A Detailed Analysis of Human Resource Management in a Global Context

This report provides a comprehensive analysis of human resource management (HRM) within a global context. It explores various aspects of international HRM, including recruitment and selection strategies, such as ethnocentric, polycentric, and geocentric approaches. The report delves into employee development through training and retention strategies, emphasizing the importance of fostering a positive work environment. Furthermore, it examines the concept of total rewards, highlighting the significance of providing expatriate employees with appropriate benefits and allowances. The report also discusses the crucial role of organizational culture, emphasizing its impact on employee behavior, commitment, and overall organizational success. The author provides real-world examples of companies like Panasonic, Nikon, Sony, MacDonald’s, and Samsung to illustrate key concepts and strategies in global HRM. Finally, the report explores the importance of empathy and cross-cultural communication in the global context.

HUMAN RESOURCES IN A
GLOBAL CONTEXT

SECTION A
Question 1.
Human resource management is the process of managing the people to achieve the task
with better performance. The process include recruitment, selecting and training and
development of the employees in the organization. HRM is the strategic approach and most
valued assets in the organization who work individually and contribute towards the
organization goal and objectives.
Recruitment and selection is 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
employees through national citizen of the parent company, known as the
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. So0me of the companies switch from ethnocentric to polycentric
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.
For example: MacDonald’s follows the geocentric approach to hire the
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.

Retention means 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
terms of monetary value, employee’s achievement is being given beneficial
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 our expatriate 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

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
may be limited in the company etc. which cannot be avoided and in the
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 culture of 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.
Empathy is 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.