International HRM - Part 2
International HARM International HRS management refers to an extension of HRS that relates to having people working overseas - International HRM introduction. HRS professionals are going to have to consider how to best provide policies, practices and services to a diverse set of employees located in potentially very different locations and operating environments.
The differences between IHRAM and HARM involve: involves working with an organizational structure that is more complex there are a greater number of more diverse stakeholders groups to take account of there is a rater Involvement In people’s private lives because of the expatriation element Diversity Is necessary In terms of management style greater number of external influences and risks to understand and manage Regardless of the type of organization, policies, practices and HRS systems must be compatible and effective across the world, and need to balance the needs, wants and desires of all the various groups of employees, whilst remaining cost- effective. It should take Into account the following. Range of Manpower approaches: Ethnocentric: WHQL management dispatched, Polytechnic: Local management; global; Right Person in right job. The International Dimension: Contextual impact of Globalization; International effectiveness of Organizations and the global nature of Labor Markets. Cultural Orientations: Nationality Is important in HARM because of its effect on human behaviors and the consequent constraints on management action. Understanding cultural diversity Is crucial to managing an international organization effectively.
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Hefted defines 4 distinguishing factors of national culture: Individualism: Power Distance: uncertainty, avoidance and masculinity: Time Orientation: Hypotheses work is interesting in that it demonstrates that cultures among a people remains persistently divergent despite convergence in areas such as technology and economic systems. Trampers is a researcher who has looked at different dimensions of cultures. GLOBE Examines practices and values at industrial organization and societal level. National Business Systems Institutional variation Is another major determinant of differences between the prevalent approaches to HARM found In different countries. A widely advanced view Is hat the following factors have a major influence on how HRS is practiced on a day-to- day basis.
Local Laws Enforcement Mechanisms Government and Policy Making Collective Bargaining Labor Markets National Training Policy/Agencies Pension Arrangement Social Security Systems Marathoner et al 2010, highlights the need for the recognition of diversity, culture and national business systems which can be achieved through: Strategic management of corporate Identify, vision, mission and values Line managers need to mange the Capture the benefits of diversity, leverage tacit knowledge Acknowledge local market knowledge Apply best practice across the group with global programs Cross cultural management development is critical. Employees working internationally need to be able to work effectively in the country and culture where they are placed. This requires any potential assignee to have a high level of self-awareness of their own assumptions and sensitivities. To operate effectively their must examine their own culture and understand how this will impact on their Judgments and their perceptions of the behaviors of others from different cultural backgrounds.