International human resource management and strategy

Transcription

1 PART VI Chapter 12 CONTEMPORARY CONCERNS Human resource management in an international context Introduction HRM role integral to strategy of organisation and so role must be proactive in the international arena. Advent of globalisation brought about increased international market. HRM has to ensure that training designed to distinguish between national and international human resources. World class organisations continuously benchmark their: products processes results. Definition Process of employing and developing people in international organisations which operate globally. Applying HRM policy familiar in domestic markets to international workforce, for example: employee development (ED) recruitment and selection reward and remuneration policies and practices. Means working across national borders. Includes any type of worker, for example: own country national working as expatriate own country national working overseas for short time for specific project/s individual of one nationality working for organisation based in another country but who is actually working in yet another country. IHRM primarily exists in multinational corporations with HRM having a wider contextual setting. International human resource management and strategy International issues must be included in organisation strategy. Strategic operations decisions to be made: where operational facilities are to be located how operations network should be managed across national boundaries whether operations in different countries are allowed to develop own way of doing business whether operations practice successful in one part of world can be transferred to another part. Where organisation should be located is a strategic decision. 1

2 2 Introduction to human resource management Configuration strategies: home country regional globally coordinated combined regional and coordinated. Different practices for different regions Each organisation adopts own individual way of running business dependent upon, for example: culture economic conditions tradition market needs demographic trends. Successful global organisations adapt to local conditions. Challenge of international human resource management Increase in need for ability of HRM specialists and line managers to accept challenge of IHRM, because of: globalisation workplace diversity. Need to manage beyond domestic and national boundaries. Demands likely to be found in: managing complexity of workforce mix managing diversity communications finding the right calibre people. Characteristics of international human resource management Adaptation must be within cultural limits with extra care being taken, for example, when recruiting. HRM specialists can take generalisations and develop them according to international situation they find themselves in. IHRM must be included as part of core programmes in training and development it is no longer an option. Internationalism and the human resource management specialist Understanding and working with diverse national practices essential for HRM specialists and line managers with international responsibilities. Must know country s arrangements in areas of, for example: recruitment contracts of employment national legislation practice and procedures on contract termination.

3 Human resource management in an international context 3 HRM professionals: oversee IHRM issues exercise due diligence as part of overseas acquisitions undertake strategic reviews of HRM policies in other countries. Globalisation becoming increasingly important and causing increase in number of IHRM specialists required, because: many organisations managing international workforce many employees employed by organisations which have overseas branches increase in organisations having overseas bases organisations conscious of need to be interdependent and global. International dimensions and management Way management carried out depends upon: culture legislation economic conditions competition employee relationships training and development. People and the organisation s global environment Advanced capitalist countries are in post-career phase. Organisation s needs for workers changes very quickly and thus individuals feel insecure. Advanced capitalism continuing to create more long-term unemployment with growing disparity between the haves and the have nots. Areas of concern: insecure employment prospects deteriorating terms of employment weakening in the rights of employees often lower wages and salaries for those in lower echelons. More apparent in UK than other western countries. Employees of global organisations with enlightened attitudes will find retraining normal and natural. Training needs to be given high priority. Information technology (IT) and strategies of multinational organisations are the integration of the global capitalist economy. Employment and development strategies Essential that workers are: knowledge based skilled flexible.

4 4 Introduction to human resource management Concentration needed in: strategy for centralisation staffing of posts in management areas strategy for management development. Areas needing attention to deal with increasing complexity of worldwide business: cultural diversity training competencies. International recruitment Some recruitment will be locally and some internationally, addressing: job description job specification recruitment customs interviewing selection. Imperative organisation retains solid reputation for excellent employment practices. Transferring operations practices Way businesses are run will vary from country to country. Can bring difficulties; for example, working practices. International human resource management as a career Concentration on: intercultural effectiveness interpersonal and communications ability language skills managing complexity and diversity flexibility resilience local country employment law and conditions business understanding understanding international business environment. Managing expatriates Need special handling UK very successful in comparison to USA. British multinationals paid special attention to: recruitment and selection preparation of individuals for overseas placement individual development help when return to parent country.

5 Human resource management in an international context 5 Human resource management and Europe Essential individuals have thorough understanding of: politics economics social policy. EU playing increasing role in world affairs. EU created dense network of international agreements and relationships to encourage development of cooperation, for example, with: World Trade Organisation (WTO) quadrilateral talks (Canada, Japan, USA, EU) Africa, Caribbean and Pacific countries Asia China Latin and Central America. European Social Chapter covered workplace legislation. Developments made in areas of transition, for example, Poland. Human resource management and the United States of America With Japan, put HRM theories on the map. Concerned with: using initiative taking personal responsibility selection, recruitment, and career advancement on merit loyalty to parent organisation. Foundations: scientific management human relations approach organic theories. Individualised some HRM concepts: employment legislation cultural influences increase in globalisation growth in bureaucracy reduced growth in home economy. Human resource management in the Far East and Australasia Western interest in Japan came about because of close trading. Key working practices: employment for life/commitment payment by seniority quality flexibility.

6 6 Introduction to human resource management Human resource management in the Pacific region (excluding Japan) Australia and New Zealand: analysis on workplace-related activities popular. Singapore and Vietnam: expanding economy work with local partners. Future belongs to individuals who are transculturally competent in that they can recognise, respect and reconcile differences and thus perform better.