International Human Resource Management - Coursework Example

Introduction Human Resource Management is a strategic approach to the acquisition, motivation, development and management of the organization’s humanresources. Its emphasis is not only on production and productivity but also on the quality of life. The valuable contribution to goal attainment of individuals in an organization is referred to as appropriate human resources. This contribution results from their productivity in the positions they hold. “Productivity in all organizations is determined by how human resources interact and combine to use all other management system resources.” 1 Management of Human Resources requires proper attention of Managers at all levels in the Organization. They must guide the workforce, influence their behaviour and motivate them to contribute maximum towards the Organizational Goals. The required number of competent managers is a vital requirement for success.” It is not unusual for large international firms to have top management teams composed of managers of many different nationalities. The geocentric attitude is the basis for viewing the organization as a worldwide entity engaged in global decision making.” 2 There are many Human Resource Strategies that are globally recognized. But in practice it is difficult to adopt these strategies as it is in many countries due to the cultural difference. Hence small changes are required and can be adopted successfully. HR Strategy Managing Human Resource is one of the key elements in the management of an organization. In modern economics whatever means are used to ensure the creation and delivery of goods and service, the role of people at work, whether individual or group, as employees and the ability of management to effectively deploy such a resource is vital to the interest of both employees and the organization. There should be a good understanding between human resources, with strategic goals and objectives, in order to improve business performance. Here comes the role of strategic HRM. “Strategic human resource management has been defined as ‘the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation and flexibility.” 3 HRM stresses on the role of individual employee in the organization as also on the mutuality between employers and employees. The various HR assumptions are a) Productive System wide intervention b) Linking HRM with strategic planning and cultural change c) Seeks power equalization for trust and collaboration d) Open channel of communication to build trust and commitment e) Goal orientation f) Participation and informed choice. 4 In practice there should be a fair and equitable treatment and also an opportunity for each employee to use his skills and talents to the maximum and also allowing employees to participate in job related decisions and providing a healthy environment. These actions on the part of an employer can translate into improved commitment. Commitment is also based on one’s own values and assumption about people. Some of the steps employers have to take to build commitment are: a) Establish people first values b) Guarantee fair treatment. Establish a workable grievance procedure that guarantees fair treatment to all employees. c) Boost upward and downward communication d) Use value based hiring e) Provide employee security. 5 HRM Strategy in Medical Precision Systems – United States. MPS has a very successful story in its business operation in its home Country United States. The Human Resource Policies adopted in the Organization is perfectly matching with the culture of the employees in the Organization. The HR Polices adopted in the organization is in such a way that it creates a feeling of belongingness in the mind of people towards the organization. The various measures such as pension schemes, profit sharing scheme, share option scheme etc are more attractive in such a way it creates closeness to the organization. Also the company tries to retain staff when the production is less to create staff loyalty. The total quality Programme, opinion survey, and other benefits like Canteen and recreational facilities are more attractive for the workers to be productive, loyal and hardworking. Peter. F. Drucker has rightly said, “The management must gear its policies and objectives in such a fashion that the employees perform their work and do their assigned tasks.” HR Strategy of Medical Precision Systems in European Plants. As part of its further expansion they have started its operation in 3 European Countries such as France, Britain and Sweden. MPS like its strategies adopted in US, tried to adopt the same policies in the Plants in European Countries. There was extensive use of expatriate managers in both technical and managerial areas of the Business. All the Policies and Strategies the Parental Company followed were tried to implement in the new plants. The Performance Appraisal feedback mechanism is also implemented as it was in Parental Country. They had a very strong control on the entire activity of the Plant from the Parental Company. The Problem. The Company after its successful stories in the HR policies adopted in United States, wanted to adopt the same measures in the new plants also. They have recruited managers from their own country who were expert to implement the policies. The strict control and the HR Strategy adopted had different impact in the new plants. From the report of Mr. Jim Grant it is clear that the plants were suffering problems in the following areas 1. Problem concerned with Expatriate managers 2. Poor Industrial Relations 3. Difference in Management Style 4. Degree of Control by Parental Company These are the 4 key areas which have to be looked into deeply and rectified. The comments of the Expatriate Managers related with their plants are also to be taken into consideration UK Plants: The Expatriate Manager is not able to understand the British Mentality – that means there is no understanding of the people working in the organization There is considerable resentment related to weekend working. The Performance Management System which was successful in US is not up to the mark in this plant. The targets are harsh and divisive – this is because the target is been fixed by the parent plant. The influence of Union is very high in the Company France Plant: There is a controversy in the management style adopted in the Company. The employees are not much concerned about the feedback mechanisms, as they are more interested to be directed and instructed properly towards their work. They are also least interested in the extra hours of work and they also find difficult in achieving the target set. Sweden Plant: Here also the target was a bit difficult to achieve, and the employees faced problems in the feedback mechanism. Hence a new feedback mechanism has to be implemented. New Strategies to be Adopted. The HR Strategies to be adopted should be different in each plant. This is so because the people working in each organization differ in their culture and the working climate they prefer. Recommendation. HR Polices should be refined and should suite to the working environment and the culture of the organization. Studies reveal that small modifications in each plant will help resolve the issues. Instead of having a common strategy for all the plants, it is better to have the strategies implemented with minor changes by focusing on the specific environment of each plant. This can be clearly stated for each plant. Medical Precision Systems – United Kingdom. From the report of Mr. Jim Grant and Mr. Joe Mendes it is very clear that good industrial relationship is lacking in this plant. The main reason is that the expatriate Manager is not able to fully understand the need and motives of the employees. Here there is no good relationship between the management and employees. It will be better to position a local person in the managerial position, so that a good relationship will be build up. The involvement of target setting by the parental company should be stopped and the targets have to be fixed by the respective plant, or else the parental company should fix the targets after thoroughly studying the organization and the people working there. A proper training program can also be implemented to up grade productivity A very good communication system has to be maintained. The management should encourage comments, follow up and encourage feedbacks. The management also should cultivate the habit of listening. If the communication process is to function effectively reciprocal confidence and trust on the part of the members of the organization is absolutely essential. Medical Precision Systems – France. The Plant in France also faced a similar problem as related to target setting. It is because a proper study is not conducted related with employee and productivity. There is a need for change in Management Style. The French work force insists for a better leadership in the sense that a person who is having sound knowledge in the work and who can command them in the right direction. An effective direction is expected by the French work force. It seems to be participative in nature, who helps others to develop their own initiative. They also seem to be able to take their own decisions and formulate their own procedures. Further they can recognize their own wants and are mutually co-operative for achieving the objectives. Medical Precision Systems – Sweden. The Swedish work force also is very not very much satisfied with the target setting adopted by the parental Company. Hence the target setting should be based on a proper study of the typical individual characteristics of the plant. Proper training programs can also be implemented to increase the productivity, so that in future the production target can be raised. General Recommendations Performance Management System is a communications system designed to help employees succeed. It is directed by managers and supervisors but requires active participation by employees. The Performance Appraisal Method should focus on creating and maintaining a satisfactory level of performance of employees in their present jobs. It should also highlight the needs and opportunities for personal growth and development. It should also aid in decision-making for promotions, transfers etc. It should also lead to a proper understanding between the supervisor and his subordinates. “The key phases in converting the installation of a new performance management system into a successful implementation includes a) Communication b) Accountability c) Skill d) Alignment e) Measurability.” 6 Task setting should be revised. All the plants are dissatisfied with the Task setting. It should be thoroughly revised after a proper study. The Company should adopt Total Quality Management (TQM) which will ensure top management leadership and commitment, continuous improvements and actions based on facts. “Total Quality is a description of the culture, attitude and organization of a company that aims to provide, and continue to provide, its customers with products and services that satisfy their needs.” 7 For a successful TQM environment, there should be a committed and well-trained work force who participates fully in quality improvement activities. The employees are given more responsibility and to communicate more effectively. Thus there is a group effort or a collective effort for the performance of activities throughout the Organization. Hence this can be applied in the plant for further improvement. Answers to the Questions Mr. Jim has recognized problems in the areas of: 1. Problem Concerned with Expatriate Manager: Mr. Jim has to recommend to the board to appoint local people instead of expatriates so that close relationship and proper understanding can be maintained. This has to be done immediately in all plants and thus retain a good understanding between the management and the employees. 2. Industrial Relations: Since industrial relations is a functional staff service, it must derive its authority from the line organization. There should also be sound personal policies which should help to solve the problems which arise every day during the working of an organization. Policies can be successful only when they are followed at all the level of an enterprise. A system of procedures is essential for effective action. There should be also a detailed supervisory training through which employees can get an idea of the policies and practices of the organization. Training is needed in leadership and in effective communication. A constant review of an industrial relations programme is essential with proper evaluation. 3. Management Style: There should be a radical change in the Management Style. It should be in such a way that concentrating on getting employees involved in the organization and giving them the freedom to use their abilities as they think best. There should be a “Transformational Leadership style, which leads to ‘transforming’ or changing organizations successfully.” 8 There should be also participation of workers in target setting. This will in turn help us to find where exactly the problem lies related with the target setting. Participative Management should be encouraged. Feedback should also be encouraged. Related to the Management Style the Management can re-establish the need for program procedure and meeting the expectations for task accomplishment. There should be no much pressuring situation as the Union in the plant is strong it will not be a good approach. There should be a proper communication in relation with setting performance goals. 9 4. Degree of Control on the Companies: The rigid control on the Plants should be reduced. In many areas like target setting, Changes in HR Policies which will suit the situation should be able to freely adopt. The Organizational Climate should be in such a way that the people in the Country can easily adopt to. Question No 2 So the Polices which are implemented in the US can be implemented in the proposed way. There will be only certain slight changes to be done. The recruitment of Local people, Change in the Management Style, building up a good Industrial Relations and reducing the control on the companies can effectively bring the plants into success and also will lead to a good Management-Employee Relationship. Conclusion In general, the US Company tried to implement the US culture and work atmosphere as prevailing in their country. This was the reason for the failure of many HR policies in these countries. To adopt a cultural change and creating a different cultural atmosphere in the company is a difficult task and cannot be done all of a sudden. It requires time. All the HR policies adopted in the US Company can be implemented in the other plants with a small modification and changes to accustom to the Organizational Climate. Works Cited Certo, Samuel. C. Managing Human Resource. Modern Management. 7th Edition, New Jersey: Prentice Hall. Page No.274. Koontz, Harold. Weihrich, Heinz. Human Resource Management and Selection. Essentials of Management. 5th Edition, New Delhi: Tata Mc Graw-Hill. Page No. 234. Chaturvedi, Siddharth. Strategic Human Resource Management. http://www.humanlinks.com/manres/articles/shrm.htm (accessed April 13, 2007). C.B. Mamoria. and S.V. Gankar. The Job and the challenges. Personnel Management. 25th Edition. Himalaya Publishing House. Page No.882. Davis, Patricia. and Rogers, Robert. W. Getting the most from your Performance Management System. White Paper. http://www.ddiworld.com/pdf/ddi_gettingthemost_wp.pdf (accessed April 13, 2007). A Few Words about TQM. John Stark Associates. 1998. http://www.johnstark.com/fwtqm.html (accessed April 13, 2007). Certo, Samuel. C. Leadership. Modern Management. 7th Edition, New Jersey: Prentice Hall. Page 368. Management Styles. http://www.rpi.edu/dept/advising/free_enterprise/business_structures/management_styles.htm (accessed April 13, 2007). Read More