International Human Resources - Research Paper Example

0 Executive Summary As globalization continues to emerge as an expanding trend, are also expectations that are a part of the market. One is based on finding the right regions that carry specific characteristics for expansion. The regions differ by specific characters as well as approaches to the work force that create a sense of legitimacy for the needs within the system. The international human resource management system is a large factor in the production of corporations as well as the ability to leverage the growth within any business. Comparing various regional characteristics can help to define the best international human resource management systems within the area. This report will focus on the human resource management in both Singapore and Bangkok, Thailand. This will examine the positive and negative attributes of both while defining which system will work more effectively for the expansion of a business at an international level. 2.0 Aims and Objectives The aims of this particular study are defined by asking which region will work more effectively in the distribution of human resource management at an international level, specifically with looking at Singapore and Bangkok, Thailand. The aim is to find which is more suitable for international management. The objectives which are associated with this include: Comparison of human resource management systems in both regions Cultural and social values that are within the work structures in both regions Structure of organizations and how individuals associate with this Legalities of the system, including health options, ethics and obligations Compensation, training and other internal expectations and how this affects the work environment Overall expectations that differ in each region By looking at the multiple dimensions that affect both Singapore and Bangkok, there is the ability to understand what is associated with each group and how this affects the growth of both regions. This determination will assist in compensating with the right region while allowing any corporation to move into the right area for stability and growth among human resources in an international pool. 3.0 Background The concept of international human resources management is one that is more pertinent today then in the past. This began in 1990 when an emergence of multinational corporations began to move into various overseas locations. Outsourcing became a large part of this, specifically with many that associated other countries with lower currencies and costs, while opening the international market to exchange. During the initial movement of multinational corporations in overseas areas were also expectations that were linked to using resources in the correct manner. Cultural gaps, implications of what was expected and different organizational environments and business structures created complexities and problems with the initial use of human resources for businesses. Today, the use of regional areas has grown; however, multinational corporations have recognized that using the right region with the most benefits ensures stability and avoids problems within the work structure (Dowling, Festing, Engle, 2008). Today, the use of international human resource management is expected to be associated with building a competitive advantage above others. The internal structure is able to depict how the customers respond to a specific business and the way in which they interact. Specifically, there is an association with saving on compensation and resources through the amount of talent that is available. This is combined with expectations of the cultures, such as individuals expecting to stay within a corporation for longer amounts of time, having different associations with team work and looking at problem solving in a different manner. These different attributes of various teams have allowed for the human resources to work with creating a competitive advantage in creating more alternatives within the internal structure. To do this, there needs to be a combined set of values with the organizational environment and a fit with characteristics from the human resources as a culture within a given region (Kazlauskaite, 2008). 4.0 International Human Resource Management Systems To ensure that the correct system is established is also the need to look at the approach to international human resource systems in both Bangkok and Singapore. Both of the areas are regarded as a part of the Asian triangle for international development. This characteristic is one which is now opening to economics and trade and is opening for progress and prospects within the international environment. The Asian triangle is one which has created and established the use of industrial clustering as well, which creates prospects through research and development in various regions while leaving others closed in the development. It is this particular part of the triangle of keeping specific prospects closed while opening other regions that establishes the management systems and which changes the way in which the different regions work (Kuchiki, 2008). 4.1 Labor Management Relations The first set of differences that is noted between the two regions is with labor management relations. The labor management relations in Bangkok, Thailand are the first place which is noting changes as well as questions which are arising politically and within the work structure. The Thailand region is known for strong labor unions which depict and equal out the number of working hours and trade. This particular area of influence is one which continues to be compromised as the labor unions are expected to hold a specific amount of power politically and culturally. The differences are based on a left and right wing approach which is continuously questioning how much work should be done, what is justified as fair labor and what rights the workers in the region should have. While institutional development is beginning to alter the way that many in society look at labor rights today, there are still questions that are valued with worker rights in Bangkok (Magno, 2003). The labor relations that are in Singapore consist of the same environmental atmosphere that demands workers rights and associations that are in society. However, this is based on basic ethics for work and fair rights that are implemented with work. The international labor force has strongly influenced Singapore to define what this is and which has lowered the barriers in terms of labor relations. The rights and responsibilities that are associated with the unions and management are restricted in these areas, specifically because of the different organizational environments which are emerging throughout Singapore. The strategies that are associated with this are based on the legal influences of the region, creating a process for agreements and disagreements and trying to negotiate with third parties to reach agreements about the labor force. Instead of creating specific disagreements, the third parties which are associated with the labor parties have created management regulations with the concept of the 40 hour work week and international agreements for equal human rights that are consistent across borders (Holley, Jennings, Wolters, 2008). The open area of Singapore makes this association more conducive to the needs of international management, specifically because the expectations have already altered in terms of the required work week and labor relations that exist. 4.2 Medical and Health The medical and health associations that are a part of both Bangkok and Singapore are similar, both with how it works in businesses as well as with expectations that are in the region. Both regions are known to be opening to new health demands, specifically because of the rise of globalization and the restructuring of the economy that is offering more opportunity for development in health. As chronic conditions rise, so do the demands to try to implement new forms for research and development while offering families generalized care within the region which they live. If this is not offered, then there is a general tendency to move into medical tourism where the individuals go to an area that has more options for medical and health. In relation to this, Bangkok is known as a medical tourism pocket with some governmental organizations that are rising. Singapore is basing a public and private set of medical and health care facilities to change the level of health initiatives taken. These two approaches are making Bangkok grow with gaps, specifically with the urban and rural divide for access. However, Singapore is closing the gaps between private and public sectors, giving more options for health facilities to be available (Pocock, Phua, 2010). These general trends are opening possibilities between medical and health and how this is associated with business. In Bangkok, the facilities are supplied by the government with the expectation that each individual is cared for through taxes and generalized laws. However, Singapore has the growth of the private industry as well, which is allowing for alternative care to be available. The medical representation in Thailand is national bound and is tied to the government, which creates the restrictions, while creating several options for growth in Singapore for development of private facilities (Pocock, Phua, 2010). For Bangkok, the advantages are based on the government assisting those in need. However, the lack of facilities may make it so that resources fluctuate if problems in health arise because of the scarce facilities. The options in Singapore; however, may lead to many believing that health insurance and other alternatives should be provided by the corporation. The compensation structure slightly raises because of the private care which is available and which needs to have economic stability over with the area in which one works. While the health standards may be higher in Singapore, which works more effectively for the internal environment, there are also some areas of compensation in Singapore which need to be considered. 4.3 Organizational Structures The organizational structure of both groups follows the main trends with those that are looking at the use of international business. In Bangkok, there is a historical reference to the family business as the main attribute for those who are interested in stabilizing the economy. This approach to business is one which traditionally closed the economy and created a sense of value through the performance of a family which could uphold the foundation through various generations. The ownership and control of the business were the main factors as well as performance that were generated from the teachings and apprenticeship that were passed down from the parents to the children. This format of business is still accepted in Bangkok with only the central areas of the city opening to international and multinational firms. However, this is presenting diversity in the running and structuring of businesses while most find the level of commitment to be based on the family ideologies and values that have been passed down from generations (Bertrand et al, 2008). The approaches which are taken in Singapore add to many benefits with the overall structure which has been established. Singapore is a part of the Asian triangle which has the same founding values of family businesses and operations that have been passed through several generations. However, international firms have been moving into Singapore for a longer period of time, which has forced the opening to different organizational environments. Currently, Singapore is interested in the structure and adoption of international businesses with the recognition that each business will function differently and hold specific values that alter in the hierarchical structure. The adaptation is one which is inclusive of recognizing the change of organizational behaviors and the interdimensional relationships which are associated with businesses. This is furthered with a more open structure from private corporations that are now accepted into Singapore and which have altered with the behavioral patterns and expectations that are in society (Adler, Gundersen, 2008). The organizational structure which is noted between Bangkok and Singapore is based on the hierarchy and values which come from the same family values and expectations. However, the structure has now expanded in Singapore to associate the international dimensions of business and the capabilities which are a part of the region. 4.4 Need and Availability of Talent Another aspect to consider with the different businesses is based on the need and availability of talent in Bangkok and Singapore. A multiple criteria approach can be used in both settings, specifically which are based on the education and training which is received as well as the capabilities which are associated with diversity in the organizational environment. There are several factors which contribute to this, including economic development, association of growth in the community and understanding the international context in both environments. As diversity is recognized within a given region there is the ability to create a different level of awareness about what education and talent is needed, while mainstreaming the available resources within the region (Trauth et al, 2008). In both regions, there is the ability to have the same type of development. Bangkok is known for the city areas that are flourishing with diversity and which are beginning to open into the new regional expectations. This is combined with the growth of multinational corporations that are beginning to emerge and find talent in the region. The same scenario has been applied to Singapore with the difference of the region having a stronger establishment that has lasted for a longer time and which is helping to develop the main area of diversity through expansion processes, as opposed to the beginning establishment. Each area is combined with the enhancement of technology, which is mainstreaming the diversity of the work forces and providing compensation within the region, specifically which has created the same amount of talent in both regions. The only difference between Bangkok and Singapore is in the gray material, which is dependent on the outside training which one receives as well as the association which comes when one takes different areas of talent, such as leadership and independent situations. From this perspective, both areas are dependent on the individual preferences, as opposed to the talent availability, which is similar in both regions (Zavadskas, Turskis, 2008). 4.5 Compensation Structure The main structure that is in each of the regions also creates a compensation structure that is more conducive to those in the region. In Bangkok, the prevalence of the family structure has altered the way in which most are paid. The amount of compensation goes into a family fund that is shared among those that are a part of the business, leading to equality among the pay structure. However, the structure also incorporates a pay for performance sense of compensation. If one performs over another, then they are likely to receive compensation for the performance and are able to initialize more alternatives. This same structure has moved into the multinational firm with equal pay rates that are determined in differences by the performance which one has. The initiatives taken are conducive with the work in which one does and matches with the environment that is associated with the main culture and region (Connelly, Limpaphayom, 2009). The same concept that is used in Bangkok is used in Singapore, specifically because the same values and expectations have arisen from the family value business and into the multinational structure. This comes first from the IPO, or initial public offering, that is given to an individual at specific levels. This is divided into a hierarchy of managerial staff and regular employees. However, the individual fees don’t differ as much as other corporate structures because it is expected that each individual proves their performance level. Compensation is then given with the other payment alternatives available from the base public offering which one is given. The performance of managers that outweighs others is then able to provide new alternatives and compensation to those which are performing better. The incentives become the main alternative to support those that are in the region while creating a shift in the way that the managers and employees perform (Ooi, 2009). From the main payment structure, there is not a large difference between Bangkok and Singapore. Both start with a base rate then receive compensation according to performance and the initiatives which are taken among those who are working within a specific company. 4.6 Training and Education The structure and development of the training and education in Bangkok is one which is based on several developments. Most that are interested in moving into a career have a four year degree and understand the main ideologies that are within a business. However, the structure in the organization for training and education in Bangkok differs because of the organizational environment expectations that link to the family owned businesses. It is expected that those who are brought into the job receive informal training that comes from hands on experience and on the job training. However, this informal training is known to move into practical solutions for specific needs which cause most who are working in a business to remain in the same environment for a longer period of time. It is also known to create a higher amount of business longevity in Bangkok then in most other regions that are in Asia, specifically because the informal training also demands different levels of commitment by those who are a part of the business (Thassanabanjong, Miller, Marchant, 2009). The association with training and education in Singapore is traditionally looked at in the same way. However, there are now expected dimensions that are associated with this. Traditionally, those that work in corporations are expected to learn with casual, on the job training. Formal education is one which is only regarded as a main requirement before one takes the job. However, work – related training has now expanded with the movements in the 21st century to many who now expect to use polytechnic training to initialize changes and expectations within the work environment. Most in Singapore have initialized a movement that is based on the Internet and the ability to find relevant information that is associated with global issues in the region. The on the job training combines with the expectation for most to tap into the global marketplace to find specific answers. Middle level workers are known most for using this resource, more than any other country in the world, and combine this with the critical part of finding new solutions within an organization while moving through informal training (Lee, 2008). 4.7 Ethical Issues The ethical issues which have arisen in both Bangkok and Singapore are similar, specifically because of the emergence of multinational corporations that don’t have clear guidelines or defined trade agreements between both. The Asian triangle is known to carry similar cultural and societal values based on team work, respect to hierarchical values and holding specific work values. However, the implementation of multinational corporations has also added in corporate responsibilities and expectations within both regions. These responsibilities often conflict or aren’t recognized by workers who have a different set of belief systems and ethics that have been approached in the working environment. For multinational corporations, there is the need to incorporate corporate ethics, while combining the Eastern values within this. The ethics aren’t divided by these two locations, but instead are based on corporations having a concern to have a sense of responsibility to respect the values that are in both regions (Uriarte, 2008). The one difference which arises between both places is based on the national acceptance of multinational corporations and how this is changing the atmosphere in each region. Singapore has opened most of the borders for free trade and agreements with working conditions. This has been regulated within each of the working areas and has created an alteration in the expectations which most hold. This is combined with the separation of multinational businesses from national businesses, which allows the ethics to be maintained according to the type of corporation and the internal governance which is set up. The movement with Bangkok hasn’t led into this progression and still holds into the national identities that are a part of businesses. This is partly regulated by government officials and businesses which are interested in maintaining the cultural ethics of businesses in the country without the influences of multinational corporations. While many are beginning to open up into the region, there are also some concerns with the competition in terms of the national alliances as opposed to having an international brand (Dinnie, 2008). 4.8 Legal Obligations and Concerns The approach to ethics is followed by the legal obligations and concerns which are associated with different communities. In Bangkok, there is an understanding that the corporate responsibility is limited, specifically because of the structure of the region. There is a strong association with corporate responsibility with the main system. However, the association is tied into the governmental influences, which is inclusive of the economic expectations, labor unions, governance standards and financial structure of the multinational companies. Representation of labor workers is still strong and is followed by expectations from working groups to help with those who want representation. International businesses have a larger stake in these changes in Bangkok, specifically because the need to comply with worker rights, governmental expectations and other legal policies and procedures has to tie into the main corporate responsibility. The respect for the legal culture then becomes a priority in the initiatives which are taken in this region (Choi, Dow, 2008). The same concepts apply to Singapore; however, there are more initiatives that have been taken with the private corporation and the public corporation. Recently, the legalities have been divided by business types, specifically with foreign relations being one of the initiatives. It is expected that the foreign initiatives are taken to the UN with the fair trade agreements which have currently been created and which work in favor of both corporate responsibility and the multinational government. The structure is associated with human rights, building into transnational corporations and complying with the international and national standards. While this is similar to corporate governance at other levels, it is also expected that the behaviors complies with the private expectations first, then to the international governance. This offers more flexibility with the standards and ensures that the corporate governance doesn’t have to change to meet the needs of the national structure (Choi, Dow, 2008). 5.0 Comparison and Recommendations When looking at both Bangkok and Singapore, it can be seen that there are several attributes which both hold. Both work as good ways to work into the economy while building international human resources systems that work effectively for the environment. The one main comparison to make between both is based on the initiatives to open into an international area and to allow the corporations to move in. From this perspective, the area of Singapore has initialized the different cultural platform for transnational corporations with private businesses. This is inclusive of the international expectations for working, compensation, health and formats for corporate responsibility. While there are still traditional aspects which are designed, such as the hierarchical structure and the expectations in the training and education, most has developed into a flexible area for working. The opening of Singapore into an international region may work now in terms of the corporate establishment in a different region. However, it should also be pointed out that Bangkok is starting to develop in this manner. While it hasn’t opened in terms of business structure, corporate policy or the national branding, most areas are beginning to note a growth in multinational corporations. Currently, it is expected that multinational corporations are going to stimulate the economy and help with overall growth, which is leading to expectations and changes within the region. This means that there is the ability to be a part of the international boom and to move ahead of competitors that may want to move into the region later on. It may also mean that there is more support in terms of changing policies, helping to open to more potential in given markets and to begin paving in new opportunities within the region. Since most multinational corporations are larger and competing with each other, this may give a company a competitive advantage in the region (Stopford, 2008). The main difference which will help to change the approach between both regions is based on the strategy which is incorporated within the business. The human resource management systems in terms of most have the same cultural basis and have differed because of the opening of the area, such as the case of Singapore, or the implementation of cultural values, as in Bangkok. It should also be noted that the difference applies to the cultural and social changes in both regions. Singapore is now known as a developed country because of the opening into a global market and the emergence of several forms of business and entertainment. Bangkok is known as a developing country, which means that it hasn’t opened to the international platform; however, it is moving into new innovations and opportunities within the region. According to the global value chain analysis, there is a distinct difference between the opportunities of both. At the current time, Singapore has several advantages in terms of resources and human resource development. However, the global value chain also shows that Bangkok is emerging into this same opportunity, meaning that multinationals can be on the cutting edge of the change when moving into this region (Pananond, 2010). Another consideration to make in terms of the global value chain is based on the type of business which is given and how this may be affected in the future. If the business requires high tech resources, high amount of talent and quick understanding of a global corporate structure without the needed changes in values, then Singapore works as a more developed region. However, if the business is looking for a competitive edge that is based on offering new training and skills, developing unique products and services and offering long term alternatives for workers to emerge into the market place, then Bangkok will have better results. This is specific to the traditional values that are still being withheld in the region as well as the current movement that is leading to the area opening while being on the cutting edge of development. Combining the attributes with the region to the overall needs of the company and what is being offered will then provide long term results while ensuring that the corporation is able to create a more effective decision for long term planning and development. 5.0 Conclusion The development of both Singapore and Bangkok is one which is now seen as opening into the global platform and offering new alternatives for growth. When comparing these two regions, it can be seen that Singapore has already moved into a global characteristic in terms of human resource management systems. This is inclusive of wages, corporate responsibility, expectations for working and mainstream qualifications in terms of training and education. While the cultural responses are still a part of this, most that are in this region understand the corporate values of multinationals. The emergence of Bangkok, while moving in this direction, still has a national representation of the human resource systems in terms of compensation, corporate structure, ethics and government values on various levels. While this may not be open yet, it is expected that it will continue to emerge with the movement of globalization. To make a judgment about the area to move a multinational corporation is also based on the strategy to be applied with the move. The human resource management systems will effectively alter the overall production in the area. For the management to move into an emerging economy, such as Bangkok, also implies some initial struggles with regulations and expectations. However, there may be long term benefits against competitors. Singapore, while being more developed, also has more competitors and expectations to have certain values within the multinational level, meaning that this will need to be applied and kept to standard. To implement the right strategy, the examination of Bangkok and Singapore can be looked into in terms of internal structure and corporate advantages for both the internal and external environment, both which can lead to the success of implementing a multinational corporation. References Adler, Nancy, Allison Gundersen. (2008). International Dimensions of Organizational Behavior. Ohio: Thomson Learning. Bertrand, Marianne, Simon Johnson, Kirslert Samphantharak, Antoinette Schoar. (2008). “Mixing Family with Business: A Study of Thai Business Groups and the Families Behind Them.” Journal of Financial Economics 88 (3). Choi, Jongmoo, Sandra Dow. (2008). Institutional Approach to Global Corporate Governance: Business Systems and Practices. UK: Emerald Group Publishing. Connelly, JT, P Limpaphayom. (2009). “Corporate Governance, Family Ownership and Executive Compensation: Evidence from Thailand.” ACC 17 (1). Dinnie, Keith. (2008). Nation Branding: Concepts, Issues, Practices. UK: Butterworth – Heinemann. Dowling, Peter, Marion Festing, Allen Engle. (2008). International Human Resource Management: Managing People in a Multinational Context. UK: Cengage Learning. Holley, William, Kenneth Jennings, Roger Wolters. (2008). The Labor Relations Process. UK: Cengage Learning. Kazlauskaite, R. (2008). “The Role of Human Resources and their Management in the Establishment of Sustainable Competitive Advantage.” Engineering Economics 62 (1). Kuchiki, A. (2008). “Industrial Clustering and MNE in East Asia: Recent Progress and Prospects for the Asian Triangle.” Economic Integration in East Asia 71 (2). Lee, SK. (2008). Toward a Better Future: Education and Training for Economic Development in Singapore Since 1965. New York: Routledge. Magno, Alexander. (2003). “A Changed Terrain for Popular Struggle.” Philippine Journal of Third World Studies 8 (3). Ooi, Joseph. (2009). “The Compensation Structure of REIT Managers: Impact on Stock Valuation and Performance.” Journal of Business Research 26 (4). Pananond, Pavida. (2010). “Emerging Multinationals and Global Value Chain Analysis: Preliminary Evidence from Thailand.” Thamassat Business School. Pocock, Nicola, Kai Phua. (2010). “Medical Tourism and Policy Implications for Health Systems: A Conceptual Framework from a Comparative Study of Thailand, Singapore and Malaysia.” Globalization and Health 7 (12). Stopford, John. (2008). “Multinational Corporations.” Foreign Policy 23 (1). Thassanabanjong, Kitiya, Peter Miller, Teresa Marchant. (2009). “Training in Thai SMEs.” Journal of Small Business and Enterprise Development 16 (4). Trauth, Eileen, Jeria Quesenberry, Haiyan Huang, Stephen McKnight. (2008). “Linking Economic Development and Workforce Diversity Through Action Research.” ACM (978). Uriarte, FJ. (2008). “Corporate Social Responsibility in ASEAN.” LCF Conference (May). Zavadaskas, EK, Z Turskis. (2008). “Multicriteria Selection of Project Managers by Applying Grey Criteria.” Technological and Informational Management 37 (1). Read More