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EXPLORATION OF HUMAN RESOURCE MANAGEMENT FUNCTIONS FROM AN INTERNATIONAL HRM PERSPECTIVE Vs. DOMESTIC HRM PERSPECTIVE

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Introduction

INTRODUCTION "The globalization of business is making it more important than ever to understand how multinational enterprises (MNEs) can operate more effectively. A major component of this understanding appears to be the field of human resource management, and in particular, the field of international human resource management". (Schuler et al. 2002) International Human Resource Management has increasingly been recognized as a central challenge. In today's dynamic hypercompetitive marketplace IHRM has become an evolving phenomenon, reflecting the growing recognition that the effective worldwide management of human resources is arguably a major determinant which makes the difference between survival and extinction in International Business. IHRM focuses on the operation of international firms in host countries. Its ultimate concern is being able to manage strategically in situations which involve crossing national boundaries. According to (Boxhall 1992) IHRM is being "concerned with the human resource problems of multinational firms in foreign subsidiaries (such as expatriate management) or more broadly, with the unfolding HRM issues that are associated with the various stages of the internationalization process. (Wall & Rees 2004 p 282) The complexity involved in functioning in different countries and employing different national categories of employees is the most important variable that differentiates international HRM from domestic HRM. EXPLORATION OF HUMAN RESOURCE MANAGEMENT FUNCTIONS FROM AN INTERNATIONAL HRM PERSPECTIVE Vs. DOMESTIC HRM PERSPECTIVE The primary objective of the HRM function is to ensure that the most effective use is made of its human resources. To accomplish this, HR professionals contract a range of activities. The five functional areas that will be discussed are: 1. recruitment and selection, 2. ...read more.

Middle

There are several motives as to why an IHR manager could adopt a centralized approach, as it may aim at facilitating specific firm-based training to increase corporate culture awareness. This fits the ethnocentric approach. British Airways has adopted such approach as HCN managers are sent to headquarters for training and upon returning training programs are tailored to suit local situations. The geocentric approach is also centralized, but training develops through input from both headquarters and subsidiaries staff. With the decentralized approach training is developed on a local basis following the polycentric model as the cultural backgrounds of trainers and trainees are usually similar. PERFORMANCE EVALUATION As stated by the ACAS (2001): "appraisals regularly record an assessment of an employees's performance, potential and development needs. The appraisal is an opportunity to take an overall view of work content, loads and volume, to look back on what has been achieved during the reporting period and agree objectives for the next year". (Foot & Hook 2002) For the IHR manager the complexity of this HR practice is more intricate as developing a global system is challenging. These managers have to evaluate employees from various host countries and implement systems that are consistent across subsidiaries, considering the various cultural backgrounds and implementing fair and equitable practices throughout. For example, an IHR manager who has to evaluate employees in subsidiaries in countries such as Mexico must understand that an individual's public image is important and thus public criticism is grounds and justification for resigning from a company. ...read more.

Conclusion

Training and development would also equip locals with the skills and expertise needed for upward mobility. Appropriate empowerment measures not only make employees' jobs more motivating and rewarding, but that employees in turn will add more value to the organization. Staff should be evaluated in accordance with their performance as performance-based wage and promotion systems well suits Chinese people's work philosophy. Performance management is vital in order to retain local staff. Hence a well-planned performance management scheme should be implemented. Techniques should be developed to evaluate which employees need more training and development and how to reward in the most suitable way. For a Chinese, salary related to performance is vital for motivation. Therefore bonus packages would be considered a very good reward system to make people work hard as well as retaining Chinese employees. However, it is imperative to have constant dialogue with each employee and identify what is important for him or her lives, as people are motivated by different things. CONCLUSION Acc. to (Poole 1999) What is happening today in the field of HRM is nothing short of revolutionary. It has been accepted both from a domestic and international standpoint that employees create an important source of competitive advantage. The role of the IHR manager however will vary depending on the organizations strategy on international orientation and the approach it takes to IHRM. It is critical therefore that these managers are able to interpret international organizational strategy and develop IHR policies and practices which supports that focus and would in-turn enable them to maintain sustainable competitive advantage. WORD COUNT 2000 ?? ?? ?? ?? 1 ...read more.

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