Similarities and differences of Domestic Human Resources and Multinational Human Resource policies and practices - Essay Example

?Discuss the premise that while Domestic Human Resources Policies and Practices and Multinational Human Resource policies and practices have many similarities they have some very important differences. Introduction: Human Resource management holds the backbone of the organization. It is not only limited to the man power handling, rather the handling of manpower’s handling of the tools, processes and techniques within the organization (Cartwright, 2005, 93). The overall structure of organization is pillared against the HRM. HRM may take up the shape of domestic policies in form of handling the manpower and resources or it may be associated with the relationship building and strengthening across the platform that maybe established abroad and away from the parent organization and parent chain network. Understanding the difference between two functional modes of requires defining the generic nature of human resource activities, domain, implications and resources allocation as well as the multinational human resource practices. The two have sparkling resemblance between them on multiple fronts (Stolt, 2010,4), each at the same time, presents a considerably different outlook. Subject to this difference, each demands application of different kind of tools, processes, expertise, teams’ formation, strategies devising and personnel induction. As a whole, each constitutes a totally different and distinctive area of study, research, application and practical performance in the real world business scenario. Objective: The purpose of this paper is to touch upon concepts of human resource management processes, its kinds, the differences between the two kinds, the salient features associated with each of them, accompanied by the challenges, scenarios and circumstances under which each may be applicable. Other objectives desired for extraction from this paper include the aim of understanding how well each can be implemented with regard to the difference or similarity in view and practices of each. Structure of the report: The work break down of the paper is performed in the following steps: The first step would highlight the effectiveness of the HRM in general The next step would incorporate the benefits derived from each in their own domain and capacity The third step would entail the differences between the two The fourth step would comprise of the evaluating assessment The final will provide a conclusion and sum up of overall report and the learning outcome from the entire work. Defining the two concepts: Prior to defining the two major types, it is important understanding and defining the generic manner and purpose for which human resource operations are undertaken. Human resource practices have been in voyage ever since there crept in a realization for the rights of workers and improving the overall working environment that would facilitate more benefits to the organization in terms of profits, customers’ relationship and employees well being (Ehnert, et al., 2013, 119). While each associates to handling and manoeuvring of the manpower and the resources at hand, the two differ with regard to their scope, applicability, resources, practices and outputs desired. These differences may come up in a tangible or intangible manner. Differences between the two modes of Human Resource Management practices: Tangible Differentiating factors: Apart from the scope of each, there are certain specific and tangible differences between the two kinds of human resource practices (Regis, 2008, 163). Multinational practices entail involvement of more than two partners. These partners are most across different set of region and geographical locality. Extent of cluster: The level of subsidiaries between the two icons differ in number with multinational resources involving more complex outlook and more extended subsidized pattern. Geographical consideration: The geographical consideration and factor is of value and distinction between the two forms, for multinational human resource practices, it is vital to understand and implement rules and procedures in coherence with the geographical constraints. Understanding the geographical traits, aptitudes based on these geographical differences, adhering to the requirements all come along as the basic prerequisites of multinational Practices and these may not apply to the domestic HRM practices (SENGUPTA & BHATTACHARYA, 2007, 49). Planning process: The planning process of each is different in its outlook, with domestic HRM requiring relatively less integrated planning process mechanism while Multinational requires bringing along the multiple partners that maybe off shore on to one table, hence more derived form of planning (Harris, et al., 2003, 81). In general concept, planning within the department and premises is easier as compared to cross border and cross cultural human resource management planning procedures. Staffing: Staffing may also require extensive research and in case of multinational HRM processes the element of bias, discrimination must be avoided. Making decisions based on merit is a key to successful HRM practices in multinational environment. Cultural context: Keeping the cultural point in view is one of the most salient differences between the two forms of human resource practices. Domestic HRM do not demand interpreting the difference in cultures. This is based on the fact that individuals hail from one background and society. In case of International Human Resource Management processes different people work together under one banner and organization, these members may have different inclinations, different aptitudes, different working pattern and behaviour, different abilities and cultural co relation to various practices and norms, understanding this and acting and directing the personnel with the view of their culture and their values becomes highly important. The same may not be required in case of domestic pattern as people hail from one background and their overall outfit and mindset is already understood and easy to interpret (Sparrow, et al., 2003, 5). Budget factor: Budget understandably differs between the two due to the scope and resources facilitation factor. The number of employees engaged, the SOPs incorporated all vary between the two (Stahl, et al., 2012,188). Category of workers segregation: In Multinational HRM practices, various categories may be formed, such as the locals, expatriates and foreigners. Expatriates often enjoy extra privileges under the banner of association with the parent company and root. This may not be the case in form of the domestic Human Resource Management operations. Social and political stability factor: More outward expansion means more threats and more chances of vulnerabilities and challenges. Being part of multiple cultures, societies Multinational HRM may be subject to the stability factor of all the member parties and regions where they are operative. In case of domestic HRM, stability factor of merely single society and single political atmosphere is desired and internal stability is subject to the change in one environment. The same stays valid for the investors consideration, their affiliations, partnership, deals and agreements, terms and conditions, all these may be relatively simple in the case of domestic human resource management processes (Harzing & Pinnington, 2010, 418). Legal constraint, contrast and consideration: Legality of the practices comes into force in case of Multinational HRM practices. All these actions, accords and agreements put in place would require the clearance of the legal clauses that are valid in that particular country or state. No supply chain processes nor other exchanges and interchange of goods from across the border may take place without the approval and consonance of the local law. In case of the domestic HRM practices, mere coherence to one single municipal law and its rulings would suffice and allow for transparent and speedy operations and processes undertaking (Beck, 2011, 5). Adherence to the international rules of trade, transit and supply chain also incorporate in the practices of multinational HRM practices, there is no specific need for such rules and consideration in case of domestic HRM practices. Similarities: The two concepts are not world apart, and number of elements involved in each of them bears remarkable similarity with the counterpart method of HRM practices. The aim and objective underpinned in each of these bears resemblance, and it is based on the best utilization of man power and resources. The sole motive and undertaking of actions for the best output derivation is a common point between these two types . Political stability is a must for both forms of practices, it is just the difference in the number of partners and subsequently the number of regions where stability is desired, rest this factor comes in commonality between the two as well. Absence of administrative approval from the local government would halt the overall processes, the same is true for Multinational HRM practices, hence another point that is in common between the two but differ only in the scope and application. Rules of engagement, adhering to the code of conduct, ensuring maximum benefits, working according to the spirit of businesses in professional manner and with consideration of ethics, all these elements are in commonality between the two modes of Human resource practices. The process of planning, staffing, organizing and recruiting all entail nearly equal methods and tools, with only difference in the scope. Summary and closing statement: Global HRM practices are in trend however the domestic HRMs cannot be ruled out and they have their own importance place, organizations dealing in domestic HRM procedures at present end up joining hands with international forces of businesses to engage themselves into larger and global operations in future. Each has its own affectivity, spectrum and desired objectives set forth against it. Both forms of human and resources handling have the sole purpose of the success of the organization, it is the difference in scope and variables that create a separation line between the two forms. Part 2: You are sending a new senior manager and his family to the Middle East on a 24 month secondment with a view to an extension of another 24 months if things go well. Using your knowledge of IHRM theory and practice design and explain a training/induction plan to improve the chances of a successful placement and return to the company. Introduction: Global HRM are fast becoming a trend in the business world as a result of the organizations expansion across multiple stations and countries. The expatriates so sent over are the direct representatives of the organization, thereby giving them the guidelines and knowledge about the nature of their work and responsibilities become highly important. Providing training is a vital part of the overall mission, and without it the expatriates would find it difficult executing their tasks and fulfilling their responsibilities placed against their designation. Purpose of report: The purpose of report is to provide an overview of the global HRM training, provide a platform and information manual to the expatriate who represents the organization, give an overview of the pattern and prerequisites, the kinds of tools, training and techniques that are needed to be incorporated in order to extract maximum benefits from globalized business patterns. Other aims of the paper include providing details and guidance to individuals who may have been sent by the parent organization to serve as expatriate in a foreign land and serving in the utmost professional way and achieving the objectives underpinned by the organization from the task and global HRM practices. Key words: Expatriates, training, reparations, Global HRM. Defining some important concepts: The following terms are associated with the daily activities and task functions of the members sent across to serve as representatives of the given organization. Expatriates are the ones who serve in foreign land as the representative of the parent organization. Though the term’s scope pertains to any individual who may live abroad voluntarily or being employed, but in this case expatriate definition is associated with the individual who works in different country under the program of Global Human resource Management Program. They have their own privileges at the same time number of responsibilities upon them. They often enjoy extra facilities as compared to the locals employed. Their protection and well being falls under the responsibility and jurisdiction of the place where the parent company has expanded and under laid its chain and branch. Training and techniques facilitation entail providing the expatriates the information and guidance about the overall scenario of the foreign land and the industry and businesses operating in. Training may pertain to the social adaptability, the technical training that may be required in that area or manner of professional dealing and interaction that may be needed in that particular area. Training about adhering to the guidelines, the local law of the land and keeping away from any kind of activity and action that may be termed harmful to the organization’s objective and existence must be avoided, and all this falls under the ambit of training the individuals who represent the organization abroad. Reparations: A company or individual working in the capacity of representative of the given organization may be held bound to paying reparations for breaching the law of the land, or damaging the property of the land or any other kind of damages that may count of offense in the legal parameter. The company pays these to either community, individuals, or the government as a form of compensation. Training is divided into different stages and natures, with some relevant to the technical nature of work, other the cultural understanding and other parts of training associated with the global human resource management services application. Pre departure training: This phase entails the familiarity with the task objectives, the cultural familiarity along with the expected norms adherence. Familiarity with the local law, the kind of techniques and expertise to use, how to handle situations and interact with new members, mangers. Language may be a barrier in different regions, and providing a guideline and language training may also make up for the pre departure training. Guiding the family members is also an option considered for the early phase of training. The post arrival training pertains to the family members guidelines and their familiarity with the cross cultural environment in effect of organizational demands and expectations (Dowling, et al., 2008, 139). Adjustment dimensions: Finding correlation and coherence with the different culture requires practical experience; adjustment dimension pertains to the same phenomena. U Curve adjustment is a similar concept (Dash, 2007). From day one and scratch an individual cannot be expected to get acquaintance to the different culture, the time period, resources and training consumed after the arrival makes up for the central theme of the U curve adjustment. The application of U curve theory and hypothesis helps overcoming the element of uncertainty and too many expectations at first which puts extra pressure on the individuals (Crawley, et al., 2013, 90). It also enables the individuals understanding the different phases that the expatriates are usually faced with during their earlier days. Efficient Adjustment can be done via best services delivery, presence of guides and helpers in the foreign land and providing with the kind of tools and techniques which will enable better guiding and working of the expatriates (Schmeisser, et al., 2013, 147). Cross cultural training methods can include the language familiarity development skills, providing them an insight about the dos and don’ts, mores, norms and values of the respective society and community where the individual is being sent. This is important due to the fact that many actions, folkways may be different for different societies and what may be taken as small negligence in one society may be a major offense in the context of other culture’s values mores and folkways book. This training may be done through seminars, through personal interaction, through CDs and lectures or any other method suitable and easy to provide and deliver. Apart from the cultural consideration, the expatriates need to be given an insight into the tasks at hand, the technical nature of the work. This is covered up in the general training part of overall guiding process. Under this type of training, the personnel are familiarized with the philosophy and standing of the organization, the key values, the objectives, goals (small scale to medium and large). Training the mangers and other members of the finance administration may also include guidelines and training imparting over the wise decisions making on the financial front. Making use of the money and other resources in the most desired manner, ensuring no loss or waste of resources, keeping the costs of production low, keeping the inventory to minimum and other basic functions that are associated with the cutting of costs and increasing the throughput make up for the training of how to handle the financial domain in a nicer way. The mandatory training which is part of both domestic HRM and International HRM pertains to the physical well being, health safety, environmental consideration and work place safety considerations. Depending on the nature of job guidelines are provided. For example the hard hat area requires pre measured precautions. Job training strictly pertains to the elementary basics that an individual must know. He should be provided with the basic information such as the nature of work, the working hours, the objectives, the duties, the members introduction and range of team members and groups and other similar functions. One of the other dimensions is the overall evaluation of the training conducted (Briscoe, et al., 2012, 39). This evaluation may be performed in numerous ways. It may either be in form of written tests, verbal assessments or practical demonstrations and post task completion performance evaluation. The importance and benefit of performance evaluation is the scope and margin creation for future productivity and improvement in the overall scenario of the organizational structure and working. Impact of training: Training in general is to give an overview and idea of the plans ahead. Plan is to familiarize and create awareness. During the industry work, an individual is faced with number of challenges and obstacles ranging from decision making to physical health constraint and protection. Training in this regard becomes highly effective allowing pre operational and occurrence protective idea and scheme of action. It is about the process of guiding the members what to do, how to do and when to do against what must be avoided and how it must be avoided. Impact enables working in a defined manner and enables facing any kind of challenge that an individual may be faced with. Summary and Closing statement: Trainings are an essential component of the global Human resource management processes. Without it any mission is bound to fail based on the lack of experience and firsthand knowledge. Training allows equipping one’s self and mind towards the upcoming challenges, new scenarios and new circumstance and this in turn enables successful operations. Investing more in the training domain and providing training on all fronts ranging from technical to non and physical to psychological will help saving a lot of time and money that is otherwise spent on processes that may not yield any substantial output (Perkins & Shortland, 2006). It is the key and secret to the success of productive global HRM strategies and outcomes. All the major organizations that are operating at mass level across multiple countries and continents have training techniques and procedures in practice that allow the accomplishment of goals in the most desired manner. 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