Performance Management in International Human Resource Management - Essay Example

Running head: International Human Resource Management International Human Resource Management s Human resource management (HRM) is a function that focuses on the people aspect of management. These HRM practises are developed to motivate employees in working towards achieving company’s objectives. HRM practises also serve as a communication tool between the employer and the employee (Bowen & Ostroff, 2004). These practises send messages that the employee could use to make sense and define the essence of their work (Bowen & Ostroff, 2004). The existence of HR practises provide positive effects to the organisation as whole since it delivers a message to employees that the company is committed to the wellbeing of its employees, and in developing a management that will provide assistance for both the company and its employees. Further, employees are likely to perceive HR practises as effective with the use of communication through information sharing, communicating with supervisors, promotes employee’s understanding of the purposes and expectations (Edgar & Geare, 2005). Previous studies have stated that HRM practise predicts employee attitudes (Edgar & Geare, 2005). Specifically, when these practises are implemented properly with motivating factor, proper leadership, and communicated well to the employees, the organisation could produce a gratifying attitude from the employees (Edgar & Geare, 2005). In addition, implementing an effective HRM practises could affect the output of the employees in accordance with firm performance. Employees could become more productive and more committed to the organisation (Huselid, 1995; Delaney & Huselid, 1996).     HRM practise is an important topic in the field of human resource since it increases the level of motivation, working habits, skills, and abilities of employees (Delaney & Huselid, 1996). With good implementation of various HRM practises, organisations could retain talented employees. These could also serve as a communication tool between the employer and the employee since it sends messages that the employee could use to make sense and define the essence of their work (Bowen & Ostroff, 2004). In addition, the existence of HRM practises has positive effects since it delivers a message to employees that the company is devoted to the welfare of the employees, and in developing management that will benefit both the company and its employees. Further, employees are likely to perceive the HRM practises as effective with the use of communication through information sharing, communicating with supervisors, promotes employee’s understanding of the purposes and expectations of the system, along with increased chances to participate in the decision-making process, and reduce employee’s misinterpreting current practises (Chang, 2005). By examining HRM practises, organisations give a clear view on how to design systems that would encourage their employees to exert more effort towards the achievement of company goals. Thus, HRM practises portray an essential role in boosting firm performance and develop competitive advantage (Delery & Doty, 1996). When employees perceive HRM practises effective, they will evaluate the practises in a more positive way (Kossek & Block, 2000 as cited by Chang, 2005). In addition, HRM practises facilitate positive employee outcomes and attitudes (Edgar & Geare, 2005). Human Resources are a strategic approach to the growth, development and management of the increased responsibility of human resources. It is a specialized field that attempts to develop an appropriate corporate culture, and introducing programmers which reflect and support the core values of the enterprise and ensure its success. Employees in Singapore prefer that the individual should grow in the field, they must achieve in the organization and further with the growth there should be increased responsibility. Money and job security is at the bottom of their priority where they are working. HR always looks forward to what needs to be done and then doing it rather than waiting to be told what to do about recruiting or training people or dealing with employee relations problems as they arise. The techniques for the application of HR will include many familiar functions such as manpower planning, selection, performance appraisal training and management development. (Kaplan, 1997) There are three meanings attached to the concept of HR. In the first place, persons in an organization are regarded as a valuable source, implying that there is a need to invest time and effort in their deve1opment. Secondly, they are human resources which mean that they have their own special characteristics. Some of these factors can be and quantified, while others can be only referred to in qualitative terms. The environment of business is an extremely important phenomenon. (Smith, 1996) The approach focuses on the need to humanize organizational life and introduce human values in the organization. And thirdly, human resources do not merely focus on employees as individuals but also on other social realities, units and processes in the organization. (Aswathappa, 1997) Achievement Motives The success or failure as a manager, especially when he is posted to a new country, depends on a number of factors and these factors may not always be within the control; very often such factors constitute the work environment. These include the job, organization, nation and the world around us. After all, a manager does not function in a vacuum. Therefore, as a manager when one thinks, or take decisions, he cannot neglect the limitations of environment recruitment and selection of your required staff. You can’t do without thinking about your environment. As a business manager, you have to constantly evaluate your precisely define ‘environment”, classify business environment on the basis of some criteria; identify some of the critical elements of economic environment of business establish the nature of interaction between economic environment and business management; and analyze the interaction between economic and non-economic environmental variables (Beaumont, 1993). Business Culture Environment furnishes the macro-context; the business firm is the micro-unit. The environmental factors are essentially the “givens” within which firms and their managements must operate. The value system of society, the rules and regulations laid down by the Government, the monetary policies of the central bank, the institutional set-up of the country, ideological beliefs of the leaders, the attitude towards foreign capital and enterprise, etc., all constitute the environment system within which a business firm operates. These ‘totally static, some are relatively static and some are very dynamic — they are changing every now and then. Some of these factors can be conceptualized and quantified, while others can be only referred to in qualitative environmental. (Galbraith, 1978) Culture, Strategy and Behaviour - The environmental factors generally vary from country to country. The environment that is typical of Singapore may not be found in other countries like the USA Russia, UK, and Japan. There may be some factors in common, but the order and intensity of the environmental factors do differ between nations. The environment differs not only over space but also over time, within a country sometimes the environment may be classified into market environment and non-market environment depending upon whether a business firm’s environment is influenced by market forces like demand, supply, number of other firms and the resulting price competition, or non-price competition, etc., or by non-market forces like Government laws, social traditions, etc. We may classify the environment into economic and non-economic. Non-economic environment refers to social, political, legal, educational and cultural factors that affect business operations. Economic environment, on the other hand, is given shape like the fiscal policy, the monetary policy, the industrial policy resolutions, physical limits on output, the price and income trends, the nature of the economic system at work, the tempo of economic development, the national economic plan, etc. The non-economic environment has economic implications just as the economic environment may have non-economic implications. Since the environment is the sum total of the history, geography, culture, sociology, politics and economics of a nation, the interaction between economic and non-economic forces is hound to take place (Hamel, 1989). Motivational Environment These different sectors, together, influence the trends and structure of the economy. The form and functioning of the economy varies from country to country. The design and structure of an economic system is conditioned by socio-political arrangements. Such arrangements are relevant from the standpoint of macro-economic decision-making. The ultimate purpose is to train business managers to face the macro-level environment of business. All modern economies, whether capitalist, socialist, have certain fundamental economic problems to deal with. In each and every economy, including the so-called “affluent society”, some or many resources are scarce. Consequently, choices concerning the resource use have to be made together by individuals, by business corporations, and by society. It is the social choice and community preferences which give substance to the question of macro-economic decisions. From the standpoint of resources, the basic economic problem of every economy is that of just allocation of resources and subsequent optimum production. Thus, the economy in which a business firm operates today is not an exclusively free economy making an indiscriminate use of prices and, the markets. Rather, it is -directed by a system of planning, control, regulation and coordination. (Hamblin, 1993) Researchers such as the late Harvard psychologist David McClelland have identified a characteristic of profile of high achievers. First, these people like situations in which they take personal responsibility for finding solutions to problems. They want to win because of their own efforts, not because of luck or chance. Second, they tend to be moderate risk takers rather than high or low-risk takers. If a decision-making situation appears to be too risky, they will learn as much as they can about the environment and try to reduce the probability of failure. In this way, they turn a high-risk situation into a moderate-risk situation. If the situation is too-low risk, however, there usually is an accompanying low reward, and they tend to avoid situations with insufficient incentive (Srivastava, 1999). Social Environment Business must have a social purpose; business concerns must discharge social responsibility and social obligations and have social commitment. Otherwise, business cannot enjoy social sanction. There are a host of factors like social values, culture, beliefs, tradition and convention, social attitudes, social institutions, class structure, social group pressure and dynamics. The nature of social objectives and priorities, along with the set of social constraints, give form and content to several social movements. Successful business managers cannot afford to neglect these movements, and their underlying ethos. Business ethics are very much influenced by social movements, social systems and social preferences. In a very broad sense, therefore, the social environment happens to be the culmination of forces operating from different platforms such as history, culture, polity, ethics and morality, values and institutions, . Society itself has to balance the achievements and aspirations of various individuals, groups, communities and institutions. No business can survive and grow without social harmony. Different countries, over different time periods, attain social harmony and order of different forms, through different ways and means. Thus the social environment differs over space, time and methods (Hitt, 2001). Critical Elements Education and culture as an ingredient of the sociological environment, In this category one may list the attitude towards education; the need for business education; education matching the skill requirement of industry and manpower utilization, the role of business schools and executive development programmes, education versus training; correlation between formal literacy and the level of culture; the spread of education and its the impact on business ethics; material progress and business morality; business culture and organizational culture. At a given point of time, society has a level of achievements and aspirations. Such achievements and aspirations have to be defined clearly and categorically, and any divergence between the two has to be bridged through relentless social effort taking care of social welfare and social constraints. This is where the role of the Government as a welfare state comes in. The Government is the apex social institution. Particularly in a democracy the Government has the very responsible function of maintaining social order and harmony in view of the interests of the majority. It is the Government which has to make sure that social progress is not handicapped by the tyranny of the majority; otherwise social tensions will mount even under democracy. Certainly, business cannot grow under social tension. The social environment includes a host of factors like social values, cultures, beliefs, traditions, social institutions, class structure, social group pressures, or social dynamics, etc. The nature of the social objectives and priorities, along with the set of constraints, give form and content to several social movements (Cascio, 1992). The critical elements of the socio-cultural environment are: social institutions and systems, social values and attitudes, education and culture, social groups and movements, the socio-economic order, social problems and prospects, etc. The management of the enterprise has therefore to strike a balance between the interests of all groups or stakeholders. The business has therefore to be run in a socially responsible manner. This is necessary if the business has to survive and grow in the long run. References Aswathappa K., (1997). Personnel Management, Tata McGraw-Hill Publishing Company Ltd., New Delhi. Beaumont, P.B., (1993). 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