International Human Resource Management

Cross - Cultural Human Resource ManagementIntroductionModule OutcomesTo be able to

Diagnose Complex Management and Organisational problems relating to the management of people across different cultures

Generate & Evaluate alternative courses of action to address such problems

Produce and justify action plans for International HRMLearning OutcomesSignificance and origin of HRM

Functions and basic concepts of HRM

Definitions and theories of HRM, Key termsOrganisational Culture and how it evolvesCulture Specific nature of HRM and Culture FrameworksContextual factors affecting HRM

Change ManagementCIPDKey issues in managing GlobalisationManaging People for?ResultsOrganisational effectivenessAchievement of specified / quantifiable goalsEmployee Satisfaction (Stakeholder perspective)

Measures can be Quantitative (costs, turnover, absenteeism, grievances, service levels, etc)OrQualitative (employee satisfaction, managing change, organisational culture)Armstrong, M (2001) Chap- evaluating the HR Function

4Personnel ManagementTyson & Fell (1986) Personnel Management has its roots in Four Traditions

The Welfare Tradition

The Industrial Relations Tradition

The control of labour Tradition

The professional Tradition

HRM functions

Activity:

List the roles and responsibilities of the HR Function in an organisation HR FunctionOrganisational Structure and DesignOrganisational DevelopmentJob role design / definitionWorking pattern flexi time

Performance ManagementObjective setting Monitoring and appraisalPlanning and ResourcingRecruitmentSelectionRetentionExit management

Reward ManagementPay and BenefitsPerformance pay systemsNon Financial rewards (recognition)7HR FunctionHuman Resource DevelopmentTrainingPDPCareer Management

Health and safety

WelfareEmployee RelationsManaging expectations and conflictCommunication

ServicesHR policies and proceduresEnsuring complianceMaintaining Information system

Development of HR DisciplineF.W. Taylor (1911)The Principles of Scientific Management

Henry Ford (1914)Five Dollar Day

Hawthorne Studies at Western Electric Company Plant in Chicago (1920s) led toAn appreciation of the fundamental importance of the workers attitude to the job in determining performance

Hard and Soft HRM

Storey ( 1989) has distinguished between Hard and Soft forms of HRM, typified by the Michighan and Harvard Models respectively.

Hard - Focuses on the resource side (costs, head counts)

Soft stresses human aspectPrice ,A (2004) P3610Mc Gregors Theory X and Y

Definitions of Human Resource ManagementHuman Resource Management involves all Management decisions and actions that effect the relationship between the organisation and employees - its employees (Beer et al., 1984)

Perhaps it is best to regard HRM as simply a notion of how people can best be managed in the interests of the organisation (Armstrong, 1994)

HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce , using an integrated array of cultural, structural and personnel techniques (Storey, 2001)

Price, A (2004) P3312Convergence Vs DivergenceAttempt to Harmonise

Global sharing of technical knowhow

Standardisation of jobs and evaluation techniques

Best Practice ApproachSignificant differences exist which cannot be ignoredCulturalLegalStructuralIdeologicalEconomical

Best Fit ApproachSTAKEHOLDERSGroups of people or organisations that are directly affected by the actions of a firm

The Harvard Framework

What is HR business partnering?

Organisational Culture

National CultureHofstede (1980)Collective Programming of the mind based on a broad tendency to prefer certain states of affairs over others

Tayeb (1988)Historically evolved values, attitudes and meanings which are learned and shared by the members of a given community, and which influence their material and non material way of lifeContextual Factors Affecting HRM Policies and Practices

Organisational Culture and ClimateCulture is one of the less tangible features of an organisation and carried in the minds of organisational members. While it is hard to define, it consists of a deeply ingrained set of values.

It can be thought of as a layered phenomenon1)basic assumptions at its core2)values arising out of the basic assumptions3) visible expression (mostly difficult to interpret)

Organisational Culture usually contains elements of the culture of the country in which an organisation is located Cultural FrameworksThe Hofstede Model (1984,1991)Power DistanceUncertainty AvoidanceIndividualismMasculinity

The Trompenaars Model (1997)7 Key DimensionsCross-cultural Research at 66 national Offices of IBMHofstede Model describes four Primary Dimensions

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What aspect of hrm is more susceptible to Cultural Influences -

Soft Or Hard?Soft AspectsManagement style:ParticipativeConsultativePaternalisticAutocratic

Authority Structure:DecentralisedCentralised

Organisational Structure:HierarchicalNetwork

Leadership Style:Task OrientedEmployee Oriented

Employee Relations With Company:EmotionalContractual

Contextual Factors Discuss & ListContextual FactorsPsychological contractSchein (1980) defines Psychological contract as an unwritten set of expectations operating at all times between every member of an organisation and various others in that organisation.

Psychological contract has been defined by D.Guest (2001)as a reciprocal but unarticulated set of expectations between employers and employees. The contract is implicit and dynamic.

Anything that the management does or perceived to be doing that affects the employees will modify the psychological contract. Similarly, employee behaviour individually or collectively will affect an employers concept of the contract.26Characteristics of IHRMTorrington (1994) believes that International Personnel Management is best defined by reference to the following 7 CsCosmopolitanCultureCompensationCommunicationConsultancyCompetenceCoordination

Ref: Armstrong, M (2001), P130-13127Change - Force Field Analysis

Change - Lewins Model

UnfreezeChangeRefreeze Chartered Institute of Personnel DevelopmentWelfare Workers Association (1913)Industrial Welfare Workers (1924)Institute of Labour Management (1931)Institute of Personnel Management (1946)

Institute of Personnel Management and Institute of Training and Development merged to become Institute of Personnel and Development (1994)

01 July 2000 - Chartered Institute of Personnel and DevelopmentCIPD PodcastResearch into the future of HR in Europe conducted by the Boston Consulting Group in association with the CIPD and the European Association for Personnel Management, has highlighted globalisation and its consequences as a priority for the HR profession.

CIPD PodcastThree priorities emerged around the issue of globalisation

Challenges of managing international teams

Creating a strong enough corporate culture to cross national boundaries

Increasing diversity in the workforceRecap

Significance and origin of HRM

Definitions and theories of HRM, Key termsOrganisational Culture and how it evolvesCulture Specific nature of HRM and Culture FrameworksContextual factors affecting HRM

Change ManagementCIPDKey issues in managing GlobalisationCase Study