International Human Resource Management: A Comparison Between Australia And Singapore

Organization Structure in Australia and Singapore

Question:

Discuss about the International Human Resource Management.

International human resource management is concerned with the issues of human resource management that are conducted in many locations other than the home country headquarters. The international human resource management is concerned with the relationships between the activities of human resource management. Human Resource Management is an important element for every organization. In this report the country which is chosen is Australia. Every country has different religion, gender, languages and activities. In this report the emphasis is given on the team member to acquire the knowledge and information of the country and also the climate condition to assist them to perform well in the organization.

Organization structure is considered as allocating the responsibilities to the employee’s of different departments. It is very important part for every organization because if the organization structure is wrong it will delay the success of the business. It helps the organization to maximize the productivity of the organization and also it enhances the relationship between the functions of the organization. In Australia matrix structure is used and it will be most suitable structure for the company to enhance the goodwill in the market. In this each person is assigned with the specific role in the organization and in this person is free and can take responsibility to perform activities in effective manner. In Singapore it consists of the head manager then under that are the directors of the company and under that are the executives who take care of the subordinates and give guidance to them in their work. Let’s consider the hofstede cultural dimension is a theory which is a framework for cross cultural communication. It gives emphasis on the culture of the society on its members and also how the value is related with the behavior. The power distance is one of the part in which the main emphasis on the inequality which exist and which is accepted by the people with and without power In Singapore the power distance is high as the company have the strong hierarchies and there is also large gaps in compensation and authority (Hofstede, 2008). The staff answers all the questions which are related with the problem to the top management and as compared to Australia where company is establishing in that the power distance is low because as there are many employees who are going from Singapore to assist other employees or to perform their operations in the company so in that case the supervisors and employees are same. They take the decision together and many people are involved in the decision making process. Now next is individualism concerned with the strength to the people in the organization. In Singapore there is low individualism people have strong group cohesion and people of the organization give respect to the others members of the group and also take the responsibility for each other well being And in Australia there is high individualism as the connections are not proper and lose and also there is lack of interpersonal and there is less sharing of responsibility beyond family. In Australia there are different culture and norms which the employees or the staff of the organization has to follow. Their lifestyle and living standard is very different from Singapore. Also the language is different which should be given more focus because communication is only the thing by which the organization can achieve its goals and objectives in effective manner (Czarniawska, 2009).  Next is masculinity which gives focus to the values and traditional of male and female. In Australia it is seen that both men and women work together in many professions and it is seen the women can work hard for professional success and also they have achieved success and in Singapore it is seen that men are tough enough to provide the services and also in providing assistance . In Singapore the masculine score is of 95 whereas in Australia the score is low 6. According to hofstede in Singapore the success can be achieved if male employee led the team and has strong power to manage a team and in Australia the success can be achieved if the aim is for a team that is balanced in skills rather than gender. Next is uncertainty it refers to the anxiety which society members feel at the time of unknown situations. If it is high they try to avoid the situations and if it is low it shows that the society enjoy the differences which occur in values. Hofstede cultural dimensions discuss that if the project is discussed with the people of Australia then the investigation should be made by discussing different options which are related to risk plans (Pugh, Hickson, Hinings, 2010).The next is long term orientation in which short term traditions and values are considered. If the countries have the high core of long term orientation it means that it is delivering on social obligations and it avoids loss of face. According to Hofstede people in Singapore have low long term orientation score.

Cultural Dimensions in Australia and Singapore

In this process many steps are involved

Estimating manpower requirements: The manpower requirement is accessed at the time of starting the work. The manpower requirement is determined by taking two things in consideration. First is type of employees and second is number of employees. It consists of job requirement, desired qualification and also the relationship which exist between the different jobs. The manpower planning consists of two techniques the first is workload analysis and second is workforce analysis. The workload analysis helps to access the requirement of the human resource necessary for the performance of jobs and to achieve the objectives of the organization. It ensures that there is no burden and also the resources are used in effective and efficient manner. Workforce analysis is concerned about the existing staff of the organization. It is also focusing on whether the organization is understaffed, overstaffed or optimally staffed (Murphy & Cleveland, 2011). 

Recruitment:  It finds and motivates the employees who are capable to perform the job in effective and in efficient manner. The employees are concerned about particular job in the organization. There are many activities which are involved in the recruitment. It includes activities such as determining the sources of supply, Evaluation of validity of these sources, choosing the most suitable source and also inviting the applications from the candidates who are willing to do the job (Schlechty & Vance, 2011)

Selection:  Under this the candidate who possesses the desired qualification is selected for conducting task in the organization. The ability and nature of work should be taken into consideration. It should focus on appointing right man which should be selected for the right job. It will give enhancement in quality, quantity, time and cost. The selection process consist of many steps like preliminary screening, selection test, employment interview, reference check, selection decision, Medical examination, Job offer, Contract of employment. The selection should be based on the requirement of manpower in the organization.

Placement and orientation: It involves giving the job according to the ability and also by placing right man at right place. Orientation means introducing the employee with the rules and policies. It’s main aim is to induce the employees in the organization to work smoothly.

Training and development: After that the employees should be given training according to the assigned duty. It gives benefit to both employees and to the organization. It increases the skills and ability of the employee to enhancement the performance.

Steps Involved in Human Resource Management

Performance appraisal: In this the performance is compared and also the work is assigned to them. If the result or the performance is not satisfactory than the training is given to the employee again and again on daily basis  (Murphy & Cleveland, 2009).

Promotion: is a method by which the employees get good salary, status, position. The higher post is given to the employees at the time of promotion.

Compensation: The employee should get fair wages and incentives according to the performance. This can happen by four ways through retirement, termination and death.

The staffing strategy which should be used in recruiting the candidates should be conducting recruitment from outside. It will give chance to access the candidate and will provide sufficient option to select the candidates.

The selection tool which should be used and which will be beneficial for the organization are

1. a) Interview: It is a reliable source and it is used widely at the time of selecting a candidate.
2. b) Skills Testing: It helps in accessing the skills which the candidate possesses.
3. c) Reference check: The reference check should be conducted at the time of selecting the candidate. It plays a great role in choosing the candidate who is capable enough to perform the task.

The training to the employees of Singapore will be given according to the working pattern of the Australia. The process of training and development consist of training needs analysis which can give assistance to the employees to face the environment of Australia and the workers or employees can work in effective manner (Noe, 2008).The employees who are going to Australia to conduct their operation they should be given proper training which can consist of coaching in which the training is given to employees and their doubts are cleared so that they can perform their task in effective and in efficient manner. The another training which is important for the employees is job instruction technology training in which the instructions is given to the employees to handle all the technology which proper care and also it enhances the level of knowledge of the employee and give them assistance to work in proper way. The next can be mentoring in which the employees are assigned under each mentor which helps them to solve all the queries and problem of the employees. The training is very important for the employees then only then can achieve the objective of the organization and can sustain in different climate. Proper training of language is also given to them so that customers don’t face any problem and also the employees can serve the customer in effective manner. Cultural training is also important because if there is lack in understanding the culture it can harm to achieve the goals and objectives of the firm. Before moving the employees to the new place it is essential to train the employee on managing stress, culture shock and also homesickness (Hollenbeck, Gerhart, Wright, 2003).

Remuneration Package for International Assignees

Remuneration package of the international assignees it can consist of the salary but it also contain the extra benefits such as accommodation, car, telephone, meals which the company gives to the employees. If the company have good remuneration package it attracts and encourage right employees to join the organization. Compensation package include sum direct benefits which are salary, bonus, commission and also indirect benefits include insurance, pension plans that the employer gives to the employees working in the organization. There are different approaches of compensation package. Balance sheet approach is the oldest approach and it was designed after the World War II as there is no gain no loss method of compensating employees who are working overseas (Newman & Milkovich,2002).  The concept behind this is that the employer can sustain their standard of living and also it gives equal purchasing power which help to keep the home lifestyle. When the parent company takes into consideration the balance sheet approach then it is required to keep the compensation salaries in line with home country peers and not with the colleagues of host country. It also maintains internal equity with peers by taking consideration the home country. In this approach the expatriate is wholly responsible for the cost and expenses as compared with parent company by adding additional income to keep the employees satisfied. The next is destination based approach in which the organization brings the cost of compensating expatriates under control and also increases popular approach. This approach takes into consideration that what the competitors are paying and which is more important if it is compared with the employees in comparable jobs. This approach has many disadvantages (Grinold & Marshall, 2006) .This approach is also successful in many ways as it has many candidates who are enhanced or is motivated to seek foreign posts and also it is concerned with the employees who are willing to avail the benefits and allowances. It is seen that the organization can save at least 20% of the cost if balance sheet approach is taken into consideration. The next remuneration package can be salary negotiation in which there is influence of culture and in this the negotiation of salary is made. In Australia the position in the new or current company the employee starts the conversation by considering about the achievements and then discuss about salary. Next is cost of living adjustment in which difference is made between the current and new location which is given to the employees. It includes the size of the family and also the salary which is spending on the goods and services on annual basis. Next is housing allowance which is given to the employees if they are given opportunity to shift in other country. The rent is given by the company in form of compensation. The benefit of health insurance is also given to the employee. All the expense concerned with the health is covered under the insurance.

Conclusion

From the analysis which is made in this report it is seen that the company can achieved it goals and objectives in Australia if the employees are given proper training. It will also enhance the goodwill of the company also the compensation package which is given to international assignee should be sufficient and satisfies enough. Training helps the employees to enhance the knowledge and also helps to attain assistance from the top management. The training is very essential for the staff because in Australia there is different pattern of the people living and also the culture is different so it is essential to give training to the employees or staff so that they can achieve their target in effective manner. Also for recruiting employees proper method should be used so that efficient candidate can be selected which can enhance the profitability of the company. The company should use different techniques to train the employees because it not only groom the staff but also give knowledge to face the problems which are prevailing in the market. The company should adopt proper staffing process so that the company can achieve its goals and objectives efficiently and in effective manner. The organization should maintain proper organization structure so that is can be convenient for the staff or the employees to work in effective way and can enhance the profitability of the business.

References:

Czarniawska, B. (Ed.). (2009). A narrative approach to organization studies(Vol. 43). Sage Publications.

Grinold, R. C., & Marshall, K. T. (2006). Manpower planning models. New York: North-Holland.

Hofstede, G. (2008). Cultural dimensions in management and planning. Asia Pacific journal of management, 1(2), 81-99.

Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2003). Gaining a competitive advantage. Irwin: McGraw-Hill.

Murphy, K. R., & Cleveland, J. (2011). Understanding performance appraisal: Social, organizational, and goal-based perspectives. Sage.

Murphy, K. R., & Cleveland, J. N. (2009). Performance appraisal: An organizational perspective. Allyn & Bacon.

Newman, J. M., & Milkovich, C. (2002). Compensation (Vol. 8). New York: McGraw-Hill.

Noe, R. A. (2008). Employee training and development.

Pugh, D. S., Hickson, D. J., Hinings, C. R.(2010). Dimensions of organization structure. Administrative science quarterly, 65-105.

Schlechty, P. C., & Vance, V. S. (2011). Recruitment, selection, and retention: The shape of the teaching force. The Elementary School Journal, 83(4), 469-487.