Mps Case

According to Becker (1996), “Research was conducted is just beginning to establish the plausible range of these effects, but early work indicates that reasonable changes in an HR system can affect a firm 's market value by $15,000-$45,000 per employee.” This is a mind-blowing fact since it was from 1996. Now 20 years later think about today’s organizational need for HRM since the globalization of companies when it comes to employee recruitment and selection that could span countries and not just states. I wanted to analyze the function of HR planning, recruitment, selection further because I do believe it is the most important out of all the functions I have covered. I also believe it is the foundation to tying all the other functions together in order for an organization to meet its goals. First, the planning aspect of hiring an employee can be the hardest but most critical. If HR personnel don’t have a solid plan to incorporate a global mindset for the purpose of recruiting and selection, then their efforts will not yield the highest quality personnel. The purpose of these activities is to

This report examines cultural and institutional factors of Mexico and how they can impact global HR management and practices. Specifically, by analyzing Mexican culture based on Hofstede’s dimensions, economy, labor legislation, union and employment tradition we reached the conclusion that the features of Mexican culture (high power distance, strong collectivism, high level of masculinity and uncertainty avoidance) and institutional factors have a strong impact on management styles and HR practices of business in Mexico and may arouse some challenges for global company and their expatriates, especially those from countries that bear different cultural features and institutional conditions. In order to minimize the potential conflict between Mexican local employees and expatriates, parent companies need to provide trainings (culture assimilation, country condition, etc.) before sending anybody to Mexico. Also, whether the expatriates should put more effort to disseminate home country (headquarter) culture or to adjust to local culture depends on the company’s strategy in terms of being localized or standardized around the globe.

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

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,

IHRM can be defined as a set of activities aimed at managing organizational human resources at an international level to achieve competitive advantage over competitors at national and international level. It includes typical HRM functions, such as recruitment, selection, training and development, performance appraisal and dismissal, all at an international level, plus activities such as global skills management, expatriate management and so on.

Another very important aspect to the IHRM department needs to consider when selecting the right candidate under this approach is to keep in mind the impact in the family of the expatriate. The family’s willingness and ability to adjust is of crucial importance for the assignee’s employer and it needs to be address during the staffing process as well. Another disadvantage for this approach is that is more costly for the corporation because it has to offer more incentives to the expatriate (Deller). In the selection process it is the responsibility of the IHRM department to evaluate the efficiency and cross-cultural proficiency of the candidates to ensure the success of this approach.

When Peter Hanson was designated Head of the newly established Product Development Center (PDC) of Hi Tech Systems in Shanghai, several critical decisions concerning the international human resource functions emerged. The complexity of these decisions are derived from a fundamental strategic dilemma of balancing adaptation and standardization (Managing Strategic Responsibility in the MNC). While standardisation of practices generates consistency in a multinational corporation, it lacks the flexibility to remain relevant to international matters (Managing Strategic Responsibility in the MNC). The intricacy of international human resource is reflected in the plethora of interconnected issues which include, but are not limited to, management of expatriates, cultural differences, and employee disputes (CITE??). Devising an optimal plan requires meticulous analysis of the various facets of Hi Tech Systems, and a keen understanding on the different global human resource approaches and their implications. An extensive review of human resource functions facilitate better understanding of Peter Hanson’s strategy. Evaluating Peter Hanson’s adopted strategies and their consequences result in a greater clarity of the situation and thereafter, allows for development of recommendations.

Therefore, the HR manager needs to collaborate with other operational managers to understand the success criteria and improve business results. The strategic approach to HRM implemented should be capable of creating a competitive advantage through the company’s most valued asset which is human skills. The two important factors organisations need to pay attention to while considering International strategy are cost efficiency and customisation. International Strategy is further subdivided into three segments based on the nature of the market – Global (Ethnocentric Orientation - uses uniform strategies across all business), Transnational (Geocentric view – Global strategies on major corporate issues but permits business unit develop local strategies on other issues) and Multidomestic Strategies (Polycentric orientation - Produces a diverse mix of strategies to adapt and meet needs of each business) (Stone, 2014).

This study highlights problems in the preparation and selection process and hopefully will provide a HR department with a HRM strategy for any company operating internationally to select and prepare staff for expatriate management roles.

The rapid growth of internationalisation and global competition in recent years has created a significant increase in the number of Multi-National Corporations (MNC’s), which in turn created the need for International Human Resource Management (IHRM) roles (Scullion, 2001). Human resource management is progressively becoming a major factor that can determine the success or failure of MNC’s. Scullion (2001) concluded that HR strategies play a vital role in implementation and control in MNC’s, and alignment between HR strategies and the organisational structure of MNC’s often results in superior outcomes. In order to strive, human resources must be managed effectively to gain a competitive edge in the global market place, and to overcome the seemingly inexorable challenges that globalization precipitates. This essay presents an overview of the challenges faced by HR managers in a global setting, and evidences that the current permutation of HRM is not adequate to meet the critical challenges of tomorrow. BRIEFLY OUTLINE BODIES OF TEXT

There are many factors, which determine which type of international employee MNCs will target. Factors such as living costs in the host country, cultural distance between subsidiaries and its headquarters and international employee’s role expectations need to be considered (Treven, 2006). MNCs also need to examine the advantages and disadvantages of each alternative approach and determine a general approach to international recruitment and selection. An ethnocentric approach is where the cultural values and business practices of the home country are executed because key management positions are all held by parent-country nationals (PCNs). Companies utilising the ethnocentric approach assume that their home country approach is the most successful for international recruitment and selection as it facilitates communication between subsidiaries and its headquarters and enables deeper understanding of the MNC’s goals (Kang & Shen, 2013). However, this approach should only be used when the business needs to maintain close control with the host country or when there is a lack of suitable HCNs. There are also negative consequences resulting from an ethnocentric approach, which include high costs associated with maintaining PCNs and their families in host countries, difficulties in adapting to the host-country environment and limited job and career opportunities for HCNs (Caligiuri & Stroh, 1995). In contrast, the polycentric approach

With the recent enlargement of the European Union in 2004 to 25 member states, which is expected to grow larger in further years, organisations have begun to expand into global organisations. As a function of reduced transportation and information costs and the removal of social and political barriers, the globalisation of business is proceeding at unprecedented and unexpected rates (Wayne Brockbank, Page 64). Now in recent years we have seen the opening up of the markets in China and India, with the world’s largest population. These countries have a much cheaper labour force and so costs are cut considerably and the potential growth that these country’s have its no wonder that business are expanding here. However, these businesses expanding into different countries with different cultures, languages and ways of life they need to take account of all these factors that have never really been a concern to them when they were expanding in their own home countries. HR’s ability to deliver business success, and attempts to accomplish this goal (globalisation), are influenced by the increased competition attributed to globalization, creating and sustaining organizational culture, and

There are three approaches for best staffing a subsidiary; ethnocentric approach when all key posts are filled by employing parent country nationals (PCNs). Secondly Regiocentric approach which is in many respects a subset of the geocentric approach in that the company organizes and recruits on a regional rather than global basis. Finally the Polycentric approach which involves the MNC treating each subsidiary as a distinct national entity with some decision making autonomy and are usually managed by local nationals (HCN’s). The first part of the report will analyse which is the best approach out of these three for the HR Managers of Sands Corp to staff their new subsidiary. This then leads on to examining how the recommended approach would impact on other HR areas. Finally, a conclusion will be drawn from all the points discussed.

As international businesses become more common and globalization continues to boom, many challenges face the Human Resource Department. With employees and business spanning over many countries, continents and hemispheres, businesses will face cultural diversity, technology reliance, and many other risks that go along with international businesses. Human Resource departments have been forced to become more knowledgeable in the hiring, training and retention of managers in international businesses due to these challenges. HR should first learn how best to train managers, and then utilize the following best practices to implement the training and development of managers in international business.

HRM in International Context - For Human Resource Management to grow and evolve into Strategic Human Resource Management means that it was necessary to not only develop and change its function, but its entire paradigm. The new model for global management includes creating and maintaining a diverse work environment in which cultural diversity is encourage and celebrated, rather than