BA(Hons) Management
International HRM
Report
Word Count = 2176
Executive Summary
The purpose of this report is to explore the regiocentric approach to International Human Resource Management and discuss the impact the use of this approach would have in the case of expanding to a new location. The Expatriate Management Cycle is covered to identify any considerations that may have to be made during the process. The report evaluates the use of a regiocentric method for an international start-up situation. This report was written to inform the Managing Director of DBS Engineering Ltd of any issues that may occur during the expansion and to assess their current choice of using a regiocentric approach to business. This evaluation
…show more content…
This involves; selecting the right candidate(s) for the job, preparing the chosen expatriates and if necessary their families, managing the performance of expats whilst they are on assignment and finally preparing them to return to their home country once the assignment is complete. The stages of the management cycle can differ depending on many variables, such as; the length and nature of assignment, the expatriates’ experience of the culture and language, the host-countries cultural expectations.
Strategic Planning
Planning is essential before any international assignment to increase the likelihood of success. “HR planning is the process of assessing demand for labour against the potential supply. It is an important tool in putting the business strategy into practice, and in informing organisational capability.” (CIPD, 2011). This is specifically important in a start-up situation as the organisation has to consider the size of their expansion and how many employees in total will needed. Before this however, DBS engineering limited must consider where it plans to expand to as the location can have a great implication on the expatriate management process. If the organisation is planning to move into another country but in the same region, for example a UK based company moving into France with a regiocentric approach, they can choose to recruit employees from all over Europe including sending Parent Country Nationals (PCN’s) from the UK headquarters. Sending
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
Our business unit is preparing for global growth, with our first international deal closing in New Zealand. Several of the major challenges we face are balancing ‘business as usual’ with preparing for international expansion (including hiring internationally, sourcing new offices) and preparing staff for potential re-deployment. Although I agree with the approach discussed in (Kramar, et al., 2014), in which finding local nationals is a more viable option.
The HRM policy of a firm is looked as a most important strength which needs to be taken care of all the time to have a competitive advantage within the industry they operating in. Multinational corporations (MNCs) seek to transfer their home-country human resource management (HRM) practices to their overseas subsidiary as to them it is just another approach towards globalisation. It can be an element of success for MNCs if they manage to transfer these HRM practices across their subsidiaries in an effective manner. An effective transition of these policies depends on the organisational, cultural, social and relational factors (Bartlett & Ghoshal 1998; Evans, Pucik & Barsoux 2002; Poedenphant 2002). The transition of these policies
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.
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
As the board have agreed to go international, there are many International Human Resource Management aspects to be taken into consideration before Winch-it Pty. Ltd expands their business. There are several areas of interest to be analysed that requires specific attention to assist in commencing an international operation. The five main areas of interest that are analysed covers: the organisational context, the staffing context, recruitment and selection, international compensation and performance management, and continued management and re-entry.
This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.
Human resource management functions in multinational companies are incredibly complicated by the need to adapt policies and procedures related to personnel, to differences between the countries, which is one of the branches. In particular, the countries cultural differences, differences in economic development and legal systems may require an international company adaptation programs of hiring, firing, training and remuneration for
The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational
As a Human Resource Director, it is my duty to launch a performance management system. There are many different systems that would benefit this 5-year-old company but the one most beneficial has to be put in place. All factors have to be addressed when deciding on the system. The age of the company which is 5 years old. This is significant because the same performance management tool that a 50-year-old company would use may not be valuable to this company. Another factor that must be addressed is the average age of the employees. The average 33-year-old may respond differently then would a 55-year-old seasoned employee to an employee performance management system.
The theory developed by Hofstede (1980) suggested that the national cultural differences have greater influence on shaping the management and business operations. The international experience from the repatriates has considerable positive effect on pre-departure training program. Enhanced cultural awareness is expected, since the repatriates are more familiar with the host country culture. The expatriate experience from the repatriates could provide more realistic information on business context in the host country which develop positive attitude to the assignment. They could act as guidance to allocate the resources to ensure that the expatriates familiarized the new culture and produce appropriate behaviours necessary within that culture. In other word, the chance of expatriate failure is likely to be diminished. On the other hand, repatriate experience could also play a role to aid with expatriate selection. Appropriate candidate for expatriate required to have “the ability to learn new business concepts, to supervise subordinates from different culture, to deal with family relocation issues and to adjust personally to a new culture” (Webb, Wright, 1995:39). Thus, we can know that the candidate selection is not solely depends on the technical competence but also the relational abilities. The international
In today’s global economy, having a workforce with international experience is crucial for companies to maintain their competitiveness. Currently, approximately 80% of all midsize and large firms send their professionals overseas for international assignments. Expatriate expenses may cost up to two or three times the amount that the employee with equivalent position may have back in their home country. The total expatriate package may cost up from $300,000 to $1 million dollars, depending on their location and their designation. For international assignments, professionals are usually given foreign posts for two reasons. First, is to generate and transfer knowledge. Second, to develop their global skills or do both.
For the organization to successfully achieve internationalization, a special focus must be placed on Human Resources. Human Resources can ensure effective internationalization management of employee staffing, selection, and performance management. “For the achievement of the goals of the international organization, the specific jobs should be filled with specific individuals at the proper time and proper place” (Jadoon, 2015). "The selection decision for international assignees is critical. Errors in selection have a major impact on the success of overseas operations” (Tarique, Briscoe, & Schuler, 2016). Moreover, “performance management is the process of quantifying the efficiency and effectiveness of actions, in order to compare results against expectations, with the intent to motivate, guide and improve decision making” (Szlavicz & Berber, 2014).
The expanding global reach of many organisations today has increased interest in the topic of managing country managers. In most cases this is an expatriate, a home country national sent by the parent company to work temporarily or permanently in another country. In most cases this could be a temporary situation as the organisation is setting up its
The need for expatriate managers is increasing and “80% of midsize and large companies currently send professionals abroad—and 45% plan to increase the number they have on assignment.” (Gregersen, 1999) The cost for sending expatriates abroad is generally a costly venture for the organization with an expatriate employee package costing the organization two to three times the equivalent of a domestic position would demand. Because of this cost it is imperative that organizations identify and send the most appropriate candidates to obtain the most value for from the candidate selection.