Global HRM concept-Planning-International human resource management
Human
resource planning from international human resource management point of view is
rather difficult and complex compare to that of domestic human resource
management. This is due to the fact that international human resource planning
should consider a number of additional issues like language culture spouse and
family adaptability in addition to job skills talent & knowledge
requirement.
MNC’s had to
consider not only the current job and country requirement but also the future
assignment in various other countries where the MNC is currently operating and
or propose to operate in future. In addition MNC’s should also consider the
possible alliances like joint venture mergers and amalgamations where human
element is also a pivotal factor, in their human resource planning. Thus the
human resource demand requires of MNC’s are complex and consequently the human
resource planning process of MNC’s is rather critical.
In addition
forecasting the supply of human resource is international market is also
critical compared to domestic labor market due to the problems in collection of
human resource data across the world. For example, Indians work in the USA as
software professional and medical doctor while various foreigners include
American have preferred in India.
Issues in supply of international human resources:
Online facilities aging population
young populations
enlarged diversity
recent
Demographic
Development
Availability of
educational facility
Data supply
of international human resource
labor supply trends
Migration &
immigration
Issues
brain
drain
Retention challenges of labor supply labor career
Mgt & older 2000’s & off shore
arrangements productivity orientation
Availability of data:
International
and national agencies and bodies provide the needed data for international
human resources planning availability of data. Category wise classification
wise, experience wise, skill-wise and family details-wise would help MNCs to
plan for their human resources as well as source the people.
Various
research organization govt. dept and professional organizations provide such
data at national level and supply the same to the international agencies like
ILO united national organization. International bank for reconstruction and
development and private consultancy organizations which in turn consolidate and
process such data and make them available to various MNC’s and domestic
companies that are in need of international human resources.
Aging population and labor shortage:
Aging
population has been increasing in many advanced countries as well as in some
developing countries. Population aging is constituted be a shift in the
distribution of a country’s population towards greater ages.
Labor supply trends:
The baby
bust did not and will not cause labor shortage. But the growth of labor force
after 2010 would be less than that of 1990’s. how ever the mobility of labor
force various developing countries to advanced countries particularly USA the
UK and Australia which are effected by baby boom.
Recent demographic developments:
The
significant development during 1970’s and 1990’s was entry of baby boom workers
into the labor market. May worker & could not find jobs during this period.
Labor productivity:
surplus of labor and job cute:-
The growth
of world economic of a faster rate due to globalization strikes in technology.
Particularly in information technology and significant growth in demand for
products and services consequent upon rise in income.
Labor supply and off shore arrangements:
The off
shore arrangements would enable the domestic business to make use of the
domestic labor for higher level jobs. Employee without such skills would
experience unemployment and or be absorbed in low wage jobs and happened
recently in the UK and the USA due to the out sourcing of certain operations in
INDIA and other countries.
Challenges of 2000’s
The trends
of HRM during the second half of the 1900 were stability of employement surplus
human resources and more or less constant skill requirements. Therefore human
resource managers face fewer challenges in recruitment selection and training.
Retention mgt and older workers:
Two major
issues were indicated in the earlier discussion competencies and abilities of
the older worker to work beyond 60 years of age and attention management of
companies due to scarcity of competent human resources one may argue that the
companies can think of retaining the older workers.
Young population:
Most of the
advanced countries like USA, Germany and Japan are faced with the problem of
aged population. Nearly 30% of their population is over the age of 60 causing
that talent shortage. This situation would remain until 2050. Therefore these
countries have to source that human resource from other countries.
Engaged culture diversity:
As discussed
in earlier, employing foreign national & form different countries result in
enlarged culture diverse as employees are drawn from different nations age
groups gender people belong to disadvantaged groups and advantaged groups
educational background religious and different marital and family status.
Migration and immigration issues:
Attracting
international human resources need MNC’s to deal with migration and immigration
issues in fact people across the world migrate to other countries due to
various pushing and pulling factors .Pushing factors include lack of suitable
job at the home country inappropriate
government policies lack of
proper educational facilities at the home country like pulling factors include
attractive job in foreign countries stable political environment wider opportunities
for merit ,talent , performance, business opportunities in foreign countries and the like. In fact,
the recent phase of globalization aims at free movement of human resources
across the countries.
Brain drain :
The
mobility of labor force from developing countries to advanced countries results
in ‘brain drain’ in former for example ,
government of India invest about Rs .3 million in each medical graduate who
studied in government colleges/aided colleges/universities .But such human capital is used by advanced countries by
higher salaries.
Fast Growing Educational facilities:
Educational
facilities have been growing fast along with globalization and also due to the
fact that education is no more treated as a pure free service.
Growth in career orientation:
Youth inmost of the countries
particularly in the fast growing economies like china and India have started
concentrating on the career rather than other aspects of life like leisure
,rest and enjoyment.In addition the career orientation has shifted from the
domestic career to international career.
On-line Facilities:
The wide spread growth on-line
facilities enabled various organizations to provide information to the needy
with in no time. Therefore information on international job and career opportunities
are now available for the aspirants.
Implications:
So
far we have discussed the macro aspects of HRP. These macro aspects provide of
HR supply in international business .The other vital factor of HRP is the
demand side. The demand aspects of HRP comes from future human resources
requirements of multinational companies and future requirements of foreigners
of domestic organizations.
Training:
In
addition to cross culture training ,TNC’s also provide training in technical
and functional aspects of the job through mostly expatriate possess them .This
is mostly due to the changing technology as wells shifting job priorities ,job description,
specification ,team specifications and varying systems and procedures in
subsidiaries and head quarters.
Areas of Global Training and Development:
(Or)
Different types of Training and Development:
a) Technical training : Most of the MNCs select the expatriates mostly based
on the technical skill background to perform the new job successfully.
b)Functional training: expatriates are
employed in functional jobs like accountants lawyers, lecturers, professors
production specialize managers and sales personnel whenever and where ever an
wherever there is shortage for such professions expatriate normally posses
required functional skills before journey the MNC.
Types of training and development areas:
Team training mgt development technical training functional training
Strategic mgt skill areas of global training on job training
Pre-departure training expatriate
Soft
skill
cross-culture training global mind set training language
Strategic mgt skills training:
MNCs
prefer expatriates for strategic level positions in view of their exceptional
skills initially. MNCs aim at developing the host country nationals even for
strategic mgt positions, in due course .strategic managers are core and
critical managers of MNCs and they are viewed critical strategic assets of the organization .
Human Relations /Soft Skills Training:
Human relations skills or
soft skills refer mostly to interpersonal skills like interpersonal
communication, leadership skills, motivating skills , commitment skills,
transactional analysis , team building and skills of working in teams , emotional balance skills , skills of
influencing others , social skills and the like.
Cross-culture training:
Cross
culture training is most significant and critical one among the areas of global
training. MNC’s follow different approaches to train expatriate nationals of
the subsidiaries and employee of joint venture partners.
Process of cross-cultural training:
MNC’s follow
detailed process in cross-cultural training due to its vitality in global human
resource management.
The process of cross-culture training include.
●
Analysis
of organizational requirements
●
Analysis
of individual employees culture analysis
of employees culture
●
Analysis
of employee assignment
●
Crafting
cross-culture training goals
●
Designing
cross culture training
●
Deliver
the program
●
Evaluate
the program
Language training:
Language
plays a predominant role in international business. Through ‘English’ language
is widely used in international business transactions most of the stakeholders
like customers marketing intermediaries may not communicate in ‘English’
language.
Global mind-set training:
Global
mind-set is the ability to scan the world from a broad perspective. Always
looking for unexpected trends and opportunities that may constitute a threat or
an opportunity to achieve personal professional and organizational objectives.
●
Conduct
of conferences and annual events for cultural adoption
●
Exchange
of employees among subsidiaries and head quarters on short-term basis.
Pre-departure training:
It is
provided to the selected candidates for jobs/new employees and to the existing
employees who are assigned a job in other countries. This training is provided
at the country where the candidate currently lives or in other nearby country
other than the future place of work.
Importance of training and development for global jobs:
●
Improved
job knowledge and skills at all levels of the organization.
●
Improved
morale of the human resources
●
Improved
relationship between boss and subordinate
●
Improved
understanding of culture of various countries
●
Improved
profitability and/or positive attitudes
towards profit orientation.
Performance appraisal:
Performance
of the employee is normally appraised by the immediate superior in case of a
domestic company. It is rather difficult to identify the immediate superior of
a foreign employee working in a host company as the host company managers as
well as parent company manager supervise the foreign employee.
System of performance appraisal:
Performance
appraisal for international employees is a 14-step process.
1. Establish performance standards based
on job description job-specifications, cultural requirements and adoptability
to foreign environments.
2. Communicate standards / expectations
to employees as well as evaluators.
3. Deciding upon the performance
appraisal formal
4. Measuring actual performance
5. Frequency of appraisal
6. Adjust actual performance due to
environmental influence
7. Compare the adjusted performance with
that of others and previous.
8. Compare the actual performance with
standards and find out deviations
9. Feedback to the appose
10. Suggest changes in job analysis and
standards
11. Consider the appraisal results for
contract renewal and promotion
12. Plan for employee training and
development
Problems of performance appraisal:
●
content
bias
●
ineffective
raters
●
the
regency effect
●
distant
work places
●
appraisal
forms
●
failure
of the superiors in conducting appraisal interview
●
use
of performance data
how to make performance appraised effective:
●
reliability
and validity
●
appraisal
should be relevant
●
customization
of appraisal forms
●
consensus
of the appraisal and apprise
●
open
and continuous communication
●
sensitive
to ground relations
●
approaches
access to results
●
rater’s
knowledge of the apprise
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