International and Comparative Resource Management - Assignment Example

International and Comparative Resource Management Name Institution Instructor Course Date of Submission International and Comparative Human Resource Management INTRODUCTION OVERVIEW Human resource management represents all the activities assumed by an organization to effectively maximize its human resources. These activities mostly include HR planning, staffing, development, managing staff relations, performance, and compensation among others. The growth in global trade and globalization has amplified firms to enlarge their operations internationally. This has led to the rise of new markets such as India, Latin America, South East as well as china. In addition, it has greatly contributed to the increased competition amongst organizations both at local and international levels (Voronov et al2013, p. 2078).The task of managing international workforce with various cross-cultural skills, demographic physiognomies and competencies has forced managers to drop the traditional human resource management models that were meant for Anglo-Saxon nations. Many organizations underrate the complexities involved in global operations, and there is substantial evidence to propose that business failures in the global arena are as a result of poor management of human resources. As a result, western academics plus the practioners have adopted the study and practice of comparative HRM rather than dwelling on the traditional international issues. In order for one to utilize their capabilities on cross- national management, they should be able to comprehend how personnel in various national setting retort to similar models within their particular roles (Lange 2013, p. 2145). Q1: Describe the differences between domestic, international and comparative HRM Introduction Global human resource management can be termed as human resource management practices, policies and roles that originate from the strategic activities of MNEs. International HRM deals primarily with matters and challenges linked to the globalizations of capitalism. It involves similar elements as those of domestic HRM; however, it is more complex to handle with regard to the international diversity and types of personnel. In other words, IHRM enables the multinational business (MNE) to become highly successful on the international levels. It majorly involves researching, revising and comprehending all human resource activities in their local and global contexts as they execute the processes of managing resources in firms throughout the international market to improve the experience of multiple stakeholders (Briscoe 2013, p. 458). The emphasis lies on the MNCs’ skills to attract, create and deploy talented staffs in a global setting as well as making them work effectively regardless of the differences in language, cultural practices and locations. Multinational HRM often lessens the effect of national culture and domestic employment practices against commercial culture and practice.Comparative HRM is referred to as a systematic process of investigation that often seeks to describe the patterns and distinctions encountered in multinational HRM rather than simply define HRM institutions as well as the practices in various societies. According to studies, numerous national business system results from various historical, cultural as well as institutional custom in certain states. Comparative differences often occur as result of decisive historical actions such as the development of industrialization or following to the heritage of pre-modern practices of social organization. HR management tends to differbetween states as a result of local institutions such as legal support and education (Briscoe 2013, p. 454). On the contrary, Domestic HRM particularly deals with personnel within one state boundary. They are often less involved in broader external influences, risk exposures, and staffs’ personal lives. They are also less exposed to complex HR activities. However, there are some similarities in International HRM and national HRM practices, primarily in sectors such as HR staffing and planning, appraisals and development, employment and selection, reward among others (Briscoe 2013, p. 458). Figure 1 outlines the variables that moderate the variances between Domestic HR and International HR. Q2: Identify and explain the key IHRM challenges and issues (recruitment and selection, performance management, compensation, training and development) faced by MNEs 2.1 Introduction The pressure to create standardized operations globally is more relevant in sectors where competition is greatly globalized and where industries compete based on the production of similar goods or services across nations. Firstly, it is evident that MNCs function in one international market and thus, have to react to the similar environmental pressures such as technology, the development of global trade, globalization and the adoption of global- integrated financial structures. Secondly, the extensive practice of benchmarking in regard to the cost, quality and productivity might also have stimulated convergence of global HRM models such as Japanese style system in early 1980s and 1990s. Finally, the formation as well as development of like-minded worldwide cadres from American or European commercial schools might have greatly contributed to homogenized universal HRM policies and practices (Briscoe 2013, p. 458). 2.3 Recruitment and selection Employees play a significant role in sustaining as well coordinating their respective geographical dispersed operations. However, this is often faced with a number of challenges including resourcing the most appropriate personnel with the right calibre. Conventionally, MNES sent expatriates abroad to monitor and ensurethat the policies and procedures put in place by the parent- organization were being practised as well as to fetch expertise to the domestic staff. Conversely, the great number of expatriates’ failures has led to the MNEs recruiting national to satisfy the global staffing needs. The core reason to explain global assignment failures is the incapability of the expatriate or his family to handle the culture shock. Studies reveal that global enterprises travellers often experience numerous challenges in relation to their personal lives exposing to them to stress. Moreover, changing legislative conditions impacting labour relations intertwined with security concerns have led to the extra cost in employing expatriates at senior administrative positions at subsidiary levels.The benefit of engaging local nationals is that the personnelare quite familiar with the national market, local community, cultural surrounding as well as the local economy. They also tend to speak the same language and are culturally assimilated.Expatriates are often used as general management operatives as well as technical trouble-shooters (Voronov et al., 2013). 2.4 Reward, compensation and performance management The concept of fair pay and reward is a key aspect faced by the MNEs. Performance management often varies among various enterprises depending on the business systems. Harvey et al., (2013) differentiated between vertical cultural settings that accepthierarchs whereas horizontal cultures tend to accept equality. Basically, individualistic cultures tend to have few rules and norms that define appropriate conduct and employees anticipate to be rewarded based on their merits and performance. On the contrary, collectivism is more likely to emerge in societies with diverse rules and regulations defining correct behaviors. In these societies, workers receive rewards based on their seniority, competence and conformity to the organizational standards rather than their professionalism. Moreover, understanding body language is a key aspect for senior expatriate managers especially when issuing feedback. In individualistic societies, it is tolerable for a subordinate to engage in a discussion with his seniors whereas in collectivesocieties, it is highly unacceptable to disagree with your senior.Up- front performance evaluations are more likely to disagree with the society’s norms of togetherness and thus staff might view it a personal affront (Macintosh, 2013). 2.5 Training and development Training and Development is an important factor to enable the workforce to uphold competence and flexibility by developing creative ideas to success in the organization and on the job. Scholars have underlined the significance of national culture in relation to training and development based on the hard and soft approach. Generally, the hard approach views workforce as sheer resource to achieve goals of the enterprise whereas, the soft approach views those valued resources as capable of development. It is evident that the soft approach tends to influence the financial input spent on education and training. German tradition tends to practice soft approach while UK relies on the hard approach. The differences in local training and education systems tend to bring variance in personnel skill and competence profile across different nations (Gabrielle et al 2013, p. 1080). Studies also demonstrate that there are domestic variations in regard to the organization of managerial career development and management. For instance, Japan and France tend to depend on elite recruitments; future mangers are selected based on their exceptional qualifications. On contrast, America promotes self-improvement whereby employees are given a chance to enhance their skills. There are also varying teaching and learning techniques across nations. For instance, Asian regions believe in teamwork working contrast tothe individualist approach of Anglo-Saxon managers. German and Swiss managers promote structured learning environment contrast to Asian regions that are unwilling to share ideas with their mentors due to status differences. Consequently, this inhibits effective training in an organization which results into poor skill development among employees (Minbaeva & Collings 2013, p. 1058). Q3: Factors influencing HRM policy in MNEs Inorder to evaluate the context-specific setting of HRM in various national setting, it important to delineate the key factors and variables that affects HRM policies. These factors are sometimes grouped under expansive concepts such as ‘‘domestic cultures’’ or ‘‘institutions’’ HRM should put in considerations this factors in order to make effective policies (Festing et al 2013, p. 548). The key thrust of the virtual management literature may be largely categorized into four groups. They include; economic development approach, initially developed by Harbison and Meyers in 1959. This approach was basically based on the idea that managerial input depicts a significant role in accomplishing rapid organizational and economic growth. This is relatively a macroeconomic approach, emphasizing on managerial trends and development (Desa & Basu 2013, p. 2175). Secondly, there is economic approach that was initially recommended by Richman and Farmer. It is based on the assumption that external environmental aspects are significant in effective managerial practices. The environmental factors include, economic, educational, socio-cultural and political. However, this approach is greatly criticized for allowing the environmental swarmout thecomparativeanalysis. Thirdly, the behavioral approach argues that management practices plus managerial effectiveness greatly depends on cultural practices such as attitudes, value systems, customs and behavioral patterns. This approach was first proposed by a group of scholars such as Barrett and Bass in 1970. This approach further explains how individual and group behavioral patterns can impact on HRM policy enactment in MNEs. Last but least is the open system approach that describes the relationship between the organization and its environments based on the task, society and the organization. The approach argues that the relationship between the HRM and various factors such as stockholders, employees. Technology and macro environment can influence organizational policies with regard to its context(Minbaeva & Collings 2013, p. 1076). Q4: The role of culture on nationalHRM policies and practices Culture practices are significant in designing and implementing of HRM policies and practices based on both national and individual culturaldifferences. However, this chapter majorly focuses on defining culture and its’ the impact of culture on planning and implementing national HRM policies and practices. Varioussocieties have different cultural practices that reflect their unique traditions, historical experiences, beliefs and attitudes. Therefore, culture is referred to as the acting of the current generation, feeling and representation of history. National cultural beliefs and values often affect managerial processes and industrial practices which later determine its economic performances (Desa & Basu 2013, p. 2175). Beliefs, customs, policies and practices are the basis of organizational cultural practices. In addition, clients, employees and participants are also significant aspects when defining culture. Therefore, there is a strong link between organizational and environmental culture, and that one cannot do without the other. This process of clarification depicts various sources of cultural impacts on the design and implementation of national HRM policies and practices (Gurkov & Settles 2013, p. 234). First, national culture often defines its people to act in certain way. People with managerial responsibilities in a given culture tend to socialize along parallelvalues and beliefs. As a result, they hold similar opinions regarding the managerial role and its significance in making relevant alternative organization practices. Second, the persistent character of culture helps to continually mingle new generations of workforce and strengthen the key cultural values and beliefs. This in turn highly affects the subjectivity of individuals in choosing specific HRM policies and practices as well as the extent to which these policies will function in relation to the cultural system (Gurkov & Settles 2013, p. 234). Third, according to the social cognition theory, one’s cognition is often depended on individual’s cultural background. Culture might impact the way people select, interpret and validate information from their surroundings. It is a significant determinant in one’s ability to handle challenges in regard to employee management.Cultural frames tend to aid the HRM in designing and implementing particular policies in a given socio- cultural context. Through this, they are able to evaluate impartial policies and criteria that shape people’s view on the organization policies on compensation, appraisals, promotion and employment (Gurkov & Settles2013, p. 234). Fourth, culture is known to have great impact on the development of social institutions that consequently offer value frameworks for people found in the specific socio-cultural settings. These help individuals to identify the acceptable behaviors and sentiments in regard to organization policies. For instance, culture might incorporate idiosyncratic social elites. The presence of such groups might enhance the implementation of HRM policies that are politically and socially unacceptable. Generally, the relationship between culture and organizations is often reciprocal (Minbaev & Collings2013, p. 1073). Q5: Institutional impact on HRM policies Authority for HRM policy is often centralized in most OECD nations. Moreover, designing and implementation of these policies is currently decentralized. However, the scope and level of decentralization tend to vary from one state to another. Furthermore, many OECDcountries have adopted the idea of entrusting responsibility for HRM departments. As a result, managers enjoy more freedomand flexibility in work. For instance, in America, the policy authority of the Public Service HRM is often controlled by the Office Of personnelManagement (OPM). However, in recent time, the Office of BudgetManagement (OBM) has been exerting substantial influence on the policy authority. From the table, it evident to note that HRM system can lie with the Ministry of Finance or other service ministries depending on specific national culture (Voronov et al 2013, p. 1450). HRM Ministry/Agency Location in the central government State examples Single Ministry /Agency Public Service/Management Australia, Germany, France, Austria, US, Norway Single Ministry/Agency Finance Finland, Spain, Denmark and Portugal Single political location Prime Minister/cabinet Mexico, UK, Czech Republic, Slovak republic, and Poland Fragmentation of Authority US, Canada, Ireland, Japan and Korea No central Ministry/Agency Belgium, Sweden Q6: Neo-liberalist, Marxist perspective and neo-corporatist 6.1 Introduction Current controversies in relation to the globalization and the way through which economic systems should be ordered, are often based on three major ideologies, namely, neo-liberalism, Marxism and Neo-corporatism. They majorly focus on the structuring of economic and social orders (Voronov et al 2013, p. 1452). First, neo-liberalism stresses on the potency and desirability linked to the market forces in regard to resource distribution and prompting economic efficiency and wealth. This ideology argues that essentially, policy makers should ensure that all economic organizations remain deregulated. It further explains that the nation grant freedom to the primary economic actors to ensure that they perform their job without any constraints. This doctrine has been adopted by various agencies such as the Universal Monetary fund and the World Bank.Examples of the neo-liberal measures include, control of organized labor, deregulation of economies, tax cuts, liberalization of trade and privatization of public businesses among others (Voronov et al 2013, p. 1452). 6.2 Marxism Marxism philosophy is fundamentally critical on the modes of capital accumulation linked to market economies. The socialists argued that the nation will always work in the favor of the upper economic class, and thus supports ‘capital’. It states that unequal power relations in organization are often linked to the institutional arraignments such as health, education and housing. It strongly holds that insecurity and joblessness is an integral aspect of capitalist systems that enables the employers in enhancing their work, especially among those who dread redundancy (Smaleet al 2013, p. 345). Marxism doctrine was able to outline the following; The core divisions of power for instance, those that influence the differential economic equalities of men and women The key drive of modern advancement is the enlargement of capitalistic economic mechanism. Modern society is faced with class inequalities, which is essential to their nature. 6.3 Neo-corporatism This envisages that the active task of the nation is to mediate and incorporate the major interests of several powerful societal groupings, principally which hold the labor and capital. Presumably, it states that market pressures often result into unpredictable outcomes. Consequently, this ideology advocates that market orientation must be tempered by social responsiveness of market outcome which is majorly instigated through decisions made by the key societal actors. Neo-corporatist holdsa number of measures including; substantial high taxation Consensus decision making High rates of social expenditures Constructive connection of trade unions among others Notably, neo-corporatist is greatly influential in European regions especially in nations as such as Germany, Netherlands and Scandinavia (Smaleet al2013, p. 345). 7.0 Hofstede’s study This study was conducted between 1968 and 1972 and was basically based on attitude survey of two companies. It involved116000 IBMstaff as the study target group. Hofstede study is highly influential with regard to culture in global enterprising. Hofstede outlined factors influencingcross-national cultures on HRM. Hofstede stated that power distance outlined the degree to which members in a society are willing to embrace the existing hierarchical power structure. He also pointed out that uncertainty avoidance is often linked to the extent to which people in a society are willing to withstand ambiguity and risk. In risk-averse states, institutional arrangement is often enacted to intercede the intimidation of uncertainty and ambiguity. As a result, rulemaking and bureaucracy is often a common aspect of working life in these states. In Italy, France, and Europe are examples of risk-averse states whereas, Britain and Sweden are comparatively inclined towards risk. Mediterranean and Latin American are highly inclined on uncertainty avoidance (Briscoe, 2013). 7.1 Individualism versus collectivism According to Hofstede, individualism is majorly practiced among societies in which everyone only thinks about their wellbeing rather than the wellbeing of a society. On contrast, collectivistic societies tend to share responsibilities and loyalties. Hofstede argues that, societies tend to become more individualistic as they economically advance. However, modern policies often derives from individualistic societies thus becomes less useful in collectivistic and developing countries. 7.2 Masculine versus Femininity This depicts on the extent to which female and males vary in their incomes. Stereotypically, male are often believed to earn better income that their female counterparts especially in masculine societies such as Japan, Latin nations and Austria. On the contrary, female are believed to poses good interpersonal relations, consensus orientation, nurturing and sharing than females (Baruch et al.,2013). 7.3 Long term versus short term orientation Long term thinking emphasizes virtues such as perseverance, persistence and consistency with organization creating strategic plans over a period time. On the hand, short-term thinking is often associated with prompt results. It pushes the workers and businesses to demonstrate immediate achievements. Hofstede’s study highlights the importance of culture in the global commercial circles and has been used in defining managerial behaviors across various boundaries. 8. Conclusion HRM is a key aspect in organization. Increased enterprise globalization as well as intense competition among the local and global organization has led to the necessity for comparative HRM. Historical evolution, cultural norms and social institutions can greatly influence an organizations’ behavior, especially the HRM. The managerial heritage often makes an institution to adopt certain structure and behaviors. Consequently, HRM involves individuals managing policies, activities as well as the practices that enables organizations effectively compete against their rivals. It also includes the many existing forces such a new technology, social concerns and the new competitors. Bibliography Baruch Y., Dickmann M., Altman Y., & Bournois F. 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