Discuss About The Management International Human Resource?
Understanding the association between the strategies of business and that of the strategies related to the function of people is nothing new. In the present scenario, businesses are becoming more technology and knowledge driven for which the significance of people to the success of the organization has only proliferated (Story et al. 2014). As a result of this, business experts have started talking about the implication of ‘individualized corporation’. This segment of the paper would take into account the aligning of the business strategy with that of the HR strategy with the help of examples along with evaluating the global challenges encountered by the HRM.
Nucor, the steel manufacturer in America is one of the best examples of an organization that has incorporated the human resource strategy firmly with the other functional approaches in creating imitable abilities and driving competitive benefit (Stone and Deadrick 2015). The competitive advantage of Nucor is based on the cost leadership factor. It attains this through the factors of quality, efficiency, responsiveness and innovation. The base has been founded with well-matched strategies of human resources. Nucor has been hiring goal-oriented, independent people who are being motivated by endeavoring for regular enhancement that capitulates them augmenting monetary reparation. The manufacturing of the quality steel depends on collaboration, with the workers within the plant being entitled for considerable incentives based on the group’s output. However, the compensation of the plant managers depends on both the plant’s performance they are administering and the company as a whole. In keeping the costs down to a level, it comprises of few layers, all the managers travelling by the economy class, and even recurrent miles are being made use by the company. Nucor is in the habit of building smaller plants, closer to the locations where there is immense demand for the products; for lessening the cost of transportation, and also for being more reactive to its customers. Nucor does not indulge much in researches and its own development, however preserves closer associations with the suppliers of technology globally, keeping a closer watch on the improvements that can bring about competitiveness. Nucor is ready to undertake experiments with new technologies.
Another example can be Lincoln Electric Company that has able to match its business oriented strategies to its human resource strategies. Lincoln, the manufacturer of electrodes along with welding machineries has also been a cost leader. The founder of Lincoln, James F. Lincoln is a firm believer of the fact that everybody has the ability to extend his/her individual potentiality through a system of incentives planned for encouraging teamwork and competition. This system comprises of four components: wages for most of the jibs in factory based on piecework productivity, annual bonus exceeding the regular pay of individuals, assured employment and restricted benefits. Lincoln, like Nucor is in the habit of focusing on the selecting motivated individuals along with high performers. These individuals’ witnesses their compensation packages being firmly associated to their output level with minimum levels of quality (Millar, Chen and Waller 2017). An extensive part of the profits of the company is also being distributed to employees annually based on the merit rating of individuals that is being computed from idea, assistance, steadiness and quality. By the year 1995, the innovative HR strategies enabled the organization in gaining 36 per cent of market distribution in the fragmented market of US for supplies and welding equipments.
In both the above examples, the companies have been following strategies of cost leadership and were successful in aligning their strategies of human resources to the business strategies in efficient manner. Cost leadership mainly focuses on the efficiency and volumes with a close affiliation between manufacturing more and making more. Cases like this present an easier scenario in structuring the incentive systems that supports business and individual interests. Normally, the strategies for human resources in the companies competing on the stage of differentiation tend to be more multifaceted. Differentiation is much more reliant on the creation of value through development and research along with the value chain factor. The measurement of performance happens to take in more dimensions and is therefore challenging in aligning the interests related to business and individuals (Stone and Deadrick 2015).
Organizations have been facing both opportunities and challenges of recruiting global workforces that deviates in gender, age, culture and education. This segment would display the challenges for the managers of human resources to encounter when making sure that their organizations succeed in the global work environment (Schuler and Jackson 2014).
A declining youth section of the population within the developed economies along with higher rate of unemployment in the urbanized regions is the main reasons for shortage in skills (Treven 2017). Some of these shortfalls are being crammed by the older workers along with migration from cross-borders and gender issues. Cultural diversification along with demographic would continue in its endeavor of defining the global workforce as companies look to meet shortages, gaining market effectiveness and obtaining strategic assets.
Older workforce comes with rich experience, but then they also create challenges for the companies, including offering healthcare for a population that would take in four times the disabilities of the younger generation of workers. Adding to that is the flexible hours of working and shifting accountability away from the much physically demanding work. Moreover, the global workforce demands differing work styles and management based on the individual culture (Barnes and Adam 2017). The challenge lying with the global HR managers is defining the roles for the jobs, opportunities related to enticement and maintaining each worker while evading practices of age-discrimination.
This sort of challenge is quite similar to the concern over gender issues. Companies and governments have been generating accommodations like flexible working hours and day-care centres for women, but taking benefit of a gender-diversified workforce needs a proper understanding of the ways to attract women into the company workforce and offering rewards uniformity. In South Korea, only 60 per cent of the women are providers to the workforce owing to social demands that results in men fulfilling the requirement of senior positions. In answer to this growing imbalance, Goldman Sachs has been promoting the talent of underutilized female workforce existing in South Korea.
The intensification of the liberal cross-border deal, using the technology of communication and the growth of the multinational companies are not possible to permit up. To attract the global talent needs remaining abreast of the fresh strategies for judging and attracting talent (Story et al. 2014). Infosys, the business technology consultancy company decided in hiring fresh Chinese graduates and started the process by engaging and teaching English to a selected Chinese group of students at their Mysore office in India.
Technologies like the social media are indispensable elements for the recruitment process, but the main challenge lies in aligning these new strategies of business with the goals. A contributor of business research intelligence, Aberdeen Group have found out that the successful organizations are indulging themselves into holistic advancements for recruiting that takes in branding of company, screening, assessing, employing with technology assisting at each stride.
Companies have been facing the requirement in developing the means in assessing the skills across different sources of talent and then producing training curriculums in filling the skill gaps after the hiring of the employees. Adding to that would be the proper understanding of the ways in managing and incorporating multicultural employees. US pharmaceutical’s merge with AB, the Swedish Pharmacia lacked foreseeing the confrontation to the policies imposed by company like testing of alcohol and smoking, resulting in the overruns of cost, a delay in product launch and eventually in selling of the company.
Managers can make use of various tools in understanding the shades of cultures, simplifying the complicated issues and providing good base for the understanding of the diversified employee cultures along with encouraging compassion (Treven 2017).
Corporate social responsibility is one of the top issues that companies encounter when expanding globally, especially in the developed regions. Practices within business that are acceptable domestically are mostly at odds with the company values and regulatory agencies laws (Allen, Lee and Reiche 2015). This generates a tug-of-war between the social accountability and the requirement to be thriving in those markets that can turn into considerable risks.
HR’s challenge is to increase a detailed understanding of the domestic environments and their established practices of business. It then requires ascertaining protocols that are of customized nature for each of the regions and communicating the same across the organization and boasting the value of shareholders.
Diversification in culture has frequently been seen as a challenge, though at times it offers greater advantages. For instance, a culturally diversified workforce might crop up with more inspired and inventive solutions to the issues as each of the persons brings in more exclusive perspectives to the table. The challenge of HR is to instruct the managers on the ways to take advantage of the differences in culture while justifying any resistance. Developing the practices for advertising of the collaboration among the diversified workforce and communicating the values would be important in pouring success within the global organizations (Farndale et al. 2017).
Companies need to recognize skills beyond those illustrated in the conventional curriculum vitas and resumes would be holding key over its competitors. Recognizing the skills desired and finding the same among a pool of candidates is one of the important challenges faced by HR, especially when penetrating into new markets and geographic (Caligiuri and Bonache 2016).
It can be concluded that a global HR manager encounters certain issues while the company strives hard in positioning itself in the global map. Penetrating newer horizons brings in more cultural diversifications, managing of different group of people and identifying the local skills of people of the host country is not always an easy job. Advantages are in plenty when it comes to going global, but the organization would do well to take into consideration the above discussed factors
Many companies have been establishing subsidiaries, bases of their operations along with offices outside the country. Administering these offices necessitate multinationals to propel their managers or executives to these foreign locations, where they work as expatriates. The upshot of globalization has had an effect on the augmentation in the expatriates’ number, which is partially being owned to the incapability of the host country in providing domestic technical or managerial capacity (Cole and Nesbeth 2014).
Middle East has been one of the conspicuous examples of the same, with the more popular being United Arab Emirates (UAE), where the resident emirates are generally being outnumbered in their own country by the ratio of 11 is to 1 to the incursion of the émigré workers. However, being an expatriate is not an easy job, with most facing certain issues at their foreign workplace. Adjusting themselves to the various cultural backgrounds takes a bit of time, and so does the factor of the dearth of one’s dear and near ones along with the familiar faces. This results in the failure of the expatriates and is often witnessed through an enduring return from the global assignments within the multinationals.
Most of the expatriate managers find themselves in challenging positions and state of excitement when being assigned to their new postings. They require lot of time at their workplace since they are under thorough pressure for adapting to the new culture and their general responsibilities are often bigger than have been experienced by them previously.
The expatriates in many occasions have to leave behind their families and close friends who form the majority of the expatriate’s social support. Emergency situation might crop up anytime back home for the expatriates where the family has to deal with the situation all by themselves. It leads to stress for the expatriate as not everytime he would be able to return to his native land for handling of the issue and giving support to his friends and family members. Moreover, the spouse might encounter some of her own issues. She would soon find out in an emerging economy finding a suitable job for would not be easy and might seriously dent the long-term career plans of her (Pokharel 2016). It has been found that 60 per cent of the marriages of the expatriate managers ends in divorce for the fact of immense stress in offshore postings.
It is very common for the expatriate managers of inexperienced nature to be surprised by the differences in culture in the country where they are being posted. Organizations of international stature requires to have clear perceptive of the various cultures they are performing business with, as what might work in home country might not be suitable in the host country. As one of the global HR managers, one needs to be familiar with the matters related to culture within organizations that makes certain the success factor. Organizational culture can be a significant factor as it has the ability to influence on the alteration and improvement in the strategy of organizations.
The expatriate manager upon his arrival finds that an open discussion on the improvements to be made has led to his local manager being absent from work for 2 days. In meetings too, the expatriate manager would find local people discussing on same issues for hours until they are being agreed by others. For the expatriate manager to be successful, he would require to discover ways of adapting to perceptions like ‘saving face’ (the reason of local managers not coming to work) and forming harmony that are significant in Asia (Kumarika Perera, Yin Teng Chew and Nielsen 2017). The expatriate manager needs to comprehend that his idea of altering new Asian staffs into European and Americans would never work. All the expatriates contrive a constricted path between acceptance of the local conference on one side and hopeful to the global standards on another.
Southeast Asia has one of been those parts that boasts of rich culture. The divergence in religion is one instance, where Thailand is Buddhist; Philippines are Catholic and Indonesia being intensely Islamic, managing such assorted culture requires exhibition of different tactics.
In their native countries the expatriates are mostly middle managers living ordinary lives. Once they are shuffled to Asia, the overall national spotlight comes on them as the Country Manager of the multinational association. More people would be reporting to them than ever before and more control would be exerted over them. Personally, they may have their own personal maids, are being called upon to meet the officials of the government and are generally being made to feel imperative.
The amalgamation of greatly extended accountability and social status can be intricate for handling people lacking the poignant mellowness for keeping themselves grounded (AlMazrouei and Pech 2014). It is one of those common factors that destroy the career opportunities of the expatriates.
In most of the cases, the new organization would present itself to the expatriate manager in bigger way that he is used to administering. This is one of the true factors when the when the posting of the expatriate is done in the emerging nations. He might require supervising as much as 10 times more people than have ever been experienced by him before. For instance, a German manager who is used to manage 20 people in his home country office would suddenly find himself managing 70-80 in Singapore. An American call center manager who oversees the work of 40 people in New York would one day be assigned to look after 250 employees in Indonesia or Philippines. Such bigger increases in the responsibility factor are difficult for many to manage. Moreover, there is the existence of handling the expectations of the managers at the head office and clients from other countries along with others who might not comprehend the differences within the culture that is having an impact on the results (Naeem, Nadeem and Khan 2015).
Expatriates find themselves to be highly motivated for succeeding at the global stage and feel energized about gaining the international practice. As a result of this, they start working for longer hours in the initial stages of their posting to do everything it takes for being successful. They are acclimatizing to apparently cultural diversification with the local staffs along with greatly prolonged responsibilities. On the home turf, the expatiates family might also be going through their own adjustments in culture and might be screeching for the manager’s time and consideration to help them pass through that space (Yu and Wei 2013).
The permutation of the physical exhaustion (burn-out) along with the emotional despondency from escalated levels of stress and overwork are common issues for the new expatriates. Unless improved, the outcome can noticeably lessen the efficiency or illness that interrupts the work for the manager.
Firms can lessen the failure rate of expatriates through the process of improved choice process of the managers. It has been stated that successful managers acquire all the key characteristics:
It takes in the self-confidence of the expatriate along with the self-esteem nature and mental well-being. Managers boasted by the high buoyancy level and self-esteem would not be losing much confidence in the face of issues and challenges as they are proficient in managing their emotions in healthy fashion.
It is the ability of the expatriate to interrelate efficiently with the nationals of host country. The enthusiasm to converse augments the tolerance level and adjustment of the manager.
It refers to the capability of understanding the people’s behavior from other country. Managers who intend in going beyond the willingness to appreciate gave higher levels of acceptance and attaining greater malleability to the fresh situation. Managers prepared with the factor of empathy attain efficiency and efficacy (de Vries 2017).
It takes into account the ability of the expatriate in adjusting to the posting. This is where the managers are able to handle bigger cultural diversification and the requirement of adapting well in the situation.
The selection of the managerial process is significant; however it is also important in instilling the global mindset among the global managers. This primary aspect can be obtained initially from the foreign languages and uncovered culture. Most of the organizations tend to avoid the topic of personal life at the time of preparing the expatriates, favoring to focus on the description of jobs, taxation, and health care along with shifting feasibilities (Kundu 2015). It is the duty of the HR manager in including the topic of families in the pre-assignment deliberations, briefings related to relocation along with training for languages. The HR manager should better realize the ways through organizations can assist work-life balance among the global assignees.
Expatriates are stated to be the critical factors to the success of a business, though at most times there lacks any sort of investment and skill training to the expatriate assigned to the job in ensuring they perform in the best possible way (McNulty 2015). Training has often been the neglected area in expatriation, though things like intercultural training can offer expats with cultural comprehension, practices and customs, social and political environment of the host nation. Adding to that would be preparing the family in the best possible manner to encounter the cultural shock and be more amenable and malleable. Pre-departure training takes into account the sessions of language training, practical issues related to relocation like visa, work papers, assistance of housing along with the tax process.
It can be concluded that being an expatriate is never easy, especially with the issues that they have while working in foreign land. A lot goes into shifting of an expatriate to the foreign land and assigning the job that he is supposed to do. If issues force an expatriate to return prematurely from the tour, it would be a huge loss to the company not only in terms of money but also in terms of knowledge and skill, as the best and competent people are selected for this role. There are ways of overcoming the issues as has been discussed in this paper. There needs to be a proper process before the expat gets shifted to his foreign base and every company should think in long-term basis. At different point of time, companies need to re-strategize themselves in assisting the expat cope with the external and internal factors of the foreign countries in better way.
Allen, D., Lee, Y.T. and Reiche, S., 2015. Global work in the multinational enterprise: New avenues and challenges for strategically managing human capital across borders. Journal of Management, 41(7), pp.2032-2035.
Barnes, E. and Adam, C., 2017. The Importance of Human Resources in a Globalised Economy: A Conceptual Framework. Canadian Journal of Applied Science and Technology, 5(2).
Caligiuri, P. and Bonache, J., 2016. Evolving and enduring challenges in global mobility. Journal of World Business, 51(1), pp.127-141.
Farndale, E., Raghuram, S., Gully, S., Liu, X., Phillips, J.M. and Vidovi?, M., 2017. A vision of international HRM research. The International Journal of Human Resource Management, 28(12), pp.1625-1639.
Kumar, N.P., 2014. Human resource management in future an obstacle of champion of globalization. Human Resource Management, 1(1), pp.49-57.
Millar, C.C., Chen, S. and Waller, L., 2017. Leadership, knowledge and people in knowledge-intensive organisations: implications for HRM theory and practice.
Schuler, R. and E. Jackson, S., 2014. Human resource management and organizational effectiveness: yesterday and today. Journal of Organizational Effectiveness: People and Performance, 1(1), pp.35-55.
Stone, D.L. and Deadrick, D.L., 2015. Challenges and opportunities affecting the future of human resource management. Human Resource Management Review, 25(2), pp.139-145.
Story, J.S., Barbuto, J.E., Luthans, F. and Bovaird, J.A., 2014. Meeting the challenges of effective international HRM: Analysis of the antecedents of global mindset. Human Resource Management, 53(1), pp.131-155.
Treven, S., 2017. The importance of human resource management for the success of the company. Management: journal of contemporary management issues, 5(1), pp.83-93.
AlMazrouei, H. and J. Pech, R., 2014. Expatriates in the UAE: advance training eases cultural adjustments. Journal of Business Strategy, 35(3), pp.47-54.
Cole, N. and Nesbeth, K., 2014. Why Do International Assignments Fail? Expatriate Families Speak. International Studies of Management & Organization, 44(3), pp.66-79.
de Vries, M.F.K., 2017. If You Can Make It There…. In Riding the Leadership Rollercoaster (pp. 101-106). Springer International Publishing.
Kumarika Perera, H., Yin Teng Chew, E. and Nielsen, I., 2017. A psychological contract perspective of expatriate failure. Human Resource Management, 56(3), pp.479-499.
Kundu, S., 2015. Expatriate Management in Cross Cultural Business Environment in MNCs. The International Journal of Business & Management, 3(9), p.168.
McNulty, Y., 2015. Till stress do us part: the causes and consequences of expatriate divorce. Journal of Global Mobility, 3(2), pp.106-136.
Meyer, B., Meyer Jr, V., Vieira da Silva, K. and Fernandes Almeida Brandão, L.M., 2016. Managing expatriates: analyzing the experience of an internationalized Brazilian Company. Revista de Ciências da Administração, 18(46).
Naeem, A., Nadeem, A.B. and Khan, I.U., 2015. Culture Shock and Its effects on Expatriates. Global Advanced Research Journal of Management and Business Studies, 4(6), pp.248-258.
Pokharel, B., 2016. Triumph over Failure of Expatriate in an International Assignments from the International Human Resource Management Perspective. International Journal of Business and Management, 11(5), p.310.
Yu, H. and Wei, Y., 2013. An exploratory study: The main challenge of Chinese expatriate managers working in Western companies.
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