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Human Resource Management works within an organisation and it focuses on recruitment, management and providing direction for the people, it also deals with employee compensation, hiring people, performance management, organisation development, safety, wellness, benefits, employee motivation, communication and administration and training. Carly Fiorina (2003) defines HRM as Managing a company, not a share price, means balancing the requirements of shareowners, customers, employees and communities. And managing a company for the long term, not just the short-term, requires building sustainable value for shareowners and customers and employees and communities. And these relationships of sustainable value require real trust and real candour.
In IHRM means globalisation of Human resource management. Globalisation refers to act as globally by expending the local business. In other way we can say that to introduce some local business to global market is called globalisation. In International HRM means, when a business wants to expand his business in global market or other country he has to consider some it can be operation perspective and management perspective to settle down his business. According to Broadly, the area of IHRM is managing all human resource management activities in the enterprises in the globally, examine and find out the solution for created problem of all human resource management activities as a global environment. HRM and MNE are working together significantly providing solution for any business problem at the globally.
In Givanni Agnelli's point of view Global organisation or MNE is a company where having people with different background, different cultures, different inclinations, different aspirations, different jobs and all of them have to produce miracle of their own striving together so that company balance sheet can be good. So IHRM has to manage the across cultures and all sorts HR related problems, adopt with different culture, maintain their employment law and industrial rules & regulation. So International Human Resource Manager should maintain following thing to consider internationally for developing organisation.
The List of main developing Global Consideration working in international context for human resource manager are as follows:
- Maintain global employment law, Industrial relations.
- Follow global ethnics and Labour standard.
- Global talent management and staffing.
- Ensure training and management development in multinational enterprises.
- Global compensation, benefits and taxes.
- International performance management.
- The well-being of the global work force.
1. Global employment law, Industrial relations:
If any company goes for internationally the IHR manager should have some international responsibility to maintain the international business. Different countries have different rules for the business to settle. So IHR manager need to coordinate all type of problem.
About managing across culture we can say like Mahatma Gandhi in book ‘Managing Across culture' by Schneider & Barsoux (2nd ed. 2003 p185) Let my house not be walled on four sides, let all the windows be open, let all the cultures blow in, but no culture blow me off my feet.
However, there are number of international organizations have that support labour standard which influence employees and labour relation within MNEs, this organization are such as United Nations (UN), the International Labour Organisation (ILO), the Organisation for Economic Cooperation and Development (OECD), the World Bank and International Monetary Fund (IMF). All of this organization individually plays different types of role to develop employment law for example UN always plays an insignificant role to develop employment law and labour standard. They mainly focus on social dimension of international trade area. On the other hand ILO internationally works for improvement of the working conditions; maintain living standards and the fair and impartial treatment of workers.
Moreover, an IHR manager should idea about how to manage these international issues and he has to co-operate the international laws with the national laws. Other wise he will not be a successful manager.
Furthermore, industrial labour relations are important in global organization. Before taking any decision MNE has to share with labour union or government agencies. IHR manager is responsible for maintaining labour relation in an organization. David Killinger's (2000) point of view who is the Director of international labour affair is that because he works so many countries, one of his primary roles is to educate all the parts of the business in the US about what is going on around the world and how that affects total business.
2. Global ethnics and Labour standard
In International Human Resource Management: Policies and practices for multinational enterprises by Briscoe, Schuler and Claus they define Culture is a group of people where they have own way to live, behaving and believing which they developed over long time and share by there generation. Different ethic has different type of problem. IHR managers have to solve different ethnic problem.
He has to maintain there government rules and regulation to recruit staff. For example some country, they are very restrict about foreign recruitment they don't want to recruit too many foreigner in a company. And they want to train there own people as management post. On the other hand some country doesn't have any restriction about the foreign recruitment. They feel happy to have foreigner in management post. So, IHR manager's responsibility to find out what county have want sort of requirement and proceed to fulfil their requirement in global perspective.
However, managing across countries culture is a challenge for IHR manager. In a case of Mendenhall et al ‘Readings and cases in Human Resource Management': An executive with TRW Inc. pointed out the importance of this when he stressed that:
…Just because you have taken an international assignment to China does not mean you can effectively manage across multiple countries. For most (leaders) an international assignment is a critical developmental experience, but that is not all it takes to turn you into a global leader. This means that we must have HR people who are global long before we need business people; otherwise how will we identify, train, and develop business leaders? (Mendenhall et al 2007 p. 22)
That a good observation of the executive as because to established a business in other country we need to examine the culture, identify the people, train the people and develop the people to maintain the global standard then we can have a successful, and well develop global business.
Moreover, the International Labour Organisation (ILO) also has some requirement to maintain labour standard in global and local perspective. ILO is only organisation that deals with labour issues and currently it has 182 membership countries.
In global ethics area IHR manager identify the fundamental morality of human philosophy. According to Briscoe & et al (2009) A set of global principles that, under no circumstances, should ever be violated in code of ethics which might be important for IHR manager and it suggest local practices which is sometime different from parent country as because they did not violate the universal principles.
3. Global talent management and staffing
Human resource manager means managing people. The main objective of IHR manager in global talent management and staffing is planning of global work force where he can estimate employment needs of MNE and also he can develop plan for fulfil those needs. Here term “work force” means employees of an organisation or enterprise and “labour force” means a group of talent employees in the labour market from where an organisation attracts and hires its employees.
There are three categories of people for recruiting in an international organisation such as parent country nationals, Host country nationals and third country nationals, International Human Resource manager should careful about that perspective. However different countries rules and regulation about recruitment, reward or punishment policy are not same. Recruitment policy depends on countries internal policy.
Moreover, every country sets different rules for the organisation about his parent country nationals, host country nationals and third country nationals. Parent country nationals means organisations own country, it may be short term transfer or long term transfer and it is fully depend on companies internal policy, host country means where the organisation is establishing business, it is important hiring local people and third country means different country from the both nation. Third country nationals is important as because skills or expert people required for establish a business it sometimes for high technological introducing issue or train and develop people with high technology.
So, one of the major characteristics of IHR manager is to manage global staffing choice all type of employee in organisations needs. In appendix I it shows that how IHR manager select global talent management and staffing policy.
Furthermore, IHR manager's one of the challenges is about staffing concerns the nature and applications of immigration laws. It is important due to employee recruiting the global firm, new employees from other country nationals are hired for that reason visas are required for the international assignees, and HR managers duty is to arrange work visas and work with officials in other countries for the technician as they send abroad as expatriates.
4. Training and management development in multinational enterprises.
An IHR manager should have to well organize about training and management development in multinational enterprises. Training and management development is necessary as because to implement new ideas in an organization. But it also depend on country, some country always welcome new ideas, some are reluctant to accept ideas from specific country and some country is completely agree about this as because they don't have that kind of expert to implement the new ideas. According to Richard Harlow the senior development consultant at global training consultancy TMA in UK:
Time and time again, I hear similar stories of global training initiatives not having the desired effect. And it boils down to a number of reasons. Sometimes badly interpreted material is to blame, other times internal politics may be at play, or perhaps employees in a particular location are just not accustomed to the way the briefing/training is delivered. And companies end up digging deeper in their pockets to retrain or troubleshoot.
However, IHR manager also careful about culture, language, learning style, education levels and transfer of learning otherwise he can't be successfully train the people and can't able to develop the management style in MNEs. All of these issues are important of IHR manager. For example, different nationals cultural views is not same, so IHR professional should have clear understanding about how that cultural views and educational system or learning style works. Other important issue of global T & D is language. IHR mangers need to arrange training for global workforce whether in a single language or common language or if necessary he has to translate training program in respective language. And for the cross border they need to understand by the MNE providing training by transfer of learning. IHR manager responsibility is to examine the all sort of problem and solve it the respective way to train the people and become successful to management development and he has to expert of cross cultural adjustment.
Furthermore, one author with extensive international business experience, writing for the American Society for Training and Development, says this global mind-set:
…is a way of being rather than a set of skills. It is an orientation to the world that allows one to see certain things that others do not. A global mind-set means the ability to scan the world from a broad perspective, always looking for unexpected trends and opportunities that may constitute a threat or an opportunity to achieve personal, professional, or organizational objectives.
5. Global compensation, benefits and taxes.
One of the critical responsibilities for IHR manager is to plan, structure and maintain global compensation and benefits of work force of the MNE. It is become extreme complicated due to considering multiple countries employees for example parent country, host country and other countries nationals, varying different countries it is changes the level of pay and benefits, cost of leaving, multiple currencies, exchange rate, tax systems and tax rate. All are fully depend on countries internal C&B policy.
In addition to that compensation and benefit system is not same for the host country nations to parent country or third countries nationals. It is depends on global remuneration structure for employees of the MNE in various place in the world. It can be found that same level of job doing by different countries national receiving different pay and title also different, it is happens due to different countries life style, living cost is not same. For successful IHR manager, it is extremely necessary to efficient plan of a global C&B system.
Moreover, IHR managers also need to design & maintain of how the vacation requirement, working hour, pension plan, insurance, Maternity and family leave and other flexible benefits for the parent nationals, host country nationals and other international employees all he need to do in a fair way. He should have clear judgment of all employee cost of leaving standard, life style and all other relative perspective.
6. International performance management.
Performance management is important in an international organisation to keep company's internal and external policy up to date. By the PM any organisation can measure or evaluate his international and local assignees. Employee evaluation measure performance where we can have positive or negative feedback i.e. what he is doing? What his work standard level? How he performing his job? Identify quality of his job? Is there any development or training need or not?
However, Performance management is the process of assessment of employee to reach the destination of the company. In that case PM of MNEs is very important for IHR manager. It is a great challenge for him, as because he has to evaluate international and local all employee where depends on employees promotion, pay rise, rewards, motivation and so on. On the other hand it is leading to company's development, improving productivity and efficiency.
So, IHR manager should maintain some criteria for performance appraisal. In appendix II it shows a model how a multinational enterprise measure performance international assignees. IHR manager in a MNE is look for PM in three different stages. First able, he has to design of the process, then implement the process and finally evaluate the process. In design stage IHR manager need to decide purpose of PM and what criteria he is doing performance measure, how and how often he is going to do PM, who is person is doing PM and standardization of the process. In implementation stage, IHR manager is implement the whole process and decide which way PM done. Finally evaluation stage it shows the outcomes of PM after implementing the decision PM.
7. The well-being of the global work force:
In MNEs, IHR manager has to take care about his work force. It is also one kind of challenge of him. First able, IHR manager's responsible to check whether the global firm is maintain health and safety law or now. Secondly he has to maintain family-friendly policies and work-life balance. Now a day it is became a new set of issues and opportunity for IHR manager. Final responsibility in these respects is crisis management. IHR manager is responsible to design and implement crisis management program for employees many types of damage and health and safety problems depends on their value of services.
In summary, these all are the main developing issues of global considerations for human resource managers working in an international context. IHR manager need to works on very carefully and considerably for MNEs. The success and development of international organisation depends on all of those criteria. So, IHR manager role is the challenge of present context in international organisation.
- Briscoe D. R, Schuler R. S & Claus L., (2009) International Human Resource Management: Policies And Practices For multinational enterprises Third edition, p 293
- Fiorina, Carly, “Restoring Trust: Corporate Responsibility and the CEO,” in Thomas A. Kochan and Richard L. Schmalensee (eds.), Management: Inventing and
- Delivering the Future. Cambridge, MA: MIT Press, 2003, 25-36.
- Thomas A. Kochan (2004) Restoring Trust in the Human Resource