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304 LON International HRM
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304 LON _ INTERNATIONAL HRM
REGULAR ASSIGNMENT ONE
COVENTRY UNIVERSITY LONDON CA...
304 LON International HRM
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STUDENT NAME STUDENT ID ATTEMPTED PARTS
Esha Chopra 4095053 Recruitment and sele...
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Table of Contents
Introduction.....................................................
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Introduction
In this report we will look at the key HRM issues at Medical Precis...
304 LON International HRM
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Resource Strategies (Nohria and Ghoshal, 1997). In this case the amount spent on...
304 LON International HRM
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Appropriate training for international subsidiaries is crucial in order to minim...
304 LON International HRM
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Finally, by encouraging its employees to think out of the box in order to bring ...
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proposes that employee motivation results from employees’ valuation of rewards a...
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Employee Participation & Trade Unions
Employee participation:
Employee participa...
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Source: Upward communication, 2012
MPS failed to implementing indirect particip...
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Trade union is the indirect participation (Representative participation) which ...
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References:
Beardwell, J., Claydon, T. (2010) 5th Edition Human Resource Manage...
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Jackson, T. 2009, International HRM A Cross Cultural Approach, Sage Publication...
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Figure References
Bratton, J. and Gold, J. (2008) 4th Edition Human Resource Ma...
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Appendices
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APPENDIX 1
TOTAL REWARD MODEL
Source: Beardwell and Claydon (2010)
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APPENDIX 2
Schuler and Rogovsky (1998) different types of reward systems:
Rewar...
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Appendix 3
Marchington's (1992) four categories of EPI:
Downward Communication:...
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Table 1.3: Work organization by sector of ownership.
Source: Bearwell and Clayd...
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304 LON International HRM

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304 LON International HRM

  1. 1. 304 LON International HRM - 1 - | P a g e 304 LON _ INTERNATIONAL HRM REGULAR ASSIGNMENT ONE COVENTRY UNIVERSITY LONDON CAMPUS 17AUGUST 2012
  2. 2. 304 LON International HRM - 2 - | P a g e STUDENT NAME STUDENT ID ATTEMPTED PARTS Esha Chopra 4095053 Recruitment and selection Priscilla W Muchiri 3912300 Training and development Gabriela Martins Madureira 4049702 Reward and performance management Muhammad Tanvir Hossain 4325352 Employee participation and trade union Group Introduction, Recommendation and Conclusion TUTOR NAME: MISS YVONNE BROWNE
  3. 3. 304 LON International HRM - 3 - | P a g e Table of Contents Introduction...........................................................................................................4 Recruitment and Selection .................................................................................4-5 Training and development .................................................................................5-6 Reward and performance management..............................................................7-8 Employee participation and trade union ..........................................................9-11 Conclusion ..........................................................................................................11 References………………………………………………………………… 12-14 Appendices……………………………………………………………………..15 1. Total Reward Model ………………………………………………………..16 2. Schuler and Rogovsky (1998) different types of reward systems………..…17 3. Marchington's (1992) four categories of EPI:.............………………………18 Reader’s Guide: Recommendation mentioned after each topic.
  4. 4. 304 LON International HRM - 4 - | P a g e Introduction In this report we will look at the key HRM issues at Medical Precision System (“MPS”) -a respected US company which has been producing medical precision tools used in surgery since 1972-discussed in the case study and point out the number of reasons that may have caused the company to face some difficulties in both their home country and in the United kingdom, France and Sweden. Despite the company’s success in America, employees in Europe did not respond well to the current management. Consequently, after understanding the company’s international and local activities make recommendations to help in minimising the problems, increasing performance level and employee job satisfaction matching their perception of value. Recruitment & Selection “Recruitment is defined as searching for and obtaining potential job candidates in sufficient numbers and quality so that organization can select most appropriate people to fill its job needs” (Dowling et. al. 2008). The main role of the Human Resource manager is to recruit and select the best suitable person for the organization. It is quite vital to note that based on the industry and sector the Human Resource manager uses different models for recruitment and selection. The most appropriate in this instance would be the “attrition -attraction-selection” model developed by Schneider (Bratton and Gold 2007). “Attraction” is when the employees apply for job as they are passionate about the job role. “Attrition” is the opposite of attraction, when the employees leave the organization when the employees are no longer interested in the company. Whereas, in “Selection” the organization selects a candidate when they feel that the candidate is suitable to hold the position in the organization. In the case of Medical Precision Systems, the main contrasting decision at the human resource management level was that they kept on recruiting employees that at the end of every international expansion strategy they had an enormous number of work force. It should be noted that even though having more employees is good for the company as it will help in catering the difficult tasks at the technical as well as administrative level especially in a new geographic region but the cost involved in training the staff will cause them a lot of financial burden and minimizing it will in fact help the company to invest in other spheres of business. The use of expatriates is one of the measures that the company could have used, as most of the MNC’s have been successful as this helps in successful transmission of the Human
  5. 5. 304 LON International HRM - 5 - | P a g e Resource Strategies (Nohria and Ghoshal, 1997). In this case the amount spent on training the staff is not very high as the expertise remains with them but cultural training has to be provided to those employees. Expatriates also help in bringing forth the know-how and organizational culture of the company (Dowling et. al. 2008), which will help in ease of two way communication between both these countries as well. Similarly, another Human Resource Management strategy that Medical Precision Systems can use is the more effective utilization of the Information Technology. For instance, facilities such as online applications, Curriculum Vitae uploading, job roles and career prospects etc. being available online would have helped in making the recruitment procedures much easier, reduce cost as well as more applicants for the company while its international expansions (Beardwell, J. and Claydon, T. 2010). Training and Development Training aims to improve employees current work skills and behavior, whereas development aims to increase abilities in relation to some future job position. (Dowling 2008:137) and at MPS training is taken seriously and all employees attend sessions to train in team working and people skills as well as courses of a more technical nature. This is very essential to the company as it employees so many employees both skilled and semi skilled per year and because the company ensures that laying them off is avoided as much as possible hence greatly building its stock of human resources-its human capital. In the struggle to ‘think global and act local’ organizations need people who have ‘a “matrix of the mind “, sharing learning and creating new knowledge are among the key capabilities that organizations must have( Ulrich and Stewart Black, 1999) hence by MPS expanding overseas and hiring a rather educated workforce no much training is required initially but the continuous learning and development of individuals are therefore of crucial and strategic importance to the company (Beardwell and claydon 2010), Such as cross cultural awareness and language training programs to help the expatriate employee adapt and not feel isolated and to assist in managing diversity, employee training and Consequently by planning and implementing are able to fill in the gap and evaluate the intervention. (See diagram below)
  6. 6. 304 LON International HRM - 6 - | P a g e Appropriate training for international subsidiaries is crucial in order to minimise problems such as lack of understanding of the British mentality, France major problem in the management style and the diversity of conditions in the subsidiaries’ and practices followed in the USA.MPS has an existing HRM strategy which ensures that feedback mechanism is implemented and backed up with training programmes for all employees, additionally it should adapt the Mendenhall, Dunbar and Oddou cross-cultural training model for its managers(expatriates) as leadership is a key factor in influencing the development of learning organization. (Senge, 1990; Johnson, 1998; Prewitt, 2003; Sadler, 2003) which has three dimensions of training and establishes a suitable program depending on the employees level of interaction and the degree of similarity between the employees home culture and the host culture, thus able to understand the situation, the people, minimize the problems and attain effective performance to achieve the transition. (see diagram below)
  7. 7. 304 LON International HRM - 7 - | P a g e Finally, by encouraging its employees to think out of the box in order to bring out the best in them and having a leader who can help cope with the changes this in effective will help the company to breathe and grow. Performance and Rewards Reward is an essential factor that motivates employees and influences their level of performance. The Expectancy Theory of Motivation (Vroom, 1982) Vroom’s Expectancy Theory
  8. 8. 304 LON International HRM - 8 - | P a g e proposes that employee motivation results from employees’ valuation of rewards and that rewards must also support their culture and goals. MPS focuses on performance management, setting targets for groups and individuals that determine remuneration and promotion. Profit sharing has been introduced and a share scheme will be introduced in the near future. However, the Model of Total Rewards (See appendix1) (Armstrong and Murlis, 1998) recommends combining rewards to maximise employee’s satisfaction; the ‘reward mix’ is important, balancing ‘pay’, ‘benefits’, ‘learning and development’ and ‘work environment’. In a cross-cultural organisation, employees must have a clear view of what is needed to achieve rewards available. Greene (1995) also stated that reward systems should be sensitive to cross-cultural differences and performance-dependent rewards may not be attractive to employees who value income continuity. Schuler and Rogovsky (1998) suggested that workers’ differing values across countries of status, individual performance and risk avoidance should determine the types of rewards offered (See Appendix 2). Whilst MPS’s US workers responded well to target-setting, (suggesting they are individual and not concerned about job security), unions and employees in the UK felt the targets were too hard and divided employees (suggesting they are less individual and more focussed on maintaining job security); rewards to increase status/seniority may motivate UK workers more than pay/bonuses. In France, employees also did not react well to hard performance targets or group feedback on the performance management system but wanted a strong line manager with authority to direct them (suggesting that the French workers were motivated by status); the reward mix may need to focus on benefits and work environment (e.g. additional holiday allowance not pay/bonuses). French workers would respond better to a strong French management team rather than a US manager. In Sweden, employees disliked performance targets but liked group feedback (suggesting preference for employee ownership rewards based on group efforts); MPS should focus on the work environment to encourage employees’ enjoyment of group innovation and encourage innovation in teams. Rewards may be in the form of pay/bonuses but be focussed on Swedish performance and teams rather than individual performance. MPS’s reward schemes focus on individual performance (assuming that all employees are not worried about job security) which appeals to US employees. However, employees in the UK, France and Sweden are not responding well to the current reward mix. MPS should develop country-specific rewards that match those employees’ perception of value which will ensure all employees are motivated.
  9. 9. 304 LON International HRM - 9 - | P a g e Employee Participation & Trade Unions Employee participation: Employee participation and involvement (EPI) is the central activity of HRM ( Beardwell & Claydon 2010: 531) and is an extremely important component of HRM. Marchington and Wilkinson (2005: 392) describes 'employee participation and involvement are somewhat elastic terms and are amenable to a range of definitions'. MPS expatriate managerial motive was to motivate employees for a positive-sum outcome and implemented direct participation in UK, France and Sweden in a form of team working systems, work place feedback etc. The motivation for participation differs fundamentally from employee involvement, a 'desire' (Beardwell & Claydon 2010: 533) to increase the influence of technical issues of corporate efficiency (see Box 1.1). Table 1.1 Employee involvement and participation compared: Source: Beardwell and Claydon (2010) Marchington et al. (1992) classify four categories of EPI initiatives (see appendiX 3) Upward problem solving mechanism (see the diagram below) did not work so well in France as workforce see very little potential of this feedback mechanism where they preferred to have a line manager to direct them towards work tasks which is downward communication.
  10. 10. 304 LON International HRM - 10 - | P a g e Source: Upward communication, 2012 MPS failed to implementing indirect participation in European subsidiaries in the decision making process. As a recommendation, MPS should implement employee participation in form of following figure: Source: Bratton, Gold (2007) This above cycle will Help MPS to create a diverse atmosphere to lead the growth in innovation and creative ideas within organization. The involvement schemes are: behaviour, economic and moral.
  11. 11. 304 LON International HRM - 11 - | P a g e Trade union is the indirect participation (Representative participation) which bring the social responsibilities within the organization (Mullins 2010). Britain 'employee participation' (Employee Participation and Involvement, 2012) has normally occurred within the structure of combined bargaining. For example, when MPS's UK operation manager Joe Mendes suggested having one union for negotiation purpose there was almost a huge walkout. MPS strategy of keeping out union did not work in Britain as the representative participant (unions) and many employees stressed target was too high and disruptive and they have little control over them. MPS set up a works council for management and employees in Sweden under the Swedish and EU law but MPS disliked these meetings and gave less importance. MPS were not quiet co-operative in the eyes of one Swedish union. Conclusion It is crucial for MPS or any other organization to recognize that cross cultural training increases the probability of success of international assignments, moreover, develop its employees to enable them to perform their current and future roles in the organization and also to accumulate stock of knowledge, skills, and abilities that employees possess which the company builds over time into identifiable expertise. In doing so recognize that the employees expect either intrinsic or extrinsic reward when they have put effort in and become greater skilled. Furthermore, with the increasing flexibility of organizations individuals need to engage in lifelong learning. And all these can be done through employee, staff, self- development, management and organization development and continuing professional development. In conclusion, however It is important to note that some employees may become dissatisfied with their jobs or employers after training hence some employers may become reluctant to develop their employee. Additionally, MPS should therefore develop country-specific reward schemes that match the local employees’ perception of value. Developing rewards to match local employee value perception will ensure that the motivation of employees in those countries is maximised.
  12. 12. 304 LON International HRM - 12 - | P a g e References: Beardwell, J., Claydon, T. (2010) 5th Edition Human Resource Management: A Contemporary Approach. Harlow: Financial Times Prentice Hall Bratton, J. and Gold, J. (2008) 4th Edition Human Resource Management: Theory and Practice, Basingstoke: Palgrave Macmillan Brown, Y(2012) U4K1 Training and development [knowledge cast] module 304LON, 13 August 2012. London: Coventry University London Campus Brown, Y(2012) U4K2 Training and development [knowledge cast] module 304LON, 13 August 2012. London: Coventry University London Campus Business Mate Org, 16/09/2009 - Available online at: www.businessmate.org/Article.php?ArtikelId 11(12/08/2012) Blyton, P. and Turnbull, P. (1998) The Dynamics of Employee Relations. Macmillan Business, Oxford, United Kingdom. Blyton, P. and Turnbull, P. (2004) The Dymanics of Employee Relations, 3rd edn. Basingstoke: Palgrave. Cameron, S., 2010. The Business Student’s Handbook: Skills for Study and Employment, 5th Edition. London: Pearson Education Limited Department for Business, Innovation & Skills – Available online at: www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791755&type=RESOURCES (13/08/2012) Dowling ,p j, Festing M, Engle D A SR, 5th Edition 2008 cengage learning EMEA,UK Dowling, P., Festing, M. and Engle, A.D. (2008) 5th Edition International Human Resource Management. Cengage: Learning EMEA EIRR Report Number Four ( 1990 ) Employee participation in Europe, London: Eclipse. EMPLOYEE PARTICIPATION - THE EUROPEAN EXPERIENCE, 05.08.12http://bus.lsbu.ac.uk/resources/CIBS/european-institute-papers/papers3/696.PDF Employee Participation and unin voice in the National Health Servicewww.blackwellpublishing.com/pdf/vol14no2.pdf Employee Participation and Involvement, courses.essex.ac.uk/ac/ac219, 10.08.12 Holden, L. (2004) 'Employee involvement and empowerment' in I. Beardwell, L. Holden and T. Claydon (eds) Human Resource Management: a Contemporary Approach, 3rd edn. Harlow: Prentice Hall
  13. 13. 304 LON International HRM - 13 - | P a g e Jackson, T. 2009, International HRM A Cross Cultural Approach, Sage Publications Limited Kobashi, T, & Fujikawa, N (2009), 'A RESEARCH ON DEVELOPMENT OF INTER- ORGANIZATIONAL LEARNING: THROUGH THE CASE OF AN INTERNATIONAL STRATEGIC ALLIANCE', Journal of International Business Research, 8, pp. 29-41, Business Source Complete, [online] available from <http://web.ebscohost.com/ehost/detail?vid=5&hid=119&sid=4e53ca7d-3022-4940-b1bc- 8a0935633a70%40sessionmgr114&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth& AN=51382977> [13th August 2012] Lane, C. (1992) Management and Labour in Europe, E. Elgar: Aldershot. Marchinton, M. and Wilkinson, A. (2005) 'Direct participation' in S. Bach (ed.) Personnel Management: A Comprehensive Guide to Theory and Practice. Oxford: Blackwell, pp. 382- 404 Marchington, M., Goodman, J., Wilkinson, A. and Ackers, P. (1992) New Developments in Employee Involvment, Department of Employement Research Series No. 2. London: HMSO. Mullins, L.J. (2010) Management and Organisational Behaviour, 9th Edition, Harlow: Pearson Higher Education Mueller, F. and Proctor, S. (2000) Teamworking. Basingstoke: Macmillan. Nohria, N. and Ghoshal, S. (1997), The Differentiated Network: Organizing Multinational Corporations for Value Creation, San Francisco, CA: Jossey Bass Rijal, S 2009, 'LEADING THE LEARNING ORGANIZATION', Business Education & Accreditation, 1, 1, pp. 131-140, Business Source Complete, [online] available from <http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=4e53ca7d-3022-4940-b1bc- 8a0935633a70%40sessionmgr114&vid=8&hid=119> [13th August 2012] Stahl,G,S., Mendenhall ,M.E., Oddou G,R ,. International Human resource management and Organisation Beehavior 5th Edition, 2012 Routledge, Milton Park, Abingdon Trade Union, Managerial and Employee Perceptions of Organisational Participation and Democracy at Workhttps://dspace.lib.cranfield.ac.uk/handle/1826/4543 Treaty of Maastricht on European Union, available from 12.08.12 <http://europa.eu/legislation_summaries/institutional_affairs/treaties/treaties_maastricht_en.h tm> Upward communication, available from <http://communication- business.blogspot.co.uk/2012/01/what-is-upward-communication.html, from 05/01/12>
  14. 14. 304 LON International HRM - 14 - | P a g e Figure References Bratton, J. and Gold, J. (2008) 4th Edition Human Resource Management: Theory and Practice, Basingstoke: Palgrave Macmillan
  15. 15. 304 LON International HRM - 15 - | P a g e Appendices
  16. 16. 304 LON International HRM - 16 - | P a g e APPENDIX 1 TOTAL REWARD MODEL Source: Beardwell and Claydon (2010)
  17. 17. 304 LON International HRM - 17 - | P a g e APPENDIX 2 Schuler and Rogovsky (1998) different types of reward systems: Reward systems based on status (seniority and skills) are more likely in countries with higher levels of uncertainty avoidance (where employees desire job security); Reward systems based on individual performance (performance pay, bonuses), which are more likely in countries where employees are individual (i.e. employees are less motivated by team rewards) and less likely in countries with higher levels of uncertainty avoidance (i.e. less likely where employees want job security); and Employee ownership plans (share option plans), which are more likely in countries with (i) low ‘power distance’ (‘power distance’ is the extent to which reward is based on status rather than performance so ‘low power distance’ means where performance leads to rewards and not status) and in those countries (ii) where employees are individual and (iii) those countries with lower levels of uncertainty avoidance (where employees are not worried about job security).
  18. 18. 304 LON International HRM - 18 - | P a g e Appendix 3 Marchington's (1992) four categories of EPI: Downward Communication: Downward communication is top-down communication from management to employees. It is including company's other communications, such as, team briefings, news papers and magazine, meetings and the use of the intranet (Bearwell and Claydon (2010 :545)).Table 1.2 shows the findings from WERS in 2004. Table 1.2: Direct communication by sector of ownership Source: Bearwell and Claydon (2010) Upward problem solving forms and team working: Upward problem solving mechanism are commonly considered for the function of collecting ideas and solving production and service problems. It also take account task-based participation, self-management and team working. Organizations are strongly linked team working and task-based participation as inner part of HRM (Mueller and Proctor, 2000). WERS 1998 and 2004 gave an nearby report on what companies are reporting of team working practices. Table 1.3 shows the summery of the report.
  19. 19. 304 LON International HRM - 19 - | P a g e Table 1.3: Work organization by sector of ownership. Source: Bearwell and Claydon (2010) Financial participation: This refers to schemes that allow employees a financial stake in the company. Typical mechanisms include employee share ownership schemes and profit related pay. Holden (2004: 554) explains that 'the general aim of financial participation schemes is to enhance employee commitment to the organisation by linking the performance of the organisation to that of the employee' (Bearwell and Claydon (2010: 547)). Representative participation: Representative participation is indirect participation. It includes work council and trade union. Representative participation introduce the concepts of social partnership and an extension of rights for individual employees. Table 1.4 below shows the employees involvement from 1980 to 1998 in Trade union, work councils and consultation. Source: Bearwell and Claydon (2010)
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