1,610
22
Essay, 17 pages (4000 words)

Contemporary issues in international hr business essay

Table of Contents

Using the comparative approach to IHR analyze the range of contextual factors which influence HR in Latin America

Human Resource appears to be enhancing steadily but at the same time organizations globally are experiencing diverse inter-related phases of transformation (Dowling and Welch, 2004). With expansion in business world, International Human Resource Management is promptly attaining greater attention worldwide. International human resource management enriches the knowledge of emerging regions and economies, where at the same time add value to domestic human resource practices. Harzing and Pudelko (2012) state that international human resource management (IHR) is an emerging field of exploration. However, Reizaputra (2013) defines IHR as a process through which personnel procure justified needs of workforce and motivated them to achieve higher business objectives as well as better profitability.

Comparative approach to IHR

Comparative approach to International Human Resources is a cross-cultural study that deals with different values, norms and ideas of different countries (Hyman, 2003). Some of the previous studies determines the data for Latin American marketplace such as, José de Gregorio, (2012) by means of a five-year board data for 12 Latin American countries stuck between 1950 and 1985, finds that the two mainly important factors hold back growth within Latin American regions are low asset and high inflation. As disagree by Elvira & Davila (2005) the high pace of inflation is also a review statistic for macroeconomic negligence and for the incapability of governments that can not put in position with economic policy. In a similar panel-data structure, Hunter and Brown (2000) discover that inflation and black market first-rate are both important determinant of expansion when entered discretely in the regressions. But, when together included, the two components are not important. More recent proof, however, has shown that in a great sample of nation’s inflation and black market premium are both unconstructively correlated with GDP growth. In the representation, Dowling and Welch (2004) depicted that in some of Latin American countries bankrupt level enhanced at GDP of more than 50%. At the same time Ramamurti (1996) extracted that the approach of privatization has positive impacts in Latin America because it improved quality of services.

Factors Effecting HR in Latin America

Evidences reveal that Latin American economy is surprisingly expanding, as the region is preferably engage in unique human resource improvement processes. As Diaz Saenz (2004) stated that most of the Latin American organizations are struggling to manage their human resources in a way that they defiantly meet the challenging conditions. Comparative analysis reveals some notable facts while evolving Latin American human resource philosophies and practices. These highlighted cases involve use of local talent by multinational organizations operating there and practices of profitable enterprises in order to overcome conflicting social environment conditions (Taylor & Francis, 2008). Economic expansion in Latin American has also elevated focus of trans-national as well as local organizations operating there. It refers that, multinational organizations in Latin America no longer focusing on explicit entry mode that is strategic alliance with prominent domestic organizations and it is generally recommended that attractors of regions must focus now on low value-added attributes (Elvira & Davila, 2005). There is also noticeable enhancement in Foreign Direct Investment by multinational organizations of Latin America. The statement comes out with factual evidence by Abarca (1998) that region is globalizing faster through moving ahead by enhancing human capital development and it turns out as a significant approach for improving human resource competencies. Comparative analysis reveals that Latin American organizations that are prominently dealing with challenging economical conditions develop most productive Human resource management strategies that are mainly focusing on gaining competitive edge just through human resource efforts (Aguilar, 1993). Latin American organizations are not only intensifying in local marketplace but are also presenting their international competencies in highly developed ones, such as China, Europe, United States and Australia (Taylor & Francis, 2008). The statement can appropriately exemplify through acquisition of Australian Rinker Group by Cemex, a well-known Mexican organization that is preferably not leading manufacturer of concrete and took second position in terms of higher sales. Similarly, merger of Interbrew a Belgium firm with known Brazilian organization, Ambev which is now known as InBev, a top producer of beer worldwide (Sanchez, 2006).

Value of Social Status

Abarca (1998) states that Latin Americans highly values status within an organizational framework because it identifies social distance between the executives and senior manager. Job position and additional compensation benefits also have a great implication because of the social status that they convey. In Chilean organization, for example, social prejudice exists on the center of appearance, age and gender, all of which are connected with social status (Vives, 2006). In spite of this sort of hierarchical position, Latin American organization tries to eradicate the obtainable power distance flanked by directors and subordinates by generating committees that represent the egalitarian spirit amongst all workers of the organization. This is the cultural structure that describes Human Resource activities within the Latin American organization, especially recruitment and personnel management, for example, social relationships and substantial appearance can give details of the cultural content of the glass ceiling in Latin American organizations (Taylor & Francis, 2008). In Chilean corporations, executive assortment and promotion generally imitate physical appearance, age and sex, in count to social associates, birthplace and other aspects. Organizations generally recruit new employees through their existing workers and their family members and other close ones (Hofstede, 1993).

Teamwork and Geographical Mobility

Latin American civilization tends to help the development of teamwork. Workers value social relationships on personal communication and understanding, perceptions that is necessary to teamwork (Vives, 2006). Nonetheless, it is not simple to make this happen, since power sharing and delegation run against each other such as Latin American cultural values as centralization and managerial hierarchy. Human resources feel aggravated to share the responsibilities of their team members. Executives who have advanced education are the omission to this rule, however. Sharing accountability for effective decision-making has other recompense as it facilitates senior management to learn new things (Hyman, 2003).

Political and Legal Influences

The nature and strength of political systems differ from country to country. International organizations may have to come to a decision deliberately when to fulfill with certain laws and regulations and when to disregard them because of operational or political causes. Another matter of concern includes ethics (Morris and Pinnington, 1998). HR regulations and laws at the same time diverge among countries in nature and aspect. In many Western European nations, laws on labor unions and employment make it complicated to decrease the number of human resources because necessary payments to existing workers can be extremely high while at the same time identical employment legislation subsists to changeable degrees (Brewster, 1995).

Economic Factors

Economic factors influence the other aspects such as political, cultural and legal. Different nations around the globe have distinctive system of economies. Many under developed nations are amenable to foreign investment in order to generate jobs for their rising populations (Morris and Pinnington, 1998). Global organizations often get considerably cheaper labor rates in these nations than will perform operations in Western Europe, Japan, and the United States (D’Iribarne, 2001). At the same time, weak infrastructure of many countries is also a critical factor as they may not be capable to spend in maintaining and upgrading the essential components of their infrastructures (Hofstede, 1993).

Critical assessment of the multi-national IHR strategies for the recruitment, selection and training of staff undertaking international assignments

Human resource management practices in Emerging Economies are preferably developed through industrialization of region. However, Caligiuri and Stroh (1995) state that in some nations this process begins with the arrival of foreign direct investment in the country. Wilken (1997) states that in some of the countries around the globe the process starts after a shift from agricultural practices to manufacturing one. But for Clark and Clark (2003) the economical expansion is characterized by higher generation of wealth, frequent alteration from closed to open economy system and oligopolies in Emerging Economies. In this section of the paper, the basic attributes of Emerging Economies organizations will be determined that are taken into consideration by multi-national organizations while developing recruitment and selection strategies. The question here states that how organizations either local or international recruit and retain new talent as well as existing one in organization. According to Berry (2001), organizations in emerging economies use to find employees that show higher commitment and concentration on their management practices. In this regard, Morris and Pinnington (1998) state that most of the Emerging Economies organizations preferably look or individuals who can permit extensive time to their work and must take initiative to get enhanced profits and performance results a t the same time. But, organizations look for talent which does not have ideology to take risk at every step because in terms of cultural intervention supervisors are the ones who have greater knowledge and abilities to meet every consequence, on the other hand employees are preferably dependent upon decisions of supervisors (Wilken, 1997). Shenkar (2005) represents that in terms of attracting employees from other pools such as multinational organizations can significant attract employees from global orientation or in regards with hiring employees from local orientation, Employee on-boarding before hiring can be more essential. Employee On-Boarding is a fairly new approach in talent management, as the concept deeply refers to retaining new talent rather than getting people to switch their jobs to new workplaces. Clark and Clark (2003) depict that Employee On-Boarding is a systematic approach that preferably deals with orientation of new employees to get them ” on board”. However, Kleynhans, (2006) classified the on boarding process into two higher level objectives, to make new talent feel comfortable in the new working environments at the same time; the other objective is to significantly minimize preferable time that entitles new talent to become a productive member of new working team and at the same time it is critically important for employees to attain greater knowledge about customers. Research conducted by Corporate Leadership in Emerging Economies determines that it is highly important for new talent to promptly become accustomed to the new working surroundings (Caligiuri and Stroh, 1995). It is very significant for these new employees to get start with developing relationship with existing colleagues in order to significantly begin to incorporate into existing working team. By accompanying all these activities new employees will significantly experience the main purpose circulating in new workplace and the process of transition into this working environment will be less disruptive (Kleynhans, 2006). It denotes that approach is helpful for new employees to get familiarize with organizational tree that will help them to effectively deal with embarrassing conditions in new organization. Shenkar (2005) illustrates in terms of perspective of employers, employee on-boarding can significantly minimize the time range the new employees typically experiences to bring new employee in to new working environment or department. It denotes that by sharing useful information there will be reduction in misinterpretation, which can ultimately result in frustration or either in premature departure from new organization; however, it is necessary for employers to facilitate new talent in workgroup with painless and interesting conditions, so that new employees will significantly feel greatly valued in organization (Morris and Pinnington, 1998). For meeting all these purposes, it will be essential to provide new employees with extensive Internet FAQ sources in their welcome email. This source will permit prior information to new employees before starting off n the right foot. After completing comprehensive research on characteristics of employees, such as skills, behaviors and their leadership quality, the next prominent step is to determine areas of concentration where new talent can successfully take area to new heights. In order to determine concentration of employee on-boarding process there are number of aspects that must be taken into careful consideration. The basic aspect is to align expectations from new hire employees according to the alteration in working area and its requirement; however, at the same time, it is highly important to build focus of employees by sharing information regarding background approach of expectations (Berry, 2001). It is very important because as organization is operating in an environment where all the regions represents distinctive values and for hiring and retaining existing it is highly important to cater them effectively (Clark and Clark, 2003). The major benefit of all these aspects is tied with quick and effective development of organization either local or global to meet Emerging Economies civilization attributes efficiently and that is significant to achieve higher profitability. The approach is also helpful to initiate innovative and new ideas in organization. At the same time it is also necessary to assist new employees with major organization cultural issues that will permit them with idea to effectively deal with difficult situations and business circumstances so for meeting these purposes training and development program must be encouraged and it is responsibility of organization to allocate a mentor or counselor that particularly will be helpful for organization to create new leaders in organization (Wiseman, 1993). This will permit employees with capabilities to think like owner of company. In terms of facilitating employees there can be other significant features to be added in local and international organizations so that existing and new talent will be retain, beside the impact of such economic fluctuation (Clark and Clark (2003). Helping new and existing talent to determine characteristics of employer, organization and cultural aspects of Emerging EconomiesFacilitating employees with most extensive knowledge regarding organizational values accompanied with business prioritiesBuilding positive aptitude towards external environment and promote higher relationship with co workersSetting performance objectives relieves anxiety of employeesAll these new approaches of Human resource management will help local, international and global organization in Emerging Economies to significantly prosper and will helpful for new as well as existing employees to enhance their performance after analyzing critical cultural factors of the region.

Identification and evaluation of the main cross cultural issues for international human resource managers operating in emerging countries

It seems really very clear that, the strategic adjustments of organizations are founded on help from Human Resources. It is appealing to point out that Human Resources activities that are becoming more and more focused, in order to ensure a balance in which corporations can find the kind of people who are not only experienced but also honest and have reliability (Laurent, 1986). Other than these there are also some organizational changes to achieve that includes (D’ Iribarne, 2001): Subsidiaries of global organizations that are operating in Emerging Economies are concentrating on their business activities in such a way that they can contribute to resources and approaches for dealing with the catastrophe situations. Organizations that work all through Emerging Economies are utilizing this period, when marketplaces are constricting, to guide and develop personnel. At the same time, small and medium size organizations are challenging more resolution in their efforts to professionally administer personnel in conducts that are suitable for their size. Without any doubt, the Human Resources field is highly interrelated with the labor policies of Emerging Economies countries. The region has been differentiating by a constant distress for distinguished employment. Naturally, that has greater impact on economic development. In reference with the two outstanding examples to reveal the relationship between economic development and HR activities, one of the popular cases of Mexico’s Grupo Monterrey can significant illustrated (Barba, 2005). The economic narration of that Mexican engineering city [Monterrey] depicts that large organizations with a humanistic ideology generated social benefits for their workers long before Mexico’s labor law recognized norms in that admiration in between 1930s. These benefits involved systems for knowledgeable workers and their children; housing loans as well as healthcare benefits for workers and their immediate family members (Wright, 2006). Currently, the city of Monterrey is eminent by higher education institution that are extremely competitive on a international level, as well as by widespread urban expansion. It also has specific hospitals slanting toward health research (D’ Iribarne, 2001). Another example is related to Colombian agribusiness, and how it has managed with constant aggression for more or less three decades. These organizations have also had a sturdily humanistic orientation, and they make frequent use supportive mechanisms. They have developed a working culture based on nonstop training of their workers and a promise to maintain their employees despite any external intimidation (Wright, 2006). Today, these organizations are highly appreciated, and they are serving to the development of Colombia. Studies represent the major difference between Emerging Economies and European investment that exist at the institutional altitude: While most the investors from the United States look for Emerging Economies help for formulating political agendas, and from Europe try to reinforce the institutions of the area to look after their investments from sequence of political and economic volatility (Zang, 2009). However, in both cases it can be significantly observed that multinational organizations that be unsuccessful and wind up enmeshed in legal arguments as a result of a deficiency of local directives. The same thing occurs to companies that are unaware of the significance of key stakeholders in Emerging Economies civilization (Wright, 2006). Barba (2005) states that Human resources management and organizational culture are intimately related, it is very significant to study human resource management from the cultural and cross-cultural perception. Laurent (1986) states that, seeing from the standpoint of human resource management unconnectedly, human resource management will be inclined to take a unified internal place. Its basic condition is to organize members to perform their duties together for the common benefit and exclude the consequences of the conflict, and so as to the attainment of common objectives. But it is often a concern of wishful view (Kaicheng, 2000). Deleishi (1999) depicts that there is often a tough amalgamating culture in a comparatively closed society or venture, but the civilization of which will practice a transformation process. Cross-cultural human resource management comes into view in this situation. Many worldwide companies have the understanding and training about that and we should study from them and take them for allusion (Dowling, 2004). Impacts of the cross-culture or the internationalization come out for enterprise human resource management above all include two segments (Laurent, 1986): how to select, as common issues must be solved, training of those management members who have been sent to employment overseas , how to compensate themDue to the fact that diverse countries and regions have several of cultural dissimilarities, organizations must take to consideration human resources management policies in accord with the host country or region of the special conditions. Growing and existing in a convinced cultural and environment, the surrounding culture has terrific influence to form reasonable and behavioral propensity (Zang, 2009). Cross cultural culture human resource management is however crucial, but at the same time hot issue in human resources management. Cultural fusion together is very strenuous and complex and it is also the most crucial; firstly, it is important to fully respect the domestic culture, and then form a general (Deleishi, 1999). It would be enviable to formulate the managers operational in multinational organizations feel that they are not high salary earners, but vendor of organizations with a sense of belonging (Wang, 2007). These cultural proportions system are very supportive to cross-cultural human resources management; such as in regard with China, Managers should critically study China’s cultural historical context that is preferably of 5000 years, involving Confucian culture, Taoist, Buddhist culture, and number of other (Wright, 2006). Contrasting with other cultures, for one article, one can analyzed the different between parent and host countries; for another thing, one can take dominance to create all people of different cultural context to work in a better way (Clark and Clark, 2003). At the same time, for workers it is highly important to attain complete knowledge of different cultural attributes, such as with incompetent understanding staff of organization will come out as a failure.

Personal reflection on the module learning

This section of the paper will reflect the key module learning in detail. This module is structured on followings: factors Effecting HR in Emerging Economies by employing comparative approach to IHR , critical assessment of the recruitment strategies of the multi-nationals, and identification and evaluation the main cross cultural issues for IHR managers operating in emerging countries. In reference with the literature by Elvira and Davila (2005) it can significantly evaluated that to determine human resource practices in Emerging Economies it is important to overview cultural aspects that go side by side with organizational management. Particularly there are two basic components that acquire greater value in business organizations of particular region; importance of social relationships and greater respect for higher authorities. At the same time, most of human resource management activities relates to these cultural values, particularly these activities involves, compensation, training and development, staffing, recruitment and most of all labor relations (Berry, 2001). There are also some of the macroeconomic environmental influences that have to be taken to consideration, as they are critical for business and human resource development in Emerging Economies (Shenkar, 2005). In this regard, Washington Consensus and higher political stability, influence of private organizations, increased foreign direct investment as well as trade liberalization processes are represents to be key divers for deep economic development in Emerging Economies as the most of occurred in 1990s (Hofstede, 1993). At the same time, in Emerging Economies an economical shift has been incurred which preferably came out in terms of deregulation as well as privatization advancement and the shift came out in expansion of human resource management practices in state (Kleynhans, 2006). The shift diminished the authority of state-owned organizations and permitted greater space for global or private organizations, as most of the multinational companies found higher growth and efficiency in the particular marketplace and at the same time seeking for major resources to be captured (Vives, 2006). In spite of the fact that the state has short-termed outlook, it has preferably faced widespread obstacles in terms of sustainable growth (Kaicheng et al, 2000). These challenges are related to all such as economy, social structure and geopolitics of Emerging Economies for which organizations made structural changes in human resources. Within what is known as a ‘ hybrid model of management,’ Human Resources is more and more prejudiced by three kinds of foreign activities in the United States or Europe, involving (Taylor et al, 1996):•Activities that add to labor equity — such as, for example, organization for hiring and evaluating presentation by proficiency and level of advanced training;•Styles of organization leadership that are added daring and more egalitarian, and•Practices sloping toward a strategy of social responsibility alert on the major subjects of global issues such as, environmental protection. Researchers have also explored human resource management practices of Multinational organizations in Emerging Economies in order to examine social capital. Human resource management practices are critical for organizations in order to implement wide range of strategies that will allow them to be culturally accepted in Emerging Economies (Wright, 2006). In this regard, Martinez has reviewed literature existing one on Paternalism and critically elaborate its role in attaining knowledge regarding leadership and human resource management practices within the context of Emerging Economies (Geetz, 1983). For fulfilling particular purpose she interviewed a Mexican leaders engage with United States organization and previously was associated with number of organization operating across Mexican border (Adams, 1965). The leader explained benevolent aspects of paternalism. She depicted that in reference with social exchange theory, paternalism basically represents appositive relationship between leaders, co-workers and followers which ultimately results in higher cost benefits for organization (Zang, 2009). She identified that paternalism came out in the form of significant results for generating positive attitudes in employees and ultimately enhance their performance organization. Most of the cross-cultural organizations that are preferably operating in Emerging Economies have to take in consideration certain attributes carefully (Shenkar, 2005). Such as in Emerging Economies almost all supervisors represent characteristics to protect their subordinates. It relates that organizations must look into distinctive attributes that are critically important for employees and their families (Morris, 1998). In Emerging Economies it is essential to understand that people or workers use family metaphorically management of organizations. It means that most of the individuals support and trust each other and supervisors probably play a role of friend or brother not represents authoritarian father attribute (Taylor, 2008). Therefore, in this respect it is important for organization eliminate authoritarian leadership qualities from organization. Most of the academicians and researchers define the Emerging Economies commerce model as a hybrid of globalization and the historic traditions of region (Wright, 2006). With the exemption of Argentina and Costa Rica, those civilizations are differentiating by large social gaps and an extensive collectivism that has various demonstrations (Wright, 2006). Dávila and Elvira explain that community differences are apparent locally through benevolent, paternalistic leadership (Dowling and Welch, 2004). Generally, paternalism includes a ” father” who thinks about his sons by appealing in permissive activities and facilitating moral support, even if his ” sons” doesn’t like to be too much dependent in many compliments all through their operational career (Vives, 2006). Emerging Economies organizations are administered like a family (Deleishi, 1999). Emerging Economies natives likes to depend on somebody closer to the hub of the organization, and to recognize that this ability leads to behavior that keep away from conflict and confrontation with authoritarian one (Elvira, 2005). Believing any other way would be understand as an offense against superiors and colleagues (Taylor, 2008). Emerging Economies organizations avoid hiring workers who does not represent abilities to maintain integrity of organization. It means that recruitment strategies of Emerging Economies companies involves that employees must now raise certain conflict and confrontation situation in organization, such as the ideology of the concept is that subordinates must be ready to follow the instructions of their supervisors and should also be humble with co-workers (MacDuffies, 1999). It means that organization search for talent which demonstrates directive leadership qualities and must develop a family like relationship with working community. Most of the global organizations fail to integrate modern management systems in Emerging Economies (Clark and Clark, 2003)Discussion depicts that while hiring some wonderful new human resource to join international operations of company they must be encourage learning different cultural, political, social and economic aspects to take into higher consideration. In reference with Latin American organizations, managers are more concerned with wide range of attributes such as social status, paternalism, masculinity and power distance. In this regard, International human resource management efforts must be focused to facilitate employees in their first three months to explore all the different aspects of the region that are directly influencing business operations of organization (McGregor, 2006). They must be aware with their products and services and should demonstrate all the activities to make consumers happy (Dowling and Welch, 2004). The most cautiously laid human resource activities can be exaggerated by internal and external transformation preferably anytime, so forecasting and suppleness are vital for effectual planning and adapting as necessary. In order to do this, managers of human resources must be aware of the fact that what is going on inside the organization, the industry and the in the widespread market in relation to the aspects that influence change.

Thank's for Your Vote!
Contemporary issues in international hr business essay. Page 1
Contemporary issues in international hr business essay. Page 2
Contemporary issues in international hr business essay. Page 3
Contemporary issues in international hr business essay. Page 4
Contemporary issues in international hr business essay. Page 5
Contemporary issues in international hr business essay. Page 6
Contemporary issues in international hr business essay. Page 7
Contemporary issues in international hr business essay. Page 8
Contemporary issues in international hr business essay. Page 9

This work, titled "Contemporary issues in international hr business essay" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Essay

References

AssignBuster. (2022) 'Contemporary issues in international hr business essay'. 3 January.

Reference

AssignBuster. (2022, January 3). Contemporary issues in international hr business essay. Retrieved from https://assignbuster.com/contemporary-issues-in-international-hr-business-essay/

References

AssignBuster. 2022. "Contemporary issues in international hr business essay." January 3, 2022. https://assignbuster.com/contemporary-issues-in-international-hr-business-essay/.

1. AssignBuster. "Contemporary issues in international hr business essay." January 3, 2022. https://assignbuster.com/contemporary-issues-in-international-hr-business-essay/.


Bibliography


AssignBuster. "Contemporary issues in international hr business essay." January 3, 2022. https://assignbuster.com/contemporary-issues-in-international-hr-business-essay/.

Work Cited

"Contemporary issues in international hr business essay." AssignBuster, 3 Jan. 2022, assignbuster.com/contemporary-issues-in-international-hr-business-essay/.

Get in Touch

Please, let us know if you have any ideas on improving Contemporary issues in international hr business essay, or our service. We will be happy to hear what you think: [email protected]