3

    
 Order
O ers Support Noti cations Sign In +44 115 966 7955

 / Essays / Business

Disclaimer: This work has been submitted by a student. This is not an example of the work produced by our Essay Writing Service.
You can view samples of our professional work here.

Any opinions, ndings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily
re ect the views of UK Essays.

Human Resource Management (HRM) involves all management decisions and practices that directly a ect the people who work for the
organization. Hence HRM is the strategic and coherent approach to the management of an organization’s most valued assets – the
people working there who individually and collectively contribute to the achievement of the objectives of the business. In simple words,
HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job
and organizational requirement.

1.2 International Human Resource Management

INTERNATIONAL HUMAN RESOURCE MANAGEMENT (IHRM) is a process of procuring, allocating, and e ectively utilizing human
resources in a multinational corporation, while balancing the integration and di erentiation of Human Resource activities in foreign

locations.

Hence it can be de ned as “Procurement, allocation, utilization and motivation of Human Resources in International business.



1.3 OBJECTIVES OF I-HRM
To reduce the risk of international human resource.

It has helped a lot in reducing the risk in the business by using a proper standard recruitment and selection process.

To avoid cultural risks.

International HRM has helped a lot in overcoming the inter-continental culture by making people from di erent parts of world work
under the same roof.

To manage diversi es human capital.

Due to IHRM human capital is diversi ed and hence the risk involved has lessen down to a great extent.

1.4 P. Morgan’s Model of IHRM

P. Morgan: Two groups of variables that a ects basic HR process

1st – Types of employees.

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Find out more

2nd – Political, economic, legal environment, labor laws and practices prevailing in di erent countries.

1.5 Human resource activities

Procurement.

Allocation.

Utilization of human resources.

1.6 Nations categories where rms expand and operate

Host country
A country in which the MNE seeks to locate or has already located a facility.
 Parent country
The country in which a company’s corporate headquarters is located.

Third country
The countries other than the one in which the MNC is headquartered or the one in which it is assigned to work by the MNC.

1.6Categories of employees in an MNE

Parent Country Nations (PCNs)
PCNs are managers who are citizens of the Country where the MNC is headquartered. The reasons for using PCNs include

– The desire to provide the company’s more promising managers with

International experience.

– The need to maintain and facilitate organizational coordination and control.

– The unavailability of managerial talent in the host country.

– The company’s view of the foreign operation as short lived.


– The host country’s multi-racial population.

– The belief that a parent country manager is the best person for the job.


 .Host Country Nationals (HCNs)

HCNs are local managers hired by MNCs. The reasons for using HCNs

– Familiar with the culture, language.

– Less expensive, know the way things done, rules of local market.

– Hiring them is good public relation.

Third Country Nationals (TCNs)

TCNs are managers who are citizens of countries other than the one in which

the MNC is headquartered or the one in which it is assigned to work by the

MNCs. The reason for using TCNs:

– These people have the necessary expertise.

– They were judged to be the best ones for the job..

CHAPTER 2:
Di erence between IHRM and Domestic HRM
2.1
· Responsible for a greater number of functions and activities

· Broader knowledge of foreign county employment law

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Find out more

· Closely involved with employees lives

· Cope with more external in uences

 · Exposure to problems and liabilities

· Management of di erential compensation

· Diversity management

· More coordination and travel

· More risk management

2.2 Di erence between Domestic and International Managers

· Global mindset

· Communication skills

· Con ict management skills

· Oriented towards a process of continual change

· International experience

· Political, economic and social sensitivity and knowledge of many countries.

 · Knowledge of culture shock and how to minimize it.

 · Leadership and team building skills.


2.3 Variables that moderate di erence between Domestic HRM and

IHRM:
Main Challenges in IHRM:



Talent identi cation and development – identify capable people who are able to function e ectively

Language (e.g. spoken, written, body)

Di erent labor laws

Di erent political climate

Di erent stage(s) of technological advancement

Educational level attained.

CHAPTER 3 :
Forces of change and global work environment
Globalization, technological changes, knowledge management and cross boundaries collaboration are four factors that are major forces
creating change in organizations today.

These changes a ect decision-making as organizations are forced to recognize that they need leaders who are innovative, creative
visionaries who understand the various environments that their organizations are operating in, and are able to di erentiate between
these di erent environments.

These environments include: the external or operating environment; the competitive environment (that part of the external
environment in which rms that are competing for the same market exist) and the macro environment in which in uences such as the
economy, government regulations, societal values, demographics and technology come to bear upon an organization.

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Find out more

Faced with such complexities leaders need to be equipped with appropriate skill-sets such as exibility, good communication, and
critical thinking and negotiation abilities. They must also be supported with the necessary resources in order to make good decisions
that will bene t their organizations.
 Globalization
A convergence of international activities such as the increase in overseas production of goods and services; increasing consumer
demands in emerging markets worldwide; declining barriers to international trade aided by rapidly changing technology, have created a
globalized economy in which inter-dependency among countries has emerged as the norm today. Therefore the hiring practices of
companies who are seeking the best talent have changed because the best talent might no longer be resident in the home country.

Companies have had to calibrate their hiring, training and management practices to meet this challenge. In a world where “Americans
too often come across as intrusive, manipulative, and garrulous” (David, 2007, p.291), US organizations have to be respectful of the
culture, customs, political, and legal di erences of the countries that they are operating in.

Some of these customs a ect protocol such as the exchange of gifts, the observance of holidays, and labor laws. Even accounting
standards vary internationally. Therefore organizations must be sensitive to these di erences when formulating operational and human
resource (HR) policies for implementation abroad for, in this global environment, it is hardly likely that companies can apply the
domestic policies that work at home, abroad.

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Find out more


 Technological Change:
Technology is like a two-edged sword that can make our lives easier or worse. The Internet has revolutionized the way in which

information is exchanged, communication facilitated and commerce conducted. Technology is rapidly changing and e ective
 management demands more knowledge in these areas in order for companies to manage their resources and develop, maintain or
keep their competitive edge.

While technology has enabled rms to save time and money by conducting business such as negotiations, trade, and commerce in real
time, it can also facilitate the dissemination of sensitive information about a company’s practices, trade secrets and new product
development in a matter of seconds.

Hackers can breach a company’s security via the internet and put companies at risk. Organizations have responded by having whole
new types of departments such as Information Technology (IT) departments, headed by managers with titles such as Chief Information
O cer (CIO), to manage both the opportunities and the risks associated with technological changes.

Additionally, technology has ushered in an array of high-tech devices that aid and facilitates companies in gathering and managing
information, maintaining contact with their employees globally, making and communicating decisions instantaneously. This can be both
a boon and a source of stress for managers and leaders who must learn to manage their choice and use of these devices. In a global
economy technology can aid in knowledge management

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Find out more

Knowledge Management
Driving forces such as shifts in buyer demographics and preferences; technology, product and market innovation; changes in society,
consumer attitudes and lifestyle all demand new ideas. This has created a need for knowledge workers.

Knowledge workers comprise a company’s intellectual capital and are made up of creative people with novel ideas and problem-solving
skills. Managing its knowledge assets can give a company a competitive edge as it e ectively utilizes the expertise, skills, intellect, and
relationships of members of the organization.

For example, a company’s strategic management e orts can be greatly enhanced when knowledge that is resident in its international
talent pool is tapped at its source, since a manager who is “closer to the ground” and part of the local culture might be better able to
sense environmental changes than one who is not.
 Keeping knowledge workers motivated and incentivized by both intrinsic and extrinsic means will cause organizations to re-think and
change their bene ts and compensation methods and, perhaps, even rede ne the traditional view of the employer-employee
relationship into something new, such as a company-contractor model, for example.

Cross-boundaries Collaboration
An important part of knowledge management is e ectively managing organization-wide collaboration. Use of appropriate technology
and applications such as a virtual private networks; VoIP, e-mail, social networking websites such as Face Book, and even company-
sponsored blogs can facilitate communication between an organization and its stakeholders, and help in di erent types of internal and
external collaborative processes. An example of a tool that can be used in cross-boundaries collaboration might be an easily accessible
online database that provides a central source of information to employees, customers, or suppliers.

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Find out more


Managing in the 21st Century
In the 21st Century change is the norm rather than the exception and leaders must be able to embrace it. They need to be able to
 develop:

 A vision, and be able to communicate it to their organizations

 An orientation to serving

 An entrepreneurial mind-set

 A commitment to continuous innovation

A global mindset

Ease and con dence with technology

Know-how in systems thinking (a broad view of the inter-relationship of an organization’s parts, rather than a narrow view that is
focused on one part or event.)

A sense of ethics and appreciation of spirituality in the workplace

A commitment to continuous learning, personal and professional development

In order to respond e ectively to the four major forces creating change in today’s global economy leaders must be willing to embrace
change; they must be curious and appreciative of the richness and diversity of other cultures. The must be trust-worthy and exible;
and they must have very strong time management, communication, con ict-management, problem-solving and people-skills in order to
e ectively manage these drivers of change.

Human Resource Management: Futuristic Vision

On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard
to its futuristic vision:

1. There should be a properly de ned recruitment policy in the organization that should give its focus on professional aspect and merit
based selection.

2. In every decision-making process there should be given proper weightage to the aspect that employees are involved wherever
possible. It will ultimately lead to sense of team spirit, team-work and inter-team collaboration.

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Find out more

 3. Opportunity and comprehensive framework should be provided for full expression of employees’ talents and manifest potentialities.

4. Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically.

5. For performance appraisal of the employee’s emphasis should be given to 360 degree feedback which is based on the review by
superiors, peers, subordinates as well as self-review.

6. 360 degree feedback will further lead to increased focus on customer services, creating of highly involved workforce, decreased
hierarchies, avoiding discrimination and biases and identifying performance threshold.

7. More emphasis should be given to Total Quality Management. TQM will cover all employees at all levels; it will conform to customer’s
needs and expectations; it will ensure e ective utilization of resources and will lead towards continuous improvement in all spheres and
activities of the organization.

Conclusion
To conclude IHRM should be linked with strategic goals and objectives in order to improve business performance and develop
organizational cultures that foster innovation and exibility. All the above futuristic visions coupled with strategic goals and objectives
should be based on 3 H’s of Heart, Head and Hand i.e., we should feel by Heart, think by Head and implement by Hand.

 / Essays / Business