International Human Resource Management - Assignment Example

1. What are the differences between domestic and international HRM? Both domestic and international human resource management are very alike in many ways. First the main objective of the human resource role is the same in both international and domestic business, to support business strategies and to ensure organizational effectiveness by use of various inventions. Secondly the human resource activities carried out in an international context are same as the ones performed at a domestic level. Such activities include planning, staffing, hiring, maintaining and motivating employees. The environmental forces such as political, cultural, economic dynamics and legal are the same in both domestic and international human resource management. 2. What are the similarities between domestic and international HRM? On the other hand international and domestic human resource management is different in many ways. In domestic human resource management there is no specialized training on socio-cultural adaptation for employees but in international human resource, employees have to undergo a special training in the new socio-cultural environment. Under domestic human resource management challenges are confined to a particular country while in international human resource management, the management faces global challenges such as diplomatic relationships, currency exchange and global economy. In domestic human resource management employees are placed within one national boundary whereas in international human resource management employees work outside their native boundaries. 3. What is the “imperative for coordination” for a multinational enterprise in a global industry, as described by M.E. Porter? Culture stands at the base of peoples’ behavior this therefore generates interest in the field of comparative human resource management. The three socio-cultural dimensions that affect human resource management include power distance which involve the question of how far the status hierarchy and inequality in power exist are accepted in the community and its institutions. Human resource is also affected by uncertainty avoidance. This concerns the extent to which a peoples’ culture programs its people to feel either comfortable or uncomfortable in structured situations. Masculinity, versus femininity which refers to gender based distribution of roles also affects human resource management to a large extent. 4. What two major structuring issues does a multinational face concerning the parent-country headquarters and subsidiaries? In the current times global companies’ imperative coordination is very paramount. According to Michael Porter, multinational enterprises are required to rebalance between configuration and coordination. He asserts that the companies should not now concentrate on economics but on their ability to coordinate with their subsidiaries throughout the value chain with the help of modern technology. Coordination should see more dispersed production facilities and marketing activities. This coordination should be focused on striking a balance between local responsiveness at subsidiary level and the integration of international operations for overcome global competitiveness. 5. In which way do cultural and institutional differences impact the HR integration in M&As and in IJVs? The main structural issue affecting multinational companies is power struggles between the parent country and other international companies. The parent country wishes to hold all the major and top influential positions however less productive or small it may be. This goes further to see to it that heads of foreign subsidiaries are thereby relegated to second-class positions. Standardization of products is very difficult to concur in all international companies. This is because the parent company is taken as the bench mark for all standards which should be followed by other subsidiaries. This brings about conflict especially when the parent company national standards are lower than that of another foreign country whose standards are higher. 6. What are the primary reasons for international assignments? Cultural and institutional differences may have a lot challenges in human resource integration. If top management team is multicultural then it means that different members have different management styles, different cultural expectations and different strategic objectives. This makes it difficult to have a concrete common plan. Too it is difficult to make collaborations, decisions and gaining employee loyalty due to cross cultural differences. It is difficult to manage relationships especially when integrating dualities of practices and rules. Compatibility of the respective partners may prove difficult. 7. Why is it important to measure return on investment of international assignments? Which indicators can be used? The main reasons for international assignments include; position filling especially when there is skills gap or the launch of a new entity. International assignments also help in management development which assists in the development of common corporate values. The other reason is aiding in organizational developments which ensure control of transfers, transfer of competencies and for procedures and practices. It is important to measure return on investment so as to assess the benefits accrued from the venture against its costs. The indicators that are used include; direct costs such as salaries, taxes, repatriation logistics and housing. Administrative costs for running the assignment such as home human resource support, post assignment costs for career tracking. Other indicators may include quantifiable and non-quantifiable assignment objectives. Multinational companies should take into concern the failure of expatriates because the company uses it resources for the project. This will also help in finding the reasons behind the failure. 8. Should multinationals be concerned about expatriate failure? If so, why? 9. And How can multinationals assist dual career couples’ repatriation? Multinational companies have a lot to do when it comes to repatriation of career couples. The company has to help in securing another job, career counseling and resume preparation. Off shoring comes along with a number of problems such as induction crisis where employees’ turnover is highest the first three months more especially due to cultural shock, language barrier and climate inadaptability. For countries like China and India where off shoring is high, they have to give new recruits time to learn the language as well as the new culture. Work Cited Briscoe, Dennis et al. International Human Resource Management: Policies and Practices for Multinational Enterprises (Global HRM). Boston: Routledge Publishers, 2011. Print. Read More