International HRM: Challenges and Strategies
Added on 2020-01-28
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INTERNATIONALHUMAN RESOURCEMANAGEMENT
TABLE OF CONTENTS1 INTRODUCTION .......................................................................................................................32 WESTERN OR AMERICAN MODEL OF HRM.......................................................................3Definition ...................................................................................................................................3Key features and principles ........................................................................................................33 RELEVANCE IN OTHER COUNTRIES....................................................................................5Different national cultural traditions regarding HRM ...............................................................5Examples from case study of China ...........................................................................................64 CHALLENGES FOR MNC'S AND IMPLICATIONS FOR IHRM...........................................6Definition of MNC and IHRM ...................................................................................................6Difficulties in different cultural traditions of HRM between home and host nations ................7How to manage these differences...............................................................................................8Examples using case study of Anakew ....................................................................................105 CONCLUSION ..........................................................................................................................10REFERENCES..............................................................................................................................12
1 INTRODUCTION International human resource management is the set of activities which intends to managehuman resources of an organization at an international level for achieving objectives oforganization and competitive advantages over rivals on national as well as international level.Apart from HRM functions such as recruitment, selection, performance management etc. thereare some additive activities in IHRM which includes global skills management, managingexpatriates and many more (Story and et. al., 2014). The present reports is going to cover mainaspects of Western model of HRM and its principles. It will also throw light on different nationalcultural traditions in HRM.2 WESTERN OR AMERICAN MODEL OF HRMDefinition Western model of HRM emphasises on independence and flexible working practiceswhich is very formalised having a strong sense of management. Key features and principles The concept of HRM was firstly propounded in United States of America since 1960 and1970. after that it has been used by all the nations around the globe with its theoretical andpractical features. The main features and principles of Westerns model of International humanresource management are describe below (Cavusgil and et. al., 2014):Western nations follow flat structures and leadership style which is followed is mostlydemocratic style. Western countries also differ from other countries in terms ofmotivation programs. They focus on individual rewards, compensation packages andpersonal career development (Festing and et. al., 2013. pp.161-166.) Western nationsprefer oral and direct ways to communicate. Professionals in Western countries adoptsoral methods of communication such as face-to-face interactions, telephoniccommunication, discussions which takes place in the business meetings. The directcommunication is preferred by Westerners in which active listening and effectualfeedbacks are taken (Marler, 2012. pp.6-11.).The human resource professionals in Western nations adopt different means ofcommunication i.e. oral and direct communication is preferred. At the same time, theycan also adopt direct voice and indirect voice so that the flow of information can be
stabilised. This is also essential in terms of stabilizing flexible work patterns especially inthe area of human resource management. Taking use of emails, networking forums and other types of management forums arehighly practised in Western nations like United Kingdom and United StatesResolution of conflicts and dispute is one of the key aspect of human resourcemanagement which is practised more in Western nations than other parts of the world.Westerners resolves conflicts through avoiding or neglecting conflicts (Collings, Woodand Caligiuri, 2014). The employers in Western nations prefer more for personalised interviews. Personalisedprocess for selection is adopted by majority of organizations in these nations along withevaluating capability and technical prerequisites of individual for the job (Janssens andSteyaert, 2012. pp.61-72). Then they assess the work experience of potential employeesin a similar job. Recruitment process in Western nations and China: Westerns nations prefer of Internalrecruitment methods such as transfers, promotions, re-employment of old employeeswhile Chinese firms goes for external recruitment through advertisements, employmentexchanges, employment agencies, recommendations etc. (Armstrong and Taylor, 2014)Volkswagen is a German company which also operates in USA. This company operatedwith different culture in both the nations. The working culture of chosen firm in Germanyis such that there are particular and constant expectations regarding each aspect of work.Employees know what they have to do exactly and to do it in a smooth and efficientmanner (Rees and Smith, 2014). While on the other hand, the quoted organisation has adifferent work culture in USA. There are less regulations and standardisation is preferred.The firms in USA provides less security but for talented and competent employeesrewards and recognition are given. The procedure of selection in these countries does not includes judging a candidatefamiliarity with domestic culture.The approach towards performance management and appraisal system is oriented towardsoutcomes. It promotes increased productivity of employees and it is more focusedtowards performance appraisal rather than individual appraisal. For instance, Inorganizations of United States of America, employers prefer to rank pay considering it
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