Thursday, July 27, 2017

Global HRM concept-Planning-International human resource management

Human resource planning from international human resource management point of view is rather difficult and complex compare to that of domestic human resource management. This is due to the fact that international human resource planning should consider a number of additional issues like language culture spouse and family adaptability in addition to job skills talent & knowledge requirement.
MNC’s had to consider not only the current job and country requirement but also the future assignment in various other countries where the MNC is currently operating and or propose to operate in future. In addition MNC’s should also consider the possible alliances like joint venture mergers and amalgamations where human element is also a pivotal factor, in their human resource planning. Thus the human resource demand requires of MNC’s are complex and consequently the human resource planning process of MNC’s is rather critical.
In addition forecasting the supply of human resource is international market is also critical compared to domestic labor market due to the problems in collection of human resource data across the world. For example, Indians work in the USA as software professional and medical doctor while various foreigners include American have preferred in India.

Issues in supply of international human resources:
Online facilities                    aging population           young populations          enlarged diversity           recent 
                                                                                                                                                                   Demographic
                                                                                                                                        Development
Availability of                                                                                                                                   educational facility
Data                                                        supply of international human resource                  labor supply trends
Migration & immigration
Issues                                                                                                                                               brain drain
Retention                 challenges of       labor supply                 labor                                    career
Mgt & older              2000’s                & off shore arrangements     productivity                        orientation

Availability of data:
            International and national agencies and bodies provide the needed data for international human resources planning availability of data. Category wise classification wise, experience wise, skill-wise and family details-wise would help MNCs to plan for their human resources as well as source the people.
            Various research organization govt. dept and professional organizations provide such data at national level and supply the same to the international agencies like ILO united national organization. International bank for reconstruction and development and private consultancy organizations which in turn consolidate and process such data and make them available to various MNC’s and domestic companies that are in need of international human resources.

Aging population and labor shortage:
            Aging population has been increasing in many advanced countries as well as in some developing countries. Population aging is constituted be a shift in the distribution of a country’s population towards greater ages.
Labor supply trends:
            The baby bust did not and will not cause labor shortage. But the growth of labor force after 2010 would be less than that of 1990’s. how ever the mobility of labor force various developing countries to advanced countries particularly USA the UK and Australia which are effected by baby boom.
Recent demographic developments:
            The significant development during 1970’s and 1990’s was entry of baby boom workers into the labor market. May worker & could not find jobs during this period.
Labor productivity:   surplus of labor and job cute:-
            The growth of world economic of a faster rate due to globalization strikes in technology. Particularly in information technology and significant growth in demand for products and services consequent upon rise in income.
Labor supply and off shore arrangements:
            The off shore arrangements would enable the domestic business to make use of the domestic labor for higher level jobs. Employee without such skills would experience unemployment and or be absorbed in low wage jobs and happened recently in the UK and the USA due to the out sourcing of certain operations in INDIA and other countries.
Challenges of 2000’s
            The trends of HRM during the second half of the 1900 were stability of employement surplus human resources and more or less constant skill requirements. Therefore human resource managers face fewer challenges in recruitment selection and training.
Retention mgt and older workers:
            Two major issues were indicated in the earlier discussion competencies and abilities of the older worker to work beyond 60 years of age and attention management of companies due to scarcity of competent human resources one may argue that the companies can think of retaining the older workers.
Young population:
            Most of the advanced countries like USA, Germany and Japan are faced with the problem of aged population. Nearly 30% of their population is over the age of 60 causing that talent shortage. This situation would remain until 2050. Therefore these countries have to source that human resource from other countries.
Engaged culture diversity:
            As discussed in earlier, employing foreign national & form different countries result in enlarged culture diverse as employees are drawn from different nations age groups gender people belong to disadvantaged groups and advantaged groups educational background religious and different marital and family status.
Migration and immigration issues:
                        Attracting international human resources need MNC’s to deal with migration and immigration issues in fact people across the world migrate to other countries due to various pushing and pulling factors .Pushing factors include lack of suitable job at the home country inappropriate  government  policies lack of proper educational facilities at the home country like pulling factors include attractive job in foreign countries stable political environment wider opportunities for merit ,talent , performance, business opportunities  in foreign countries and the like. In fact, the recent phase of globalization aims at free movement of human resources across the countries.
 Brain drain :
                        The mobility of labor force from developing countries to advanced countries results in ‘brain  drain’ in former for example , government of India invest about Rs .3 million in each medical graduate who studied in government colleges/aided colleges/universities .But such human  capital is used by advanced countries by higher salaries.
Fast Growing Educational facilities:
                        Educational facilities have been growing fast along with globalization and also due to the fact that education is no more treated as a pure free service.
Growth in career orientation:
                         Youth inmost of the countries particularly in the fast growing economies like china and India have started concentrating on the career rather than other aspects of life like leisure ,rest and enjoyment.In addition the career orientation has shifted from the domestic career to international career.
On-line Facilities:
                        The wide spread growth on-line facilities enabled various organizations to provide information to the needy with in no time. Therefore information on international job and career opportunities are now available for the aspirants.
Implications:
                        So far we have discussed the macro aspects of HRP. These macro aspects provide of HR supply in international business .The other vital factor of HRP is the demand side. The demand aspects of HRP comes from future human resources requirements of multinational companies and future requirements of foreigners of domestic organizations.
Training:
                   In addition to cross culture training ,TNC’s also provide training in technical and functional aspects of the job through mostly expatriate possess them .This is mostly due to the changing technology as wells shifting job priorities ,job description, specification ,team specifications and varying systems and procedures in subsidiaries and head quarters.


Areas of Global Training and Development:
                                    (Or)
Different types of Training and Development:
a) Technical training : Most of the MNCs select the expatriates mostly based on the technical skill background to perform the new job successfully.
b)Functional training:  expatriates are employed in functional jobs like accountants lawyers, lecturers, professors production specialize managers and sales personnel whenever and where ever an wherever there is shortage for such professions expatriate normally posses required functional skills before journey the MNC.
Types of training and development areas:
     Team training                 mgt development  technical training               functional training
 
  Strategic mgt skill                         areas of global training                                   on job training
Pre-departure training                                                                                          expatriate  
                  Soft skill      cross-culture training         global mind set training                   language

Strategic mgt skills training:
                        MNCs prefer expatriates for strategic level positions in view of their exceptional skills initially. MNCs aim at developing the host country nationals even for strategic mgt positions, in due course .strategic managers are core and critical managers of MNCs and they are viewed critical  strategic assets of the organization .
Human Relations /Soft Skills Training:
                        Human relations skills or soft skills refer mostly to interpersonal skills like interpersonal communication, leadership skills, motivating skills , commitment skills, transactional analysis , team building and skills of working in teams ,  emotional balance skills , skills of influencing others , social skills and the like.
Cross-culture training:
            Cross culture training is most significant and critical one among the areas of global training. MNC’s follow different approaches to train expatriate nationals of the subsidiaries and employee of joint venture partners.
Process of cross-cultural training:
            MNC’s follow detailed process in cross-cultural training due to its vitality in global human resource management.
The process of cross-culture training include.
      Analysis of organizational requirements
      Analysis of individual employees culture analysis  of employees culture
      Analysis of employee assignment
      Crafting cross-culture training goals
      Designing cross culture training
      Deliver the program
      Evaluate the program

Language training:
            Language plays a predominant role in international business. Through ‘English’ language is widely used in international business transactions most of the stakeholders like customers marketing intermediaries may not communicate in ‘English’ language.
Global mind-set training:
            Global mind-set is the ability to scan the world from a broad perspective. Always looking for unexpected trends and opportunities that may constitute a threat or an opportunity to achieve personal professional and organizational objectives.
        Conduct of conferences and annual events for cultural adoption
        Exchange of employees among subsidiaries and head quarters on short-term basis.
Pre-departure training:
            It is provided to the selected candidates for jobs/new employees and to the existing employees who are assigned a job in other countries. This training is provided at the country where the candidate currently lives or in other nearby country other than the future place of work.
Importance of training and development for global jobs:
        Improved job knowledge and skills at all levels of the organization.
        Improved morale of the human resources
        Improved relationship between boss and subordinate
        Improved understanding of culture of various countries
        Improved profitability and/or  positive attitudes towards profit orientation.
Performance appraisal:
            Performance of the employee is normally appraised by the immediate superior in case of a domestic company. It is rather difficult to identify the immediate superior of a foreign employee working in a host company as the host company managers as well as parent company manager supervise the foreign employee.
System of performance appraisal:
            Performance appraisal for international employees is a 14-step process.
1.       Establish performance standards based on job description job-specifications, cultural requirements and adoptability to foreign environments.
2.       Communicate standards / expectations to employees as well as evaluators.
3.       Deciding upon the performance appraisal formal
4.       Measuring actual performance
5.       Frequency of appraisal
6.       Adjust actual performance due to environmental influence
7.       Compare the adjusted performance with that of others and previous.
8.       Compare the actual performance with standards and find out deviations
9.       Feedback to the appose
10.    Suggest changes in job analysis and standards
11.    Consider the appraisal results for contract renewal and promotion
12.    Plan for employee training and development

Problems of performance appraisal:
        content bias
        ineffective raters
        the regency effect
        distant work places
        appraisal forms
        failure of the superiors in conducting appraisal interview
        use of performance data
how to make performance appraised effective:
        reliability and validity
        appraisal should be relevant
        customization of appraisal forms
        consensus of the appraisal and apprise
        open and continuous communication
        sensitive to ground relations
        approaches access to results

        rater’s knowledge of the apprise