StudsPlanetLeading Education consultant in India

www.StudsPlanet.com

Growing interest in IHRMGlobalization of businesses has added to the

number of MNC’s resulting in greater mobilization of resources.

HRM has become a major determinant of success and failure in international business

Underperformance or failure in overseas assignments is costly both in human and financial costs

HR plays a significant role in the implementation and control of strategies in an international business.

8 critical HR challenges

1. Managing talent2. Improving leadership development3. Managing change and cultural

transformation4. Managing globalization5. Managing demographics, especially aging

workforce6. Becoming a learning organization7. Transforming HR into a strategic partner8. Managing work/life balance.

5 key steps for making the best decisions

1. Build an internal capacity to analyze trends in the external environment.

2. Use quantitative and qualitative indicators that give a detailed view of the HR impact on the company's internal environment.

3. Set priorities based on the issues of most critical importance as determined by both external and internal factors.

4. Initiate projects to tackle these priorities with dedicated teams.

5. Perhaps most important, secure support from top management.

The Management ProcessOrganizing

◦ Giving Tasks◦ Establishing Departments◦ Delegating Authority◦ Establishing channels of

Authority and communication

◦ Coordinating

• Planning– Establishing Goals and

standards– Developing Rules and

procedures– Developing Plans and

forecasting.

• Staffing– Recruiting– Selecting – Performance standards– Compensation– Evaluating performance– Counseling – Training and developing – Job Analysis

• Leading– Getting the job done– Morale– Motivation

• Controlling– Setting standards – Comparing actual

performance to standards– Corrective action

Main challenges

Getting the right mix of skills in the organization regardless of geographical location

Knowledge and innovation disseminationManaging critical knowledge and speed of

information flow Talent identification and development Identify capable people who are able to

function effectively Barriers to women in IHRM International Language (e.g. spoken, written,

body)

IHRM - a shift in thinking

Explicit recognition by parent org of the existence of assumptions and values of home & host cultures

Explicit recognition by parent org – ethnocentrism is neither good/bad, has strengths and weaknesses

Explicit recognition of subsidiaries’ preferences – which may be different

Potential Advantages Efficient for small, single-product

firms Encourage development of

specialized expertise Easy for internal and external to

access specialized knowledge Provides clear paths for employee

development and advancement

Potential Problems Coordination becomes difficult as

firm grows Departments compete for resources Focuses on concerns of department

instead of organization-wide goals Employees may not understand how

their work fits within larger context

Potential Advantages Facilitates fast changes within each

division, unique line of command (and strategy) and unique instruments

Product specialization Employees develop ability to think and

work across functional areas Support functions may develop (e.g. HRM),

specialized expertise and thus provide better service to line managers

Potential Problems May be more difficult to make organization-

wide changes, competition between different divisions (product lines)

Experts within functional areas may not coordinate and learn from each other due to turf battles between divisions

Duplication of support functions across divisions is costly

Management is separated according the different product-lines: loss of autonomy

No local adaptation of goods and services, not enough focus on smaller markets, availability of experts in small markets

 Potential Advantages Reduces duplication of costs for support functions Facilitates sharing of employees across

organizational units Facilitates knowledge sharing and transfer so

organizational learning can occur Structural form fits a complex situation Conflicts of interest and different views are

brought out into the open Good Communication-culture

Potential Disadvantages Requires managers with excellent communication

and collaboration skills Employees may have less job security Lines of authority may be ambiguous for

employees, ambiguity about priorities, dual or multi-reporting which leads to conflict and confusion (who is responsible for a decision?)

overlapping responsibilities Barriers of distance, language, time and culture

(staff not capable to master branch and headquarters demands)

Export Department

P rod u c tionM an ag er

F in an ceM an ag er

D om es tic S a les E xp ort S a les

M arketin g / S a lesM an ag er

H RM an ag er

M an ag in g D irek to r

Often exporting is handled by an export agent (HCN). At this stage few people from the parent company are involved with foreign sales. Export department: Exporting is controlled from the domestic-based-home.

Sales Subsidiary

M ark e tin g /S a les

E xp orts S a les S u b s id ia ry

E xp ortM an ag er

H u m anR esou rces

P rod u k tion e tc .

M an ag in g D irec to r

Agents and distributors are often replaced by direct sales. At least initially, this office is probably staffed by personnel from the home office.Why entering in this stage: problems with foreign agents, more confidence in the international sales activity, desire to have greater control, greater support to the exporting activity

International Division

H u m anR esou rces

B oard m em b er

D om es tic D ivis ion(P rod u c t A )

D om es tic D ivis ion(P rod u c t B )

E xp ortin g -D ep artm en t

P rod u c tion F in an ce H u m anR esou rces

S u b s id ia ryC ou n try A

S u b s id ia ryC ou n try B

In te rn a tion a lD ivis ion

B oard m em b er

When foreign sales reach over 10-20 per cent of total revenues, firms may choose to form an international division. At this stage one may consider local assembly and then complete manufacturing. This division may initially be located within the marketing division. Later it may become an independent division, equivalent to the Domestic Division

Reasons for International Assignments

Position filling

Management Development

Organizational Development

Types of International Assignments

Shirt TermExtendedLong Term

Commuter AssignmentRotational AssignmentContractual AssignmentVirtual Assignment

The Role of an Expatriate

As an agent of direct ControlAs an agent of SocializationAs Network BuilderAs Boundary SpannersAs Language nodes

Personal ProfileDrive: A desire to get things done. Goal-Oriented.Motivation: Enthusiasm and willingness to ask

questions. Does extra on every job.Communication skills: The ability to talk and

write effectively to people at all levels.Chemistry: Gets along with others, A team player.Energy: Someone who goes the extra mile, pays

attention to detail, looks for solutions.Determination: Does not quit when a problem

gets tough.Confidence: Not arrogant. Poise. Friendly, honest

and open to employees high and low. Not intimidated by management, nor overly familiar.

Professional Reliability: Following up, not relying on anyone else to

ensure the job is well done, keeps management informed. Honesty/Integrity: Taking responsibility for own actions,

Good and bad. Pride: Pays attention to details all jobs done to best of their

ability. Dedication: Whatever it takes in time and effort to see a

project through to completion. Analytical Skills: Weighing the pros and cons. Weighing the

short-and long term benefits against all possible negatives. Listening Skills: Listening and understanding, as opposed

to waiting your turn to speak.

Uses for the ProfilesPlacementPromotionSelf-improvementCoachingSuccession planning

Profiles can generate the followingIndividual Report- A guide for self-understandingPlacement Report- Selecting the right people

through Job MatchMulti-Job Match Report- Useful for succession

planning and reassigning employees to new positions.

Coaching Report- An excellent training and development tool

Job Analysis Survey Report- Used with job descriptions to more accurately define job requirements.

Summary Reports- To give you a “snapshot “ of information.