International Human Resource Management: a case study report of recommendations
At the turn of the century, HR managers have to face new challenges. The economy and markets are different from those of a decade ago. As paradigms have changed, the characteristics affecting International Human Resource Management (IHRM) are also revised due to the adverse effects of the emerging internationalization of all industries especially to the ones that operates worldwide. Such organizations must develop effective structures and functions in order to keep up to pace with relevance, latest trends and strategies. The ability of a business to stay in significant period of time in the industry where it belongs is one measure of its success (2002 ;1999 ). With globalization at hand, every business must work more effectively in order to keep up with the higher demands of consumers and to go with the flow of the dynamics of international business competition. Truly, the internationalization of businesses resulted in the growing application of expatriates to supervise increasing numbers of international operations. Thus, a complete understanding of organizational workforce and development of organizational systems and processes that will enable individuals to add value within a larger organizational unit ( 2000 ;1989 ) is needed.
This paper reports on various recommendations on three (3) areas of IHRM practice in detail. Basing on the identified case, the recommendations should be acceptable and convincing to the CEO in relation to the following key issues:
Recruitment and selection criteria for the Hong Kong staff to be transferred.
Policies and practices that should be adopted to ensure the transfers are a success (including the recommended time period for the transfer).
Repatriation polices and practices to ensure that the managers are retained once they return to Hong Kong.
Recruitment and Selection Criteria
In contemporary business setting, selection and recruitment of potential employees in MNCs said to be significant in the attainment and accomplishment of companies’ goals in the global scene (2000). The IHRM functions apparently draw the line between a company’s endurance and obliteration especially in recruiting and selecting the people to compose the workforce. Companies worldwide undergo changes and utilize various job selection and recruitment methodologies ( 2003 ), there is a need to reevaluate and study the IHRM functions of an organization to meet the demands of the target market. The following are provisional recommendations in relation to the recruitment and selection criteria of Hong Kong staff to be transferred in a new branch in mainland China. On this case for example, China has become increasingly significant in international business decisions and “has become a focus of interest for Western organization and management researchers” (1994). This is because the changes that have occurred in China hold profound consequences for different groups including managers, management researchers and policy-makers at both government and company levels (2005). In particular, the growth of the East Asian economies like Hong Kong was a product of a turbulent and competitive world economy (1997). These facts are to be considered in the HR planning, decision-making and taking, and overall practice.
Recruiting and staffing is a far more complex activity than in previous times when HRM staff could rely on recommendations from current employees or a “help wanted” sign in front of the business (2002). It has three general purposes namely: to fulfill job vacancies; to acquire new skills; and to allow organizational growth (2002 ). Thus, an accurate recruitment and selection is important in all levels of the organization because it influences all organizational processes as well as its future. Proper selection and recruitment process save the company precious time, resources and money spent on staffing.
As (1994 ) pointed out that HRM – in general including IHRM – had transformed itself as more accentuated and stressed on commitment and bearing, it is recommended that employees to be recruited and selected are likewise committed and directed to maximum performance. (2001) state that recruiting is part of the overall management function of staffing that serves a major role player in ensuring that company strategies will be implemented. From this line of thinking, the Hong Kong staff that will be transferred should possess the needed qualifications as a product of job analysis. This is in reference to knowledge, skills, and abilities (KSAs) that include job-related information and the necessary human abilities to perform certain job activities (1997). The importance of valid KSAs cannot be overstated, as the relationship between them and individual performance in the organization is well-established (1995;1994). It is like saying that job analysis is a distinct yet complementing mechanism that directs management on who to hire from the array of applicants to occupy that specified job position. It is acknowledge that quality, competence and flexibility among the employees had efficiently replaced quantity of task accomplished and imperceptive obedience. “Every organization is in competition for its most essential resource: qualified, knowledgeable people” (1992). In the area of selection, technical and decision-making skills, personal characteristics, and family situation are the three major factors to be considered when choosing staff members for an out of the country assignment (1993). Furthermore, the objectives of the management become concentrated on the adoption of modernization, quality and cost reduction. As IHRM requires and demands more from their employees, work is then intensified resulting to less slacking of the management.
The potential staff must be trained for further completion of the IHRM principles and study of the regulations and policies of an effective HR function. Six month in service, for instance is not enough for someone to practically materialize the theories of HRM. The organization may train the potential staff as training of employees is basic to every organization (1994 ). It has been suggested that organizations are likely to increase their reliance upon the utilization of employee training programs in years to come (2005). The effectiveness of training interventions in organizations is likely to become even more salient in the future (2001).
Potential staff must have knowledge, at least basic information, on culture of the prospected area of operations. In a multicultural setting, such as those of outsourced companies, the customs, beliefs and practices of the native country the company has set up its business contributes in the development of a corporate culture. As an individual mingles with different kinds of people, he/she tries different kinds of ways in living life, cultures has been evolving through time and changes brought by such circumstances. In dealing with these concepts, such ideas as orientalism and assimilation break through the theme. Emigrant managers should be familiar with the host culture (1993). Believing that the cultural incorporation will solve all of the cross-cultural problems, it is essential that the expatriate need not to be only technically proficient but to have an overly simplistic view of the cultural integration of the firm’s activities and existing culture on the host culture.
Basically, the potential staff should possess the following core characteristics: ability to lead, motivate and empower, and communicate to members of the workforce. The achievement of corporate success can only be accomplished by people who have broader knowledge in leadership (1995). The leaders handling IHRM is said to be significant in the attainment and accomplishment of companies in the global scene. IHRM apparently draws the line between a company’s staying power and destruction (2002). In managing people in culturally-diverse organizations – as in any organization, the manager must first satisfy the needs of the employees. Empowerment is also a technique for improving employee satisfaction which is being undertaken by many organizations (1998). Communication on the other hand is elementary. In a cross-cultural environment, the role of communication is to establish and understand how people from different cultures communicate with each other. Their aim is to produce some guidelines with which they can use to better communicate with each other. Creating such a work environment is the responsibility of all organizational leadership. More importantly, expatriates must know the basics of the management function, that is, planning, organizing, directing/leading, coordinating, and controlling (1998). It is identified, however that the recruitment and selection criteria are defined and designed by upper management personnel.
Policies and Practices Adopted to Ensure Successful Transfers (including Recommended Transfer Time Period)
Monitoring is indeed important. Since learning is so important, and learning across borders (taking advantage of the global experience and multinational learning of a global firm’s global workforce) is so necessary, then managing foreign assignments to ensure successful expatriation and repatriation would seem essential (2004). Prior to the opening of a business from a foreign location, on this case – in mainland China, managers and staff must have a working knowledge of the culture in which they are operating. This generally calls for a sound cross-cultural training program for all managers destined for overseas assignments, and their families (1993). Initial planning and fact finding is also important as early as the intended transfer. As information is power, the more information you can obtain about the other side, the better. This should begin well before any transaction commence and should involve learning about the organization, history, styles ad other related features of the other side. One should also identify all the potential issues to be discussed, prioritize the issues, establish a settlement range, and develop the strategies and tactics to be used during the course of action. If it is at all possible, one should assemble the team to conduct all preliminary discussions, individual assignments, and team organization to collect a satisfactory amount of information. Upper managers are responsible with this process.
The presence of relocation policies, pre-departure orientation and on-site cultural adaptation training must be ensured (1993 ). The preparation of the management for expatriate staff is inclusive and able to predict potential troubles that will affect the actual performance of the task specified. There are various research studies that tackle the issue of deficient policies and practices for migrating personnel and their families prior to departure (1993.). Family-oriented support policies must also be specified as some global companies do not prioritize these policies (1995.). Organizations are able to maintain balance on work-personal/family affairs of expatriate staff. The active support of management as Chowanec and Newstrom (1991.) indicated must be a “natural continuation of the training process”. The presence of mentor program involving duly assigned mentors who maintain regular interaction is also necessary (1993). This could also be within the period preceding the set schedule of the premeditated transfer.
Repatriation Polices and Practices Ensuring Managers to Retain once Return to Hong Kong
In relation to repatriation, companies are expected to review applicable HR practices with regards to the returning staff. Clague and Krupp (1978 p.29, 30 cited in Anderson n.d.) observe that even if companies prioritized the problems of expatriating employees, the opposite – repatriation is often neglected if not treated in a relatively casual manner. To address such problem, there is a requirement for management to implement another cross-cultural training course. (1991.) recorded more than 60 percent of expatriate managers who are coming back to their original location suffer considerable “reverse culture shock”. Similar to the stated recommendation for this matter, (1989 ) recognizes the help of cross-cultural training for the repatriate and his/her spouse and family on return.
(1994 ) contends that although companies identify repatriation as a major issue in overseas relocation, the reality of the practice is that it often receives less attention or largely put in the ‘too hard’ basket. Thus, it is recommended that efficient HRM or the strategic approach to managing employee relations which emphasizes that leveraging people’s capabilities is critical to achieving sustainable competitive advantage, must be redirected to expatriate staff. This can be achieved through a distinctive set of integrated employment policies, programmes and practices (2003). In addition, the HRM are also accountable for managing employees’ benefits and compensation, keeping employee records, legal issues, and relations with unions (2001; 2000). Also, personnel policies including welfare programs, sports, and recreational activities are initiated by management unilaterally or in consultation (1998) are reviewed. In general, managing people in an international organization is commonly the responsibilities of the HR functions. It includes a variety of activities, decides on staffing needs such as how to fill needed positions within the budget, employing, orienting and training the working force and ensuring that these employees will perform well in order to contribute for the growth of the organization. The effective application of expatriate management is tantamount to success.
Appendix
Source: 2007
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