, as global company employees should be able to enrich their lives by learning about different cultures. This developmental action will continue to aid in developing the person as whole, and hopeful spark new interest and ideas to help employees want to continue internal growth; thus bringing a revamped energy and ideas to the company. Allowing willing employees a chance to work and travel abroad has the benefit of allowing their experiences to aid in keeping the company current in different economies. Thus understanding a greater amount of customers and potential market growth
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
Dowling Peter J and Welch Denice E and Schular Randall S(1999), International Human Resource Management, South-Western College
Subsequently, this strategy will create an enabling environment that is biased in hiring process like in the case of the Maldives, where foreigners were given job opportunities because they had the right attitude yet, the natives had more outstanding qualifications for some of the jobs but they were denied the opportunities (Boella and Goss-Turner, 2013). Therefore, the organization should reduce the act of employing foreigners in its different branches across the world and focus on the natives of the given states dwelling more on their qualifications rather than their attitudes. This would lead to employees feeling more comfortable in their work environment and having a workforce that understands the culture the business is established in as well as being well skilled and educated in their
the recruitment and selection process is systematic and fair in order to objectively and fairly
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,
Briscoe D., Schuler R., Tarique I., (2011). Internatonal Human Resource Management : Policies and Practices for Multinational Entreprise.
The purpose of recruitment and selection is to reduce the risk of poor selection and
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).
Globalization refers to the interconnection among countries, politically, economically and culturally. Globalization has come into existence due to the following factors: (i) betterment in transportation and communication, (ii) human and capital mobility, (iii) increasing formation and existence of NGOs and multinational corporations.
The concept of human resource management has attracted considerable attention over the last two decades from scholars and practitioners alike. While part of the debate has centered on its application and theoretical underpinnings, the other has been on its prescriptive value for the survival of organizations in a turbulent and a volatile business environment. More recently, the issue of whether to situate the HRM debate in the organizational or the international context has arisen. This is because organizational responses such as delayering, empowerment, work intensification, flexibility and redundancy appear to have gained as much weight as the macro-environmental drivers of HRM such as competition, technology, economic