I-HRM & Performance Management and Strategic Management - Assignment Example

?I-HRM & Performance Management and Strategic Management: Page: List Introduction: The need: They dynamic nature of I-HRM: Literature Review: Strategic management models: Performance Management: Communication: Performance management and motivation: Strategic Management: Expatriate factor: Recruitment Factor: Site Factor: Conclusion: References: Abstract: Human resource management is an integral part of any organization’s frame work, regardless of its domestic or global patterns. However its importance becomes multi fold in global scenario due to the variable and dynamic nature of market. Success in IHRMs is akin to success of overall operational activity undertaken. Introduction: Organizations are a collection of different individuals and different processes that are grouped together into one unit in form of larger entity. Each of these has a clear role defined and responsibility assigned to them. Without the clear definition of the roles, the processes cannot excel. A special domain is in place that ensures that all these personnel are adjusted according to the requirement, and according to their skill and abilities. This is covered in the domain of Human Resource management. Assigning the right kind of role to the right kind of person in the right manner. The scope of HRM is quite a broad one and it entails almost all the activities of the personnel involved (Ristow, et al. 2009). No organization can survive without the presence of apt Human resource management. Human resource management may exist in various forms. It can be of local level and/ or international level. The International human resource management is applicable in cases when the organization performs its activities and provides its services off shore and across the border. Like the domestic human resource management, IHRM is subject to the compliance of structures like performance management and strategic management. While each society has its own characteristic ways and patterns, and as a result of this, the individuals go about different functions in a different manner, it becomes imperative to adjust and accommodate these individuals and these functions according to their inspirations and in result yield the best deal out of the scenario and situation. They dynamic nature of I-HRM: Human resource management in the international context is the most dynamic concept since these trends vary from society to society, and country to country. While the basic concepts of human resource management remain the same, which are based on the basic principles of ensuring that the right kind of person is employed and inducted in the right place, yet in global context, the culture, the overall aptitude, the global patterns, the governmental factors and considerations also must be taken into account (Haris, et al. 2003). In the global scenario, the IHRM aims at creating a correlation between the nature of work and nature of people. Since a totally different culture and society is involved thereby variations are bound and adjustments ought to be made in accordance. The need: The need for human resource management in international scenario becomes more important than ever because different aptitudes, difference surroundings, and different variables are involved. In domestic domains, the natures and aptitudes can be easily comprehended, but in international scenario, the trends and patterns are totally different based on different set of values, cultural norms, folkways, in such cases, understanding the human resource functions is an indispensible concept and it serves as the backbone towards the organizational success. Mishandling and it could lead to the overall failure of the organizational venture undertaken on international shores (MacCourt 2003). Literature Review: The early 19th century and middle 20th century has seen massive change in the manner in which businesses were being conducted earlier (Shuman & Twombly 2001 19). The global trends have prevailed since then with every individual and every organization in touch with international players and entities. As a result of this transformation, the concept of globalization and multinational business ventures has become quite a common concept and organizations employ international human resource management infrastructure in order to facilitate global trends and demands. Different models of performance management and strategic management can be implemented with regard to the aim of extracting the best output from the international human resource management function in a given scenario. These models provide details and guidelines about the kind of models and kind of technique and strategy that must be adopted. While the overall nature of business and international operations are subjective depending upon the kind of situation, kind of ambiance and kind of situation, thereby different performance management models can be incorporated. In some cases a stick and carrot approach (Goel 2008 94) may be adopted, while in other cases, participative approach may be adopted, some may make use of totally hierarchical or authoritative form of model for practices where the supremacy is being felt and expressed against the locals. Other different concepts relevant to the approaches of human resources with regard to international businesses include the type of approach undertaken. It can be ethnocentric approach, Regiocentric or possibly geocentric approach. Each has its own characteristics and requirements and each is aimed at adopting a best policy towards better operations in international scenario. Strategic management models: Different strategic models can be adopted and incorporated during the International human resource management (Kossowski 2007). These models can be in form of a extended chart or possibly a relationship diagram. For example the model may include the environmental factor, creation of new goals and objectives, definition of aims, roles assignment, the stakeholders’ factor. Ethnocentric approach(Paul 2008, 9) entails major decision making authority with the parent organization, and the sub branches and the units that are spread far and wide are in coordination with the parent entity and have to seek their approval before any major decision making. Polycentric approach (Peng 2008, 439) in contrast is one where the expanded unit and the unit that is in practice outside enjoys considerable leverage and can make decisions based on their capacity and knowledge of the local environment. They are relatively less dependent on the parent firm for the decision makings and approvals of major entities. Regio centric approach in contrast is a mix of two that incorporate bit of both with possible hiring and assigning of major roles and responsibilities to the locals based on the requirement and need. The critiques of this approach are of the opinion that cultural consideration can be a hurdle and issue in this area thereby it cannot be practiced and adopted effectively. These are the basic concepts of international businesses and any of these is being adopted in order to facilitate maximum output. The need is further personified by the fact that global market has global challenges and global patterns; it entails advanced techniques, advanced methodologies, advanced functions and tools and techniques, thereby requiring a more transparent and more vigorous scheme of action that would enable operating according to the needs of global scenario. Performance management: Performance management is an equally important domain and is integral part of the organizational structure. The demand for performance management becomes more louder in international scenario since more challenges and more openings are attached to the kind of work that is on demand in international domain (Bericos, et al. 2012). Performance management is not just about ensuring the uniform activities, rather adapting the functions and setting the patterns according to the demands of clients. To adhere to the demands of customers, demands of the market, demands relevant to the technological tools and techniques and other basic components is also a measure and consideration that should be taken into account while dealing with the domain of performance management. Performance management in international scenarios pertains to adjusting the members according to the demand of the organization (Vance, et al. 2011). Since the organization in place is an alien one to the locals, in the same context the local members are aliens to the organization, creating a communication link between the two is desired. This communication link can be established either through training, guidance, direction, motivation or any other function. Communication: The importance of communication cannot be ignored in any scenarios that involve two or more members or two or more functional units. In an international scenario of business operations, the need for effective communication becomes absolutely important since it is a source of bridge between the various functions. Performance management and motivation: Human mind and nature is subject to the affinity of perpetuation and motivation. In such cases, motivation in an organizational scenario becomes valuable towards yielding better outputs from the organization. Various modes of motivation can be adopted. They can be either verbal, communicative, monetary reward based or possibly promotion based reward (Armstrong 2007). Reward and appraisal concept: An important concept of performance management is that of reward system. Reward serves for motivation and inspiration in the employees, enable them working with extra zeal and zest and further enable them thinking out of the box. Performance management also involves encouraging more participation, more active role in decision making, and allowing them to take calculated risks and challenges which can enable gaining benefits. Different forms of rewards system can be adopted, they can be either short term, midterm or long term reward based motivation. Coaching and guidance is another important factor that must be taken into account while dealing with the performance management. Training and providing guidance in the due manner can improve the overall productivity of the operation at hand at the same time, enable for better outputs and better working performance from the members involved in the organization. This coaching and training can be either in form of formal procedures or possibly informal procedures. Formal procedures involve vigorous training and workshops, while informal may involve word of advice, in briefing guidelines, in work direction and other smaller steps that are not prominently visible otherwise. Performance management entails understanding of the essential functions of communication. This communication can be in form of the language barrier removal, the technical knowledge, the tools and techniques familiarity, the comprehension of the manifesto of the organization or any other element which needs clear instructions and understanding on behalf of the organization towards the personnel involved. Hiring the right kind of person has always been of high importance to every organization, it becomes the pivot towards the future growth and success of organization in the global context since global scenario is a more demanding one and at the same time more fruitful if it is handled accordingly. The success or failure of any international venture undertaken would largely depend on the kind of performance management function and services that are being performed. Expatriates factors: Strategic management also include taking into account the expatriates. Difference scenarios may prevail when it comes to the expatriates factor, at times they can come in handy over the locals based on the knowledge and understanding of the core objectives of the company, along with any other language obstacle and barrier which may be experienced in case of the locals, while in other cases they may have a negative impact with regard to financial factor, since the locals are always easy to afford on financial terms in comparison to the locals who are relatively cheaper to afford since the local labour is always easy to handle in the pecuniary context(Aswathappa 2010 ,650). Strategic Management in the light of Human Resource Management: Strategic management is an integral part of both domestic HRM and I-HRM. It enables devising a strategy that is based on effective functioning. The strategy is a holistic one which takes into account all the essential components of the that would have an impact on the organizational output. Strategic management is perhaps the broader area in an organizational structure, and it also entails making decisions about the kind of partners and the kind of places that should be chosen for sites. The legal domain: Legal domain consideration and adaption is also an integral part to understanding the global human resource management function. Equipping the team and members according to the law of land, and thereby ensuring that no action or activity is performed against the laws of land, for this purpose presence of legal team and legal panel is important in the international human resource management unit(Muller 2009). The site selection: The site selection is a strategic decision that has a direct negative or positive impact on the organizational functions and activities. Choosing a place that is near to the resources available and is near to the workers, and other basic facilities will pay dividends and have direct positive impacts (Gutterman 2011), however if a decision is taken based on low or no consideration of the site with regard to the facilities and comfort and accommodation of the employees, in such cases the decision so taken would be termed as a poor one that has not been taken in due consideration of site. Thereby strategic management also entail ensuring that the right kind of site is being chosen and all the basic pre requisites are being completed and taken into account before a physical position is being selected. Strategic management also varies from domestic operations to international operations. In the former case the strategies may not take into account the factors such as cultural consideration and expanded international supply chain network, but in case of international HRM, the factors of cultural context and aptitude are of high importance and thereby make up for the part of strategic functioning in a given organization. Strategic management as an agent of competitive advantage: Research has shown that strategic policies are point of critical importance and serve for competitive advantage against the rivals. Strategic importance in general terms is equipping the company to the need, demand, circumstances, and situation. This can be in form of the processes, the tools, the decisions, policies, or the personnel induction (Singh 2008). Strategic management and global supply chains: With global practices, come along global supply chain, meaning more number of entities, more partners, more stakeholders; and as a result faster operations and demand for rapid and more effective decisions. This can be done and managed through effective strategic management team and strategic management functions in place (Schary & Kotzab 2007). Strategic management and political considerations: Considering the local ambiance with regard to the political environment and investors friendly trends is another area that is brought into consideration in the international Human resource management function. Observing the government’s policies towards foreign investors, the overall stability in terms of safety to the members, any other safety and security concerns, the environmental issues all these are taken into account under the domain of strategic management. Recruitment factor: The performance management and strategic management have an item in common and that is of recruitment, while the later and in job performance is relevant strictly to the performance management, the recruitment and earlier procedures are in the frame of strategic decision making and performance management simultaneously. Since an individual hired will have direct impact on the later on proceedings and output of the organization thereby the decision regarding hiring is and should be taken in consonance of the both entities (strategic decision and performance decision based factor). Conclusion: International human resource management is a daunting and challenging task, however it can be assailed through the effective improvisation of the strategic and performance management based strategies. International Human Resource management is a challenge and an opportunity at the same time and require proper consideration. These two provide for foundation of better execution in an environment outside the parent organization and thereby makes it possible. References: Armstrong, M., 2007. A handbook of employee reward management and practice. s.l.:Kogan Page Publishers. Aswathappa, K., 2010. International Business. 4th ed. New Delhi: Tata McGraw-Hill Education. Bericos, D., Schuler, R. & Tarique, I., 2012. International Human Resource Management. 4th ed. s.l.:Routledge. Goel, D., 2008. Performance Appraisal And Compensation Management: A Modern Approach. NEw Delhi: PHI Learning Pvt. Ltd. Gutterman, A. S., 2011. A Short Course in International Business Plans. 3rd ed. s.l.:World Trade Press. Haris, H., Brewster, C. & Sparrow, P., 2003. International Human Resource Management. 2nd ed. s.l.:CIPD Publishing. Kossowski, A., 2007. STRATEGIC MANAGEMENT: PORTER'S MODEL OF GENERIC CO. s.l.:GRIN Verlag. MacCourt, W., 2003. 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