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Strategic International HRM

Noora Al Shehhi

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Strategic International HRM

Section 1) Analysis 1.1) Strategic Role of HRM and International Context International HRM is important so that firm will succeed. The implementation of strategy will be throughout the firm. HRM policies will be aligned with the strategy of the firm (Hill, C., and Jones, G., 2008). HRM will be ensuring that there is fit between practices of HRM and strategy. For effectiveness, HRM will be providing training for employees, offering competitive or appropriate compensation and benefits package, and implementing good performance appraisal system (Bamberger, P., and Meshoulam, I., 2000). Therefore, HRM plays important role strategically aligning practices within international context. 1.2) Impact of Globalization Phases on HRM In the three of phases of globalization, HRM will be adapting and facing challenges with planning and implementation of HR policies and practices strategically. Therefore, it will be increasing challenges for HRM as the degree of firms involvement internationally increases. The higher the level of globalization then the more involvement and challenges HRM will face (International Labour Organisation and Sectoral Activities Programme, 1999). The impacting factors will be business practices, laws, cultures and geographies differences. Some of the issues are adjustment in compensation plans, development in foreign work practice and culture, and identification of capable workers and managers (Battu, N. G., 2008). 1.3) HR Managers Concerns in Globalization In globalization, the concerns of HRM managers are reengineering of practices. They will be hiring new HR manager to handle international firms HR practices and to implement HR policies. The concerning areas are speed, service, quality and cost. There will be radical redesign and

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Strategic International HRM

fundamental rethinking of business processes for achieving dramatic improvements. HR manager will be creating change environment and it will be depending on leadership or processes of communication. Moreover, another area of concern will be reviewing and modification of administrative systems (Pramanick, S. K., and Ganguly, R., 2010). When new HR manager is assigned then he/she should be providing efficient operational services, supporting strategic planning efforts from the top management, and acting as internal consultant for the firm as per changes heading for enhancing skills of employees to succeed (Grobler, P. A., and Warnich, S., 2005). 1.4) IHRM Major Challenges and Opportunities The major challenges are flexibility, efficiency, global integration balance and competitiveness (Dowling, P., Festing, M., and Engle, A., 2008). Some other challenges include economic systems, political systems, senior management attitude, foreign experience, cultural differences, and legal environment (Briscoe, D., Schuler, R., and Claus, L., 2008). Strategically, new challenges will include international and domestic HRM differences, further HR activities, higher complexity, broader perspective, employee personal lives involvement, mix of workforce such as locals and expats, exposure to risk and external influences (Dowling, P., Festing, M., and Engle, A., 2008). The opportunities are promotional, diverse workforce, employment, high-wage to low-wage, training and development, and new technologies and solutions. However, there are challenges to access these opportunities. There will be limits for advancement and technological

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development affecting increased turnover, lower productivity, and resentment (Kumar, R., 2010). 1.5) Cultural Determination and Implications It is to large extent national cultures will be determining corporate culture. This will be particularly when workforce will be more from local environment. Therefore, there will be need for several adjustments to new national culture within a short time. The reason is that national and corporate culture will be moving together so it will be shared awareness of central strategies and goals. The success of the firm will be on human resources requirements.

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Culture dimensions of Hofstede provides factors to determine as shown in table 1 (Albrecht, M., 2001): Hofstedes Culture Dimensions 1) Power Distance 2) Individualism

Inequity between the nations people.

People preferring to act individuality rather than being group member.

3) Masculinity/ Femininity 4) Uncertainty Avoidance 5) Long-Term Orientation

Values of masculine are over feminine.

Structure preference by people rather than situations that is unstructured. Future emphasis is more valued by people while at present will be short-term values.

HR management should be able to create awareness on cultural differences that will be varying from one country to another so expat can adapt and continue working. Some implications are specifying specific country and their cultural characteristics and management approaches (Jackson, S., Schuler, R., and Werner, R., 2011). Countrys culture is composed of norms, languages, beliefs, symbols, and set of values that are guiding human behavior (Briscoe, D., Schuler, R., and Claus, L., 2008). Section 2) Evaluation 2.1) Linkage: Overall International Strategies and HR Policies HR policies are having link with overall international strategies of firm. Therefore, HR manager will be making sure that HR practices planning and implementation will be according to business strategies and structure in a firm. The activities of HRM includes industrial relations, Page 6 of 10

Strategic International HRM

compensation and benefits, training and development, performance management, recruiting and staffing, and human resource planning at domestic and international level (Dowling, P., Festing, M., and Engle, A., 2008).

There will be need for strategies at varying levels to interrelate when firm wants to function globally with success. Therefore, policies and practices of HRM should fit in the strategy in competitive business environment and situations that it will face (Deb, T., 2006).

In the international development, the structure determining factors are (Briscoe, D., Schuler, R., and Claus, L., 2008):

Coordination frequency across the border as required by organizational strategy, Analyzing host governments nature of activities in economic process, and Identification of complexity and diversity of business operations.

Section 3) Discussion In the international business, the strategy development conceptualized in relation to international integration vs. national responsiveness. The reasons for localization are due to cultural, institutional, control and economic factors. When there is standardization instead of localization then it will be affecting costs of transactions being lower. HR manager should review and implement HRM practices and policies that are efficient

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for headquarter too. There should be adaptation to local environment by recruiting local work force (Brewster, C., and Harris, H., 1999). Therefore, the policies and practices will emphasize on recruiting, retaining and enhancing Emiraties rather than expats. The priority will be held for Emiratie candidates for employment and Emiratie employees for training and development. When the local work force cannot fulfill needs of the firm then second priority will be expats.

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References Albrecht, M., 2001. International HRM: Managing Diversity In The Workplace. New York: Wiley-Blackwell. Bamberger, P., and Meshoulam, I, 2000. Human Resource Strategy: Formulation, Implementation, And Impact. New York: SAGE. Battu, N. G., 2008. Human Resource Development. New Delhi: APH Publishing. Brewster, C., and Harris, H., 1999. International HRM: Contemporary Issues in Europe. New York: Routledge. Briscoe, D., Schuler, R., and Claus, L., 2008. International Human Resource Management. New York: Taylor & Francis. Deb, T., 2006. Strategic Approach to Human Resource Management. New Delhi: Atlantic Publishers & Distributors. Dowling, P., Festing, M., and Engle, A., 2008. International Human Resource Management: Managing People In A Multinational Context. New York: Cengage Learning EMEA. Grobler, P. A., and Warnich, S., 2005. Human Resource Management in South Africa. New York: Cengage Learning EMEA. Hill, C., and Jones, G., 2008. Essentials of Strategic Management. New York: Cengage Learning. International Labour Organisation and Sectoral Activities Programme, 1999. Human Resource Implications Of Globalization And

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Restructuring In Commerce: Report For Discussion At The Tripartite Meeting On The Human Resource Implications Of Globalization And Restructuring Organization. Jackson, S., Schuler, R., and Werner, R., 2011. Managing Human Resources. New York: Cengage Learning. Kumar, R., 2010. Human Resource Management: Strategic Analysis Text and Cases. New Delhi: I. K. International Pvt Ltd. Pramanick, S. K., and Ganguly, R., 2010. Globalization in Indian: New Frontiers and Emerging Challenges. New Delhi: PHI Learning Private Limited. In Commerce. Geneva: International Labour

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