...Chapter 2 Strategic International Human Resource Management CHAPTER OVERVIEW This chapter is about Strategic International Human Resource Management (SIHRM). While the first chapter described the new global business realities and introduced IHRM, this chapter describes international business strategy and how IHRM supports and enhances the international business strategies of the firm. The chapter starts with a general description of the process of international strategic management and then follows with an explanation of the evolution of international business strategy and describes how IHRM fits into the overall strategic management of the MNE. This includes describing the links of global business strategy to the performance of HR responsibilities in international business and discussing the outcomes that a strategically managed international business might expect from effectively tying together an international business strategy and SIHRM. The chapter then summarizes the findings of research studies on the nature and role of strategic IHRM. LEARNING OBJECTIVES * Describe the development of SIHRM and the process of international strategic management. * Describe the evolution of the MNE in terms of various stages of internationalization and the methods firms use to enter international markets. * Describe the process for developing MNE strategy and IHRM strategy and the relationship between the two. * The extent and nature of research into...
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...Int. J. of Human Resource Management 18:11 November 2007 1895– 1916 The global integration of diversity management: a longitudinal case study Aulikki Sippola and Adam Smale Abstract Whilst the extant diversity management literature has provided a comprehensive array of theoretical frameworks and empirical studies on how organizations can and have approached the management of a diverse workforce, the same cannot be said about the literature on diversity in an international setting. Indeed, from a diversity management perspective we know surprisingly little about how multinational firms are responding to the increasing globalization of their workforce. This study seeks to contribute to this underresearched area through an in-depth longitudinal case study of TRANSCO, a well-known European MNC, which has been attempting to integrate diversity management globally throughout its worldwide operations. Adopting a Finnish host-country perspective, the study investigates what TRANSCO has been integrating, how it has tried to facilitate this and the challenges that have arisen throughout the process. The results indicate that TRANSCO has committed a considerable amount of resources to the global diversity management integration process, reflected in the myriad of integration mechanisms utilized. In terms of their integration strategy, it was evident that TRANSCO was able to achieve global consistency at the level of diversity philosophy, but was forced to rely on a more multi-domestic...
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...a need to manage human resources strategically so that they become source of sustained competitive advantage (Wright and McMahan, 1992; Boxall and Purcell, 2008). And that this has led to the evolution of strategic international human resource management (SIHRM), which not only acknowledge the need of balancing global integration and local responsiveness (Evans et al., 2002), but to seek strategic fit between HR policies and business strategy in order to achieve superior business performance. The researcher’s paper focus upon China with reference to foreign MNCs’ operations and the challenges faced from the dual pressure of balancing globalisation and localisation. Arguing that by combining the concept of SHRM with IHRM it identified a new research area of SIHRM which addressed the HRM issues and activities resulting from, and impacting on, the strategic activities and international concerns of MNC’s, that the universality, contingency and configurationally approaches in SHRM provides a theoretical foundation and development of HR practices and firm relationship that have been reflected in the substantial number of empirical studies, The research concludes that HR practices must be combined with specific business strategies to enhance organisation performance, that foreign MNC’s are seeking...
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...Riordan Manufacturing: Human Resources Integration Proposal Riordan Manufacturing: Human Resources Integration Proposal In service request SR-rm-004 from Riordan Manufacturing, Chief Operating Officer Hugh McCauley writes, “Analyze the HR system to integrate the existing variety of tools in use today into a single integrated application” (Apollo Group, 2007). The company wants to use a more updated approach to handling Human Resources (HR) tasks. The following document provides a detailed proposal of how to fulfill Hugh McCauley’s request. The document is presented in several sections that are outlined below. 1. Information Gathering Techniques 1.1 Keys to Successful Information Gathering 2. Project Scope 3. Feasibility 4. Application Architecture 5. Data Flow 6. System Implementation 6.1 Coding 6.2 Testing 6.3 Installation 6.4 Documentation 6.5 Training 6.6 Support 7. Conclusion Information Gathering Techniques The information gathering process should begin with an Internet search using key Phrases such as human resources information systems (HRIS), human resources software, human resources handbook, and human resources model. All of these search phrases will return many results that will provide information on HR system designs, software specifically for HR departments, and other companies’ policies and capabilities. One may also receive results reflecting ideas for HR systems that may not currently be in use, and testimonial...
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...How can HRM ensure that it is properly preparing the organization for dealing with the global environment? Today in age distinctive HRM challenges to business especially those operating across national boundaries as multinational or global enterprise. Competing in global markets entail many factors and centralization of its human resource practices is certainly vital to improve global competitiveness and empower employees for global assignments. Golden and Ramanujam state “that in order to achieve success in global marketplace, the challenge of all businesses regardless of their size is to understand global corporate cultural differences and invest in human resources”. There are certain human resource management issues that are particular for the global enterprise. “The key issues involve staffing policies selecting and retaining talented employee, training and development whilst encouraging employees to be innovative and creative, culture barriers, and legal frame work” (Golden and Ramanujam). Others issues include understanding the challenges of living and working overseas, performance appraisals from a distance, training and management development, compensation packages, and labor relations and organized labor laws. What changes have occurred in the practice of HRM? The world has undergone a dramatic change over the last few decades, the forces of globalization; technological changes have greatly changed the business environment. Shuler reports that” organizations...
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...George E. Davis - INTRODUCTION Human Resource (HR) planning is the formal process of linking business strategy with human resource practices. Approaches to human resource planning can be arrayed along a continuum ranging from an "add-on" to business strategy to a separate planning process (Figure 1). At one end of the continuum, HR planning is little more than a postscript to a business planning process. After engaging in an extensive business planning process in which business product, market, and technological directions are defined, questions about HR practices are raised. These questions deal with the structure, competencies, accountabilities, organization, and leadership required to make the strategy work. At this end of the continuum, HR issues are an afterthought to business strategy. They receive relatively little attention and become an appendage to business planning. In the extreme, line managers consider the HR questions as an afterthought to "real" planning efforts. At the other end of the continuum, HR planning is a distinct and separate planning process. The HR department not only initiates the effort for HR planning, but executes and administers the plan. In this case the HR plan is more a process for shaping priorities for the HR function than for the business. In extreme cases, HR plans are created with little or no awareness or input by line managers. While the outcome may be an elegant document, these isolated HR plans add little value to the business because...
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...Societal consciousness has shifted from national to international and global spheres, and the world is increasingly perceived as one place. Many sport organisations now find that they are under increasing pressure to engage in globally benchmarked sustainable management systems and processes, across all functional areas from finance to HRM. Some sport organisations have used aspects of the globalisation process to create new opportunities for expansion and growth, while others have been reluctant or resistant to externally instigated change. We assessed the adoption of ''best practice'' HRM practices in a range of amateur and professional sport organisations to see how they were reacting to these convergence pressures. This issue fits in the wider convergence-divergence debate that has been the concern of many cross-cultural researchers. Our empirical results indicate that while government policy has urged movement to a universally derived system of HRM processes, few sport organisations have adopted a formal HRM strategy and HR practices are widely variable across organisations http://www.inderscience.com/search/index.php?action=record&rec_id=7124 While at HRPA 2011, Canada’s conference and trade show focusing on HR issues and trends, I stopped in to check out Howard Wallack’s session, 10 Global HR Trends for 2011 and What You Need to Know to Manage Them. Wallack is the Director of Global Member Programs for Society for Human Resource Management, and in his discussion...
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...on Transnational Transfer of HR Practice within Multinationals Tianyuan Yu Institute of Enterprise Management, School of Business, Sun Yat-Sen University International Finance College, Beijing Normal University, Zhuhai Campus Jin Feng Road, Tangjiawan, Zhuhai 519085, China Tel: 86-756-6126-600 E-mail: tianyuanyu@gmail.com Nengquan Wu Institute of Enterprise Management, School of Business, Sun Yat-Sen University 135Xin Gang Xi Road, Guangzhou 510275, China Tel: 86-20-8411-4155 Abstract E-mail: mnswnq@mail.sysu.edu.cn This article discusses the process of transferring human resource (HR) policy and practice internationally within multinational companies (MNCs), and the factors that influence the transfer process. The first section thoroughly surveys the literature on why MNCs transfer HR practices across borders and generalizes three lines of arguments. The second section looks at “what to transfer” with regard to particular HR issues, and points to a gap in the literature. The next section briefly reviews three main methods of transfer adopted by MNCs. Finally, the results of transfer are discussed both prescriptively and descriptively in light of Kostova’s (1999) multilevel model. The arguments presented in this article have two main implications which are summarized in the conclusion. Keywords: Multinational companies, Human resource policy and practice, Transfer 1. Why transfer This section examines the reason for MNCs to transfer HR practice. The author believes...
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...HR and Integration Contribute Organizational Culture to Google, Scripps and UPS Success MSL660 Human Resource Management Billy Manning Belhaven University Dr. Adam Google over the years have developed a working relationship with HR and the organizational culture that has made them a leading competitor in their marketplace as well as a successful one. At Google one can see how organizational culture and HR strategy contributed to their success. For example, the human capital which is the collective value of the capabilities, knowledge, skills, life experiences, and the motivation of an organizational workforce. Google bring aboard people who are intellectual favoring ability over experience. The organization’s mission, goals and vision are cascaded throughout the organization. This speaks to the orientation of employees. Google’s HR integration with the organizational culture places emphasis on business objectives. HR also concentrates on the employees having flexibility to bring about results as well as innovation. HR has a seat at the table and this approach is key to organizational success. HR builds the organizational culture by attracting the best talent in the industry. Google also blended technological innovation with strong organizational culture. HR has merged the workforce culture to be unique. For example, workers are motivated to believe that are all equally value and a vital part of the company’s success. Every employee is a hand on contributor, and...
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...Acquisitions Organizations of all sizes and across all industry sectors are increasingly looking to M&A to support their global growth strategies. The primary objectives for M&A’s are to cut costs, broaden market shares or take advantage of each other’s synergies and most typically to accelerate growth. Yet several studies indicate that more than half of all M&A deals fail to meet management’s strategic, operational and financial objectives. The crux of the matter lies in the excessive focus on financial due diligence, risk assessments. Quite often, the people factor, i.e. issues that relate directly to people as workforce management and cultural integration, are left out of the due diligence process creating major challenges later during integration. In the past, HRM was expected to provide support in postintegration efforts, as well as increased business focus and knowledge to ensure that the full value of M&A deals is realized. For organizations, it important to believe in the fact that People are its key assets. However, today we realize that, mastering the softer issues is the hardest part of integration and has the strongest influence on an M&A’s long-term success. HRM professionals are expected to be ready to manage the people, opportunities and the risks associated in these transactions. Managing organizational change and business / culture integration requires more attention by Leadership and HRM to M&A deals. ______________________________________________________________________________...
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...Acquisitions Organizations of all sizes and across all industry sectors are increasingly looking to M&A to support their global growth strategies. The primary objectives for M&A’s are to cut costs, broaden market shares or take advantage of each other’s synergies and most typically to accelerate growth. Yet several studies indicate that more than half of all M&A deals fail to meet management’s strategic, operational and financial objectives. The crux of the matter lies in the excessive focus on financial due diligence, risk assessments. Quite often, the people factor, i.e. issues that relate directly to people as workforce management and cultural integration, are left out of the due diligence process creating major challenges later during integration. In the past, HRM was expected to provide support in postintegration efforts, as well as increased business focus and knowledge to ensure that the full value of M&A deals is realized. For organizations, it important to believe in the fact that People are its key assets. However, today we realize that, mastering the softer issues is the hardest part of integration and has the strongest influence on an M&A’s long-term success. HRM professionals are expected to be ready to manage the people, opportunities and the risks associated in these transactions. Managing organizational change and business / culture integration requires more attention by Leadership and HRM to M&A deals. ______________________________________________________________________________ ...
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...Understanding the variables that determine the integration plan- Haspeslagh and Jemison(1991) observed that the two most important factors for determining the integration approach on the strategic level are • Need for strategic interdependence • Need for organizational autonomy Studying the different approaches of the integration plan- They suggested four approaches for integration: absorption, preservation, symbiosis, and holding (Figure). The acquisition should use one of these four approaches. Figure 4: Key actions in the Integration Plan- It is imperative to have a focused integration plan in order manage the negative reactions and meet strategic objectives. Although the plan depends on the approach and the context of an M&A, the 4C model (D Prasanth Nair,2007) as a part of the Integration Plan facilitates conducive environment of value accrual (Exhibit 1). Change...
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...July 1997 and has subsequently spread to Russia and Brazil, is one of the most pressing challenges facing countries and businesses in today's global business environment. Globalization represents the structural making of the world characterized by the free flow of technology and human resources across national boundaries as well as the spread of Information Technology (IT) and mass media presenting an ever-changing and competitive business environment. Two major limitations are observed in the treatment of the twin issues of the responses to the East Asian economic crisis and the coverage of the literature on globalization. While the response to the crisis has focused on macroeconomic aspects, the issue of globalization has been addressed predominantly in and with respect to the developed economies of Western Europe, North America and Japan. This paper is an attempt to address these two limitations. Since the human factor is the key in the new era of globalization (Hassan, 1992; Sims & Sims, 1995), the primary objective of this paper is to present a conceptual framework for effective management of human resources as a response to the growing interaction of globalization and business performance. Three central arguments are made in this paper. (1) That a growing body of evidence converge to suggest that changes taking place in the global business environment often are not accompanied by complementary changes in human resource management practices leading to a situation whereby...
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... HR Development . Department of Human and Organizational Change. The George Washington University. 1. Overview /Introduction The case is about a successful company that has to deal with the complexities and challenges of a globalized environment. The organization faces a number of SHRD issues arising from: a) the specificity of a rapidly changing industry (smartphone), b) the need to cope with significant growth through strategic and diversified sourcing and talent management and, c) align mergers and acquisitions to the HR strategy. Moreover, the growth has resulted in work pressure, which is further affected by lack of physical space and staffing needs concerns also middle management posts. The following analysis further describes the internal and external challenges. The main issue is identified and solutions proposed in the ensuing paragraphs along with an annexed action plan. 2. Environment Analysis Internally, the recent growth and external competition have impacted upon the structures, the workload, and motivation and led the company to reconsider its strategy. Externally, the industry faces an increasing global demand particularly in the emerging economies, which calls for RIM’s penetration in markets like China and India. Scarcity of skilled talents is, along others, the most evident reflection of the changes in the external context. Speed in expanding the global...
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...nationalize coupled with increasing pressure from the company?s joint venture partners to improve financial performance have led to the departure of numerous highly compensated expats, including me. I am now back in the market looking at full-time employment and consulting opportunities, e.g. the following: ? Am open to senior non-management HR roles, with emphasis on compensation and performance management development, in the USA, the Middle East/GCC, and worldwide. ? Vice-President (VP)/Director of Human Resources for small to mid-sized organizations ? VP/Director/Manager of Compensation & Benefits/Performance & Rewards ? Human Resources consulting; available for projects on an independent ?associate? basis; join ?delivery? team of a blue chip global consulting firm; conduct training workshops related to special HR strengths. I have remained in Bahrain while targeting the Middle East for employment and consulting assignments, but I am single, mobile, and available for assignments worldwide. Special Note: I have signed a contract with Petrosync in Singapore to conduct in September this year a week-long compensation workshop in Kuala Lumpur for Asia Pacific HR professionals in the oil and gas industry. Please feel free to contact...
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