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Management philosophy/approaches to IHRM

Ethnocentric Organization

Home oriented organization. This works in my country; therefore, it must work in other
countries also. They believe that home country nationals are more intelligent, reliable and
trustworthy. All key positions in HQ and international are for Home Country nationals when
rewards are distributed, home country nationals receive the lions share.

Polycentric Organization

Host country oriented. When in Rome do as the Romans do Local people know what is best
for them. Lets give them some money and leave them alone as long as they make us a profit.
Home Country nationals at HQ and local nationals at respective local subsidiary. HQ keeps
check through financial and posting of key persons.

Regioncentric Organization

Regionally oriented organization Eg: Japanese subsidiary will manage its Asian operations and a
French subsidiary will manage European operations Regional insiders know what neighboring
countries want Regional HQ will be responsible local R & D, local executive selection ,cash
management, brand policy, capital expenditure. HQ will manage world strategy, country
analysis, Intercompany loan, long term financing, and selection of top management

Geocentric Organization

World oriented All for one and one for all. We will work together to solve problems anywhere
in the world. The entire organization focuses on worldwide and local objectives. They integrate
diverse regions through global decision making, making possible flow of ideas between
countries, allocate resources on a global basis, erase geographical boundaries and globalize
functional and product line. Reward system motivates managers to surrender national biases and
work for worldwide objectives.
Job defining & description
Before recruiting for a new or existing position, it is important to invest time in gathering
information about the nature of the job. Such as the tasks, the job's purpose and the outputs
required by the job holder and how it fits into the organisation's structure. It is also important to
consider the skills and personal attributes needed to perform the role effectively.
The job description benefits the recruitment process by providing information to potential
applicants and recruitment agencies who may be recruiting on your behalf; for example, when
designing assessment activities and making decisions between candidates; minimising the extent
to which recruiters allow subjective judgements to creep into their decision making, helping to
ensure that people are selected fairly. It can also be used to communicate expectations about
performance to employees and managers to help ensure effective performance in the job.

Improve your Candidate Pool

Companies that select new employees from the candidates who walk in their door/answer an
advertisement in the paper/online are missing the best candidates. They're usually working for
someone else and they may not even be looking for a new position especially for overseas
Invest time in developing relationships with university placement offices, recruiters and
executive search firms always helps a lot also by watch the online job boards for potential
candidates who may have resumes online even if they're not currently looking. On the other way,
use professional association Web sites and magazines to advertise for professional staff.

Hire the Sure Thing When Recruiting Employees

Pfau and Kay are convinced that you should hire a person who has done this "exact job, in this
exact industry, in this particular business climate, from a company with a very similar culture."
They believe that "past behaviour is the best predictor of future behaviour" and suggest that this
is the strategy that will enable you to hire winners. According to them that we must hire the
candidates whom we believe can hit the ground running in our company. We can't afford the
time to train a possibly successful candidate.

Be Known as a Great Employer & Pay Better Than Your Competition

Pfau and Kay make a strong case for not just being a great employer, but letting people know
that you are a great employer. Take a look at your employee practices for retention, motivation,
accountability, reward, recognition, flexibility in work-life balance, promotion, and involvement.
These are your key areas for becoming an employer of choice. You want your employees
bragging that your organization is a great place to work. People will believe the employees
before they believe the corporate literature.
Survey the international job market and take a hard look at the compensation people in your
industry attract, you do get what you pay for in the job market.
Use Your Benefits to Your Advantage In Recruiting Employees
Keep your benefits above industry standard and add new benefits as you can afford them. You
also need to educate employees about the cost and value of their benefits so they appreciate how
well you are looking out for their needs.
Employees are increasingly looking for cafeteria-style benefit plans in which they can balance
their choices with those of a working spouse or partner. Pfau and Kay recommend stock and
ownership opportunities for every level of employees in your organization. I like profit sharing
plans and bonuses that pay the employee for measurable achievements and contributions.

Check References When Recruiting Employees

Check references when recruiting staff is aim to keep you out of trouble with the candidates you
are seeking and selecting and the employees you currently employ. It is really necessary to check
references carefully and do background check.
In the litigious society in which we live, you need to pursue every avenue to assure that the
people you hire from overseas can do the job, contribute to your growth and development, and
have no past transgressions which might endanger your current workforce. In fact, you might be
liable if you failed to do a background check on a person who then attacked another in your
The above points are the steps that a HR people need to put in place to ensure the recruitment of
staff internationally was successful.

Remuneration and relocation packages

A major consideration for HR to ensure the appointment of staff internationally successfully is
remuneration and relocation packages. Managers and engineers have traditionally received
significantly better offers than blue-collar workers, but highly skilled trades professional have
been catching up. It's simply a matter of supply and demand, especially when the locations are
regional or remote.
Country of recruitment is a factor when salary packaging. For example, the English pound is
strong against the Australian dollar. English recruits are often more interested in a relocation
package that has attractive features beyond the money, such as interesting work, career
development and a desirable location. On the other hand, a skilled person from Zimbabwe will
be coming from an economy with an inflation rate of 2,000 per cent and is unlikely to be able to
pay rental bonds and other expenses on arrival in Australia.
Employers should also consider orientation programs to help newcomers and their families settle
International recruitment demands strong commitment from employers. They are asking
candidates to pack up, very often with their families, and move away from support networks to
make a new start in a different country and culture. Employers are competing with those in other
developed countries with similar staffing problems and booming economies, such as Canada and
the United Kingdom. Companies that are half-hearted in their treatment of international
candidates have less success than those that are committed, open, honest and efficient.
Be aware of illegal issues
HR managers should be wary of recruiters who offer extremely low-cost overseas candidates.
Such operators are likely to be engaging in questionable practices such as charging candidates
above-market rates for visas and accommodation. They may even be charging candidates a
percentage of their wage for the job, which is illegal in Australia. A skilled recruiter should be
able to provide HR managers with a detailed research paper on the best countries to recruit from
based on the available workforces and qualifications in the labor pools. Recruiters should not be
drawing from only one country.
Likewise, HR managers should avoid recruiters who don't do face-to-face interviews. Without
meeting candidates, it's difficult to assess commitment to relocating and degree of loyalty to a
sponsoring employer. Induction begins during recruitment, and good international recruiters also
interview the spouses of candidates.
As well as working with recruiters and migration agents, HR managers often need to work with
their own line managers to reduce the risk of failure-for example, to develop technical
questionnaires for assessing candidates' appropriate skill levels.

Training and development

A study by Saks and Rotman (2006) highlights the importance of what is done before and after
training occurs, they found that activities before training (e.g. supervisor involvement, training
attendance policy) and after training (supervisor support, organization support) were more
strongly related to transfer of training than activities during training (e.g. training rewards,
training feedback). These activities will create a positive training climate; this is an important
rule for HR to follow after recruited the overseas staff and in order to make sure the appointment
was successful