Ihrm

Introduction International HRM compared to domestic HRM is more clearly understood. HR activities include recruitment and selection, training and development, peformace management, compensation and benefits etc. are specific extend to other countries. There has been a growing interest in international human resource management in international areas. As more and more markets internationalize, more countries expand their business to the international world economy. Efficient and effective IHRM is a key factor to success of international business. This essay compares two countries of China and USA in some major different activities of international HRM. “International HRM is the process of procuring, allocating and effectively utilizing human resources in a multinational corporation, while balancing the integration and differentiations of HR activities in foreign locations. Objective of International HRM is to reduce the risk of international human resource, avoid cultural risks and regional disparities. ” Figure 1: A model of IHRM Source: Adapted from P.V. Morgan, ‘International Human Resource Management: Fact or Faction’, Personnel Administrator, Vol.31, No.9 (1986). Selection and recruitment International selection and recruitment is a formality and an integrated system that include internal and external factors that the company should take into consider. When company sent persons to do oversea assignments, they fulfill certain key factors for both organization and individual.  Difference in recruitment practices, depends on the type and level of employee required in different countries. Two different cultural values of uncertainty avoidance and power distance in China and America make them take different factors to consider, such as the legislation of the government and labor market factors.  But in similarities, most selection system in these two countries pays more attention to the technical requirements of the job as well as the potential of that person to do a good job and interpersonal qualities. A lot of organizational factors including the nature and level of the job, the systems of human resource organization, policies and the size of the company that determine what the recruitment channel to choose. Whereas recruitment is related to generating a candidate pool, selection is for evaluating and deciding on an individual’s ability for a specific job.  For example, in America, recruitments in US principles based on objective merit, qualification and equality cannot be used to the way that employees might evaluate a recruitment and selection. In China, deregulation has led to a change from the practice of assigning employees to employers, and a great reliance on the external labor market. Mass rural migration and the downsizing of state-owned enterprises and unemployment have helped fuel negative attitudes to the woman that under employment, who used to represent 40% of the workforce. So new regulations in recruitment are aimed at removing gender discrimination (Cooke, 2001). It is common practice for job adverts to specify gender and to place age limits, making both direct and indirect discrimination. Training and development Most of the enterprises devoted to expatriate for pre-departure training activities that are mainly concerned with developing cultural awareness. Once an employee selected for an international assignment as an expatriate, training is a considerable step to ensure the effectiveness and success working abroad, especially when the destination country is considered culturally tough. Management development and organization development to an expatriate is also important for an international assignment. Development is a broader effort which is linked to improving the competence to finish a strategic need of the organization in the long run. While similar in both of the country’s objective, the specific goals of training and development are different according to the national conditions itself.  Language training is trying to understand the language skills. English as the whole world language in the global business, China who send person for an international assignment should be learn well to adjust the corporate working environment abroad. Knowledge of the corporate language can add power to the subsidiary when working in that position. Company such as Coca-Cola have learned how important for that skills of foreign language.  Differences between cultures and values, the training should depend on the expatriates which condition they working with. For example, most US management experts believed that behavior for a proper leader depends on the situation and not only one way to lead. But China is different from US, the leaders should always be authoritative.  Individuals gain international experience from management development which helps in career progression. International assignments also provide a multinational with a way of accumulating stock of useful knowledge and skills which can bring effect to its future growth. In the USA, that is senior managers who are urgent to organizational performance, considerable attention focus on the managers’ development. USA specialized in training person in business school whereas rotation by different functions is more common than in China. In China, qualifications are important, Chinese managers usually give preference to those with degrees and expect to have their development certificated. That is quite different from US, US is more focus on the working experience. Performance management Performance management is a process that enables the multinational to evaluate and continuously improve individual, subsidiary and corporate performance. MNEs have specific expectations for each of the foreign subsidiaries, cooperative ventures and other forms of operation modes, in terms of market performance and contribution to company’s profits and competitiveness. When evaluating subsidiary performance against those expectations, it is important to figure out great number of constraints that possible to influence goal attainment.  When attempting to manage the performance of employees working overseas, it is necessary to consider all the variables include duration, family members, physicals relocation and so on in relation to the nature of the international assignment. It is concerned with how people to work, how they managed and developed to improve their performance to maximize their contribution to the company. Performance management becomes an important part of corporate strategy because it serves many organization goals and helps identify employees with high potential and then achieve the organization’s orientation. Collectivist and individualistic cultures differ in the way required participation to achieve the desired goals.  In china, characteristics of Chinese politics and administration influence employee’s performance. The government pays more attention to whether future prospects for performance management are likely to be associated with international practice. In US, they evaluate individuals based on what they accomplish but not depend on who they are. They are more acceptable in cultures that are achievement. So employees from US are more readily accept personal responsibility for results than employees from China. In US, employees tend to be more active in the progress and challenge the supervisor when they disagree with on that performance, while these would be less likely to happen in employees from China. It is evidence of power distance in a country, this affect the performance management is quite different between these two countries. Compensation International compensation is understood as provision of monetary and non-monetary rewards, including base salary, benefits, long and short-term incentives, valued by employees according to the relative contribution to performance of the employees.  When development of compensation systems for subsidiaries and determining pay for a global workforce is added to IHRM responsibilities, it is easy to see why this area of concern is so important. IHRM responsibility is so complicated that salary levels and benefit provisions invariably differ significantly among the various countries in which an MNE operates. Employees perform essentially similar jobs in different countries will receive varying amounts and forms of compensation. This is due to differing costs of living and general pay levels throughout these economies and varying traditions and values for particular jobs. (Dennis R. Briscoe & Randall S. Schuler, 2008)  For example, American firms have recognized the need to pay international assignees at least as well as their local colleagues (in countries where the local make more than their US counterparts). It is also true for foreign firms that operate in the US. Foreign owners of US companies and those US subsidiaries realizing that they must match US executive compensation practices to stay competitive. Compensation seems as encourage to the person who performs well to the company. When developing international compensation policies, a firm seeks to satisfy several objectives in the organization. Now in China, more firms use education allowances for expatriate’s children as well as housing to encourage employee working aboard. Both of the countries the policy should facilitate the transfer of international employees in the most cost-effective manner for the firm. For successfully compensation used by a country, it requires knowledge of employment and taxation law, customs, environment and employment practices. Conclusion To be a successful globalization business in the world, globalization refers to the process of integrating world economics, so international HRM is necessary, managing recruitment suppliers with so many HR practices. As far as that concern in the essay, US is a developed country, while China is a developing country, they perform different ways in that HR practice because they differ in government policies and cultural as well as person’s personality and working environment. Similarities between these two countries also can see. When you go global you should act local and then adjust to that working environment. In the developing trend, challenges for the international HR function of the multinational firm are much greater. International HRM is a key role in the globalization business. (Words count: 1545 words) References 1. Textbook: • Peter J. Dowling, Marion Festing, Allen D. Engle, Sr. International human resource management: managing people in a multinational context 5th ed. 2008. • Dennis R. Briscoe, Randall S. Schuler, Lisbeth Claus. International human resource management: policies and practices for multinational enterprises.3rd ed. 2009 • Chris Brewster, Paul Sparrow, Guy Vernon. International human resource management, 2nd ed. 2007 • Mark Mendenhall, Gary Oddou. Readings and cases in international human resource management, 3rd ed. 2000 • Hugh Scullion and Margaret Lineham. International human resource management: a critical text, 2005 • Tetteh, Vanessa A. Management of Human Resources -- Research Starters Business; 2008 2. Journal articles • International differences in job satisfactions: The effects of public service motivation, rewards and work relations. Jonathan H. Westover, Jeannette Taylor. International Journal of Productivity and Performance Management. Bradford: 2010. Vol. 59, Iss. 8; pg. 811 http://proquest.umi.com.ezproxy.scu.edu.au/pqdweb'did=2183073231&sid=7&Fmt=2&cl ientId=20824&RQT=309&VName=PQD • International recruitment of health personnel. Allyn L Taylor, Lawrence O Gostin. The Lancet. London: May 15-May 21, 2010. Vol. 375, Iss. 9727; pg. 1673, http://proquest.umi.com.ezproxy.scu.edu.au/pqdweb'did=2035837461&sid=3&Fmt=3&clientId=20824&RQT=309&VName=PQD • Meta-standards, financial performance and senior executive compensation in China: An institutional perspective Chris KY Lo, Andy CL Yeung, TC Edwin Cheng. International Journal of Production Economics. Amsterdam: Jan 2011. Vol. 129, Iss. 1; pg. 119 http://proquest.umi.com.ezproxy.scu.edu.au/pqdweb'did=2194478801&sid=1&Fmt=2&clientId=20824&RQT=309&VName=PQD • US Department of Labor announces new members of Advisory Committee on Apprenticeship Labor Department Documents and Publications. Lanham: Sep 20, 2010. http://proquest.umi.com.ezproxy.scu.edu.au/pqdweb'did=2142203611&sid=1&Fmt=3&clientId=20824&RQT=309&VName=PQD • Training and management development in Chinese multinational enterprises Jie Shen, Roger Darby. Employee Relations. Bradford: 2006. Vol. 28, Iss. 4; pg. 342 http://proquest.umi.com.ezproxy.scu.edu.au/pqdweb'did=1079220981&sid=2&Fmt=3&clientId=20824&RQT=309&VName=PQD 3. Websites http://www.shrm.org/ (accessed by 12 Dec.2010) http://www.ihrm.org/ (accessed by 13 Dec. 2010)