Recently, the dilemma between sector and cultural predictors of compensation policies has become a public concern, and is extremely important in the background of internationalization. Even some well-known cultural traditions at working styles of many countries, examples like the Industry Wide Bargaining of Germany, the Lifetime Employment of Japan and the Wide-range Social Safety Net of France, now are facing the threats of being damaged owing to the big pressures from economic globalization. As a result, multinational employers are facing unprecedented challenges when choosing a job due to the pressures of economic globalization and market economy. The growth of global economy plays a major role in general business, especially in the areas of human resource management. It has been at the agenda of company leaders to chase the qualification of global mind-sets by which they used to meet the challenges brought by the trend of globalization of economy and createContinue reading
International HRM
Global Compensation Practices
For many companies, maintaining a domestic compensation program that supports the strategic goals of the organization and meets the needs of employees is a difficult challenge. This challenge is intensified when a similar program must be designed to operate in multiple countries with different cultures. For organizations competing in a global marketplace, managing compensation requires a through understanding of the taxation of compensation and benefits, differing state social systems, differences in living standards and employee values and expectations. Some of the most challenging questions in compensation practices are following: How does a company pay expatriates from difference home countries brought together to work on a project? What about compensation packages for same country nationals sent to different regions of the world? Traditional compensation systems for expatriates, such as the balance sheet approach and going rate approach, may not be adequate for the company or expatriate in facilitating an case ofContinue reading
What is Workforce Diversity?
Workforce diversity is when a job hires people that are different or similar and puts them in the same workplace to work together. It’s basically the bringing together of different people to one workplace. Some things that would make them similar or different could be their age, background, physical abilities, disabilities, race, religion, gender, and sexual orientation. Workforce diversity is important because it lets companies grow and become more competitive. With workforce diversity comes many great perks and benefits such as creativity, innovation, and a great reputation. Having diversity in the workplace gives a company a lot of great and different types of talent. With this it makes the company more profitable and even more successful. With diversity in the workplace it can be a way to solve issues and customer needs many different ways. Diversity cause many new ideas for companies. With diversity a company gets local connections, differentContinue reading
Managing an International Workforce
Whenever an organization expands its operations to other countries, it tends to become multicultural and will then face the challenge of blending various cultures together. The managerial personnel entering another nation need to adjust their leadership styles, communication patterns and other practices to fit their host country. Their role is to provide fusion of cultures in which employees from both countries adjust to the new situation seeking a greater productivity for the benefit of both the organization and the people of the country in which it operates. Read More: Human Resource Management from an International Perspective Managing Workforce Diversity Managing International HR Activities Selection Criteria for International Assignments Barriers to Cultural Adaptation Managers and other employees who come into a host country tend to exhibit different behaviors and somewhat, see situation around them from their ownContinue reading
Evolution of Performance Management
Traditionally, performance appraisal has been used as the guide for employee performance. Performance appraisal also known as ‘performance evaluation’, ‘merit rating’, and ‘performance assessment’ is a process of recording assessment of employees’ performance, potential and development needs. According to Wayne F Cascio (1995) performance appraisal is defined as “the systematic description of job related strengths and weaknesses of an individual or a group”. Performance appraisal is a system of review and evaluation of an individual’s (or team’s) performance. Lately it has been supplanted in more and more companies with performance management (PM), a more comprehensive human resource management process. Within the recent past there has been a shift from traditional annual performance appraisal to continuous performance management. The obvious reasons behind this have been the inadequacy of Performance appraisal in serving as a performance enhancement tool. Performance appraisal is known to be a contentious and unpopular activity of Human ResourceContinue reading
Managing Workforce Diversity
How administrators manage workforce diversity greatly depends on the needs of the organization. For example, some companies may want a diversified work force in order to make them more competitive in the global market. Diversity helps them to better understand international markets. While other organizations consider diversity as a means to bring about greater harmony in the workplace and an opportunity to prepare employees and volunteers to deal with the nation’s changing demographics. Regardless of the reasons, managing diversity is here to stay. So, it’s no longer an issue whether to implement diversity training, but how diversity training will be implemented. “Managing for Diversity” pertains to a philosophy that is purely motivated by business purpose and market advantage. It is seen as a strategy for improving organizational competitiveness and efficiency. It is distinctly different from policies grounded in social purposes such as equal employment opportunity or affirmative action. It focusesContinue reading