International
Human
Resource Management
Assignment
(PROFESSOR CLIFF LOCKYER)
GROUP NO. 7
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EXECUTIVE SUMMARY
The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.
Our firm has set out to Internationalise its operations by opening to different facilities One in China Assembling and Maintaining Aircraft Engines and the other in Europe fabricating turbine blades for Aircraft
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This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.
China graduates about 1.5 million students from institutions of higher learning each year. This large pool of graduates are of varying quality and those with scientific and technical degrees are very much in demand thus there is a shortage of Skilled and graduate engineers in the Chinese market. This has led to intense competition amongst firms trying to secure these persons employment loyalties. Potential employees, having more choice in the labour markets need to be assured of the value of working for the various firms and thus Compensation and Benefit models need to be well structured.
As a Wholly Owned Foreign subsidiary in the Chinese market Our Aero Engine Assembly and Maintenance firm will encounter significant challenges as a Greenfield start up within the Chinese markets and our Human Resource Strategy will be key to competitive advantage.
To address these concerns, Riordan should negotiate with its Chinese partners to obtain rights to directly work with suppliers. It can do this by insuring its Chinese partners they will maintain the relationship between the Chinese plant and the Yin Motor Company. Riordan then can work directly with the Yin Motor Company to improve their labor situation and increase their on-time deliveries. This strategy will increase Riordan’s supply chain strength.
The HRM policy of a firm is looked as a most important strength which needs to be taken care of all the time to have a competitive advantage within the industry they operating in. Multinational corporations (MNCs) seek to transfer their home-country human resource management (HRM) practices to their overseas subsidiary as to them it is just another approach towards globalisation. It can be an element of success for MNCs if they manage to transfer these HRM practices across their subsidiaries in an effective manner. An effective transition of these policies depends on the organisational, cultural, social and relational factors (Bartlett & Ghoshal 1998; Evans, Pucik & Barsoux 2002; Poedenphant 2002). The transition of these policies
Human Resource Management (HR) is a function in an organisation aimed at maximizing employee performance in relation to the employer 's set standards and strategic objectives. The primary focus of HR is concentrated upon the management of employees, and on the policies and systems within and outside the organisation. (Boxall & Purcell, 2011). “Strategic Human Resource Management (SHRM) aims to align the functions and processes of HR with the strategic aims and objectives and competitive advantage of an organisation.” (Hartel, Fujimoto, Strybosch & Fitzpatrick, 2006). After all, the key characteristic of HR is ‘integration.’ The role of HR and HR Professionals can be linked to four main SHRM theories, namely: Jackson & Schuler (1995), Kochan & Barocci (1985), Klatt, Murdich & Schuster (1978) and Lundy & Cowling (1996).
While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the
In an increasingly globalized world economy, the aggravation of global competition, the most important factor of national competitiveness are highly qualified and motivated employees (Storey 2007). Gubman (1996) pointed out the three challenges for the organizations that will never change: first, the major mission of human resources is to gain, develop, retain talent; second, adjust the workforces with the business; lastly, a superlative contributor to the business. Moreover, human resource management is characterized by the fact that the staff seen as an important strategic resource for the organization, which requires investment, modernization, planning, staffing, training, etc. This paper will introduce an overall review of the International Human Resource Management (IHRM) theories and studies. The analyzed concepts and approaches will be applied to the case study about Yarden Mex chain of Mexican Grill Restaurants and its Subsidiaries. The paper will include definitions of Global Talent Management (GTM) and Global Diversity Management (GDM). In addition, the applied theories to the case study will generate suggestions.
Globalization is changing the nature and pace of International Human Resource Management (IHRM). Now virtually anytime, anywhere a globally-based project can be initiated and within less than an hour a project team assembled, with goals defined. This is the 21rst century new normal; business models will shift and change rapidly in respond to the changing nature of globally-based opportunities and threats. One of the main catalysts of much global change is occurring as a result of the Chinese economy growing so rapidly. In order to manage a Chinese workflows however, incouding the core functions of recruitment, training, performance evaluation, and compensation from a purely monetary and cultural standpoint, cultural frameworks are needed. In defining strategies for each of these areas, the Hofstede Cultural Dimensions Model (Hofstede, McCrae, 2004).
The case study tells about the future profitable growth of the Padi- cepat a Malaysian company. The company has instant food, beverages and baking products business. In this company have different technologies for marketing strategies. Judgment is needed to identify the growth of the company so they look after the PBIT. In the time of 1990s they provide expansion opportunities Malaysian company pedi-cepat planned export offices in India, Singapore and Japan bit it fails. After the crisis, they expanded to Europe and the Middle East. Expand to Oceana for the better growth. This report focused the international human resource management to the padi- cepat company.
The concept of strategic human resources management tends to focus on organization wide human resource concerns and addresses issues that are related to the firms business both short-term and long term. Strategic human resource management derive from human resource management, which the influence of strategic human resource management will be addressed. Human resource departments need to transform human resources to strategic human resource as to ensure the effectiveness of the objectives of the organisation are achieved. More and more authors are still reshaping and redefining the broadly accepted definition of strategic human resource management however according to Caliskan (2010:102) mentions that many authors stand firm that strategic human resource management is concerned with the role of human resource management systems play in firm performance. In addition to that it highlights the importance of people management, as to improve the organisations performance and gain competitive advantage. In order to address the question of, what influence does the strategic human resource management play in the performance of an organisation. First issue of why is it important for organisations to have an effective and
The world has been rapidly transforming due to the changes in technology, innovations, and the reduction of trade barriers into and out of countries which have permitted globalization. Due to globalization human resource management has been forced to take a more international approach, and has demonstrated that a more effective management of human resources internationally is imperative for the success of companies in international business (Shen). Therefore international organizations need to understand the roll that plays the international human resource management (IHRM) department, and the importance of adopting an effective recruiting, selecting, and training strategies
ABC Company has held a spot among top assembling organizations in the United States for quite a long while. Be that as it may, because of expanded rivalry and client request administration has chosen to execute a few changes. The essential change to ABC Company that has been sketched out by administration is a supplier worldwide extension venture. Administration has its eyes set on China as another supply base. Similarly as with any venture, the advantages might be clear yet undertaking the task likewise accompanies what 's coming to its of dangers.
Due to that finding, as (Nkomo, S., 1988) noted, a significant amount of attention had now been taken to the strategic aspect of human resources, as it has been regarded as a way to link organisational goals and strategies to the human resource objectives and programmes. (Lengnick-Hall, C. & Lengnick-Hall, M., 1988) confirms this by stating ‘achieving competitive advantage through human resources requires that these activities be managed from a strategic perspective.’ It can be concluded that it was at that
International organisations differ in their strategy development practices and processes, based on their approach to internationalism as either ethnocentric, polycentric, geocentric or regiocentric. All are faced with market forces and changes within their sectors, dependant on the cultural and institutional drivers, prevalent in their operational country and in those of country of origin (Farndale & Paawe, 2007). At a global level, human resource (HR) practices are found to be similar in competitive contexts, whereby organisations benchmark practices and processes against similar organisations appearing to operate successful HR policies which are driven by best practice and technology availability, in areas such as: recruitment and selection, reward structures, performance management, succession planning, expatriate management and training and development. Notwithstanding this, competitive advantage is derived from differentiation of organisational culture, structure and strategy and combining leverage derived from human capital (Shen, 2011; Slocum, et al., 2014). The rapidly changing global arena has forced many organisations to adopt an increasingly dynamic approach to performing business by adapting their environment for flexibility, innovation, creativity or cost effectiveness, in order to manage constant changes to organisations in terms of technology, the ascendancy of knowledge workers, worker diversity and the need for constant improvement to meet changing customer
The new challenges related to the Globalisation and the free markets have led to a great deal of interest regarding the impact of HRM on the organizational performance. Accordingly, this has led to a remarkable increase in terms of the number of studies conducted in this area. These conducted studies are meant to examine the potential contribution that good HR policy can achieve to improve the performance, as scholars and key figures in this wide area of research have repeatedly called for a better understanding of how HR practices are related to the firms performance, e.g. (Becker & Huselid, 1998; Delery & Shaw, 2001; Batt, 2002; Gong et al, 2009).
In recent years due to the factors like globalization and removal of trade restrictions have created fierce competition in domestic market for the well-established domestic firms. So, this competition has encouraged many domestic producers to enter into the international business through exporting their product to the different parts of the world or licensing or joint ventures to gain higher profit. By following the paths of international business may encounter the new challenges that are associated with international human resource management. International human resource management is the set of distinct activities, functions and processes which are used by MNC’s to attract, develop and maintain their human resources. (Taylor et al, 1996) The IHRM mainly deals with six core activities. They are recruitment and selection, training, career development, compensation, performance management and employee relation management.
Nowadays, many people might think that International Human Resource Management (IHRM) is synonymous with expatriate management. However, IHRM covers more than just the management of expatriates. According to Laurent (1986, pp. 91-93), IHRM is a set of activities aimed managing organisational human resources at international level to achieve organisational goals and achieve competitive advantage over competitors at national and international level. IHRM includes typical HRM functions such as human resource planning, recruitment, selection, placement, training and development, performance appraisal