Global Human Resources
COMPANY PRESENTATION
By;
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Introduction
Global human resource management include following aspects:
Unify the companies culture in mergers
Management of personnel internationally
Enforcing global recruitment strategy
Managing expatriates
Onboarding process
Compensation strategies in international business
The international operations of the company required newly hired staff or expatriates who will move to abroad for international business operations. Global human resource management provides various aspects to facilitate personnel management system in international business operations. Global human resource management include management of personnel internationally, unify the companies culture in mergers, enforcing global recruitment strategy, managing expatriates, onboarding process and compensation strategies in international business. In this presentation, all these aspects of global HRM will be presented. We will also study the global recruitment strategy with reference to Japan recruiting system. One compensation strategy will also be suggested for international business operation along with the key strategies required to enhance ethical behavior, sound working conditions and labor relation.
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Strategies to Unify Companies Culture
Identify cultural differences
Communicate differences
State cultural agenda
Encourage share values
Increase synergies
Communicate expectations
Set operating Model
Build trust
Mergers is an effective international strategy which merge two companies. Following are the check list steps that would be important to unify one company culture with other company.
Identify cultural differences: The corporate cultures are usually different from each other. While merging the operations, it is important to identify the major differences exist in the culture in order to settle these differences in best possible way.
Communicate differences: It is an important responsibility of manager to communicate differences in order to set a culture of compromise and adjustment with in two different cultures.
State cultural agenda: After merger, it is important to state cultural objective and agenda in order to clarify the cultural expectations and to set a unified behavioral norm and pattern.
Encourage share values: It is not good to throw everything of pre-existing culture and change everything after merger (Shrivastava, 1986). It is better to work on the base of common operating principles and use the concept of shared values as well as standardized process.
Increase synergies: The basic logic behind merger of two companies is to increase the synergies through efficient operations. By combining the operations and values of two companies, a greater sum can be achieve (Søderberg & Holden, 2002).
Communicate expectations: By communicating expectations of merger with employees, a unified cooperating culture can be set (Kumar, 2000).
Operating model: The operating model of the company will define the company structure, governance mechanism, accountabilities and ways of working.
Build trust: It is important to build trust by make employees sure that the merging operations are not only good for the business but also for the employees.
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Strategies to Reduce Expatriates Turnover
Set realistic and clear expectations
Assign home country and an over-seas mentors
Expatriates are the professionals who are sent abroad by the company to carry out the company work. Expatriates have to face many difficulties e.g. residency issue, lack of funds, cultural conflicts, language barriers, lack of mentor guidance etc. it increase the expatriate rate of turnover. Losing expatriate cause company professional and financial loss. Expatriates turnover should be reduced through following two of the following strategies:
Firstly, the host country company should set realistic and clear expectations about post assignment compensation and career advancement path to the expatriates.
Second strategy is to facilitate mentor relationships among expatriates and senior executives. Expatriate should assigned with a home country and an over-seas mentor to facilitate expatriates and increase their level of satisfaction.
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Changing Global Pattern of Recruitment (Example of Japan)
Increasing number of hires
Extending the schedules of recruitment
Diversifying hiring conditions to ensure work force diversity
We can take the example of changing pattern of recruitment in Japan as a good step in HR management. It has been found that the Japanese firms are facing various issues in personnel management due to changing economic environment. 2008 global recession had a great effect on Japan personnel management strategies. Recruitment strategies are the part of personnel management. The firms are facing issue of mismatching of employees and companies which cause quitting of young employees. Japan firms need some varying degree of changes e.g. increasing number of hires, extending the schedules of recruitment, diversifying hiring conditions and need to deal with labor turn over (Doeringer, Evans-Klock & Terkla, 1998). Large companies of Japan are the trend setter that are now changing their recruitment strategies in order to bring change in overall personnel management system of Japan.
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Factors Important for International Recruitment (Example of Japan)
Diversity in hiring conditions
Recruitment Schedules
Work Rules
When the recruitment take place in foreign country, certain factors need to be considered with respect to respective country culture. Three major factors which should be closely considered when recruitment take place in Japan are as follow:
Diversity in hiring conditions: Most of the Japanese companies are now following the diverse range of employees for their companies. E.g. offering job to more and more foreign employees create a diverse work force within an organization which brought different types of skillful personnel within the organization, by offering different courses to employees to develop different, etc.
Secondly, the recruitment schedule must be followed while recruiting in Japan. These should be extended recruitment schedule which should be delayed until the fourth year of students in order to make sure that maximum capable students can use the opportunities to follow the complete recruitment process (Carnevale, 1990).
Third factor is to consider the work rules in japan. Japanese company employers who have more than ten employees, must set some work rules in employment contract. These work rules must file in Labor Standards Inspection Office.
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Onboarding Process in Global HRM
A Quick Hello
Convey Information in Simple Way
Benefits and Perks
Assign Mentors
Onboarding is a process of acquire necessary skills, knowledge and behavior by new employees to become an effective member of an organization. Onboarding process includes five following steps:
A Quick Hello: When the employee will accept the offer letter for the job, the manager can make a call or email to employee to let him know that the organization is waiting for his joining in board. An official welcome letter can also be issued to new employee at the time of his arrival including necessary information related to dress code, job schedule and other relevant details for job success of new employee.
Convey Information in Simple Way: When the new employee joint the organization, it is very important to provide all necessary information regarding company history, culture, safety, benefits etc., in simple way. The information can be conveyed through paper work or online (Bauer & Erdogan, 2011).
Benefits and Perks: Company should provide opportunity to new employee to take the advantages of using the perks and benefits offering by the company in easy way.
Assign Mentors: The new job might be scary for the new employee so assigning mentors will help the new employee to get guidance and support in his initial period.
Company Intranet: company new employee should have company intranet assess soon in order to make him self-orient and to make him able to speed up his job.
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Critical Elements of Onboarding Process in Global Environment
Clarify company objectives to new hiring
Set job expectation
Two critical elements which are important to be considered in onboarding in global environment are as follow:
Company objective is the first element which is critical in on boarding in global environment. The mission and goals of the company must be understood by the new hiring employee in global work environment. It will provide a direction to employee to handle his job in global based work environment (Conger & Fishel, 2007).
Setting job expectations is the second most critical element to be consider. In a global set of environment, a new employee may face the cultural conflicts. In such case a clear job expectations should need to convey in onboarding process in order to clarify the kind of job expected to be done by newly hire employee.
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Compensation Strategy to Support Company International Operations
Compensation package to provide equity and good will to employee
Compensation package include salary, taxes, allowance and benefits
When the company is running international business operations, it need to compensate the employees in a well packaged plan in order to provide advantage to expatriates and to increase their job satisfaction in host countries. A compensation package need to provide equity and good will to employees international business. The compensation strategy to support company international operations include a full planned compensation package comparable to the host country pay package in order to resolve the problem of pay differential (Gomez-Mejia & Welbourne, 1991). The compensation package include salary, taxes, benefits and allowance. Salary will be related with buying power of local salary and currency translation.
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Strategies to enhance ethical behavior, labor relations, and work conditions
Written standards
Performance evaluation
Compliance
Collaboration
Training
Reporting violation
Two strategies to enhance ethical behavior include enforcing written standards related to ethical conducts and performance evaluation of employees conduct to ensure their ethical conduct. Two strategies to enhance labor relation includes compliance strategy and collaboration strategy. Compliance strategy ensures enforcement of obligations and rights according to contract and statues. Collaboration strategy is use to maintain labor relation in federal sector through work together and develop effective communication (Trubek, Mosher & Rothstein, 2000). Strategies to enhance effective work conditions include training to staff to maintain work place discipline and forming a process of reporting violations in work place confidentially. All these strategies can be enforced by HR manager to enhance workers performance
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Conclusion
Unify companies culture in international operations
Adopt new global recruiting system like Japanese companies
Closely consider onboarding process
Compensation strategy must balance host and home country standards
In the company international operations such as merger and acquisitions, unify the two different companies culture is most important aspect. New global recruiting system need to be implement which can complement global human resource management. Managing expatriates is an important aspect to reduce expatriates turnovers. Onboarding process is one of an important aspect of global HRM in order to facilitate the newly hiring employees and provide them support to give good performance for the company. The example of Japan is good for understanding changing global need for recruitment and personnel management. A good compensation strategy should be planned for international business that should balance host and home country standards.
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References
Bauer, T. N., & Erdogan, B. (2011). Organizational socialization: The effective onboarding of new employees.
Conger, J. A., & Fishel, B. (2007). Accelerating leadership performance at the top: Lessons from the Bank of America's executive on-boarding process.Human Resource Management Review, 17(4), 442-454.
Carnevale, A. P. (1990). Workplace Basics: The Essential Skills Employers Want. ASTD Best Practices Series: Training for a Changing Work Force. Jossey-Bass Inc., Publishers, 350 Sansome Street, San Francisco, CA 94104.
Doeringer, P. B., Evans-Klock, C., & Terkla, D. G. (1998). Hybrids or hodgepodges? Workplace practices of Japanese and domestic startups in the United States. Industrial & Labor Relations Review, 51(2), 171-186.
Firkola, P. (2011). Japanese recruitment practices: Before and after the global financial crisis. Economic Journal of Hokkaido University, 40, 59-71.
Gomez-Mejia, L. R., & Welbourne, T. (1991). Compensation strategies in a global context. People and Strategy, 14(1), 29.
References
Kumar, N. (2000). Mergers and acquisitions by MNEs: patterns and implications. Economic and Political weekly, 2851-2858.
Shrivastava, P. (1986). Postmerger integration. Journal of business strategy,7(1), 65-76.
Søderberg, A. M., & Holden, N. (2002). Rethinking cross cultural management in a globalizing business world. International Journal of Cross Cultural Management, 2(1), 103-121.
Trubek, D. M., Mosher, J., & Rothstein, J. S. (2000). Transnationalism in the regulation of labor relations: international regimes and transnational advocacy networks. Law & Social Inquiry, 25(4), 1187-1211.
van der Heijden, J. A., van Engen, M. L., & Paauwe, J. (2009). Expatriate career support: Predicting expatriate turnover and performance. The International Journal of Human Resource Management, 20(4), 831-845.