This presentation provides a critical analysis of HR practices for global business in International HRM. It discusses recruitment and selection, training and development, and HRIS. The benefits and drawbacks of HR practices along with its issues are also discussed.
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International HRM
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Table of Contents Introduction Critical Analysis Recruitment & Selection for Global business International Training & Development Human Resources Information System in International Business Conclusion References
INTRODUCTION InternationalHumanResourceManagementisdefinedashumanresourcepracticesthat organizations manages at international level. IHRM performs all basic functions of recruitment, selection, compensation, training & development, etc. It is more complex and complicated because managing people across national boundaries is a difficult task than on domestic level. The present report will critically analyse the importance of human resource management practices. Further, it will discuss three most important HR practices for an international business. In addition to this, study will also discuss benefits and drawbacks of HR practices along with its issues.
Recruitment & Selection for Global business While recruiting employees on global level, HR has function globally by co-ordinating various systems and having complete knowledge about local environment. For that, companies are looking for best talent across the world and requires competent and diverse team to work together.
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Contd. Approaches to recruitment Ethnocentric Approach Polycentric Approach Geocentric Approach
Contd. Advantages Easy communicat ion Transfer employees easily Proper alignment of interest Advantages & Disadvantages of Ethnocentric Approach Disadvantages Imposes risks of cultural norms Very expensive Create resentment in foreign countries and thereby losing morale.
Contd. Advantages Workers are easy & cheap to hire Reduces the needs for cultural awareness Proper guidance about foreign country market Advantages & Disadvantages ofPolycentricApproach Disadvantages Limited opportunities to gain exposure Relying on locals can negatively affect Difficulty in bridging the gap between parent & host country employees
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Contd. Advantages It improves ability of company to perform better Supports coordination and cooperation Advantages & Disadvantages ofGeocentric Approach Disadvantages Expensive Subsidiary management has limited independence Devising a compensatory plan is difficult
Contd. Sources of Recruitment Promotions Transfers Internal sources Advertising Internet Educational Institutes External sources
Contd. Key challenges Making the process correct Lack of qualified personnel No technology used Main Advantages Mobile applications Interviews through Videos Remote working
International Training & Development The training and development of employees is completely dependedonhis/herperformance.Ithelpscompany operating at international level to continuously build its human capital by engaging employees in training programs.
Contd. An expatriate is a person who is an employee of particular company but working and living in some other country. Expatriate Training: Cultural Awareness Programs: Preliminary Visits
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Contd. Key challenges Costly for company Poor quality of training Cultural Barriers Main Advantages Improves employee performance Acquiring skills of different cultures Sense of self-worth & career development
Human Resources Information System in International Business HRIS is a software solution which manages and maintains completeinformationaboutemployeesanditsrelated policies and procedures. It is coordinated and collaborated system which helps in standardizingHRtasksandprocessesandmaintaining correct record of relevant information.
Contd. Human resource information system is built on two major pillars that defines the basis for managing people and supporting the whole organization. These two pillars are: Organizational Design Employee Data Management
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Contd. Features & Functions: A HRIS includes typical features of recording employee data such as talent acquisition, compensation plans, absence management (sick leave, planned leave, personal time off), etc. Any additional feature can be put on according to the business requirements. Information system helps in creating a standardization process by automating practices across company which further increases HR efficiency. Each and every person in company uses HRIS according to their roles and duties. Although, power users are HR administrators, payroll executive and recruiters.
Contd. HRIS in International Business International HRIS benefits companies operating at international level by speeding up decision-makingprocessandgivinginstantinformationtomanagerstoformulate strategies. HRIS at global level help in proper centralization and connection of all HRIS information for manager no matter n which country the workforce is working. Organization planning their international expansion & diversification can adopt HRIS to have a formal system in place to identify, track and manage its personnel.
Conclusion From the above report, it can be concluded that there are various practices adopted by HR in international business to effectively manage workforce. It can also be summarized that individual recruitment of candidate from either internal or external source should be done after proper evaluation of his skills and experience. Further, it can be articulated that T & D programs initiated by international organization provide employees a chance to improve their skill set. Lastly, it can be said that adopting HRIS can be very beneficial for business because it reduces paper work and major work is done using the latest technology which enhances performance of company and there is no delay of work.
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Contd. Armstrong, M. B. and Landers, R. N., 2018. Gamification of employee training and development.International Journal of Training and Development. 22(2). pp.162-169. Kovacic,M.andCunningham,K.,2019.Effectiveelectricalsafetyprogramtraininginmulti-lingual/cultural environments.IEEE Transactions on Industry Applications. 55(4). pp.4384-4388. Bretos, I. and Marcuello, C., 2017. Revisiting globalization challenges and opportunities in the development of cooperatives.Annals of Public and Cooperative Economics. 88(1). pp.47-73. Manuel, M. E., 2017. Vocational and academic approaches to maritime education and training (MET): Trends, challenges and opportunities.WMU Journal of Maritime Affairs. 16(3). pp.473-483.
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Contd. Moussa, N. B. and El Arbi, R., 2020. The impact of Human Resources Information Systems on individual innovation capability in Tunisian companies: The moderating role of affective commitment.European Research on Management and Business Economics. 26(1). pp.18-25. Akoyo, S. I. and Muathe, S. M. A., 2017. Towards a Theoretical Model for Human Resource Management Information Systems, Government Policy and Organizational Performance: A Research Agenda.IOSR Journal of Business and Management. 19(1). pp.43-53. Tilahun, M., 2019. A Review on Determinants of Accounting Information System Adoption.Science Journal of Business and Management. 7(1). pp.1722. Chen, P. T., Lin, C. L. and Wu, W. N., 2020. Big data management in healthcare: Adoption challenges and implications.International Journal of Information Management. 53. p.102078. Almalki, M., Al-fleit, S. and Zafar, A., 2017. Challenges in Implementation of Information System Strategies in Saudi Business Environment: A Case Study of a Bank.International Journal of Computer Trends and Technology. 43(1). pp.56-64.
Contd. Online What Is International Recruitment?2021. [Online]. Available through: <https://businessupside.com/2021/03/25/what-is-international-recruitment/#:~:text=International%20recruitment %20and%20selection%20involve,their%20business%20locally%20and%20overseas.> Importance of Training and Development for Employees.2021. [Online]. Available through: <https://online.maryville.edu/blog/importance-of-training-and-development/> Human Resource Information Systems (HRIS). 2021. [Online]. Available through: <https://www.mbaknol.com/management-information-systems/human-resource-information-systems-hris/>