International and Comparative Human Resource Management

International Human Resource Management has been defined as HRM issues, functions, policies and practices that result from the strategic activities of MNEs. International Human Resource Management deals principally with issues and problems associated with the globalization of capitalism. It involves the same elements as domestic HRM but is more complex to manage, in terms of the diversity of national contexts and types of workers. The emphasis is on the MNCs’ ability to attract, develop and deploy talented employees in a multinational setting and to get them to work effectively despite differences in culture, language and locations. International HRM tends to mitigate the impact of national culture and national employment practice against corporate culture and practices.

Comparative Human Resource Management, on the other hand, is a systematic method of investigation that seeks to explain the patterns and variations encountered in cross-national HRM rather than simply describe HRM institutions and practices in different societies. Different national business systems arise from differences in specific historical, cultural and institutional heritage in certain countries. Comparative differences occur due to decisive historical events such as the process of industrialization or due to the legacy of pre-modern forms of social organisation. Hofstede adopted the ‘culturalist’ perspective where he argued that national business styles emerge due to ingrained cultural attitudes and mental schemas. He described culture under five dimensions which are power distance, individualism, masculinity, uncertainty avoidance and long-term orientation.

Human Resource Management policies and practices are becoming universal and that country-of-origin effects are no longer relevant. The pressure to build standardized operations internationally is strongest in sectors where competition is highly internationalized and where firms compete on the basis of a similar product or service across countries such as in cars and fast foods.… Read the rest

Career Development – Meaning, Definition and Stages

The concept of career development is of growing concern to organizations since it matches the needs of a business with the career goals of employees. Formulating a career development plan can help employees to do their jobs more efficiently. Additionally, these plans can be beneficial for employees who might want to move up in a company or look for other jobs in the future. Today, challenging organizations have developed new concerns for the career development of their employees. They put greater emphasis on ‘career’ with coherent induction, training and development, increased job security by the accrual of experience and qualifications valued in the labor market.

Since a high majority of workers change their careers at midlife, it becomes evident that career development programs are needed throughout the life cycle. Other major reasons for this concern are:

  • The growth and productivity of organizations depend on the effectiveness of employee performance.
  • A change in the social values where employees do not consider work as the most important thing in life but rather selecting occupations and careers that fit the individual.
Definition of Career Development

Career development is defined an organized, planned effort comprised of structured activities or processes that result in a mutual career plotting effort between employees and the organization. Career development is an ongoing process by which individuals progress through a series of stages, each of which is characterized by a relatively unique set of issues, themes and tasks. Career development involves two sets of activities: career planning and career management.… Read the rest

Career Management – Definition and Meaning

Career is a general course of action, an individual chooses to pursue, all through his or her employment life. It may be represented as occupational positions a person has hold over so many years. Many people feel satisfied by achieving their career goals. At the same time, others have a strong feeling that, their careers, their lives and their potential has undergone unfulfilled. Employers too have a profound effect on employees’ careers. Some organisations have very formal career management processes, while others are very little concern about it. Career management is defined as the ongoing process of preparing, implementing and monitoring career plans. It can be undertaken either by the individual alone or can be a concerted activity along with the organisation’s career systems.

Career management is a process that enables the employees to better understand their career skills, develop and give direction to it and to use those skills and interests most effectively both within and outside the organisation. Specific career management activities provide realistic career oriented appraisals, posting open jobs and offering formal career development activities. Career development involves the lifelong series of activities that contribute to a person’s career exploration, establishment, growth, success, and fulfillment. Career planning is the deliberate process by which an individual becomes aware of his or her personal skills, interests, motivations, knowledge and other such characteristics. He also seeks and acquires information about the opportunities and choices, identifies career-related goals and establishes action plans to attain specific goals. Career management and career planning activities are complementary and can reinforce each other.… Read the rest

The Concept of Career Planning – Definition, Objectives and Process

Career is viewed as a bunch or collection of jobs or positions. Generally, it describes an applicable career path within the structure of the organization. Basically, it shows the principal personnel development paths within the organization. The etymology of the term derived from the Latin word career, which means race. All the jobs, that are held together during one’s working life, constitute career. It is also viewed as the sequence of positions held by an individual during the course of his employment life. Edwin B. Flippo defined a career, as a sequence of separate but related work activities that provide continuity, order and meaning in a person’s life. A career may be viewed as amalgamation of the changes in values, attitudes and motivation an individual embrace, as he or she grows older. This constitute subjective element of the concept “career”.

Greenhaus and Schein described several themes underlying different definition of career as:

  • The property of an occupation or organisation: In this way the career describes the occupation itself or an employee’s tenure within an organisation.
  • Advancement: It denotes the progression and increase in success an individual receives within an occupation or organisation.
  • Status of a profession: In this sense, career is used to distinguish different profession. Such as engineering, medical profession is different from other occupation like plumbing carpentry etc. The former is said to have a career where the latter does not have.
  • Involvement in one’s work: Sometimes career is used in a negative sense to describe being extremely involved in the task or job one is doing.
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Diversity Management

The world’s increasing globalization trend demands more interaction between people from a vast diverse of cultures, beliefs, and backgrounds than the past. Today, people no longer live and work in an insulated marketplace. The reality is they are now part of a worldwide (or commonly mentioned as flatten) economy with competition coming from nearly every angle of the globe. For this reason, businesses need to be open to change and accept the concept of diversity to become more creative.

In daily conversation, the word of “diversity” has the meaning of differences or variety. However, in the business world and in the business textbook, diversity often refers to the many differences present among people today in workplace as well as marketplace that were not aware of by most people in the past. Diversity management is often referred as acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status for better workplace performance. The term diversity management indicates the implementation of strategies or policies to knit a network of varied individuals together into a dynamic work force.

Advantages and Disadvantages of Diversity Management

In recent years, diversity is increasingly perceived as an important issue in the context of business management. This is due to the increasing differences in the population, globalization process, increasing of international business and cross borders business dealing activities. In the business community, companies have also tend to pay more focus on diversity and look for ways to reap the opportunities offered by diversity as they acknowledge that diversity has the potential of yielding greater productivity and competitive advantages.… Read the rest

Developing a Reward Strategy for Your Organization

Reward is an important part of managing organization and the management of employees. It can be defined as an organization is ready to pay for to accomplish its strategic objectives. Therefore the review of reward system starts from understanding of organizational strategy and HR strategy supports this. Strategic reward objectives should be aligned with business objectives in the same way as other key business areas such as finance, marketing, administrating and IT.

In the broad way, there are two ways of reward such as tangible and intangible. The definition of these two rewards are in a way ambiguous as it could vary according to the viewers’ standpoints, but most of rewards can be classified as the tangible, which includes competitive salary, promotion, good benefits, incentive, better working environment, recognition awards and all other fringe benefits for higher performance. Whereas, intangible rewards is none monetary reward for high performance, not always requiring recognition of others in the workplace. Examples are when a sales manager gives the sales person recognition by a “pat on the back, send an appreciation e-mail and usage of bulletin board” to show appreciation for job well done.

In order to implement the reward system the most appropriate way, performance appraisal, evaluation, accomplishment rating should be done the most fair and objective way, but it is sometimes easier said than done. Due to the unfair or unreasonable evaluation, employees get depressed over the total reward system of the organization. In addition, the subjective appraisal is often taking place because of the managers’ personal preference or subjective views on some employees in particular.… Read the rest