This assignment undertakes to make a critical review of empirical literature based on international Human Resource Management. The primary parameters of international HRM are staffing, recruitment and selection.
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Running Head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT International Human Resource Management Student’s Name University Name Author’s Note
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2 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Table of Contents 1. Introduction..................................................................................................................................3 2. Review of Literature....................................................................................................................3 2.1 Global mobility as a staffing plan point.................................................................................3 2.1.1 Employee Movement......................................................................................................4 2.2 Technology and data as great differentiator for global mobility...........................................5 2.3 Perlmutter’s staffing approaches............................................................................................6 2.3.1 Perlmutter’s approaches versus Globalization................................................................7 2.4 Recruitment and Selection of expatriates...............................................................................8 2.5 Importance of recruitment and selection of local employees................................................9 2.6 Recruitment policies across countries..................................................................................10 3. Conclusion.................................................................................................................................12 4. Recommendations......................................................................................................................13 Reference List................................................................................................................................14
3 INTERNATIONAL HUMAN RESOURCE MANAGEMENT 1. Introduction Thisassignmentundertakestomakeacriticalreviewofempiricalliteraturebasedon international Human Resource Management. The primary parameters of international HRM are staffing, recruitment and selection. These three factors determine the business success and affect the operation of the whole organization. Employees are the most valuable assets in any organization. Recruitment is the process that attracts individuals on timely basis, insufficient number and also which significantqualificationsto an organization. This research study highlights that strategic planning in recruitment is needed to define the goals of the organization. In fact, human resource planning which refers to staffing is also required for identifying the surplus or shortages of workers required for achieving the organizational goals. Recruitment is needed to maintain the number as well as quality of employees required for achieving the objectives. This helps in creating a segment of potential employees so that the management is able to select the right employee at the right moment for the right job. This process is also referred to as selection that is vital goal is to select the most deserving candidate for the most suited job role. Selection is the key to maintenance of good organizational culture. This research study also highlights the strategies to determine effective selection tools for job analysis and candidate analysis also. Lastly, recommendations for development of recruitment, selection as well as staffing policies in international organizations is also been provided in the assignment. 2. Review of Literature 2.1 Global mobility as a staffing plan point The primary element of the talent strategy of any organization is the global mobility. The key features of global mobility are attracting the potential candidates, retention of staff, and
4 INTERNATIONAL HUMAN RESOURCE MANAGEMENT development of diverse leaders and so on. However, Kang and Shen (2016), argues that the companiesthemselvesaremakingtheglobalmobilityadifficultaffair.Theoperational inefficiencies are making the global mobility a difficult affair. The operational inefficiencies are making it difficult to get approval of the employee’s mobility. For evidence, Guo, Rammal and Dowling (2016), advocates that the issues that hinder global mobility are the lack of software, which can help in easy projection of the costs and assessment of the impact of a move. In this context, Tarique, Briscoe and Schuler (2015), opines that if the companies want they can make the process of global mobility easier for the work team like HR teams, payroll teams, mobile employees, business unit leaders, finance teams and so on. As advocated by the same researcher, this can be easily done by connecting the global mobility ecosystem of a company as well as global work processes in intuitive software with potential support of the staff. As advocated by Shen et al. (2017), in case of international assignments, the companies are mobilizing great number of staff units for various reasons and different durations. 2.1.1 Employee Movement Employee movement is a significant step towards realizing the major aspects of global mobility like agility. In this context, the opinions of researchers like Lozano, Meardi and Martín- Artiles (2015), can be argued. They argue that as the first step towards moving the employees for a company is running scenarios regarding the move, as in determining the cost of this movement, determination of the exact policies that should be implemented in certain instances and the exact location where they are to be moved. In the next step, all these fixations have to be approved by relevant budget holders.
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5 INTERNATIONAL HUMAN RESOURCE MANAGEMENT After the fixations, Rozkwitalska (2017), the primary need is that the company should be helping the employees to accomplish their personal needs for the movement. This is something that is not regarded by many organizations with precision. The last step of successful transiting of the employees is the successful management of a series of processes which includes storage of documents, generation of payroll instructions, analyzing data on the locations, tracking of immigrations and analyzing the success rates of such immigration. 2.2 Technology and data as great differentiator for global mobility. In many transnational organizations, global mobility has been historically perceived as a transactional as well as logistical function. As such there has been market domination of the logistics companies, generally, the former shipping as well as real estate agencies who managed transactional aspects of the relocations. As identified by Nasurdin, Ahmad and Tan (2016), the workforce is changing at a fast paceowingtothenewdemographicsofworkers,increasinglyinterdependentglobal organizations and technological advances which are redefining the jobs as well as locations of the companies. Noe et al. (2017), also defines that organizations are adopting global mobility for developing agility of businesses, attracting as well as retaining the employees and creating adaptable as well as diverse work teams against the sweeps of constant change. In this context, Derous and De Fruyt (2016), defines that development of mobility software suite is critical for the unification of the data, processes as well as partners for converting agility in to a reality. In fact global mobility is also impacted by the lack of workplace diversity. There is a correlation between the experiences encountered by the employees in their offices and the
6 INTERNATIONAL HUMAN RESOURCE MANAGEMENT leadership potential that they has, inherently.As per Razak et al. (2018), if companies want more diverse leadership, they must consider how to get mobility opportunities to more women. 2.3 Perlmutter’s staffing approaches The Perlmutter’s staffing approaches incorporates three major typologies based on their international orientation. The first approach is Ethnocentrism which is a typology based on the parent country. The foreign markets which allow the scope for disposition of the excess productions are perceived as secondary. In this context, the underlying assumption is that the foreign markets are not different from the domestic penetrations which pave the way for one on one adaptation of all major strategies (Collings, McDonnell & McCarter, 2015). This proposition holds that the HRM department employees in the parent country are appointed and groomed for occupying the primary positions of the secondary markets. Perlmutter’s polycentric typology helps in close examination as well as differentiation of the individual aspects of the individual markets. The primary position is occupied by the locally selected as well as trained employees. However, the geocentric approach emphasizes that the whole world is a single market. This approach aims at identifying the individual segments within the market. There are uniform policies for all approaching all customer segments in the market that leads to a situation of high levelofcomparabilitybetweenproductsand/orservicesandstrategicimplementation worldwide. In this context, Bakhruet al. (2016), opines that for the purpose of staffing that rule that is followed is that the best employee in the market, irrespective of their country of origin, is targeted for serving the customers, all over the world. Finally, the regiocentric approach allocates foreign markets in clusters of homogenous markets. 2.3.1 Perlmutter’s approaches versus Globalization
7 INTERNATIONAL HUMAN RESOURCE MANAGEMENT TheapproachesofPerlmutterareremarkableinthecontextofclusteringthe multinational enterprises. However, since globalizations have had the best of world trade, considering the ERPG framework cannot be considered to be valid any more. The ways adopted by the multinational corporations to enlarge their business on an international level should not be dependent on the source from the employees have originated for engaging them in the key positions, based on the applicable strategy. On the contrary, Cascio and Boudreau (2016), opines that the ethnocentric approach would be better suited with the localized employed occupying the primary positions. In fact, the emergence of the locally placed employees pave the opportunity for the establishing autarkic representations who are still driven by the company but have knowledge of local market (Malul, Shoham & Uddin, 2016). In orders to extract the best from thelocalemployeesthereshouldbeaffordancetopromotethemtomanagerialposts. Nevertheless, Lakshman, Lakshman and Estay (2017), holds that reduction in the number of expats assigned, is generally accompanied by improvements in the cost situations. According to expertslike,Guo,RammalandDowling(2016),geocentrismismostapplicableasan internationalization strategy. Independency of markets to be penetrated, allow companies to have an enlarged global view. When the companies are driven by a polycentric approach, they can be perceived, as opined by Cascio (2015), to be in the pre-stage of developing and entering in to a more geocentric mode that will equip the organization with a better global view. In this context, Parízek (2017), is of the view that geocentrism cannot be followed as a rational strategy because of the market limitations that would hinder large scale growth after market penetration. 2.4 Recruitment and Selection of expatriates The selection as well as recruitment of the expatriates is another big issue in management of international human resources. In the context of the international assignments, the main issue
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8 INTERNATIONAL HUMAN RESOURCE MANAGEMENT that is faced by the companies is to select the right employee for the assignment. Although, Lozano, Meardi and Martín-Artiles (2015), suggests that there is no criteria for an ideal expatriate so that the process of the selection of the expatriates can be fostered, other researchers like Rozkwitalska (2017), argues that that there are actually various reference criteria that can be followed at the time of the selection of the expatriates. It is mostly considered by many authors that along with valorization of the international experience of the expatriates and their ability to communicate, the personality issues as well as their mode of perception are also to be considered in the context of successful recruitment of the expatriates. At the same time, researchers like Nasurdin, Ahmad and Tan (2016), opines that the process of recruitment and selection must be precise upon the basis of competency in order to combat the expect periods who are not having knowledge regarding new opportunities in the market. 2.5 Importance of recruitment and selection of local employees When an organizationpertainsto the policy of recruitingmore localstaff comparedto expatriates, we can enjoy a host of benefits including enhanced velocity of project impact, growthofsustainableskillsforattaininglocalknowledgeaswellasdevelopmentof opportunities for the local population. Researches like Derous and De Fruyt (2016), argue that their fears around that localization using steam where organizations are still waiting upon employing expatriates in the leading positions. In fact Cascio and Boudreau (2016), local employment will result in a lower turnover rate, in the end. The factor spin that the local employees will consider their proximity to the workplace, as benefit since they will not be burnt out buy a long commute. The employees will also be able to enjoy an easy time management strategy and will also maintain a proper work life balance.
9 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Lastly, Malul, Shoham and Uddin (2016), argues that hiring local employees will give the chance of staying at the top in the local talent network. Employee referrals will more likely help the company to land higher quality leads. 2.6 Recruitment policies across countries In most cases, the small and emerging companies in Australia as also in many parts of Europe and America employs techniques of internal recruitment. In most cases of internal recruiting, the cost of recruitment is dramatically reduced. This can be possible due to the advertisements that can be done by announcements gives opportunity of word of mouth publicity, opportunity of sending direct company emails of flyers and so on. Internal recruitment gives the Organisation, the opportunity of recruiting the best employee and the recruiters are well aware of the skills of the Employees because of which the training costs can be reduced. In developing countries like India, China and other countries in Africa as well as America make use of employment agencies. These Agencies pool the job applicants and cross reference them with the job openings in their respective domains. This makes it easier for the organizations to conduct the selection process. The recruitment agencies mainly employ the strategies like arranging job fairs and publishing of online and offline advertisements. However Lakshman, Lakshman and Estay (2017), argues that there is no assurance that the recruitment agencies will get hold of the right candidates for the Organization. That is why in many countries it is observed that the recruitment agencies refund the fees that the take for recruitment on behalf of the organization, if they are not able to provide significant and appropriate candidates to the organization. 3. Conclusion
10 INTERNATIONAL HUMAN RESOURCE MANAGEMENT This literature review immense importance to the process of global mobility for international staffing. The operational inefficiencies are making it difficult to get approval of the employee’s mobility. The employees who are shifted to different location have to face a situation where they have to call various people to gather work related information which they would require for their personal moves. In the context of Employee Movement, it has been argued that the first step towards moving the employees for a company is running scenarios regarding the move, as in determining the cost of this movement, determination of the exact policies that should be implemented in certain instances and the exact location where they are to be moved. This literature review also includes the Perlmutter’s staffing approaches in order to understand international staffing. Perlmutter’s polycentric typology helps in close examination as well as differentiation of the individual aspects of the individual markets. There is a separate set of management strategies for each foreign market. Modification of products for suiting the needs of the local markets is a tactical issue, which incorporates factors like price as well as promotions that needs to be decided locally. 4. Recommendations Staffing, recruitment as well as election are critical parts of success which determines the future growth as well as employee retention capability of the organization. Along with internal needs, recruitment and staffing should also satisfy extrinsic needs like the local, state as well as Federalregulations.Somerecommendationsfordevelopmentinstaffing,recruitmentand selection of international organizations have been provided below. The first recommended strategy is job description. Prior to recruitment and selection, job description for each job role in the company should be defined. The job descriptions should
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11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT clearly specify the skills required to perform them as well as the detailed list of responsibilities that needs to be undertaken. These factors help the employees to understand the gravity of their role and acts as a tool for the hiring person also while selecting most qualified candidates for the appropriate job role. Policy SBS procedures should also be defined for recruitment as well as election processes and should ensure that each one in the company adheres to the local, Federal as well as the state regulations. The intrinsic company policies should provide guidance for the hiring personal to follow the required steps of recruitment as instructed by local authorities. The over-peering of the hiring process should be conducted by the Chief recruitment officer of the human resource manager head of the organization. The third recommended strategy is training. The managers as well as supervisor should be thoroughly trained regarding the changing job requirements and the job roles. Training programs should emphasize on how to link recruitment strategies to the organizational goals and how to identify more deserving candidates for specific job roles. The last recommendation is involvement. There should be a senior member of organizations during recruitment as well as election processes. The appearing candidates should discretionary power to finally employer reject a candidate over the HR team. This will help ensure that the candidate is certain to be able to meet the desired Expectations of the organization. Most interviewing candidates also appreciate involvement of the senior members since they feel that they can best complementary their candidature and job skills.
12 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Reference List Bakhru, R. N., McWilliams, D. J., Wiebe, D. J., Spuhler, V. J., & Schweickert, W. D. (2016). Intensive care unit structure variation and implications for early mobilization practices. An international survey. Annals of the American Thoracic Society, 13(9), 1527-1537. Brunt, C. (2016). Recruitment. In Human Resource Management in International NGOs (pp. 35- 56). Palgrave Macmillan, London. Cascio, W. F. (2015). Managing human resources. McGraw-Hill. Cascio, W. F., & Boudreau, J. W. (2016). The search for global competence: From international HR to talent management. Journal of World Business, 51(1), 103-114. Collings, D. G., McDonnell, A., & McCarter, A. (2015). Types of international assignees (pp. 259-274). The Routledge Companion to International Human Resource Management. Derous, E., & De Fruyt, F. (2016). Developments in recruitment and selection research. International Journal of Selection and Assessment, 24(1), 1-3. Friberg, J. H. (2016). The rise and implications of temporary staffing as a migration industry in Norway. Guo, Y., Rammal, H. G., & Dowling, P. J. (2016). Global talent management and staffing in MNEs: An introduction to the edited volume of international business and management. In Global Talent Management and Staffing in MNEs (pp. xv-xxiv). Emerald Group Publishing Limited.
13 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Kang, H., & Shen, J. (2016). Global talent management: international staffing policies and practices of South Korean multinationals in China. In Global Talent Management and Staffing in MNEs (pp. 25-48). Emerald Group Publishing Limited. Lakshman, S., Lakshman, C., & Estay, C. (2017). The relationship between MNCs’ strategies and executive staffing. International Journal of Organizational Analysis, 25(2), 233-250. Lozano, M., Meardi, G., & Martín-Artiles, A. (2015). International Recruitment of Health Workers:BritishLessonsforEurope?EmergingConcernsandFutureResearch Recommendations. International Journal of Health Services, 45(2), 306-319. Malul, M., Shoham, A., & Uddin, M. (2016). Linguistic gender marking gap and female staffing at MNC’s. The International Journal of Human Resource Management, 27(20), 2531- 2549. Nasurdin, A. M., Ahmad, N. H., & Tan, C. L. (2016). THE ROLE OF STAFFING AND ORIENTATIONPRACTICESINPREDICTINGSERVICE-ORIENTED ORGANISATIONAL CITIZENSHIP BEHAVIOUR. Asian Academy of Management Journal, 21(2). Noe,R.A.,Hollenbeck,J.R.,Gerhart,B.,&Wright,P.M.(2017).Humanresource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Parízek, M. (2017). Control, soft information, and the politics of international organizations staffing. The Review of International Organizations, 12(4), 559-583.
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14 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Razak, A. A., Abdullah, S., Illa, E. D. A. S., Jennings, T., Light, E., Martinuzzi, M., & Tourmouzis,K.(2018).15Assessingthechallengesinnursestaffingandnurse management within the NHS, and formulating a strategy to address them. Rozkwitalska, M. (2017). Staffing top management positions in multinational subsidiaries–a local perspective on expatriate management. GSTF Journal on Business Review (GBR), 2(2). Shen, W., Sackett, P. R., Lievens, F., Schollaert, E., & Van Hoye, G. (2017). Updated perspectiveson the internationallegal environmentfor selection.In Handbook of employee selection (pp. 659-677). Routledge. Tarique, I., Briscoe, D. R., & Schuler, R. S. (2015). International human resource management: Policies and practices for multinational enterprises. Routledge. Waxin, M. F., Lindsay, V., Belkhodja, O., & Zhao, F. (2018). Workforce localization in the UAE:recruitmentandselectionchallengesandpracticesinprivateandpublic organizations. The Journal of Developing Areas, 52(4), 99-113.