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Short case study international human resource management
The importance of international human resources management
The importance of international human resources management
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The Role of the International HR Manager
For many people international HR management (IHRM) is synonymous with expatriate management. IHRM, however, covers a far broader spectrum than just the management of expatriates. It involves the worldwide management of people. Although International HR (IHR) managers undertake the same activities as their domestically-based colleagues, the scope and complexity of these tasks will depend on the extent of internationalisation of the organisation. In this article, Dr Hilary Harris, Director of the Centre for Research into the Management of Expatriation (CReME), examines the factors influencing the role of the IHR manager and how this affects choices in terms of IHR policy and practice.
Differences between Domestic and International HRM
In any organisation, the primary objective of the HRM function is to ensure that the most effective use is made of its human resources. To achieve this, HR professionals undertake a range of activities around sourcing, development, reward and performance management, HR planning, employee involvement and communications. If the organisation has a strategic HR function, these activities will support and inform organisational strategy. HR professionals are also used extensively in organisational change and development initiatives.
The IHR manager will also be working to the same objectives, however, the scope and complexity of their role is increased as a result of working across borders. A useful model of the nature of international HRM is presented below:
Source: Adapted from P.V. Morgan 1986. International human resource management: Fact or Fiction, Personnel Administrator, vol. 31, no.9, p44.
Figure 1. Model of International H...
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...c partner, the IHR manager should equally advise senior management of any mismatch between stated organisation internationalisation goals and actual IHR practice. One major European airline found that although they had a stated business objective of being a global organisation, their actual HR policies and practices were almost completely ethnocentric!
The Centre for Research into the Management of Expatriation (CReME) is a joint collaboration between Cranfield School of Management and Organization Resources Counselors Inc. (ORC). CReME is based at Cranfield University School of Management in Bedfordshire, Telephone 01234 751122
References
Hofstede, G. (1991) Cultures and Organizations: Software of the Mind. McGraw-Hill, Maidenhead, Berks.
Trompenaars, F and Hampden-Turner, C. (1997) Riding the Waves of Culture. Nicholas Brealey Publishing, London.
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 following:
“Hr is shifting from focusing on the organisation of the business to focusing on the business of the organisation” (Zulmohd 2011). David Ulrich points out four distinctive roles of HR which makes the organisation most effective and produce competitive advantage. He planned to change the structure of HR function and build HR around roles. The four key HR roles identified by Ulrich, one HR business partner/strategic partner – aligning HR and business strategy which plays an important role in setting strategic direction. It builds strategic relationship with clients and strategically manages the development of the workforce. The second key role is administrative expert which creates and must deliver effective HR processes made to tailor business needs. It also involves managing people and HR related costs. To continue to the third key role, change agent which understands the organisations culture, and takes the responsibility to communicate those changes internally and gain its employees trust. The final key role identified by Ulrich is employee advocate which is a core in HR role represents employees and helps to improve their experience, protect employees’ interests and confirm strategic initiatives are well balanced. Employee advocates must also “ensure fair, ethical and equitable people processes and practices.” “David Ulrich’s HR Model is about defining the HR roles and
middle of paper ... ... titutions, and organizations across nations", Thousand Oaks, 2001 Hofstede, Geert H.: "Cultures and Organizations: Software of the mind", New York, 1997 Marx, Elisabeth: "Breaking through culture shock: what you need to succeed in international business"; London, 1999 Mendenhall, Mark E./ Kühlmann, Torsten M../ Stahl, Günther K./ Osland, Joyce S.: "Employee Development and Expatriate Assignments" in Gannon, Martin J./ Newman, Karen L. (Editors): "The Blackwell Handbook of cross-cultural management", Oxford, 2002 Simpson, J.A./ Weiner, Edmund S.C. (prepared by): "Oxford English Dictionary", 2nd edition, Oxford, 1991 Wagner, W.: "Kulturschock Deutschland", Hamburg, 1996 Ward, Colleen: "Acculturation" in Landis, Dan/ Bhagat, Rabi S. (Editors): "Handbook of Intercultural Training", Thousand Oaks, 1996
Paul, S. 2010. The role of the corporate HR function in global talent management. UK: Elsevier
What are the HR Strategies that management must undertake and support to create a successful global presence to insure the success of an organization in meeting its goals and mission?
International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...
Ashamalla, M. H. (1998). International Human Resource Management Practices: The Challenge of Expatriation. Competitiveness Review, 8(2), 54-65.
Willy McCourt & Derek Elridge (2003), Global Human Resource Management, pp 311 - 315. Edward Elgar publishing.
High turnover rate of expatriate: expatriate managers are frustrated with the performance and practices of local employees. And they do not have enough international experience and cross-cultural communication and sensitivity training.
From trade to travel and everywhere in between, the United States is a globalized nation and it has shown in young adults with their increase in traveling abroad. According to Generation Me - Revised and Updated: Why Today's Young Americans Are More …by Jean M. Twenge, young Americans want to travel the world both personally and professionally. This trend creates wider opportunities of employment. As a result, global human resources management has grown. According to the Society of Human Resources Management, global human resources “deals with all aspects of HR within the worldwide context, including U.S.-based entities doing business internationally or non-U.S.-based entities operating in their own locale or worldwide” (2017).
However, repatriation is one aspect of international assignments that has been somehow overlooked. Most literature on international human resource management (IHRM) for the most part focuses on expatriate settlement in the host country of assignment. Not as much of the required concentration has been focused on preparing expatriates for homecoming, notwithstanding the facts regarding the complexity of settling back at home and reports that nearly all expatriates are unhappy with the repatriation process. In view of the fact that the world is becoming more integrated leading to more global deployment of employees, the repatriation process calls for added attention (Furuya et al 2007).
The main purpose of Human Resource Management is to increase the effectiveness and contribution of employee’s attainment of organizational goals and objective (Youssef, C.). Many areas of HRM have been discussed in this course. Those areas are EEO and Affirmative action, Human resource planning, recruitment, and selection, Human resource development, compensation and benefits, safety and health, and employee and labor relations. All these categories have an impact on how an organization is managed. Although there are many things that impact a business, the most important thing about managing a business is selecting the right people to help the company succeed.
Human Resource Management (HRM) can be defined as “the set of programs, functions, and activities designed and performed in order to capitalize on both employee as well as organizational effectiveness. It is a management function that helps organization in recruiting, selecting, and training, developing and managing
Lewis, Clive (2007) Human resource management international digest. Bradford: 2007. Vol 15, Iss.4: pg. 3.
The main purpose of Human Resource management is to develop both the individuals and the organization. This means Human Resource is not only responsible for finding and maturing talents of workers, but also putting programs in effect that will enhance communication between other workers.