Identify the factors that most strongly influence HR planning in international markets.
The factors affecting HRM in international markets are culture, education, economic systems and political – legal systems. * Culture affects a country’s laws, values, people’s economic systems and efforts to invest in education. Practices that are effective in some countries are ineffective in some other countries. The five dimensions of culture are individualism/collectivism, power distance, uncertainty avoidance, masculinity/femininity, long term short term orientation. * Education – involves countries differing in skill level and educational opportunities. Organizations have to find suitable employees in different companies. * Economic System – a company’s economic system – capitalism or socialism, government’s involvement and control, price controls, and other activities influence human resource management practices of an organization. * Political – Legal System – the political legal system of a country affects the human resources practices. Sometimes, enforcement might be an issue in some countries. In some countries, laws are enforced, in others they are not.
Describe how companies select and train human resources in a global labor market.
Most organizations fill most positions with host country’s nationals. This is because, nationals are used to the culture, legal system, and can relate with the culture and the people easily. Instead of foreigners who might have to learn the culture, the legal system and so on. When organizations hire employees to work in a foreign country or transfer them to another country, the employer needs to provide the employees with training in how to handle the challenges associated with working in a foreign country.
HRM strategy is determined primarily by organizational strategy. However the environmental factors that shape the HRM planning must be considered by the managers and the planners. They must continue to monitor the environment to get the outmost benefits from its operations. All the factors that are influencing externally or internally on an organization it must be considered by the managers very seriously. Coz the HR management is the system that can influence, motivate and get to work the whole workforce of it to achieve all the goals of it. Thus it can be said that Human resource management should always be concerned about the environmental factors that influence the HRM and be ready to keep pace with it for the long term growth of an organization. When your company sets sail for new markets, strategic human resource planning can be instrumental in safeguarding ventures to dry land and into working condition. Too often though, when companies expand they leave human resources stranded at the dock, and it isn’t just the niceties that have been left behind. Studies indicate that active management of human resources directly impacts the bottom line by significantly increasing shareholder value and sales per employee and lowering employee turnover. A strategic view of human resources, especially in planning and executing new ventures, can help seize new opportunities and minimize liabilities by identifying the specific tasks and skills needed for success early on and then deploying the best qualified staff efficiently. All companies with employees have a human resource strategy but few have taken the time to articulate, examine and fine-tune their approach to managing their most important asset.
Discuss the challenges related to performance management and compensation within other cultures.
Compensation plays an important role in global, complex organizations. Whether compensation is used to differentiate an organization from its competitors, to underscore internal consistency from country-to-country, or to drive performance of the organization during economic downturns, compensation’s role will continue to