International Human Resource Management (IHRM)

Keywords: IHRM context for international workforce, Recruitment and selection of these managers for international assignment, Policy for international workforce, Training and development of new managers for international assignment, Reward system design, Performance of managers, IHRM Assignment writing services

Introduction

Harzing and Pinnington (2014) stated that globalisation has resulted in constantly changing the business environment and organisations need a dynamic human resource planning to successfully achieve its objectives. The changing structure, network, procedure and norms, social and political factors have changed the shaped of an organisation. Hence, human resource management (HRM) is fundamental to address the manpower/workforces need of an organisation.

Koontz (2015) added that HRM is defined as Organizing, planning and controlling the acquisition, development, integration as well as separation of human to an organisation in order to achieve mission and goals of an organisation. Moreover, international human resource management (IHRM) involves in managing and control workforce to achieve the organisational objective in order to competitive advantage at both national and international level (Aswathappa, 2016).

In this report, IHRM requirement of ‘international electronic’ is evaluated in relation to the workforce (five new international managers) requirement for its operations in Sweden.

Moreover, report specifically address the recruitment and selection of these managers for international assignment, training and development of these new managers to get prepare for international assignment as well as performance and reward system to manage the performance of these managers will be discussed. At last, not least, recommendations will be provided to manage the IHRM function for international operations.

Company Overview — International Electronic

International Electronic is UK based company which produces electronic for mobile phone industry. However, due to recent strategic changes, the company is planning to establish a manufacturing plant in Sweden in order to get closer to that market. This move has resulted in the need for five new international managers in order to take the business forward and achieve its objective globally. International electronic is expanding and transferring its operation to Sweden and, therefore, it is like to transfer products and knowledge rather offering customised products.

Moreover, the electronic parts are less like to require customization as a basic function of the mobiles remains the same. These managers will be based in the Sweden and responsible for manufacturing as well as the business development function of the company. Therefore, in order to effectively manage the international operations best practices of IHRM is required for recruitment, training and performance management of these managers (Case Company).

International Electronic and IHRM

Recruitment and selection

Dowling, Festing and Engle (2016) stated that recruitment involves attracting qualified and eligible candidates so that an organisation can hire the most suitable person. The process of recruitment involves conducting an analysis of the job, attracting the candidates through advertisement and use of external agencies to recruited right personnel. The assessments of candidates are carried out through a range of methods such interviews, discussions as well as psychological and written test.

The process of getting candidate on board is also concerned with recruitment procedure. Selection is a process which involves gathering and evaluation of information to make a recruitment decision. During the selection phase, candidates with suitable skills and expertise are selected in order to deliver the quality of products and sustain the performance of the organisation. The selection of right candidate is critical because of hiring as well as training cost of these new candidates could have a significant cost for the company (Aswathappa, 2017).

In case of international electronic, if a company hires managers who do not have required skills such as business development in the international market then it could result in failure of the company in Sweden. Therefore, it is important to hire five managers who have required skills and competent as well as fits to deliver for business in Sweden.

Policy for international workforce

Tsang (2017) elaborated that international recruitment and selection of the employee requires to address the number of issues such orientation of staff (Polycentric, Ethnocentric and geocentric). In the light of ethnocentric approach, it is considered that host country have a shortage of appropriate skills to maintain control. The polycentric approach involves employing nationals from the host country for the subsidiary.

In addition, the geocentric approach involves deploy and hiring employees without any consideration of nationality. This is helpful to address the problems associated with ethnocentric and polycentric approach. The table summarises advantages and problem associated with different types of staff (Collings, Wood and Caligiuri, 2015).

ApproachAdvantagesDisadvantages
TCN

(Third country National)

  • Lower salary compare to PCN
  • Detail local environment understanding
  • Lack knowledge and skills on culture of environment
PCN

(Parent County National)

  • Strong control maintained
  • Local manager gain international exposure
  • Difficult to adapt to host culture because of cultural understanding

 

HCN

(Host Country National)

  • No language and culture barrier
  • Low hiring cost
  • Control Issue problems might exist

New Managers – Recruitment and Selection

Pattanayak (2015) discussed that the first step involves in recruitment and selection of five new managers is the decision what type of workforce is required. The fundamental decision is whether PCN or HCN are hired. The decision is based on the cultural dimension and availability of the workforce. Hofstede model can be used to analyse the cultural difference in Sweden. Nevertheless, Sweden is based in Europe, i.e., it is least likely that it will have any major cultural problems.

However, an important factor to consider the language, because new managers will be responsible for acquiring new business from the company. The company can hire HCN for business development in Sweden whereas it can deploy PCN to manage the manufacturing in Sweden (Koontz, 2016). The range of steps involve in recruitment and selection will be

Job analysis

Job analysis is required as the company is creating new jobs and recruitment will be conducted for the first time. The information gathered then used for job description and specification. Job analysis helps to highlight the requirement for the person, as well as objectives, need to achieve. In case of International, the electronic manager should have experience in manufacturing environment, language competent and possible international exposure (Whitaker, 2013).

Job description and Person specification

Sparrow (2015) elaborated that the next step involves job description and person specification. The advertisement should contain responsibilities and location as well as working hours. The personal specification for PCN involves experiences, education, cultural and language skills along with a willingness to travel/Relocate to Sweden. The factors are important as it eliminate the candidate who doesn’t meet the requirement. In case of HCN, the candidate must have multiple language skills (English and Swedish) as well as skills for business development. The key competent for HCN are interpersonal skills.

Job advertisement

Ordaninia and Silvestria (2015) stated that the job advertisement is important in order to attract the suitable candidate for the position available. The company can use print media as well as internet to hire the potential new candidates for the position of manager. The other options company has usage of head-hunter and recruitment agencies to identify and hire the suitable candidate. Company can look in-house employee who is willing to travelling to travel abroad as they have understanding of company process.

Screening and Selection

Initial screening and Selection panel

Scullion and Collings (2016) elaborated that the initial screening process will help to eliminate the unsuitable candidates in case of a lot of application. This will save time and cost though selecting and inviting candidate most suitable for the job. Moreover, international electronic is starting new operations and i.e., it is important to make a selection panel. This will help to identify the range to skills and technical knowledge.

For example, to hire a business development manager a member of sales and marketing team can assess the technical skills of the candidate. It is important that there should be no discrimination based on age, sex, race or religion and employer should offer equal opportunity to all potential candidates.

Screening for international suitability

In case of international electronic, it is most to check the fundamental requirement which is important to deliver quality of product and sustainable performance in Sweden. International electronic must examine range of factors before manager are selected for its operations in Sweden (Koontz, 2016). The range of factors organisation should examine includes

SkillsExpatriate selection
Technical SkillsThe performance and expertise of individual are key considerations in the selection of a candidate. Candidates should be evaluated during the selection procedure to avoid incompetent candidates.
Cultural abilityIn case of the international business environment, culture is most important for factor. The individual skills, attitude, abilities as well as adaptability to host country environment.
Family and cultureThe family of PCN members is an important variable before manager are selected for Sweden. The family likeness of the PCN plays an important role in the success of the candidate in Sweden.
Requirement in SwedenPolices and environment in the host country plays an important role in the selection of a candidate. The knowledge transfers as well as reinforcement of corporate plays an important role in candidate selection.

Selection tools (Interview and Presentation)

Shen (2015) highlighted that there is range of selection tools are available such as psychometric testing, aptitude test and presentations. The interview will help to assess a range of skills of a candidate such as job related, competency as well as psychological ability of the candidate. Moreover, interviews help to assess the academic and career achievement, insight on employee previous job, as well as personality skills of the candidate. In case of international electronic PCN should be tested for the languages, commercial and cultural skills.

On the other hand, HCN should be a test for English and business development skills. The testing for skills should be checked through the presentation for the selection committee. The interview process for HCN can be managed trough video-conferencing (Whitaker, 2016).

Reference Check

It is important to conduct reference check on the employees who has been selected for the role. This will ensue the credential of the employee are genuine and minimize the risk for the company.

Making Offer and Induction

The selection of the employees should be evaluated against the criteria for expatriates and selection panel should select a candidate with mutual agreement. Once the employees are selected they should be given induction and training to understand the organisation culture, products and process to effectively perform in organisation. Furthermore, for PCN relocation processes should be carefully managed (Svetlik, Ilic and Sadar, 2016).

Training and development of new managers

It is important the newly selected manager should be given training before they are sent to Sweden. The number area to address includes language and culture skills, organisation culture, technical as well as business environment and legal requirement of business in Sweden. Training and development is an effective tool to improve the quality of human resources as well as help to achieve the objectives of the organisation. Training is useful in order to build and improve current skills and behaviour (Stahl, Björkman and Morris, 2015).

IHRM - Hiring and training cycle

The new   managers training should be based on a range of factors such as cultural awareness, technical knowledge and legal aspect  The effective training programme has three dimension which are methods used for training, type of training, as well as the duration of training. The training improves communication, personality and interpersonal skill development as well as improves leadership and decision making (Dowling, Festing and Engle, 2016).

Training Need and type

Another way to get expatriates prepares for an assignment is getting a preliminary visit to either host or parent country based on the manager nationality. The most important factor especially in case of international electronic includes language training. English is the first language in UK. However, in the host country, Swedish, language could be serious issue matter of concern. The new managers are responsible for responsible for business development in Sweden, i.e. language is a most important factor (Abdullaha and Jinb, 2015).

Harzing and Pinnington (2016) stated that cross cultural training can help the expatriates to adjust to new culture which include pre-departure and post-arrival for the managers.  This helps will help the managers to overcome social difference and language skills will help to improve the communication with stakeholders in host country. Moreover, cross cultural training help to minimize the cultural shock.

Global Hiring Trends-PCN, HCN, TCN
PCN (Parent-country nationals), HCN (Host-country nationals), TCN (Third-country nationals)

The range of training available for the expatriates include didactic training through informal lectures and briefings, Language skills through classroom and online learning, cultural awareness through role playing, experiential training through workshops as well as sequential training can be provided to the workforce through mixing various method (Collings, Wood and Caligiuri, 2015).

International Performance and reward

Performance Management

Performance is the backbone in success or failure of operations of an organisation. It is critical for and difficult for an organisation to manage the international subsidiary. Performance appraisal is a systematic process to access and evaluate the performance of an individual which is measured against a range of factors. The performance appraisal shows the success of the outcome of much decision of employees. However, performance management is a continuous process which is based on the HR strategies to improve the outcome of employee decisions (Collings, Wood and Caligiuri, 2014).

In order to effective manage the performance, goals should be carefully evaluated and selected. Employees should be provided with resources, their participation in goal setting as well as goals should be under SMART criteria. The performance of an expatriate is based on number of variables which are

key human resource management (HRM) activity of performance management

Reward criteria for new manager

Harris, Brewster and Sparrow (2014) highlighted that timing and appropriateness of reward increase the motivation of an employee along with productivity. Therefore, the manager should be focused on building value-based system which is important to determine the objectives of an organisation. Moreover, managers given suitable rewards for their performance as well as a fair amount of compensation for performance, it is likely to increase their productivity and motivation. The diagram below shows that the reward is based on both financial and non-financial. The wide range of factors includes employee motivation and reward system impact on the performance of the employee.

Ordaninia and Silvestria (2014) added that reward plays an important role in attracting and selecting culturally and technically suitable candidates whether they are PCN or HCN. The international benefits are based on additional compensations in terms of salaries and added benefits. Most of the organisation includes a range of factors such as cost-of-living allowances, tax benefits and family aggregate compensation and range of other intrinsic benefits. The break up for expatriates staff based on a range of factors shown in the diagram below(Whitaker, 2013).

HRM - employee motivation conceptual model

Conclusion and Recommendation

Staff management of international subsidiary is an important activity. IHRM is an important function of an organisation for effective recruitment and selection, training and performance at the international subsidiary. In case of international electronic it requires geocentric approach along with of PCN and HCN in order to effectively achieve its objectives.

The recruitment is a complicated procedure and should be managed based on cultural, technical, language as well as the family orientation of an individual. The company should deploy the balance rewards system for remuneration for its all managers regardless of nationality. Reward packages should be decided based on the location, technical skills and need of MNC and should be equal for all the employees in an organisation.

The training and development plays an important for the international team to successfully achieve its objectives. The PCN and HCN required wide of skills such as language, culture, legal and environment understanding. PCN managers need to get familiar with host country culture and environment to deliver the effective results.

On the other hand, HCN manager needs training to get familiar with parent organisation culture. At last, not least, for international electronic PCN managers are most likely to experience a language barrier which should be address before they sent to Sweden.

The recommendations for international electronic includes

  • The company should adopt a geocentric approach to developing its team for Sweden new manufacturing plant. The new manager should be based on PC and HCN for maximum effectiveness.
  • Company should avoid polycentric or ethnocentric approach as this result number of cultural and technical problems for the company
  • The PCN staff should be given training on legal on languages barrier in the Sweden. On the other hand, HCN should be briefed on organisation culture of international electronic specially related to business development practices.
  • The reward system should be same for the entire manager whether PCN or HCN. The salaries and other benefits should be paid to technical knowledge and skills rather nationality of the manager.

 

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