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International Human Resource Mnaagemnt - Examination - Essay Example

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International Human Resource Management- examination Table of Contents Question 2: 3 Question 3: 5 Reference 7 Question 2: Discuss the extent to which incentive based pay systems can be used to improve productivity in Asian subsidiaries of multinational companies…
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International Human Resource Mnaagemnt - Examination
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Download file to see previous pages Moreover an important factor which causes low productivity of labor in developing nations is because they suffer from low motivation. The concept of motivation is linked to capacity and must be addressed and analyzed in all capacity levels, i.e., individual level, organization and enabling environment. Measures of incentives, like salaries, intangible rewards, secondary benefits, recognitions and sanctions are some of the conventional ways of motivating employees for increasing their performance (UNDP, 2006, p.5). Because developing nations are characterized by high supply of labor and excess competition in the labor market, an incentive system based on performance generally results in improved performance on the part of the employees through instigating motivation. Because of the high rates of unemployment in the nations, even the slightest of incentives results in employees delivering the best of their capacities to perform their jobs. In such a condition it is recommended that multinational organizations having subsidiaries in the developing nations incorporate incentive based system of pay for motivating employees and recognizing their efforts. There are certain cultural aspects that are common among developing nations. They are seen to demonstrate high collectivism which shows their affinity to remain and operate in groups. There is high degree of integration among the people in society which reflects through the organizations as well. Organizations can employ team work and group activities which employees are more comfortable with. However, such team activities generally undermine the individual efforts which might go unrecognized. This is the reason why an incentive based pay system must be incorporated in organizations in developing nations. Along with the group performance, such a pay system helps to recognize individual performance as well, such as none of the individual efforts go unrecognized. Also the intangible incentives like rewards; recognition plays a major role in motivating the employees. Since remuneration remains low in developing nations, cash awards are given major value in these nations. Some of the non financial incentives like rewards, gifts and travel also provide added stimulus to the motivation level of employees in developing nations. Some of the less tangible incentives which work for the developing nations are independence of working, work flexibility, career advancement possibilities, work recognition etc. Also an incentive necessarily means that the fixed salary of the employee is not dependant on the performance of employees. This provides a sense of security for the employees who can then perform their jobs without anxieties. It is important that a certain amount of the employees’ remuneration must be independent of performance while the remaining part can be performance based. This is especially applicable for the developing nations where the remuneration of employees generally remains low (Jain & Narayan, 2010, p.7). Question 3: Analyze the ethical dilemmas associated with human resources management in developing countries. Answer: Because of the volatile and fluctuating economic and political conditions in the developing nation’s organizations face difficulty in making long term plans. Also there are state dependencies with regards to policy and financial issues. Also there are frequent changes in government rules and regulations because of which multinational organizations are confronted with ...Download file to see next pagesRead More
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