The purpose of this research essay is to give general view on prime issues on managing human resource. My research concentrates on the following principal issues considering practices on expatriate and local employees in MNCs. Introduction.
Identifying, Selecting and Managing the Global Workforce.
Importance of Cultural Awareness.
Training, Performance Management, Appraisal and Compensation Issues.
HRM refers to those activities which organization does for utilizing its human resources effectively, planning of human resource, recruitment, selection, performance appraisal, compensation management. From the beginning of globalization, companies’workforce has been diverse and cultural issues are appearing. As a result IHRM emerged. International human resource management developed after 1980’s as a subject focusing mainly on what can be the opportunities and problems for MNC’s expatriation, why cross cultural issues are important for international companies and international aspect of HRM consists employee recruitment, selection, placement, performance and compensation management as well career development policies and practices. International human resource management covers the broader perspective on human resource management which involves recruitment, selection, placement and effectively utilizing employees of the company. IHRM encompasses: Managing employees in the MNCs globally… (Poole, 1990; p1) Managing employees in the global surrounding and dealing with the problems that arise in MNCs operating in many foreign countries unlike working on behalf of foreign companies in own country or managing international employees in local companies…. (Briscoe and Schuler, 2004; p1) The way MNCs manage their global employees to gain local as well as global competitive advantage…. (Scullion, 2005; p5) A branch of management studies which contains how human resource management are practiced and how it affects in cross-cultural situations… (Peptone, 2006; p523) Issues of international management of people of MNCs along with issues of different parts of their organizations and comparative analysis Of HRM in different countries…. (Stahl and Bjork man, 2006; p1) “Complex relationship between globalization, national systems and companies [which Provides us with] three distinct “levels of analysis” for interpreting and understanding HRM Strategies and practices [the globalization effect, the regional and national effect, and the organization effect]”… (Edwards and Rees, 2008; p22) Management of employees in global and cross cultural context and comparative human resource management…. (Brewster et al, 2007, p5)
Identifying, Selecting and Managing the Global Workforce
While talking about the global workforce, the term “expatriate” is largely been used in IHRM in an article in the management of human resource literature.Kobrin(1988) discussed that US multinational enterprises were minimizing the number of international assignees to reduce cost and because of the high failure of expatriate. Some years later, it seemed that this idea doesn’t reflect the current practices of MNEs.According to the 2002 survey carried out by the consulting firm (ORC); from a sample of 775 MNEs the most common pattern among the majority of these companies, including the North Americans, is an increasing use of employees sending overseas. An expatriate is an employee who works for the company he/she represents for certain time period in overseas. There are abundant numbers of studies about the way organizations manage their pool of expatriates. The studies cover different areas: selection, training, relocation and adjustment, pay and performance, career development and return. Reasons for Expatriation:
According to the Black et al. (1992), an expatriate has major three strategic roles. They are Monitoring (management function), transferring skills and knowledge, managerial...