Human Resource Management refers to the activities an organization carries out to use its human resources effectively. Four major tasks of HRM

Transcription

1 Human Resource Management refers to the activities an organization carries out to use its human resources effectively Four major tasks of HRM Staffing policy Management training and development Performance appraisal Compensation policy International Human Resource Management : Strategic role: HRM policies should be congruent with the firm s strategy and it s formal and informal structure and controls 1 / 12

2 Right People, Right Place, Right Time Basic Steps in International HRM : International businesses have choices of hiring three categories of employees : PCNs Parent Country nationals The employees working in the country of the company belonging to some other countries. HCNs- Host country Nationals Employees of same country where the company belongs to. TCNs- Third country Nationals Employees working in a country other than their home country with the headquarters of the 2 / 12

3 company in some third country. Strategy, Structure and Control systems : Staffing policy : - Staffing policy - Selecting individuals with requisite skills to do a particular job - Tool for developing and promoting corporate culture - View People as Resource ($in profit out) Ethnocentric policy ; 3 / 12

4 Key management positions filled by parent-country nationals Advantages: Overcomes lack of qualified managers in host nation Unified culture Helps transfer core competencies (and skills back) Disadvantages: Produces resentment in host country Can lead to cultural myopia Polycentric policy : 4 / 12

5 Host-country nationals manage subsidiaries Advantages: Alleviates cultural myopia. Inexpensive to implement Helps transfer core competencies Disadvantages: Limits opportunity to gain experience of host-country nationals outside their own country. Can create gap between home-and host-country operations Geocentric policy : Seek best people, regardless of nationality not always possible 5 / 12

6 Best suited to Global and trans-national businesses Advantages: Enables the firm to make best use of its human resources Equips executives to work in a number of cultures Disadvantages: National immigration policies may limit implementation Expensive to implement due to training and relocation Compensation structure can be a problem. 6 / 12

7 Comparison of staffing approaches : The Expatriate problem : Expatriate: citizens of one country working in another Expatriate failure: premature return of the expatriate manager to his/her home country 7 / 12

8 Cost of failure is high: estimate = 3X the expatriate s annual salary plus the cost of relocation (impacted by currency exchange rates and assignment location) Inpatriates: expatriates who are citizens of a foreign country working in the home country of their multinational employer Expatriate failure rates : Reasons for Expatriate failure : 8 / 12

9 Expatriate selection : Reduce expatriate failure rates by improving selection procedures An executive s domestic performance does not (necessarily) equate his/her overseas performance potential Employees need to be selected not solely on technical expertise but also on cross-cultural fluency. Four attributes that predict success : Self-Orientation Possessing high self-esteem, self-confidence and mental well-being Perceptual Ability The ability to understand why people of other countries behave the way they do Being nonjudgmental and being flexible in management style Cultural Toughness 9 / 12

10 Relationship between country of assignment and the expatriate s adjustment to it. Training and Management Development : Training: Obtaining skills for a particular foreign posting Cultural training : Seeks to foster an appreciation of the host-country s culture Language training : Can improve expatriate s effectiveness, aids in relating more easily to foreign culture and fosters a better firm image. Development: Broader concept involving developing manager s skills over his or her career with the firm Several foreign postings over a number of years Attend management education programs at regular intervals Repatriation of Expatriates : 10 / 12

11 Management Development experiences Used Above Performance Problems Expatriate Host-nation Home-country On Rotation as techniques going a : strategic managers Unintentional Development programs of appraisal biased management managers biased support tool believe by designed to by : cultural bias build transnational through distance & education that Strategy a frame headquarters to strong a increase and number : of and unifying lack reference global the of unfairly experience jobs overall culture strategies within evaluates skill and the working levels informal firm and of to abroad management managers give under broad appreciates through: range network of Two or Equalize issues: Pay Method pay executives of on payment : a global in different basis? countries according to the standards in each country? them Compensation for 4 positions in 26 countries : National differences in Corporate-Compensation : National differences in CEO pay for Midsized Companies : Compensation issues : Expatriate Typically locations.. Components Base Foreign The Balance Equalizes Provides Salary use service paysheet of balance : financial Same purchasing Expatriate premium : range sheet incentives pay : power Extra as approach : a similar pay to maintain offset for position work qualitative same outside in the standard differences home country country of of living between origin across assignment countries Some the - Quality Theories Cost of Labour of of Labour the Labour varies. Market inversely : to the Unemployment Rate and directly to Data on hourly wages in USA Data on hourly wages in Europe Data on hourly wages in Japan Section Introduction Industrial the role of 2 Relations:IR : regulatory Industrial mechanism and concerned Business resolving Policies with the relationship any industrial between dispute management through:- & workers and Importance of IR Key Approaches to Industrial Relations: 11 / 12

12 3 Major Parties to Industrial Relation Workers The skills, Trade IR It relations feel Internal personal and their characteristics associations: opportunities is Strategy the necessary attitude Attitudes using Difference Present Technological Union need are absolute : usually towards and between act : in have future opinion before presumed changes, authority work, management strength unambiguous the between etc. of trouble expanding management to workers, play management satisfactory breaks,employee unions. their important strategy and enforce culture, out. running until and role decisions educational IR they unions. union. down in.generally industrial get also out to affect attainments, the of relations. employer- hand, employee the managers, employment It qualifications, employee is and also unions. called External. rarely, Role health, of Authority Employment Legal To Ensure remuneration, HRM Factors carried keep frame better the and out : workforce and Effectiveness recruitment bargaining welfare pay with situation motivated, etc. which and of national, hiring, the Nationally IR competent exists. employers induction, local and and association. plant locally. training trouble-free. level. and development, safety and and Trade workers themselves. Reasons DISSATISFACTION Contribute Union In or India employers : as to the Trade formed quality Unions to of promote work Act, life 1926, and (QWL) protect Trade of the their Unions employees. LACK UNION Unsatisfied Unrealistic Poor Instrument OF To INSTRUMENTALITY for regulate POWER day-to-day joining job of personalities, among influence removing previews unions management workmen, : the dissatisfaction given interests management creating and between and supervisory expectations preferences. workmen practices and interests employers are voluntary through or among organisations collective employers action. of Strategic management social Union STRIKE POLITICAL government BLACKMAIL Temporary Making Bread Adversarial Traditional attitude. Tactics Choices PATRONAGE and recognition : suspension Butter Issues vs before Co-operative vs and Unions Political New of patronage funtions Services : Role Objectives : Challenge : a Stick political : Economic to old Management party issues for issues direction or accommodate and or Co-operate Political and influencing participation Trends Threat of discontinuing operations and non-cooperation with the management. changes with Trade Union Movement : in Personnel Range Wage Change Depoliticisation Formation Associations Phenomenon of research Research surveys in of attitude areas union of : of They outside highly unions include: of reveal basis fragmented leadership taking towards of the religion place level thus management, of and employee multiplicity caste industry, satisfaction of unionsand among government validating perforrmance satisfaction. approach Test Effectiveness Supervisor s Job analysis validation imperative : effectiveness of Specific : before In various training a dynamic approaches applying recruitment efforts survey labor any : Essential such market, : test. sources Another as result tests for key ensuring tend oriented, factor to in get efficiency deciding contextual outdated in employee other frequently, or potential factors. Management Performance need to appraisal adopted as validation per specific : Most work critical environment. aspect of any modern Performance so This - article Turnover has System analysis been authored : Reveals by the Sayantan success Banerjee failure of from the Industrial PGDM IMT relation policy. based 12 / 12