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International Human Resource Management


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Mickael Dubucq- APU 2006

Published in: Business
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International Human Resource Management

  1. 1. International Human Resource Management Dr Katalin Illes
  2. 2. Overview <ul><li>Competencies of the HR manager </li></ul><ul><li>The matrixed role of the of the HR manager </li></ul><ul><li>The place and role of the HR function in organisations </li></ul><ul><li>Shifting paradigms </li></ul><ul><li>Future direction </li></ul>
  3. 3. Key aspects of IHRM <ul><li>Global workforce </li></ul><ul><li>International context </li></ul><ul><li>National context </li></ul><ul><li>Strategic issues </li></ul><ul><li>Operational issues </li></ul><ul><li>IHRM career </li></ul><ul><li>Competencies </li></ul><ul><li>The future </li></ul>
  4. 4. Competencies of the Human Resource Manager <ul><li>Business competencies </li></ul><ul><ul><li>Industry knowledge </li></ul></ul><ul><ul><li>Competitor understanding </li></ul></ul><ul><ul><li>Financial understanding </li></ul></ul><ul><ul><li>Global perspective/knowledge </li></ul></ul><ul><ul><li>Strategic analysis </li></ul></ul><ul><ul><li>Partner orientation </li></ul></ul><ul><ul><li>Multiple stakeholder sensitivity </li></ul></ul>
  5. 5. Competencies of the Human Resource Manager <ul><li>Leadership competencies </li></ul><ul><ul><li>Strategic visioning </li></ul></ul><ul><ul><li>Managing cultural diversity </li></ul></ul><ul><ul><li>Creator of learning culture </li></ul></ul><ul><ul><li>Planning and decision making skills </li></ul></ul><ul><ul><li>Value shaper </li></ul></ul>
  6. 6. Competencies of the Human Resource Manager <ul><li>Change and knowledge-management competencies </li></ul><ul><ul><li>Network building </li></ul></ul><ul><ul><li>Designing and working in flexible structures </li></ul></ul><ul><ul><li>HR alignment </li></ul></ul><ul><ul><li>Managing and learning knowledge transfer </li></ul></ul><ul><ul><li>Consulting/influencing </li></ul></ul><ul><ul><li>Group/process facilitation </li></ul></ul><ul><ul><li>Organisation development/effectiveness </li></ul></ul><ul><ul><li>Managing large scale change </li></ul></ul>
  7. 7. Competencies of the Human Resource Manager <ul><li>Professional/technical competencies </li></ul><ul><ul><li>Staffing </li></ul></ul><ul><ul><li>Performance management </li></ul></ul><ul><ul><li>Education/development </li></ul></ul><ul><ul><li>Remuneration/reward systems </li></ul></ul><ul><ul><li>Employee relations </li></ul></ul><ul><ul><li>Employee communications </li></ul></ul><ul><ul><li>Succession planning </li></ul></ul><ul><ul><li>Union relations </li></ul></ul><ul><ul><li>Safety/health/wellness </li></ul></ul><ul><ul><li>Diversity management </li></ul></ul>
  8. 8. Evans (2002) The Matrixed “Split Egg” Role of the Manager
  9. 9. Some of the Dualities Confronting Organizations
  10. 10. CEO EXPECTATIONS FROM HR 08/30/99 <ul><li>Involvement in managing overall business. </li></ul><ul><li>To look at business priorities before functional priorities. </li></ul><ul><li>HR is in the same boat with other Management Team members. </li></ul><ul><li>HR targets inseparable from business targets. </li></ul>
  11. 11. How HR Links to Overall Strategy? 08/30/99 <ul><li>Source:Right Management Consultants </li></ul>Assessing Organisations Executing Strategy Managing Change Assessing Leaders Coaching Leaders Developing Leaders & Teams Attracting & Selecting Talent Developing Careers & Managing Performance Retaining Talent & Managing Succession
  12. 12. What’s the reality? 08/30/99 <ul><li>Behind the scene... </li></ul>
  13. 13. HR Reality 08/30/99 <ul><li>HR has had “Bad Press”: </li></ul><ul><li>Line Management not involved/interested. </li></ul><ul><li>HR People too detached from business. </li></ul><ul><li>‘ One size fits all’ approach. </li></ul><ul><li>Perception of limited added value. </li></ul><ul><li>No clear link between HR efforts and shareholder value. </li></ul><ul><li>HR is like a WOLF….. </li></ul><ul><li>everybody hears about it but nobody sees it! </li></ul>
  14. 14. HR work today 08/30/99 <ul><ul><li>Communicating effectively. </li></ul></ul><ul><ul><li>Collating HR reports for Management Information. </li></ul></ul><ul><ul><li>Managing admin issues. </li></ul></ul><ul><ul><li>Keeping the company out of court. </li></ul></ul><ul><ul><li>Executing change programs. </li></ul></ul><ul><ul><li>“ BUT HR IS STILL TRANSACTIONAL” </li></ul></ul>
  15. 15. What are the key HR Challenges? 08/30/99
  16. 16. It is a balancing act 08/30/99 The needs & expectations of employees The resources & directions of the company <ul><li>HR gets pulled in both Directions </li></ul>
  17. 17. HR Role in Change programs <ul><li>Change demands common vision, understanding and behaviour to keep focus during the transition and beyond. </li></ul><ul><li>HR must provide clear, consistent leadership. </li></ul><ul><li>HR must show a consistent face to the internal customers. </li></ul><ul><li>HR must find a balance between stability and uncertainty. </li></ul>
  18. 18. Talent Development 08/30/99 Define your Star of Today. Develop your Star of Tomorrow. <ul><li>SYMBOLS </li></ul><ul><li>The gap is your development needs. </li></ul><ul><li>Make the Star shine. </li></ul>
  19. 19. Work/Life Balance 08/30/99 <ul><li>The most cherished values: </li></ul><ul><ul><li>Happiness  </li></ul></ul><ul><ul><li>Inner Peace  </li></ul></ul><ul><ul><li>Fulfillment  </li></ul></ul><ul><ul><li>Feel Good </li></ul></ul><ul><ul><li>  </li></ul></ul><ul><li>Why are these values never mentioned in any mission statement? </li></ul>Work / Life balance
  20. 20. 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 <ul><li>HR rotation </li></ul>
  21. 21. Can HR get un-stuck? 08/30/99 <ul><li>Yes! Only if... </li></ul>
  22. 22. Shifting Paradigms <ul><li>What’s Out: </li></ul><ul><li>Last Port of call. </li></ul><ul><li>Job Analysis. </li></ul><ul><li>Personnel Management. </li></ul><ul><li>Rulemaker. </li></ul><ul><li>Functional Orientation. </li></ul><ul><li>One Size Fits All. </li></ul><ul><li>Centralised Decisions. </li></ul><ul><li>Mutual Distrust. </li></ul><ul><li>Focus on Tasks. </li></ul><ul><li>Following. </li></ul><ul><li>Transactional HR. </li></ul><ul><li>What’s In: </li></ul><ul><li>First Port of Call. </li></ul><ul><li>Competency Assessment. </li></ul><ul><li>HR Management. </li></ul><ul><li>Consultant. </li></ul><ul><li>Business Orientation. </li></ul><ul><li>Tailored Programs. </li></ul><ul><li>Framework for Others to Decide. </li></ul><ul><li>Partnering. </li></ul><ul><li>Focus on Impact. </li></ul><ul><li>Leading. </li></ul><ul><li>Transformational HR. </li></ul>
  23. 23. Can HR survive? 08/30/99
  24. 24. HR Etiquette for future survival <ul><li>Break and let go of bureaucratic patterns; move away from administrative, transactional, and policy elements of HR work. </li></ul><ul><li>Focus on achieving organisational outcomes. </li></ul><ul><li>Facilitate organisational change. </li></ul><ul><li>Create efficient HRM and HRD processes. </li></ul><ul><li>Promote people as a valued resource. </li></ul><ul><li>Grasp the bigger picture: Be visionary. </li></ul><ul><li>Plan effectively, reach decisions and set goals. </li></ul><ul><li>Alignment of HR Programs and Practices with Strategic Directions. </li></ul>
  25. 25. IHRM approaches <ul><li>Ethnocentric : key positions filled by nationals of parent company </li></ul><ul><li>Polycentric : host country nationals recruited to manage subsidiary in their own country </li></ul><ul><li>Geocentric : best people recruited, whatever their nationality </li></ul><ul><li>Regiocentric : best people recruited within region in which the subsidiary operates (e.g. EU, USA) </li></ul>
  26. 26. Decentralised IHRM <ul><li>Advantages </li></ul><ul><li>Groups within the subsidiary can gain in status </li></ul><ul><li>Groups within the subsidiary become more cohesive, fostering group identity </li></ul><ul><li>IHRM takes place within a culture appropriate to the local workforce and customers </li></ul><ul><li>Disadvantages </li></ul><ul><li>Tendency to become ‘exclusive’ </li></ul><ul><li>Loss of central control, higher administrative costs as HRM function is sent ‘down the line’ </li></ul><ul><li>Loss of organisational control and organisational identity </li></ul>
  27. 27. Cross-cultural awareness <ul><li>Supports for employees moving to overseas </li></ul><ul><li>subsidiaries </li></ul><ul><li>Environmental briefings </li></ul><ul><li>Cultural orientation </li></ul><ul><li>Cultural assimilation </li></ul><ul><li>Language training </li></ul><ul><li>Sensitivity training </li></ul><ul><li>Field experience </li></ul>
  28. 28. Appraisal <ul><li>Identifies individual’s strengths and weaknesses </li></ul><ul><li>Reveals organisational obstacles blocking progress </li></ul><ul><li>Provides feedback to improve human resource planning </li></ul><ul><li>Improves communication </li></ul>
  29. 29. Food for thought <ul><li>Whose responsibility is the HR function? </li></ul><ul><li>Organisational culture, change, trust, respect, knowledge sharing , knowledge creation </li></ul><ul><li>Organisational and Personal Development </li></ul><ul><li>Work life balance </li></ul>
  30. 30. Recommended reading <ul><li>Key text : Wall and Rees (2004) International Business, Pearson, chapter 9 </li></ul><ul><li>Further reading : Evans, et al (2002) The Global Challenge, Frameworks for International Human Resource Management, McGraw-Hill </li></ul>