...International Business (MOD001055) Chapter 8: International Human Resource Management Zubair Hassan (2013). International Human Resource Management. International Business 8.1. Introduction This chapter covers one major components of learning objectives/outcomes that are likely to examine via coursework or examination. This chapter will enable students to build their knowledge on global human resource issues faced by international business, such as the staffing, recruitment and selection, performance appraisal and training and development along with compensations policies. This chapter will cover the following topics: Human resource management function International human resource management (IHRM) International HRM approaches IHRM policies and practices Work practice in an international context 8.2. Human resource management function HRM can be described as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. Te practice of Human Resource Management (HRM) is concerned with all aspects of how people are employed and managed in organizations. It covers activities such as: resourcing (human resource planning, recruitment and selection, and talent management); performance management; learning and development; reward management employee relations; employee well-being. Human resource management is important for various reasons. One of the most important reasons is that human...
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...International Management: Managing Across Borders and Cultures, Text and Cases, Seventh Edition SEVENTH EDITION FEATURES • Streamlined text in eleven chapters, with particular focus on global strategic positioning, entry strategies and alliances, effective cross-cultural understanding and management, and develop- ing and retaining an effective global management cadre. The seventh edition has been revised to reflect current research, current events and global developments, and includes company examples from the popular press. In Chapter 1, we introduce trends and developments facing international managers and then expand those topics in the context of the subsequent chapters. For example, we discuss developments in globalization and its growing nationalist backlash— in particular resulting from the global financial crisis. We discuss the effects on global business of the rapidly growing economies of China and India and other emerging economies such as those in Africa, and the expansion of the EU; the globalization of human capital; and the esca- lating effects of Information Technology and the global spread of e-business. We follow these trends and their effects on the role of the international manager throughout the book. For exam- ple, in Chapter 6 we focus further on strategies for emerging markets, while also dealing with changing strategies to respond to economic decline around the world and an increasing level of nationalism in some industries; we have a...
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...MANAGING EXPATRIATE FOR AN INTERNATIONAL ASSIGNMENT Referring to the case study, there are gaps identified in the Kline & Associate international human resources management practices in terms of expatiate management. Before sending an employee to an international assignment there are certain skills an employee must acquire and it is the duty for the HRM of the firm to prepare the employee for any international assignment. However this was not done by Kline & and Associate before sending Fred Bailey to Tokyo which caused the culture shock and the challenges faced by Fred and his family in Japan. Firms use a variety of HR practices to manage their expatriates (Mendenhall et al., 1987; Brewster and Scullion, 1997). As successful expatriate assignments are indispensable to MNCs for strategy implementation, researchers and practitioners alike are interested in determining how to facilitate the success of expatriates’ assignments (Stroh and Caligiuri, 1998; Dowling and Welch, 2004; Scullion and Collings, 2006). However, MNCs differ on the extent to which these practices are used in managing expatriates (Tung, 1982; Kopp, 1994; Peterson et al., 1996; Scullion and Starkey, 2000) and how effectively they are designed (Mendenhall et al., 1987). According to Adler and Ghadar (1990), expatriate management practices, namely who the firm considers as possible expatriates, how the firm selects and trains them, what criteria the firm uses to assess their performance, and what impact the...
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...Selected Thesis Topics for BScBA students Bachelor´s Thesis 2013-2014 Please use this list of the fields of International Business for thesis work and potential thesis topics when choosing and informing us the field of your thesis + the thesis topic in the form Indication of Interest Area for Thesis 2013-2014. Part 1. Thesis topics for companies and other organizations We have first listed the thesis projects that are available to do for companies and organizations. If you are interested in these projects, please mark the topic to the Indication of Interest Area form the same way than any other topic. It should be noted that the students selected to do the thesis from these topics must be motivated and committed for the work. Please do not contact these organizations yourself before the selection process has been completed for all students. More information on topics can be asked from Mari Syväoja or Tomi Heimonen. Organization: Thesis Biofenno projects for (www.biofenno.fi) companies and organizations Selected Thesis Topics for companies and organizations Internationalization plan Plan how to take and promote product Tuovi Tuotevirtakirjanpito to EU markets. Tuovi Tuotevirtakirjanpito is a stock and feed recording program for organic farmers. It produces necessary stock and feed reports for annual inspection. Also stock balance reporting benefits farm managements. Because Tuovi Tuotevirtakirjanpito complies with all the regulations EU has set for organic farmers, it has...
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...Executive Summary This report was commissioned to prepare and equipped 6 senior executives with essential knowledge and facts about their foreign assignment for period of one year at the host country – Indonesia. In order to create a resourceful and talented team for the newly established offshore company, a motivated team which aligns with company objectives is the key point for remarkable success. Preferable candidates come from diverse background and they will be examined to ensure they have high level of interpersonal skills and adaptability towards foreign culture. Hence, detailed research about a country’s climate, culture, language and cuisine etc. will be brief and training will be provided too. This report also critically analysis about the structure of job design compare to headquarter in Singapore by using Hofstede national culture dimensions in order to find out the most suitable structure for the subsidiary. HR planning is essential during the staffing process to hire the best fit candidates, followed by training and development process to prepare the assignees for the success of foreign assignment. Lastly, report will discuss the design of remuneration package for the international assignees. A comprehensive compensation package is the key point to draw potential candidates’ attention and this must be well planned to ensure it meets assignees expectation. The financial equality of before- and after-overseas posting is important, thus, balance sheet approach...
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...close of 2011, the global economy was at a very dangerous juncture, it showed a GDP growth of 3.4% with only a probability of 45% of obtaining this growth during the 2012 fiscal year. This was showing China economic stability had weakened (World Economy). Export dependent sectors that had been the force for a very strong domestic market was declining. While Brazil showed no growth and India has drops in both industrial and investment activities. As we saw in previous discussions and readings, one of the largest contributors to India’s economic growth and expansion was the influx in investment, which fueled their economy. While the global economic may shift away from advanced economies such as North America and Western Europe; as well as Japan is predicted to continue over three decades. We see smaller developing countries economy emerging into the global market. According to PWC, emerging economies such as Mexico and Indonesia will surpass France and the UK by 2030 in Purchasing Power Parity (PPP), which...
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...10.1002/tie.20440 648 f e a t u r e a r tI C l e in international HRM practices for enhanced performance. We also present useful propositions for guiding future empirical research and theory development on the interaction between globalization and different forms of local institutional forces, which in turn influence the formation of successful international HRM practices. © 2011 Wiley Periodicals, Inc. Int r o d u c t i o n N otwithstanding the current worldwide economic crisis, the globalization of business is increasing at an unprecedented rate, and its impact on the management of human resources (HR) has become critical to the success of global business (Vance & Paik, 2006). International human resource management (IHRM) broadly covers a wide range of issues related to the management of people in an international context. When conducting...
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...Management Mid Exam Revision 1 – Introduction IHRM Definition • Covers all issues related to management of people in an international context. • IHRM covers a wide range of HR issues facing MNCs in different parts of their organizations and include comparative analyses of HRM in different countries. HRM Activities • Human Resource Planning (Ensure best fit between employees and jobs) • Staffing (Includes Employee Recruitment, Selection and Placement) • Performance Management (Ensure goals met in effective and efficient manner) • Training and Development (Bettering performance of employees in organizations) • Compensation and Benefits (Awarding employees monetarily or non for work done) • Industrial Relations (Dealing with employee relations) • 3 Dimensions of IHRM: 1. Broad human resource activities of procurement, allocation and utilization 2. National or country categories involved in international HRM activities o Host Country – Where subsidiary may be located o Home Country – Where HQs may be located o Other Country – Where labour, finance and other inputs are obtained from 3. 3 Categories of employees of an international firm o PCN – Parent Country Nationals (Nationals where HQ is located) o HCN – Host Country Nationals (Nationals where subsidiary/facility is located) o TCN – Third Country Nationals (Nationals where resources are obtained from) Difference between IHRM and HRM Activities • More HR Activities ...
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...Introduction The objective of this research is to determine the convergence, divergence and cross-vergence of culture in IHRM, by looking at recruitment and selection in Nigeria as well as the Pension Scheme. It will also focus on the political, economic, social, technical and legal environment a number of factors that influence human resource policies and practice in Nigeria. International human resource management(IHRM) is the term used to refer to the instance where an organisation`s HRM entails managing employees in more than one nation .(Ngo et al 1998 cited in Lloyd and Hartel ,2004, pg60) .According to( Dowling et al, 2008) IHRM covers a wide range of human resource issues faces MNCs in different parts of their organizations additionally ,we include comparative analysis of HRM in different countries.(Capelli and Croker, 1996) argues that international human resource practices is a crucial factor in creating unique organisational competences ,in turn help companies differentiate their products and services and thus build competitive advantage. International HRM refers to relatively separate areas of practice and research (Dowling and Welch ,2004) HRM policies and practices are carried out within an economic, social, political and legal environment .Thus there is a need for considerable historical and cultural insights into local conditions to understand the processes, philosophies and problems of national models of HRM (Hofstede, 1993) .The indigenous Nigeria system is...
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...HRM issues UK companies need to take into consideration when relocating their operations overseas. In answering this question you need to show an awareness of both the problems and the advantages HRM ISSUES WHICH UK COMPNAIES FACE WHEN RELOCATING TO OVERSEAS Introduction * With the growth of traditional business, the scope of HRM has also grown in recent years. * Every country is different in terms of political, ethnicity, monetary, multilingual and legal state. The companies has to face problems in global ventures, due to the lack of managing workforce among different ethnicity. * Most of the industries stake their growth plans on expanding globally, so for that they have to increase consistency for approaching the capabilities of talent management, leadership development and HR policies. At the same time the companies have to face issues when they are relocating to overseas. HRM ISSUES HR covers many various activities related to organizations employees; * Firstly HR will focus on staffing, as it is the basic need of the company. When relocating the business, HR has to consider whether staff members are the company employees or external contractors. * Training and recruiting employees, HR has to train employees to work in an international projects, they need to train technical skills to the employees such as cultural values, social customs, languages and reward system in the host country. * HR management also face the issues in managing the...
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...management teams to coordinate crossborder business. 5. Recognize the varying roles of women around the world in international management. 6. Understand the variations in hostcountry labor relations systems and the impact on the manager’s job and effectiveness. 10-3 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall Opening Profile: The Expat Life ● ● ● ● ● 10-4 What is it like to take an assignment abroad? Would you like to be an “expat” (expatriate)? Is it an adventure or a hardship? Experiences of those who have done a stint abroad are mixed. Experiences vary by job type, and especially by location. Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall Essentials of IHRM 10-5 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall Expatriate Career Management 10-6 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall Preparation, Adaptation, and Repatriation 10-7 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall...
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...Global Human Resource Management By Michelle L. Johnstun Survey of Global Business MGT 430 Dr. Ed Goold D.B.A. M.B.A. February 12, 2013 Abstract Human Resource Management is related to the strategy of an organization in assisting a firm to reach its primary goal of “reducing the costs of value creation and adding value by better serving customers” (Hill, 2013). In order to be successful as a global HRM cultural differences and customs must be acknowledged and understood. Labor laws, compensation practices, equal employment legislation, and the enforcement of a firm’s established code of conduct are examples of the complexity in the role of a global HRM. Knowing how to staff, develop, compensate, and evaluate key management positions for global posts are critical to ensuring the success of an expatriate manager and the costs associated with doing business in another country. This paper will go into greater detail the strategic role of a global HRM in an International business setting; discuss the four major tasks associated with a global HRM which include: staffing policies, management training and development, performance appraisal, and compensation policies. Lastly, this paper will discuss the international labor relations; the relationship between management of labor relations and the firm’s overall strategy. CONTENTS Abstract …………………………………………………………………………………………..2 The Strategic Role of an International Human Resouce Manager ……………………………….4 Staffing...
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...International Human Resource Management Term Paper 1st Submission Dated: 20/09/2011 Submitted To: Submitted By: Prof. Sukhjinder Baring Sahil Goyal Course Instructor MBA-2B IHRM Contents * About LG * Global Presence * HR policies of Different Countries * PCN Strategies * Studies About LG: LG Electronics was founded in 1958 at Seoul, South Korea. This multinational company is the 2nd largest electronic products maker of South Korea and third largest appliance maker in the world. Yong Nam is the CEO & Vice Chairman of the company who is making it possible to spread the network of LG throughout the world. Headquarter of LG Electronics is in LG Twin Towers at Seoul, South Korea. LG Electronics is the owner of Zenith Electronics and has a joint venture with Philips Electronics under the name of LG Display. Both the companies are putting their effort in manufacturing and developing the quality of their products. Some important subsidiaries of LG Group are LG Electronics, LG Telecom, LG Chem. and Zenith Electronics in more than 80 countries. LG Electronics was established in 1958 as GoldStar. LG Group is the merger of Lucky and GoldStar, two...
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...International Human Resource Management: Chapter – 6: COMPENSATION MANAGEMENT Introduction: One of the key components of IHRM is the compensation administration in MNCs. Today, compensation and employee benefits contribute to 40-50% of the total costs. Compensation is strategically reported and monitored at the broad – levels and with the investors to assess the health of the organization. What is compensation management? Effective and efficient process of managing the earnings – financial and non financial rewards of the employees in an organization based on their performance towards organizational goal is called compensation management. International Compensation is an internal rate of return (monetary or non monetary rewards / package) including base salary, benefits, perquisites and long term & short term incentives that valued by employee’s in accordance with their relative contributions to performance towards achieving the desired goal of an organization. It influences: • • • Organizational culture Recruitment and selection of competent employees Motivation and performance Objectives of compensation: Compensation decisions are strategic decisions and play a key role in achieving performance and sustainable competitive advantages for national as well as international firms. Therefore the key objectives are: • • • • • Attract employees who are qualified , experienced and interested in international assignments. Facilitate the movement of expatriate’s from one...
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...Managerial Application of Information Technology The purpose of this paper is to discuss the managerial application of information technology. In this paper, information technology has been discussed with respect to the problems faced by an organization. The organization that has been chosen for the analysis of information technology is Wal-Mart. Wal-mart Wal-Mart is operating in as many as 10 countries outside the United States. Asian market has provided Wal-Mart with diverse opportunities. The company has already started its operations in Japan, Korea, and China. In the European Market, Wal-Mart has started its operations in British and German market. In addition, the company is also operating in Mexico, United States, Canada, and Puerto Rico (Lohr, pp. 10). Wal-Mart has operated successfully in the United States market. The aggressive supply chain strategy of Wal-Mart i.e. ‘pile it high and sell it cheap’ has not worked successfully in all foreign markets (Cassidy, pp. 6). The differences in market conditions and consumer preferences had a significant impact on the expansion plans of Wal-Mart. The structure of European markets differs from that of North American markets. The productivity of European markets is less than that of North American markets (Freeman et al, pp 486). The differences in market-structure have influenced the success of Wal-Mart operations in different countries. German market has been characterized with an oligopolistic structure. The German...
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