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2. Introduction
HRM: continuity or transformation
Internationalization of Business
HRM practices for future
Conclusion
3. 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.
4. In an organizational context, a process of
profound and radical change that orients
an organization in a new direction and takes it
to an entirely different level of effectiveness.
Unlike 'turnaround' (which implies
incremental progress on the same plane)
transformation implies a basic change
of character and little or no resemblance with
the past configuration or structure.
5. The service is required when:
The company would like to reduce its costs.
The current HRM processes need standardization and
optimization.
The management feels the need for HRM processes and
organization to better support the company’s strategy and
priorities.
The company has plans or is performing mergers or acquisition
of other companies and needs consolidation, synchronization of
the processes or HRM organization.
The company plans implementation of an HRM system.
The company plans outsourcing of the HRM processes.
The HRM processes are ineffective and the company
management faces many administrative issues in the area of
HRM.
6. Focusing of the HRM function and improvement
of its performance;
Consistence between the HRM function and
processes with the business’ strategy and
priorities;
More effective HRM processes, lower costs and
process automation through an IT system;
Reduced administrative problems and better
support for the top management by the HRM
function.
7. First, the number of their employees abroad has increased. With
more
employees abroad, HR departments have had to tackle new global
challenges.
From a practical point of view, one has to address issues such as:
1. Candidate identification: assessment, and selection. In addition to
the required technical and business skills, key traits to consider for
global assignments include, for instance: cultural sensitivity,
interpersonal skills,
and flexibility.
2. Cost projections: The average cost of sending an employee and
family on an overseas assignment is reportedly between three and
five times the employee’s pre-departure salary; as a result,
quantifying total costs for a global assignment and deciding whether
to use an expatriate or a local employee are essential in the
budgeting process.
8. 3. Assignment letters: The assignee’s specific
job requirements and associated
pay will have to be documented and formally
communicated in an assignment
letter.
4. Compensation, benefits, and tax
programs: There are many ways in which
to compensate employees who are transferred
abroad, given the vast differences in living
expenses around the world.
9. 5. Relocation assistance: The assignee will
probably have to be assisted with
such matters as maintenance of the person’s
home and automobiles, shipment and storage
of household goods, and so forth.
6. Family support: Cultural orientation,
educational assistance, and emergency
Provisions are just some of the matters to be
addressed before the
Family is sent abroad.
10. There are some keys for practices of future for
HRM which are following:
Workplace Flexibility: collaborative work in a
virtual office as well as flexible work hours is
one of future HR trends.
Global Business: borderless business requires
a global workforce to perform the function at
international business level.
Work & Society: working to live, not living to
work
11. Workforce Development: constant learning
in a just-in-time format, learning organization
& high skill utilization
Definition of Jobs: jobs get bigger &
broader
Strategic Role of HR: becoming leaders,
not just partners
The Value of Predicting: having a vision &
a way to achieve it.
12. What is happening today in the field of HRM is nothing short of
revolutionary (Poole, 1999). The organizational function of HRM is
becoming more important than ever. Line managers are getting
involved in HRM, and human resource managers are becoming
members of the management team. Also, because HRM is seen as
critical to the success of organizations, virtually everyone in the
organization can make a contribution to the management of people
and the success of the organization at the same time. In comparison
with the past, today's and tomorrow's characterizations of HRM reflect
the more intense levels of national, regional, and global competition,
projected demographic and workforce figures, anticipated legal, and
regulatory changes, and significant technological developments.
Translated through major changes in organizational strategy, structure,
shape, and technology, these environmental forces require speed,
quality, innovation, and globalization for firms wishing to survive the
battlefield of international competition.