This document discusses the importance of human resource management in a global context, including recruitment and selection approaches, employee development, and retention strategies. It also explores the concept of total reward strategy and the impact of culture on organizational performance.
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HUMAN RESOURCES IN A GLOBAL CONTEXT
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SECTION A Question 1. Human resource managementis the process of managing the people to achieve the task withbetterperformance.Theprocessincluderecruitment,selectingandtrainingand development of the employees in the organization. HRM is the strategic approach and most valuedassetsintheorganizationwhoworkindividuallyandcontributetowardsthe organization goal and objectives. Recruitment and selectionis the process to identify the applicants, attracting, interviewing and selecting the potential employees. It involves filling the employee’s vacancy for the smooth work in the organization by identify the jobs. While recruiting the people globally, International Human resource manager identify the global potential applicants for the recruitment process. Hiring from all over the world for the international operations of the organization. Approaches of International human resource management and recruitment policy is to choose the right person for the right job at the right time and Human resource department adopt one of the best policy which suited the organization for the global operations. (I)Ethnocentric approach:This approach states that staffing is being hired from the same national parent company only. This strategy is being followed by choosing employeesthroughnationalcitizenoftheparentcompany,knownasthe ethnocentric approach. The main purpose to adopt the approach is being rational, that staff from own country represent the company and work effectively in the environment and culture. For example: Panasonic Manufacturing company is the Japanese company which manufactures electronic appliances like bulb, television and home appliances and its headquarter is in Kadoma, Osaka. The parent country will transfer the employee in the foreign country for smooth work flow and effective communication between the countries as to achieve Goal due to same thinking and vison of each employee are directed in company’s goals and objectives. Like if Panasonic Mft.Co want to hire on the executive post in foreign country, they will relocate the post from the existing employees who is the permanent resident of the parent country. The hire person from parent country who want to live the host country. These approach is mainly used when there is an opening of new branch in the new country, which is easy for Panasonic to follow the policy and procedure to be shifted from parent country to new country. This approach can also bring dissatisfaction feelings in the employees who is been transferred from parent country to foreign
country due to environmental and culture factors which are totally different from their own country. (II)Polycentric approach:This approach is being used when the company adopt the strategy to hire limited recruitment and selection of national country employees. The main purpose is being used to reduce the cost of foreign operation of the company.So0meofthecompaniesswitchfromethnocentrictopolycentric approach to reduce their cost. International companies which are operating in advance develop countries like japan and Britain primarily adopt to recruit the executive managers in the company. For example: Nikon and Sony is employed Indians to lead the local operations which was early manage by the Japanese. As the Asian customers are increase gaining the interest in electronic makers and gaining the trust in the Indian executives. India had been played bigger role at the time of expansion of Nikon and Sony. Now, many of the executive experts are being role in the Indian People This approach help the company to hire the locals from their own country which reduce cost of operation and time of the organization but also brings difficulties like control over the subsidies and communication between each of them. (III)Geocentric staffing Policy: The approach is being adopted this strategy when the company wants most suitable person for the position available in the company without any limitation of nationalities of citizen. Global companies use integration between country and recruit the employees. While this approach is quite difficult to adopt by the companies as HR have to considered the political ethical factors and government laws before hiring the employees. Forexample:MacDonald’sfollowsthegeocentricapproachtohirethe employees. MacDonald’s hire the employees to develop and pool the senior executives where the expertise been hired to accomplish the company objectives and goals. It leads to reduction in the resentment and equality among the citizens. But these approach will increase the cost of training and relocation of employees are very high and also the authorities are highly centralizing. Development of employees are being done through training session of each employees before giving real experience of work. It is the strategic tool for any company to grow continuously and their productivity and ability for the retained employees.For example:Sony and Nikon are the key marketer in the world of Photographers and cameras due to the professional training program for the technical and engineer staff for their quality product. The company also develop their staff to remain in competitive in the market, adapting new technology and trained employee to use it. This all help the company to increase the productivity of the employees which reduce cost and time of company to achieve the target goal. Development of employee also motivate the employees to increase their efficiency for the work results in reduction in employment turnover of the company.
Retentionmeans avoiding or retention the employee to leaving the company which is the biggest issued face by companies. The cost of losing the loyal and potential employee are substantial. The training and replacement of new employee cost very high to any organization. The companies are being used employee retention strategies to avoid the cost occur from it. For example: Samsung help the employee to maintain the working environment and culture to fit the employee morale and satisfaction for the company. The culture is prepared in such a manner that employees feel motivated and happy around their work space. This improve the loyalty in the employee towards the company and increase the productivity to achieve the company goal and objectives. SECTION B Question 2. The total reward strategy is being been used to implement by the companies in termsofmonetaryvalue,employee’sachievementisbeinggivenbeneficial development rewards for the specific business goals. This strategy is also involved benefits of personal development and growth opportunities and internal motivation work environment. While employees who are being transfer to foreign country or being working in the foreign country, company have to accommodate some of the facilities as their responsibilities. Those employees work in different culture than their home country which is quite difficult to adopt the easily by every employee. The total reward strategy is being segregated in the effective manner that employee feel important and motivate and remain loyal towards the company. The facilities which should be given to ourexpatriate employees like rent allowance for the employee as this expense is major for any employee, travel allowance for travelling in the city from house to office or other facilities like free meal of one time in the office. As the employees are the key asset of the company which should be maintain by the company help top achieve the target goal of the company. To avoid loosing of the potential employee companies, have to take certain steps to make them comfortable around the new environment and culture work. For example: Google makes the work culture and environment according to employees need and wants which help each employee to work according to their way and make friendly to their new work culture. These bring employee to settle down and find friendly environment in new work space. Employee are being recognized for their achievement in the organization and being rewarded by monetary and non-monetary reward. Giving opportunity for the growth and career development of employee like mentoring, job enrichment and
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promotion of employee motivate them to work hard and efficiently. Employee living in foreign country finds difficulties at initial level and by providing facilities can help to settle employee in new working condition. As they help organization to achieve the Goals and objective on time, which also benefits the organization to enhance retention and performance level, enhance reputation of organization in the market and in employees lead to satisfaction. But there are some consequences which are faced buy the company in the form like is difficult to measure non-financial rewards, if manager is not supportive then employee may find difficulties, area of rewards maybelimitedinthecompanyetc.whichcannotbeavoidedandinthe organizational and can be occur in any forms towards employees which brings demotivation and dissatisfaction for the organization and cause losing the potential employees. Question 4. The cultureof the organization is very important as it directly affect the employees and working environment of the organization which operate globally. Every employee expect the work culture should be proper in the company as they show the employee and management behavior in the organization and changes according to culture. A successful culture is what is made from values and assumption according to the environment in which organization operates. Strong culture makes the organization strong, which are different in all organization and build over the years and need to be change with the time. If the culture is not being changed with the time it will affect the performance of company. National culture of the organization includes the nature of working as the countries are becoming similar to one another due to globalization and culture differ from country to country widely because there is the difference between values, norms and attitude, morale, laws, customs towards working in the organization. It affects the individual behavior by specifying behavior of each other’s. National culture is being learn by people through their daily routine. It is important for the managers because of culture differs from country to country differ might affect the culture. Dealing with individual country must be sensitive in values and norms for the better relationship between the two. While the context of culture is the external culture where the business operates and make differ from local, regional and national level. However, the main role of culture in organization is Increase the commitment of members for the organization which increase motivation and satisfaction level. It helps employee to adopt the environment changing culture by encouraging innovation, technology, risk taking, customer care, adopting new methods etc. While the traditional form of working can resist the change and innovation in the organization. If the culture is not proper it will affect the potential employees and customers of the organization. This can shape the behavior of employee according to the new culture. The culture is fit according to the industry strategy which may be affected due to competitive environment, requirement of customers and social expectation. Empathyis the process of understanding the other person point of view by putting yourself in that position. Organization have to adopt the culture through putting at the place of employees and sees the pros and cons of adopting it. It the cross culture communication where
company understand the foreign market to fit for the business. However, all culture not become successful due to many factor like economic and political factors. For example: Samsung adopt the culture in such a way that has been trending and adopt the environment changes by analysis the future environmental changes. These make the Samsung to captured major of the market and leader of innovation. The employees are also very happy with the working environment which is friendly and culture of work is perfectly fit for them. The proper culture in the Samsung headquarters and other branches make the performance efficient in the employees and satisfied with the job. As the leader of the market Samsung changes their working culture according to time and updated technology is being used. These help Samsung to make loyal employees and customers in the market and lead to growth of company.