...Table of Contents Introduction 2 Differences between Domestic and International Human Resource Management 2 What is Expatriate 4 IHRM has three dimensions 4 International assignments create expatriates 5 Increasing Importance of International Human Resource Management 6 Significance of International Human Resource Management 9 Conclusion 11 Reference……. 12 Introduction As we enter the new millennium, more and more companies are recognizing the importance of managing their human resources as effectively as possible. They are also recognizing that doing so, however, cannot be done without recognition and incorporation of the global context. It is virtually impossible to read a business periodical or newspaper anywhere in the world without seeing stories detailing the success of a company due to how effectively it manages its people. As the environment becomes more global, managing people also becomes more challenging, more unpredictable and uncertain and more subject to rapid change and surprise. Thus what we are witnessing within human resource management (HRM) is the rapid appreciation for and development of all aspects of global and international activities and issues associated with and affected by HRM. And because the importance of managing people effectively in the global context is so great, many companies are devoting a great deal more time, attention, skill, and effort into doing it well. To be successful, many firms have to compete...
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...Introduction Multinational Companies (MNC) or Multinational Enterprises are companies which operate in more than one nation state. MNCs have considerable investments in foreign companies and manage these investments actively. The foreign activities distinguish them from national companies. The active role in the management of foreign investments distinguishes them from other organizations, like banks, with foreign investments. MNCs produce for a number of local markets according to local tastes and regulations. The MNC is structured like a federation with one headquarter and many more or less autonomous national divisions. Knowledge about the local situation, gives local managers a powerful say in the running of the MNC. It is, oftentimes, being referred as Global Companies or Transnational Companies. However, there are also differences with these three terms. Global companies produce for the world market. Production takes place where it can be done cheapest. The company is not organized according to country, like a MNC, but according to products. Management is highly centralized. The products are not designed to cater for specific local tastes. The attractive feature of the products of global companies is their price, since the standardized and high volume production methods make it possible to produce cheaply. The product division managers have the power in a global company. On the other hand, a transnational company (TNC) is a business which manages foreign direct investments...
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...International Journal of Business and Management December, 2008 An Analysis of Business Challenges Faced by Foreign Multinationals Operating the Chinese Market Jianlian Wu International Management, University of Nottingham Ningbo 315100, China E-Mail: zlixcwj1@nottingham.edu.cn, qqnamei@163.com Abstract China’s rapid economic growth has presented numerous opportunities and challenges for foreign firms there. Many large corporations have established a China centre to coordinate and control their operations in the country. As firms have increased their presence in China, their concerns are increasingly focused on implementing successful management practices and strategies. This article describes the challenges and difficulties that multinational companies faced in Chinese market. It analyses roles played by the human resource function in these China, culture differences, social environment and other factors. Keywords: Challenge, Multinationals, Chinese market 1. Introduction Over the last few decades, the process of globalization has created unprecedented opportunities for global business investment and trade. Many multinational companies are attempting to expand their business international by many entry strategies such as joint venture and subsidiary. While China, with over 1.3 billion population and 9.6 million square kilometers (China Popin, 2008) has become a valuable land for foreign multinational companies. They try to enter the Chinese market by using many...
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...International Journal of Business and Management December, 2008 An Analysis of Business Challenges Faced by Foreign Multinationals Operating the Chinese Market Jianlian Wu International Management, University of Nottingham Ningbo 315100, China E-Mail: zlixcwj1@nottingham.edu.cn, qqnamei@163.com Abstract China’s rapid economic growth has presented numerous opportunities and challenges for foreign firms there. Many large corporations have established a China centre to coordinate and control their operations in the country. As firms have increased their presence in China, their concerns are increasingly focused on implementing successful management practices and strategies. This article describes the challenges and difficulties that multinational companies faced in Chinese market. It analyses roles played by the human resource function in these China, culture differences, social environment and other factors. Keywords: Challenge, Multinationals, Chinese market 1. Introduction Over the last few decades, the process of globalization has created unprecedented opportunities for global business investment and trade. Many multinational companies are attempting to expand their business international by many entry strategies such as joint venture and subsidiary. While China, with over 1.3 billion population and 9.6 million square kilometers (China Popin, 2008) has become a valuable land for foreign multinational companies. They try to enter the Chinese market by using many...
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...challenges of international human resource management, such as cultural diversity and the problem of managing people in different cultures and environments, convergence and divergence and the variety of international organizational models that exist. This paper proves that human resource managers of global organizations can not afford to ignore challenges of international human resource management, in order to ensure company’s success. Moreover, this work focus on investigating the correlation between these problems, that also must be understood. During the past fifty years, technological advances in transportation and communications have spurred the pace of globalization. Many companies envolved from being purely domestic to becoming truly global. The first step in this evolution might be to export goods for sale in one or two foreign markets. The next step might be to manufacture those goods overseas because it is more efficient than shipping products thousands of miles to foreign markets. Setting up all those complex operations to enter a foreign market change the companies that eventually envolve into multinational enterprises. Although developing international business increase the requirement for understanding ways in which companies operate effectively on a global scale. In order to become successful in the global, competitive business world, firms must overcome certain challenges. Globalization influences the way companies manage their human resources, therefore one of the...
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...Towards a generic international human resource management (IHRM) model Jie Shen University of South Australia Abstract Keywords Reflecting the prevailing Western literature and based on an empirical study in Chinese multinational enterprises (MNEs), this study develops an IHRM model and argues that it can be widely applicable. The model indicates that an MNE’s IHRM policies and practices are the interaction of the home HRM system, firmspecific factors and host-contextual factors. The firm-specific and host-contextual factors have a differentiated, changing and concurrent impact on IHRM policies and practices. There is also interplay between IHRM policies and practices. Intervening factors and their impact may vary over time and in different contexts. IHRM IHRM model intervening factors Chinese IHRM multinational enterprises (MNEs) Internationalization and the effective use of international human resources are two major issues facing firms in today’s global economy. As more and more firms operate internationally, there is a clear need to develop an understanding of how to manage human resources that are located outside the domestic environment. An IHRM system is a set of distinct activities, functions and processes that are directed at attracting, developing, and maintaining the human resources of a multinational enterprise (MNE). These activities, functions and processes result from the strategic activities of multinational enterprises and impact on the...
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...Impact of Culture in International Human Resource Management Martin Human Resource Management relates to the processes involved in managing people in international enterprises (Helfrich, et al., 2008). Although the literature has identified several criteria to classify the degree or intensity of an enterprise´s multi- or transnationality for this short abstract a multinational enterprise can be defined as “an enterprise which conducts it activities, control production or service facilities and activities that add value in more than one country” (Zurawicki, 1979). Among the first enterprises driving global business were those who signed on crews and chartered ships, handled, loaded and imported tea from India for the British market. Today according to (Keohane & Nye Jr., 2000) globalisation is “the state of the world involving networks or interdependences at multinational distances…through flows and influences of capital, goods, information and ideas, people and forces”. Diversity has become a fact of life for most companies. They are now composed with a virtual mosaic of employees who differ in culture, national patterns of childhood, formative experiences and education, language, geography gender, ethnicity, sexual orientation, class, religion, disability and other group memberships. The challenges which international human resources face are versatile but the greatest impact is culture. Focusing on the culture (Hofstede, 1991) defines culture as the...
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...Impact of Globalization on Human Resource Management Bhushan Kapoor, Professor and Chair, Information Systems & Decision Sciences, Cal State University, Fullerton, USA ABSTRACT The roles and responsibilities of Human Resources departments are transforming as the modern business faces pressures of globalization. The global supply of talent is short of its long-term demand, and the gap is a challenge for employers everywhere. The shortage between the demand and supply of talent is likely to continue to increase, notably for high skilled workers and for the next generation of business executives. Now organizations need to place greater emphasis on attracting human capital rather than financial capital. Global staffing and management of a workforce diverse in culture and language skills, and dispersed in different nations are the key goals of global human resources. Only those multinational enterprises willing to adapt their human resource practices to the changing global labor market conditions will be able to attract and retain high performing employees. Companies with the ability to foresee their business needs and their workforce needs – especially for high skills – will gain the decisive competitive advantage. Keywords: Human Resource Management, Globalization, Data Analytics, Data Warehouse, Online Analytical Processing, Data Mining, Key Performance Indicators, Dashboards, Scorecards. INTRODUCTION Human Resources departments are transforming as the modern...
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... International Business Strategy Introduction There has been growing concern for the economic interdependence of nations on a global scale. As a result, companies have stepped up the cross-border business transactions in the recent past. Widespread sharing of technology, global economic shifts, and international governance among others, have been the enabling factors. Visionary business leadership has transformed national-level firms into robust multinationals that dispense a wide variety of goods and services to a scale never witnessed before. As many companies yearn to take their business internationally, they face ever-present challenges in the new business arena. Managers, therefore, need to take a keen interest in assessing the corporate strategies to fit the demands of international business so as to maintain their competitive edge and suitably serve the culturally diversified individual and institutional customers. This report analyses a myriad of aspects that multinational companies face in the global provision of goods and services. In its deliberations, the reports deeply evaluate the National Double Diamond model and its later improvement as well as the SAFe criteria that are essential to business leaders in effectively engaging in international business. It gives insight on how the varied features of the international business impact on the business strategy. Additionally, it also highlights the best approaches the corporate managers...
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... International Business Strategy Introduction There has been growing concern for the economic interdependence of nations on a global scale. As a result, companies have stepped up the cross-border business transactions in the recent past. Widespread sharing of technology, global economic shifts, and international governance among others, have been the enabling factors. Visionary business leadership has transformed national-level firms into robust multinationals that dispense a wide variety of goods and services to a scale never witnessed before. As many companies yearn to take their business internationally, they face ever-present challenges in the new business arena. Managers, therefore, need to take a keen interest in assessing the corporate strategies to fit the demands of international business so as to maintain their competitive edge and suitably serve the culturally diversified individual and institutional customers. This report analyses a myriad of aspects that multinational companies face in the global provision of goods and services. In its deliberations, the reports deeply evaluate the National Double Diamond model and its later improvement as well as the SAFe criteria that are essential to business leaders in effectively engaging in international business. It gives insight on how the varied features of the international business impact on the business strategy. Additionally, it also highlights the best approaches the corporate managers...
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...Analyzing the Benefits of Cultural Diversity in Organizations Name Institution Instructor Course Date Submitted Managing Cultural Diversity in Organizations Chapter 1: Introduction Human resource management is one of the core functions of business managers. Organizational productivity is influenced by the degree of effectiveness with which employees are managed and directed to perform their duties. One major challenge that human resource managers face in this regard is promoting harmony and coexistence in multicultural workplace environments. Since the beginning of the 18th century Industrial Revolution in Europe, business companies have had to deal with a growing number of people from different cultural backgrounds. This demographic transformation of the workplace was a result of advancements in the transport industry. The invention of the steam engine, and later on, the airplane, facilitated fast movement of goods and people across international boundaries. Over time, companies expanded their business activities beyond their local markets, giving rise to multinational corporations. Satair U.S.A is a multinational corporation with branches in several countries around the world. The company specializes in aircraft maintenance and the distribution of aircraft spare parts. As a multinational company, Satair employs people from different cultural backgrounds in its plants around the world. Consequently, the...
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...International Human Resource Management Managing people in a multinational context International Human Resource Management Managing people in a multinational context Exhibit A Tex-Mark Corporation Pre-departure activities 1. ‘Country briefings’, outsourced to a consulting firm in San Antonio that had experience dealing with the countries in which Tex-Mark operated. Tex-Mark was prepared to pay for four sessions each lasting one hour. 2. ‘Reading Assignments’. Three to four books (depending on region of assignment) on national or regional culture and/or doing business in the focal region. Accompanying spouses/partners had access to a similar library.‘Interviews and conversations’ with Tex-Mark employees with country experiences. 3. ‘Language courses’. Attendance at elective ‘survival level’ language classes. These courses last from eight to twelve weeks, with three course meetings a week. Tex-Mark will pay for spouses/partners as well. In-country training and development Upon arrival, Tex-Mark staff in the local operation will assist the accompanying spouse/partner with job search activities. They will assist with finding children acceptable schooling situations. Where possible, Tex-Mark staff will endeavour to provide a social support network. Repatriation Upon return all expatriates are required to go through a debriefing and career counselling session with HR staff. This should be held within two months of the person’s re-entry to the home location. v ...
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...INTRODUCTION Human resource management (HRM) is universal in terms of strategies, policies and processes. The term has gradually replaced personnel management. Managing and developing human resources in the international (global) setting is increasingly recognized as a central challenge, particularly to multinational enterprises (MNEs). Human resource management is both academic theory and a business practice that addresses the theoretical and practice techniques of managing a workforce. While the theoretical aspects of the discipline may also be universal, the same cannot be said of its practice. The paper defines human resource management, the theoretical basis of the discipline, business practice and global or international human resource management. Thereafter, the paper concentrates on global perspective or issues in international human resource management practice. HUMAN RESOURCE MANAGEMENT Human resource management is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms “human resource management” (HRM) and “human resources” (HR) have largely replaced the term “personnel management” as a description of the processes involved in managing people in organizations. Human resource management can also be defined as the function within an organization that focuses on recruitment of, management of, and...
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... International Business Strategy Introduction There has been growing concern for the economic interdependence of nations on a global scale. As a result, companies have stepped up the cross-border business transactions in the recent past. Widespread sharing of technology, global economic shifts, and international governance among others, have been the enabling factors. Visionary business leadership has transformed national-level firms into robust multinationals that dispense a wide variety of goods and services to a scale never witnessed before. As many companies yearn to take their business internationally, they face ever-present challenges in the new business arena. Managers, therefore, need to take a keen interest in assessing the corporate strategies to fit the demands of international business so as to maintain their competitive edge and suitably serve the culturally diversified individual and institutional customers. This report analyses a myriad of aspects that multinational companies face in the global provision of goods and services. In its deliberations, the reports deeply evaluate the National Double Diamond model and its later improvement as well as the SAFe criteria that are essential to business leaders in effectively engaging in international business. It gives insight on how the varied features of the international business impact on the business strategy. Additionally, it also highlights the best approaches the corporate managers...
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...The Influence of Organizational and Human Resource Management Strategies on Performance by Raduan Che Rose, PhD, and Naresh Kumar, PhD T oday a firm’s success largely depends on the capabilities of its members. Firms may have the capital and technology, but it is Human Resources (HR) that will help firms face the challenges of business globalization. Capital can be generated. So can technology. But the HR required to propel an organization through the coming challenges must be rightly and appropriately encouraged and motivated. Significantly, these days careful management of this important resource calls for a strategic focus on Human Resource Management (HRM) in the organization. Previous research on HRM widely accepted that employees create an important source of competitive advantage for firms (Barney, 1991; Pfeffer 1994). As a result, it is important that a firm adopt HRM practices that make best use of its employees. This trend has led to increased interest in the impact of HRM on organizational performance, and a number of studies have found a positive relationship between so-called “high-performance work practices” (Huselid, 1995) and different measures of company performance. Furthermore, there is some empirical support for the hypothesis that firms, which align their HRM practices with their business strategy, will achieve superior outcomes (Bae & Lawler, 1999). However, a review of the literature indicates a serious lack of large-sample empirical studies designed...
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