CURRENT ISSUES IN HRM

Increased Concern For HRM• Sound Industrial Relations.• Dual career couples.• Flexi-working hours.• Work from home facility.

International HRM-Managing inter-country differences

• Process of employing and developing people in international organisations which operate globally.

• Applying HRM policy familiar in domestic markets to international workforce, for example:– employee development (ED)– recruitment and selection– reward and remuneration– policies and practices.

• Means working across national borders.• Includes any type of worker, for example:

– own country national working as expatriate– own country national working overseas for short time for specific project/s– individual of one nationality working for organisation based in another country but

who is actually working in yet another country.• IHRM primarily exists in multinational corporations with HRM having a wider contextual

setting.

Employees in an International Workforce• Parent-country national – employee who was born

and works in the country in which an organization’s headquarters is located.

• Host-country national – employee who is a citizen of the country (other than parent country) in which an organization operates a facility.

• Third-country national – employee who is a citizen of a country that is neither the parent country nor the host country of the employer.

International HR Strategies

• Ethnocentric– Centralized HR– Managed by Parent Country Nationals (PCNs) – Pay based on local market for employees; home country for

PCNs– Training aimed at KSAs to perform the job

• Polycentric– Decentralized HR– Managed by Home Country Nationals (HCNs) – Pay based on local market– Training given added importance

International HR Strategies

• Geocentric– Global workforce deployed throughout the world– Positions filled by most qualified regardless of

nationality: HCNs, PCNs, or TCNs,– Compensation based on value-added– Training and development emphasized

• Regiocentric

Why Do International Managers Fail?

• Does it change the essence of HR?• Culture Shock• Cultural arrogance (Parochialism)

• Cultural Insensitivity• The Key success factor?– Cultural adaptability

What is SHRM?• “All those activities affecting the behaviour of individuals in their

efforts to formulate and implement the strategic needs of the business”: (Schuler, 1992).

• “Formulating and executing human resources policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims” (Dessler, 2011)

• FIVE Ps---Philosophy, policies, programmes,practices and processes.

• Strategic HRM is an outcome as organizational systems designed to achieve sustainable competitive advantage through people. SHRM is a process of linking HR practices to Business strategy.

Aligning HR strategy to business strategy

Talent Management• Talent management implies that companies are strategic and

deliberate in how they source, attract, select, train, develop, retain, promote, and move employees through the organization.