International Human Resource Management Dr Katalin Illes

Overview Competencies of the HR manager The matrixed role of the of the HR manager The place and role of the HR function in organisations Shifting paradigms Future direction

Competencies of the HR manager

The matrixed role of the of the HR manager

The place and role of the HR function in organisations

Shifting paradigms

Future direction

Key aspects of IHRM Global workforce International context National context Strategic issues Operational issues IHRM career Competencies The future

Global workforce

International context

National context

Strategic issues

Operational issues

IHRM career

Competencies

The future

Competencies of the Human Resource Manager Business competencies Industry knowledge Competitor understanding Financial understanding Global perspective/knowledge Strategic analysis Partner orientation Multiple stakeholder sensitivity

Business competencies

Industry knowledge

Competitor understanding

Financial understanding

Global perspective/knowledge

Strategic analysis

Partner orientation

Multiple stakeholder sensitivity

Competencies of the Human Resource Manager Leadership competencies Strategic visioning Managing cultural diversity Creator of learning culture Planning and decision making skills Value shaper

Leadership competencies

Strategic visioning

Managing cultural diversity

Creator of learning culture

Planning and decision making skills

Value shaper

Competencies of the Human Resource Manager Change and knowledge-management competencies Network building Designing and working in flexible structures HR alignment Managing and learning knowledge transfer Consulting/influencing Group/process facilitation Organisation development/effectiveness Managing large scale change

Change and knowledge-management competencies

Network building

Designing and working in flexible structures

HR alignment

Managing and learning knowledge transfer

Consulting/influencing

Group/process facilitation

Organisation development/effectiveness

Managing large scale change

Competencies of the Human Resource Manager Professional/technical competencies Staffing Performance management Education/development Remuneration/reward systems Employee relations Employee communications Succession planning Union relations Safety/health/wellness Diversity management

Professional/technical competencies

Staffing

Performance management

Education/development

Remuneration/reward systems

Employee relations

Employee communications

Succession planning

Union relations

Safety/health/wellness

Diversity management

Evans (2002) The Matrixed “Split Egg” Role of the Manager

Some of the Dualities Confronting Organizations

CEO EXPECTATIONS FROM HR 08/30/99 Involvement in managing overall business. To look at business priorities before functional priorities. HR is in the same boat with other Management Team members. HR targets inseparable from business targets.

Involvement in managing overall business.

To look at business priorities before functional priorities.

HR is in the same boat with other Management Team members.

HR targets inseparable from business targets.

How HR Links to Overall Strategy? 08/30/99 Source:Right Management Consultants Assessing Organisations Executing Strategy Managing Change Assessing Leaders Coaching Leaders Developing Leaders & Teams Attracting & Selecting Talent Developing Careers & Managing Performance Retaining Talent & Managing Succession

Source:Right Management Consultants

What’s the reality? 08/30/99 Behind the scene...

Behind the scene...

HR Reality 08/30/99 HR has had “Bad Press”: Line Management not involved/interested. HR People too detached from business. ‘ One size fits all’ approach. Perception of limited added value. No clear link between HR efforts and shareholder value. HR is like a WOLF….. everybody hears about it but nobody sees it!

HR has had “Bad Press”:

Line Management not involved/interested.

HR People too detached from business.

‘ One size fits all’ approach.

Perception of limited added value.

No clear link between HR efforts and shareholder value.

HR is like a WOLF…..

everybody hears about it but nobody sees it!

HR work today 08/30/99 Communicating effectively. Collating HR reports for Management Information. Managing admin issues. Keeping the company out of court. Executing change programs. “ BUT HR IS STILL TRANSACTIONAL”

Communicating effectively.

Collating HR reports for Management Information.

Managing admin issues.

Keeping the company out of court.

Executing change programs.

“ BUT HR IS STILL TRANSACTIONAL”

What are the key HR Challenges? 08/30/99

It is a balancing act 08/30/99 The needs & expectations of employees The resources & directions of the company HR gets pulled in both Directions

HR gets pulled in both Directions

HR Role in Change programs Change demands common vision, understanding and behaviour to keep focus during the transition and beyond. HR must provide clear, consistent leadership. HR must show a consistent face to the internal customers. HR must find a balance between stability and uncertainty.

Change demands common vision, understanding and behaviour to keep focus during the transition and beyond.

HR must provide clear, consistent leadership.

HR must show a consistent face to the internal customers.

HR must find a balance between stability and uncertainty.

Talent Development 08/30/99 Define your Star of Today. Develop your Star of Tomorrow. SYMBOLS The gap is your development needs. Make the Star shine.

SYMBOLS

The gap is your development needs.

Make the Star shine.

Work/Life Balance 08/30/99 The most cherished values: Happiness Inner Peace Fulfillment Feel Good Why are these values never mentioned in any mission statement? Work / Life balance

The most cherished values:

Happiness

Inner Peace

Fulfillment

Feel Good

Why are these values never mentioned in any mission statement?

The New Roles Of Human Resource Management 08/30/99 Operational Strategic Strategic Business Partner translates business strategy into action, assesses and aligns systematically HR practices with the business strategy. Change Agent listens to employees and finds the right balance between demands on employees and resources available to employees, and promotes employee contributions. Administrative Expert improves processes, applies the principles of BPR to HR processes, rethinks value creation, and measures HR results in terms of efficiency and effectiveness. Performance Coach understands the theory and applies the tools of change, leads transformation by doing it first within the HR function, serves as catalysts and facilitators of change. Process People Based on D. Ulrich, Human Resource Champions, Boston 1997 HR rotation

HR rotation

Can HR get un-stuck? 08/30/99 Yes! Only if...

Yes! Only if...

Shifting Paradigms What’s Out: Last Port of call. Job Analysis. Personnel Management. Rulemaker. Functional Orientation. One Size Fits All. Centralised Decisions. Mutual Distrust. Focus on Tasks. Following. Transactional HR. What’s In: First Port of Call. Competency Assessment. HR Management. Consultant. Business Orientation. Tailored Programs. Framework for Others to Decide. Partnering. Focus on Impact. Leading. Transformational HR.

What’s Out:

Last Port of call.

Job Analysis.

Personnel Management.

Rulemaker.

Functional Orientation.

One Size Fits All.

Centralised Decisions.

Mutual Distrust.

Focus on Tasks.

Following.

Transactional HR.

What’s In:

First Port of Call.

Competency Assessment.

HR Management.

Consultant.

Business Orientation.

Tailored Programs.

Framework for Others to Decide.

Partnering.

Focus on Impact.

Leading.

Transformational HR.

Can HR survive? 08/30/99

HR Etiquette for future survival Break and let go of bureaucratic patterns; move away from administrative, transactional, and policy elements of HR work. Focus on achieving organisational outcomes. Facilitate organisational change. Create efficient HRM and HRD processes. Promote people as a valued resource. Grasp the bigger picture: Be visionary. Plan effectively, reach decisions and set goals. Alignment of HR Programs and Practices with Strategic Directions.

Break and let go of bureaucratic patterns; move away from administrative, transactional, and policy elements of HR work.

Focus on achieving organisational outcomes.

Facilitate organisational change.

Create efficient HRM and HRD processes.

Promote people as a valued resource.

Grasp the bigger picture: Be visionary.

Plan effectively, reach decisions and set goals.

Alignment of HR Programs and Practices with Strategic Directions.

IHRM approaches Ethnocentric : key positions filled by nationals of parent company Polycentric : host country nationals recruited to manage subsidiary in their own country Geocentric : best people recruited, whatever their nationality Regiocentric : best people recruited within region in which the subsidiary operates (e.g. EU, USA)

Ethnocentric : key positions filled by nationals of parent company

Polycentric : host country nationals recruited to manage subsidiary in their own country

Geocentric : best people recruited, whatever their nationality

Regiocentric : best people recruited within region in which the subsidiary operates (e.g. EU, USA)

Decentralised IHRM Advantages Groups within the subsidiary can gain in status Groups within the subsidiary become more cohesive, fostering group identity IHRM takes place within a culture appropriate to the local workforce and customers Disadvantages Tendency to become ‘exclusive’ Loss of central control, higher administrative costs as HRM function is sent ‘down the line’ Loss of organisational control and organisational identity

Advantages

Groups within the subsidiary can gain in status

Groups within the subsidiary become more cohesive, fostering group identity

IHRM takes place within a culture appropriate to the local workforce and customers

Disadvantages

Tendency to become ‘exclusive’

Loss of central control, higher administrative costs as HRM function is sent ‘down the line’

Loss of organisational control and organisational identity

Cross-cultural awareness Supports for employees moving to overseas subsidiaries Environmental briefings Cultural orientation Cultural assimilation Language training Sensitivity training Field experience

Supports for employees moving to overseas

subsidiaries

Environmental briefings

Cultural orientation

Cultural assimilation

Language training

Sensitivity training

Field experience

Appraisal Identifies individual’s strengths and weaknesses Reveals organisational obstacles blocking progress Provides feedback to improve human resource planning Improves communication

Identifies individual’s strengths and weaknesses

Reveals organisational obstacles blocking progress

Provides feedback to improve human resource planning

Improves communication

Food for thought Whose responsibility is the HR function? Organisational culture, change, trust, respect, knowledge sharing , knowledge creation Organisational and Personal Development Work life balance

Whose responsibility is the HR function?

Organisational culture, change, trust, respect, knowledge sharing , knowledge creation

Organisational and Personal Development

Work life balance

Recommended reading Key text : Wall and Rees (2004) International Business, Pearson, chapter 9 Further reading : Evans, et al (2002) The Global Challenge, Frameworks for International Human Resource Management, McGraw-Hill

Key text : Wall and Rees (2004) International Business, Pearson, chapter 9

Further reading : Evans, et al (2002) The Global Challenge, Frameworks for International Human Resource Management, McGraw-Hill