HRM in Europe
Module code: MBSP 0181
Module leader: Dr. Graham Hollinshead
Name: Jin Chenying
ID number: 07166104
Date: 14 Jan, 2009
The important of cultural awareness3
American HRM and European Challenge5
U.S and Europe6
HRM in United Kingdom8
Current practices in UK HRM9
Human resource management (HRM) can be defined as the strategic and coherent approach to the development management of organizations. While international human resource management can be described as the stage of staff management in multinational companies that focus on some activities such as international production and international marketing. (Harzing, 2004)
The definition of multinational enterprise is a company that headquarters in one country and has operations in one or more other countries. (Rugman, 2003) It means that the companies substantial direct invest in foreign countries, not just doing import and export business in global market. In recent years, more and more countries develop their international business in foreign countries, not just import-export trade with foreign countries. They will invest in one country and bring new products to foreign market. The United States is the larges owner of multinational enterprise in the world due to high quality of economy and technology. At the same time, international human resource management is important stage of develop multinational enterprise in other countries that include human resource planning, staffing ( recruitment, selection, placement), performance management, training and development and industrial relations. However, every company wants to establish a subsidiary in foreign country that should consider countries' culture. It means that all business activities successful should base on understanding of culture.
The essay's aim is to identify and explain the major cultural and institutional challenges that company may meet in European countries. First, it will analyze the important of cultural awareness in international business. Second, it will discuss human resource management in Europe. Next, it will describe the HRM in United Kingdom. Final, the essay will draw a conclusion to overview the important point that has been discussed.
The important of cultural awareness
In recent years, it has become increasingly clear that on understanding of one country's culture is important for one multinational enterprise develop their business in foreign countries. In the world, the different countries people do not share the same cultural background, the same language or the same model of communication. People do the international business, they should do research from in-source and out-source to collect information on staff requirement, customers' needs, religion believe and marketing situation. Therefore, an awareness of cultural difference is essential for the international HR managers at headquarters as well as subsidiary managers. All activities such as hiring, promoting, rewarding and dismissal should be determined by HR managers according to different country's culture. When one company want to operate a new company in host country, they should employ a new manager to control production and make right decision to expend the market shares. There are two types of manager recruitment that are operation with an expatriate general manager and employ local people as a manager. However, two kinds of managers should understand the host country's culture, sometime, the local manager might understand more clearly than expatriate manager, and local customers will trust and support their familiar people or from the same religion, culture.
On the other hand, the disadvantage of expatriate manager is that the company should consider their family living and education in host country and the manager should interested in host country's culture and suit to...