Ihrm

Introduction

Before we can start our report about the international HRM, we should first define the general field of HRM. Typically, HRM refers to those activities undertaken by an organization to effectively utilize its human resources. These activities would include at least the following:

1. Human resource planning

2. Staffing (recruitment, selection, placement)

3. Performance management

4. Training and development

5. Compensation and benefits

6. Industrial relations

Thus, for example, the US multinational IBM employs Australian citizens in its Australian operations (HCNs), often sends US citizens (PCNs) to Asia-Pacific countries on assignment, and may send some of its Singaporean employees on an assignment to its Japanese operations ( as TCNs). The nationality of the employee is a major factor in determining the person's 'category', which in turn is frequently a major driver of the employee's compensation.

In this essay, I mainly talk about the potentially different environments the posted workers will be going to and the concerns that will arise for the company.

In the first part, the different environments workers will confront would be introduced. The cultural environment, the industry with which the multinational is primarily involved, the extent of reliance of the multinational on its home-country domestic market, the attitudes of senior management and the complexity involved in operating in different countries constitute a model that explains the differences between domestic and international HRM.

In the second part, I point out the concerns that will arise for the company in choosing, training and developing and compensating these workers in new postings. About the selection, I first talk about the issues in the selection and then analyze the six selection criteria respectively. When it comes to the international training and development, I explain the significance of training and effective methods used in the international training. I talk about the two kinds of development as well, including individual development and developing international teams. Lastly, I tell you why managers should pay much attention to the international compensation briefly and different patterns of compensation in detail.

Now, we begin our essay.

Different environments to workers

In our view, the complexity of operating in different countries and employing different categories of workers is a key variable that differentiates domestic and international HRM, rather than any major differences between the HRM activities performed. Dowling(St. Paul, MN: West Publishing, 1988) argues that the complexity of international HR can be attributed to six factors:

1. More HR activities.

2. The need for a broader perspective.

3. More involvement in employees' personal lives.

4. Changes in emphasis as the workforce mix of expatriates and locals varies.

5. Risk exposure

6. Broader external influences.

The six factors have more influences on managers than the workers, the environment workers live and work in has strong relationship with these six factors. So, I believe, the six factors also constitute the differences of the environments.

Many firms underestimate the complexities involved in international operations, and there has been consistent evidence to suggest that business failures in the international arena are often linked to poor management of human resources. In addition to complexity, there are four other variables that moderate differences between domestic and international HRM. These four additional moderators are:

1. The cultural environment.

2. The industry with which the multinational is primarily involved.

3. The extent of reliance of the multinational on its home-country domestic market.

4. The attitudes of senior management.

Together with the complexity involved in operating in different countries, these five variables constitute a model that explains the differences between domestic and international HRM. ( see Figure 1-1)

The cultural environment

There are many definitions of culture, but the term is usually used to describe a shaping process over time. This process generates relative stability, reflecting a shared knowledge structure that attenuates variability in values, behavioral norms and patterns of behavior. (M. Erez and P.C. Earley, 1993, Oxford) An important characteristic of culture is that it is so subtle a process that one is not always conscious of its effect on values, attitudes and behaviors. While traveler can perceive cultural differences as novel, even enjoyable, for people required to live and work in a new country, such differences can prove difficult. They may experience a shock-a phenomenon experienced by people who move across cultures. Cultural shock can lead to negative feelings about the host country and its people and a longing to return home.(J.E. Harris and R.T. Moran, 1979)

Generally, the cultures of Europe and China vary considerably. For example, Germans like to enjoy themselves in weekend activities but Chinese like to play together. Punctuality has been paid more attention by Germans than Chinese. In addition, Germans have the direct relationship with each other, but the relationship among Chinese is like a net. As figure 1-2, left is Germans' and right is Chinese'.

The industry type

Porter suggests that the industry in which a multinational firm is involved is of considerable importance because patterns of international competition vary widely from one industry to another. (Porter, 1986)

At the end of the continuum of international competition is the multidomestic industry, one in which competition in each country is essentially independent of competition in other countries. Traditional examples include retailing, distribution and insurance. At the other end of the continuum is the global industry, one in which a firm's competitive position in one country is significantly influenced by its position in other countries. Examples include commercial aircraft, semiconductors