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INTERNATIONAL HUMAN RESOURSE STRATEGY

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INTRODUCTION
Strategic Management refers to the process of Formulating, implementation and evaluatingbusinessstrategiest oachieve organizationalobjectives.Att hecorestrategicmanagement process is a team comprising the CEO aided by top executives
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INTERNATIONAL HR STRATEGY

InternationalHumanResourceStrat egyreferstothe

processofdevelopingpractices,pr ogrammes and policies that help achieve organizational objectives

What is essential is that these programmes,policies andpractices needtobealigned with 4/9/12 organizational strategies.

Human Resource Management Strategy

The Meaning of Strategy A critical factor that affects Firm Performance A factor that contributes to Competitive Advantage in markets Having a long-term focus Plans that involve the top executives and/or board of directors of the firm A general framework that provides a 4/9/12 perspectiveMBAO 6030 Human specific for selecting

HR Strategy: HR System Internal Fit

HR Strategy
Appeal Goal Setting Performance Measurement

Coaching

Rewards

Performance Evaluation

Performance Management System

4/9/12 MBAO 6030 Human

HR Strategy: Context of HR System

1. The Five Factors Influencing the HR System

External Environment Social: social values, roles, trends, etc. Political: political forces, changes. Ex. Bush presidency and its agenda for Social Security. Legal: laws, court decisions, regulatory rules. Economic:MBAO 6030 Human product, labor, capital,

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TRENDS

Integration of the worlds economies and business globalization continues unabated International trade is growing more rapidly than world output Foreign direct investment (FDI) flows are increasing The number of cross-border, inter-firm agreements has risen dramatically

Social, economic, and political developments throughout the world 4/9/12

contd.

The external environment greatly influences HRM activities Each country has its own:

Laws Business customs Workforce characteristics Political climate The most difficult challenge to overcome is the people challenge

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Issues in IHRM

Managing international assignments Employee and family adjustment Selecting the right person for a foreign assignment Culture, communication and gauge Language and communication

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Barriers to effective global HRM

Variations Perception of HR Attitude and actions of headquarters towards HR Resistance to change Cultural differences in learning and teaching styles

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Main challenges in IHRM

High failure repatriation

rates

of

expatriation

and

Deployment getting the right mix of skills in the organization regardless of geographical location Knowledge and innovation dissemination managing critical knowledge and speed of information flow Talent identification and development identify capable people who are able to function effectively 4/9/12

The Cultural Nature of Global HRM

Cultural differences between nations can influence the effectiveness of HRM policies and practices HRM must be congruent with the cultural orientation of the workers Hefstede says cultures vary in five dimensions:

Individualism versus collectivism Power distance Avoidance of uncertainty

4/9/12 Masculinity

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