Stronger Globalization in Connection to International HRM

Questions: 1.You should put forward both the arguments for and against the strong globalization thesis and how the debate to international HRM. when considering the extent to which HR practices are converging or diverging, you should refer to all three levels of analysis in order to put forword your opinion on the convergence or divergence of HR practices? 2.You nees to put forward the three main arguments for the internationlistion of firms. with regard to MNC strategy and structure, you should demonstrate your understanding of the three main types of strategy and how each strategy results in defferent types of structure and HR practice. You should also demonstrate your understanding of how strategies are determined by the balance between the competing pressures to achieve strategic integration, local responsiveness and global innovation facing MNC's? Answers: 1. Stronger globalization in connection to International HRM International HRM or IHRM is a term which is given to the process of Human Resource Management in a highly globalized environment which has been aided by increased globalization across the world. Globalization is defined as the process of international integration which arises from interchange of world views, ideas, products and various aspects of culture. There are arguments which are for and against the need of strengthening or rather focusing on international HRM for companies from different parts of the world. Globalization in present world with respect to organizational activities is largely influenced by IHRM practices which organizations adopt. Arguments for and against Globalization 1. Global Effects: With globalization the exposure available to human resources of any organization is provided with an opportunity to explore larger possibilities and the organization is provided with a vast pool of talent. Globalization when facilitated by stronger IHRM practices indeed increases the level of efficiency an organization has to choose from and has facilitated to a drastic reduction in costs for many organizations. The limitations of international barriers have been reduced drastically while it has become quicker and much easier for any company to operate and offer its services to any part of the world (Runebergendorff 2007). 2. Local and National Effects: Globalization has its flipside as well. There have been cases of reduced job availability as more developed countries are thinking to outsource their operations to other countries. Hence, globalization in IHRM has led to limited opportunities for citizens of several countries. For example many MNCs are outsourcing their data processing and other outbound services to countries like India, Singapore, or other South East Asian nations. In countries like USA, companies have faced criticism for outsourcing tasks and reducing the work base in their own countries. On the other hand, with a Globalized environment more and more companies from different countries compete with each other and may make the competition tougher for the smaller local producers (KGK Uni-Obuda n.d.). 3. Organizational Effects: There are both for and against aspects of this area. While costs have been reduced, organizations need to devote more time towards training and development for employees which they recruit in countries where tasks are outsourced to. Also, the time for processing, delegating and evaluating each tasks takes more time than it used to take previously. A positive out of Globalization is the fact that a company grows global and can work around the clock. A collaborated effort makes sure that the organizations are processing more activities in comparison to what they had been doing. From the above cases it can be concluded that globalization has offered a virtually new domain for managers to explore. The diverse work climates and the increased level of competition has reduced the aspect of convergence of HR practices which previously looked to be standardized for each company. In a globalized environment, differentiation in HR practices has played a key role towards success of companies across the world. This divergence aspect to globalization has been the result of a diversified work environment along with different work cultures which have come together (Monash 2003). Debate related to International Human Resource when considering extent to which the IHRM is converging or diverging Globalization means that firms need to internationalize and operate globally. In order to compete and offer good costs for the products or services on offer, it is very important to internationalize their operations. The three arguments which advocate for increasing internationalization of firms are: Access to factors of production: Globalization has opened up great avenues for companies to explore the opportunities of having access to different factors of production. For instance, MNCs in USA are switching their manufacturing units in countries like India or China or Taiwan as the costs of production is much lower. With reduced costs, the companies are able to offer cost effective products and services to its customers. Moreover, companies operating in other countries also get the opportunity to utilize raw materials and resources which are not available their own countries to come up with newer products (Biz Research Papers 2009). Access to markets: Globalization also offers a much wider market for any company to offer their products. For instance Pepsi Co which is an American company catering to the world and is a market leader. As it is present in such a huge market it has the opportunity to keep its margins lower and still make huge profits. This keeps the opportunity of any similar company to stay out of competition and virtually leave a very small opportunity to grow to such a high level. Exploitation a firm-specific advantage: Internationalization offers a foreign market which has specific characteristics which could be of political, social or even political nature which permits firms to profitably exploit the firm specific advantages by way of locating that particular market. This can only be attained by offering products which are not presently being offered in that specific market. With the above key advantages which advocate for internationalization, the strategies of companies differ with respect to their scale of operations. Broadly the strategies of IHRM is different for companies operating as multinationals, global or transnational. For example standardization of HR practices is possible in case of transnational companies where there is a specific market which they cater to. In case of global or multinational companies the HR practices cannot be standardized as the market conditions and cultures are very different from one another (Jims Journal n.d.). 2. Person Specification for the Role of Human Resource Manager The following specifications are designed for the role of a Human Resource Director for the task of overseeing the entire process of managing the employees within the organization. It starts from recruitment and selection and moves towards effective rewards and recognition strategies to get the operations of the organization done in an effective manner. The requirements for the job profile are: Skills, Knowledge and aptitude: The individual who would be good for this position would need to be a stronger and effective communicator in writing, business presentations as well as interpersonal communications. Some of the other important skills and aptitudes required are: He needs to portray highly developed as well as demonstrated teamwork skills. Another element which would be handy is the ability of demonstrating high degree of confidentiality and common sense. As the task would be more for directing the efforts of the team of diverse human resource professionals, he needs to demonstrate the ability of increasing productivity and work in a continuous manner to improve the methods, approaches as well as departmental contribution while being cost-sensitive. A commitment to continuous learning and being expert in employment laws along with insights in the employee relations and communications. Ability of demonstrating for seeing a bigger picture which provides useful and strategic advices as well as inputs across the company. He needs to have the ability of leading in an dynamically fluctuating work environment (Kidder Minister n.d.). Experience of being flexible to work and work towards empowering the employees through structured manner would be an advantage. Experience in working at multiple locations Experience: The HRM director needs to have an experience of over 7 to 10 years of holding responsible positions in Human Resources which prefers in similar industry in two or more organizations. The individual needs to have the experience of supervising as well as manage the professional staffs at different roles within the organizations. Qualifications, education and training: The candidate needs to have at least a Bachelors degree in Human resources, business or a similar degree in the field of management. A Masters degree in Business Administration and Business Management would be the Post Graduate degree which the candidates need to have. In case, the candidate had been holding positions such as Joint director or Deputy Director in any previous organization would have an added advantage (Conventry n.d.). Personal Characteristics: Speaking about the personal characteristics the individual needs to guide and manage the overall provision of Human Resources services, policies as well as programs for the entire organization. He would be inclined to engage in talent management strategies and include workforce planning which would include communicating with other individuals at key positions within the organization. Appropriate circumstance for position of company and person himself After recruitment and final selection processes, the induction program is regarded as the critical area which introduces a new recruit to learn about the organization and his responsibilities. However, training and development needs to be a continuous process, especially when organizations are working in an attempt to internationalize their operations. A well-defined training and development strategy would not only help the individuals grow and be updated with the latest tools and strategies in managing their regular activities but would facilitate the organization to increase the efficiency levels within the organization. Despite being experienced to get the job of a Human Resource Director, there needs to be a proper training and development program which the company needs to offer (Unece 2013). The key constituents for determining the need of undergoing such programs would include: Leadership competencies: The leadership competencies of the Human Resource Director would be determined by the different combination of hard and soft skills possessed by the individual. They would include: Ability of speaking in front of crowd: As the director would be responsible for addressing different individuals at different positions and most of the times teams from various divisions, this would be a very important factor. Ability of reading people: AN HRs main strength lays in the ability he or she has when it comes to reading the minds of people. The director needs to be proactive and anticipate what can be coming next or what a person is searching for. Ability to be strong and not intimated: HR professionals at timesare seen to be weak as they are often intimated by people at key positions. The director should have the ability of standing strong on the right steps and not get intimated by people irrespective of the positions they hold Empathy: Another key element which the director needs to have is having the ability of seeing the point of view of the other individuals. He or she needs to understand the nuances of a particular situation and make appropriate decisions at the right time (Sage Pub n.d.). An able listener: For any leader listening is regarded as a key aspect. Same goes for the Director who would essentially need to have the ability of listening to what others have to say. He should not have a perception or avoid listening to people he believes is not important. Cross-cultural awareness training requirements: As the HR director would need to work in diverse international work environment he or she needs to develop self-maintenance skills, interpersonal skills, and Meta cognitive strategies. Experience of working in diverse work environments and particularly at different locations would add to the advantage. Management Development programs: There are several programs which offer an opportunity for existing professionals to undergo training from time to time with respect to polishing and developing as a manager. The three management development programs which the Human Resource Director needs to undergo are: Leadership Development Programme by National Universityof Singapore Title:Leadership Development Programme Objectives: A program which is designed to help the leaders and senior managers to advance their leadership skills and hence build the capacity of leading a successful change in their organizations. Content:Facets of leadership which includes inspiring and motivating teams, building commitments, and managing resistance to change. Method of Delivery:Leadership frameworks, interactive case studies and exercise. Duration: 5 days Intended recipients: HR Managers and leaders of different management divisions. Executive Certificate in leadership and people management by Singapore Management University Title:Executive Certificate in leadership and people management Objectives:The program explores the important management facets which includes personal effectiveness in senior roles which leads to strategy development as well as implementation. Dedicated program for aspiring the leaders for enhancing their abilities of managing with competence as well as organizational success. Content: - Leadership, Talent Management, Change Management, Performance Management, Team Efficacy, and Personal Effectiveness Method of Delivery: Leadership frameworks, interactive case studies and exercise. Duration: 7 modules and 3 day per module Intended recipients: HR Managers and leaders of different management divisions. Professional Certificate in Business Management by Management Development Institute of Singapore Title:Professional Certificate in Business Management Objectives:The program has been designed for individuals who aspire to have a great career in the field of business management. The participants would develop the fundamental as well as firm understanding of principles and practices in a business environment. It would equip the participants to communicate effectively and prepare them for tougher situations. Content: Fundamentals of marketing, communication skills, principles of accounting and finance, principles of business management. Method of Delivery: Leadership frameworks, interactive case studies and exercise. Duration: 4 modules in 4 months Intended recipients: HR Managers and leaders of different management divisions. Appropriate structure for relevant position of the person in the organization An important element of any HR practice is to offer a strong Rewards strategy. The strategy should be such that it motivates the employees to work in a much more efficient manner. The basic constituents of the rewards strategy of a company looking forward to internationalization are: Payment structures: A company which works in a fluctuating environment where it can make huge benefits or losses should devise a strategy which pleases the employees and is acceptable as per industry standards. The pay needs to be fixed at a base rate for each dedicated positions and should be equally on par with the competitive companies. In an attempt to recognize the efforts of the employees, the organization can declare a bonus pay for every increase in profits which the company makes. This would be called a variable pay and should be directly corresponding to the revenues the respective divisions make (SHRM n.d.). Allowances: In todays work environment, employees need to move from one place to the other. A robust structure based on Cost of Living, housing, transportation and the efforts involved needs to be equally compensated. For instance the allowance for a local employee while working in Singapore would be as per the Singaporean standards. On the contrary when he is required to go to USA for the operations of the company, he would need to be compensated based on the social structures in the respective company. Benefits: Besides monetary compensation, the organization needs to offer other key benefits like pensions for its retiring employees, welfare schemes for the employees and their families, dedicated holiday leaves which should be made compulsory for each employee for each year. Non-Financial Benefits: Financial benefits and other goodies are not only the basic requirements for rewards and recognition of an employee. A firm would need to develop a well-designed career development program and show the place an employee could reach with his efforts in certain periods in future. The company should also offer the employees and option to choose from a set of alternatives and opportunities. For instance, a local resident of Singapore working in an MNC might be provided with an opportunity to leave abroad and work in the USA division. Other aspects of non-monetary rewards include social developmental programs and celebrations of key events or occasions within the company. Another aspect of cross cultural training needs to be an integral part of the company when it wishes to operate in different countries (Deloitte 2014). 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