Ivythesis Samples

Our Services Frequently Asked Questions Pricing Free Services


Click if you're in
Hong Kong


 

     

We solve your Problems
The safest & convenient way to ease your academic burden.

Hotline :
Vic Fabe is in Hong Kong
+852 9482 9997
ivythesis@gmail.com 

   

 

 

Ivythesis is a leading provider of writing services.

We can help you with your essays, dissertations, thesis or any writing assignment.

All you need to do is email us at  ivythesis@gmail.com

Our standard return time is 3 working days. Order today

Why wait?

Feedbacks we receive

 



 

 

What are the main drivers behind the HRM policy of multinational corporations, how is this policy linked with other strategies and how do such companies operate with regard to expatriates and international HRM in general?

 

Human Resource Management

 

 

Human resource management (HRM) comprises the entire gamut of knowledge and practices that describes the nature of work and regulates employment relations (Bratton & Gold 2000). HRM is also an approach geared towards the achievement of organisational goals by directing the organisation systems so that human resources and talents are utilised efficiently and effectively (Mathis & Jackson 2006). HRM is most considered as a generic term that covers the entirety of a work-based organization, working terms and conditions, and representational systems (Boyd 2003). HRM covers the five functional activity areas, which are: 1) staffing—getting people with the appropriate knowledge, skills and experience to work in vacant positions in the organisation with the entire processes broken down into HR planning, job analysis, recruitment, selection; 2) rewards—development and implementation of reward systems covering work evaluation, performance appraisal, benefits; 3) employee development—analysis of training requirements by identifying the skills and capabilities of employees; 4) employee maintenance— administering and monitoring of work standards and organisational policies to develop a competent workforce; and 5) change and relationship management—monitoring employment relationship issues and adjusting to changes. (Bratton & Gold 2000) Human resource management covers the knowledge and experience, approach, and process involved in establishing, developing and maintaining the relationship between the company and its human resources based on the premise that the members of the businesses organization are valuable contributors to the achievement of the goals of the company.

Human resource management, on the domestic level, is an inevitable aspect of organisational management because of the shift in the characteristics of personnel needs of organizations. Employment requirements are now shifting towards knowledge-based work requiring highly qualified and skilled people. Due to this reason, management of valuable human resources becomes the driving force for most industries. Based on labour economics, this trend implies that the limited number of highly qualified and skilled people empowers them to choose the organization where they want to be employed. This further implies that organizations have to develop and implement human resource management strategies that are not only appropriate to the organization but also competitive relative to other organizations requiring the same level of skills and experience. Thus, on the organisational level, the primary driver of human resource management policies is its human resource needs.   

International Human Resource Management

On the global level, the internationalization of operations results to the addition of HRM policy drivers involving the processes of locating, sourcing and managing human resources in different parts of the world that involve the consideration of the needs of the organisation together with the environmental influences of the external socio-cultural settings. However, despite the recognition of the importance of considering these drivers in international human resource management policies, the effective integration of these drivers in the HRM policies of multinational corporations remains nil. According to Lewin and Volberda (2003), the globalisation of HRM by multinational companies remains in the process of achieving success. This is because only a number of business firms have considered and developed effective capabilities to find, select and manage their global human resources. In addition, Rugman and Verbeke (2004) also provide that despite the benefits of internationalising business firms, multinational companies retain the concentration of workforce and assets in their home countries or region. This supports the

 

 contention of Ferner and Quintanilla (1998) that there are only a few companies operating as global and stateless firms governed only by competitive rules and there is a wide gap between previous and new companies actually internationalising their HRM policies. Nevertheless, the greater progress is expected to occur in the near future. According to the UNCTAD (2004), there are 63,000 multinational corporations influencing trade patterns. The operations of these companies account for two-thirds of total world trade but the top one hundred business firms under this category contribute only 14 percent to world sales, 12 percent to aggregate assets, and 13 percent to total employment.

Thus, internationalising HRM policies involves understanding and investigating of the drivers of international HRM, the integration of these drivers into the HRM policies of the company, and the actual implementation of these policies in human resource management activities.    

Drivers of International Human Resource Management Policies

            According to Schuler and Tarique (2007), policy drivers in international HRM are encompassed by two objectives. One is the functional realignment arising as response to global operations and the other is the progressive development of global capabilities within business firms. Chen and Wilson (2004) contend that the optimisation and standardisation of HRM internationalisation balanced with localisation of policy implementation constitutes the ultimate HRM policy. Concurrently, the authors identified four drivers of international HRM, which are 1) expertise; 2) consistency; 3) resource power; and 4) experience in internationalisation. The first and last drivers fall under global capabilities while the second and third drivers are encompassed by function realignment.

 

In relation to functional realignment, there are certain factors that business firms seek to coordinate, by building linkages between the geographically scattered business units; and control, by regulating the linkages between actual and targeted functional activities (Kim, Park & Prescott 2003). Malbright (1995) provides that globalisation happens at the functional level instead of the firm level so that it is through the integration of functional level factors that multinational business organisations are able to actualise global HRM activities.  Based on the consideration of functional level of policy considerations, there arise five specific factors that drive the HRM strategy of multinational companies, which are 1) efficiency; 2) information exchange or organisational learning; 3) international provisions; 4) convergence of key business processes; and 5) localisation of HRM policies (Brewster, Sparrow & Harris 2005).

With regard to the progressive development of global capabilities, efficiency involves the pursuance of three core HRM policy driving mechanisms for globalising companies. These are 1) focusing on collective service structures; 2) enabling of the different HR processes on both the regional and global scale; and 3) pursuing global venues of excellence. These policy drivers manifest in various reconfiguration activities that influence international HRM. Previously, the direction of globalising business is towards the involvement of HR professionals to deal with firm managers taking charge of overseas positions. The focus is commonly on the need to determine the specific competencies and skills determined as important in becoming an effective international manager. At present, international HRM shifted to the necessity of having a different international HRM function covering the group of dedicated managers and internationalising all basic HR processes of the organisation. This development ensures that HRM policy applies to the diversified and global workforce. This is achieved by making sure that the HR professionals involved in domestic HR environments should be flexible enough to be able to work in various cultural settings and diverse employment markets. (Schuler & Tarique 2007)         

            Although functional alignment focuses on the working of the organization while global capabilities pertain to the people engaged in HRM functions, both are closely linked to the specific policy area of global staffing. This is because the definition of global resources and expatriate skills and competencies determines the viability of international HRM policies. Global staffing previously focused on the key or top management positions in headquarters and the subsidiary locations by mixing policies instead of a directed focus on the globalization of strategy (Harzing 2004). The present direction of best practices in global HRM policy determination revolves around drawing and selecting expatriates, international managers, and talent managers in the mother company together with the creation of flexible business-related travellers, virtual business teams, and inpatriates (Scullion & Collings 2006) However, with the expansion and complexity in international HRM, the categorisation of international employees under expatriates should be further expanded to include the categories of contract expatriates, foreign posting assignees on a short or medium term basis, permanent business teams under the global managers, international commuters, employees holding functions during business trips with long durations, international transferees who move among the various subsidiaries, virtual employees actively involved in international project teams, specially skilled employees holding posts in the satellite companies, voluntary movers or those living in another country willing to work for a multinational firm, immigrants drawn by the national market of the host country, and local employees but fundamentally dealing with international customers. (Briscoe & Schuler 2004)  

            With these developments, global recruitment and sourcing shifted to focusing on the changing structure and functions of international HRM so that HR workers have to be flexible in handling the wide ranging options arising from global sourcing. With the globalisation of HRM practices, organisations need to consider the challenges of developing a certain level of consistency by engaging in either optimisation or standardisation of HR functions in the mother and satellite business units placed across different countries to ensure that every business unit is aligned with the HR policies and the corresponding techniques and tools in obtaining candidates from the global labour market while the individual business units maintain local responsiveness and approach customisation. (Wiechmann, Ryan & Hemmingway 2003)

Links between International and Strategic Human Resource Management

            The links determined from the definitions and conceptualisations of strategy and human resource management, were derived based on the manner that international and strategic human resource management relate in the context of the quest of globalising firms to achievement business goals.

            The first link involves the necessity of matching business activities to the resources of the mother business and its satellites in order to determine the capability of the company to support its planned business activities increasing the likelihood of actualizing the business activities (Armstrong 2000).

            Determining the capabilities of the company includes the consideration of the human resource capabilities of headquarters and the satellite business units, which may be similar in some aspects but differ in other areas. Learning this information involves the intervention and coordination of human resource management personnel in acquiring knowledge over the number of people involved in the organizational units, the concentration of deployment of people to the different working units, and the collective capabilities of the business groups. After learning information over these factors, decision-makers can then determine whether the planned overall business activity stands to receive sufficient support from the members and different units of the organization. It is only when it has been determined that the business activity is fully covered by the aggregate capabilities of existing human resources that the company is ensured of the viability of its endeavours. However, if the capability of the organization cannot sufficiently support the viability of the business activity, then the company has to decide whether to reconsider or abandon the project or enhance the capabilities of its human resource. The process of planning, evaluating, and reconsidering the consistency between the human resource capabilities of the company and the project goals is strategic HRM. This means that strategic and international human resource management meets at the point that the business firm is matching its human resource capabilities in the different contexts of its business units with its business objectives. 

            The process of matching contextual human resource capabilities with business objectives creates a complementary relationship between strategy and human resource management. On one hand, strategy provides the plan, guidance and the steps through which the company is able to direct the activities of its human resource towards the achievement of financial and competitive goals. It is strategy that links human resource management with the overall objectives of the company. On the other hand, human resource management assures the business of accomplishing its planned activities through the internationalisation-directed management of human resources inevitable to the survival of the organizational units. Human resource management ensures that the members of the organizational units are duly informed of their role in the organization and motivated to develop commitment to the accomplishment of their roles. This means that the link between strategy and human resource management lies in the areas and the ways that both are able to complement the other towards the financial viability and/or the establishment of a competitive advantage by the firm in the industry and international market where it belongs.

            The second link is the contribution of strategy towards the organisational consciousness of performance, centred towards the sources of profitability (Armstrong & Barron 2002). Human resource management on its own is indirectly linked to the quest for profitability. This is because human resource management focuses on ensuring the efficient organization and utilization of human resources with the result comprised of the achievement of the desired level of output from the business units. The desired output only pertains to the existing profitability targets of the company without identifying other areas of profitability. Moreover, international human resource management involves the balancing of the interests of the mother company and the different business units concurrent with the balancing of the interests between top management at headquarters and the head managers of the business units. This is necessary to facilitate a good and aligned working relationship between the parties in order for the organisation to meet its business goals and the different business units to obtain their specific needs to effectively contribute to the company. The process of balancing interests and facilitating good management alignment relations support the current level of profitability but it does not necessarily open new sources of profitability or ways of enhancing the current level of profitability of the company. Strategy contributes to the redirection of human resource management to give greater consideration for sources of profitability.   

Strategy is geared towards improvements in the operations of the mother company and its business units and the determination of future sources of profitability. This involves the development of a plan of action directed towards the financial and competitive goals of the company followed by the assessment of the viability of the plan based on the capabilities of human and other resources, with the result determining the implementation of the plan. Strategy compared the company’s current status with its greater potential for future realization. As such, strategy is able to fill-in the limitations of human resource management in considering future overall financial and competitive goals of the organisation.

This means that the link between international and strategic human resource management is determined by the contribution of strategy towards directing human resource management policies of globalising firms in the direction of enhancing existing and new sources of profitability particularly from the actual and potential capabilities of the human resources of the company. This further implies that strategic human resource management involves directing current internationalised human resource capabilities towards the achievement of present financial and competitive goals and the realisation of planned sources of profitability.

            The third link is the recognition that strategy cannot be separated from implementation (Cappelli 1999). In modern international business organizations, the importance of human resource is enhanced by the recognized varying levels of shifts from industrial to the information age in different business geographic contexts. In general, this means that although the scale of operation of most industries would decrease this is replaced by greater reliance upon human resource competitiveness. The change in organizational direction means that the success of plans for improving the organization depends upon its implementation by the different business units. Despite the rationality and viability attached to a plan but without the cooperation of the organisation’s business units, the project would not succeed. The link between strategic and international human resource management lies in the ability of strategy to direct the efforts of human resources towards the desired change within the organisation in considering different functional contexts of the business units.

Thus, strategy ensures that there is optimisation and standardisation of international human resource policies but considering the different drivers determining the effective HR functions of various business units operating in different contexts. The key then is balancing the unification of the HR policies of the entire organisation with the different settings in the geographically located business units.

Conclusion

            Supporting the internationalisation of business firms requires the balancing of standardisation of HR policies across the entire organisation with the customisation of HR functions, determined by the different environmental contexts of the business units located across different countries in the world. Preliminary to the balancing of standardisation with customisation is the determination and understanding of the different factors that drive internationalised human resource management policies. Generally, there are two internationalisation drivers of HRM policies, which are functional realignment and global capabilities. Under functional realignment are the specific drivers of consistency, resource power, efficiency, information exchange, internationalisation provisions, convergence, and localisation while under global capabilities include service structure focus, HR process enabling, global excellence venue pursuance, expertise, and experience in internationalisation. With the understanding of these drivers, HRM policy would be able to offer standard functions and practices but allowing enough room for the customised alignment of these policies into the HR functions of the satellite business units. In application, it is also important to consider the role of HR managers in the business units who hold key information necessary in policy alignment. HR managers in the business units should be considered by HR management at headquarters as equals to achieve their highly-motivated cooperation in the process.

            The internationalisation of human resource management is significantly linked to strategy HRM because of their complementary relationship. On one hand, internationalisation in itself comprises a strategy geared towards the improvement of business operations. On the other hand, strategic HRM allows internationalisation by encouraging individual business units to operate profitably by implementing HR policies geared towards existing and new profit sources.


 

References:
This paper contains references. It has been omitted to prevent this paper from being copied.
Our samples are meant to show you the way we write, so that if you order from us, you will know the quality of your paper.
  Order now, we’ll send your paper on your due date.
Email Vic at ivythesis@yahoo.com today.