With the increasing ramified economic changes, each and every organization needs to establish separate human resources management department. It assists the organization in hiring, recruiting, selecting and staffing of employees in an efficient manner. The employee’s turnover and success of the organization is highly dependent upon the HRM department of the organization in the globalized world (Gomes, et al., 2015). Every organization has a human resource department as there are many people working for the achievement of the goals. These are important assets of the organization and it is really important to take care of them. In this concern, every organization has a human resource department that takes care of the benefits and regulations about the employees. To manage the human resource of the organization is known as Human resource management. The reason behind designing this system is to improve the performance of the employees to achieve the strategic objectives of the organization. International human resource management is the same thing in which some functions have been considered like recruitment, selection, training, and development, dismissal and performance appraisal. These are the main important things that need to be taken care by human resource management of each organization. IHRM refers to the management of human resources belongs to MNC. In such circumstances, three categories of employees need to be managed. There are a big number of activities that need to be managed on the international level. Human resource department of an MNC needs to understand the laws, rules, and regulations of each country due to the different applicability of Law.
International Human Resource management refers to an effective management of human resources in order to achieve organizational goals (Abraham, 2014). It is the set of activities and process which assists in achieving the set objectives and goals in determined approach. There are some main functions that need to be handled by human resource departments like recruitment, selection, and training. As per the views of Training & development, (2006) it is revealed that These are the basic things for each and every organization. When an employee joins a new organization then it is the responsibility of human resource management to make him comfortable by introducing the organization, its people, and environment. International human resource management is concerned with the international standards. As per the views of the Rossouw, D. and Van Vuuren, L. (2017), it is divulged that international HRM practice should be based on the proper employee’s development factors and organizational development. International HRM program assists organization to motivate employees towards the better productivity. The organization should focus on the development of employees through the international work programs which focus on the employees’ growth with the development of the business. The given set of international HRM refers to the set of objectives created in order to manage the human resource of the organization on an international level. It helps the organization to get a competitive advantage at international as well as national level. The same set of activities like recruitment, selection, training needs to be done on the international level and there are some other things too like global skills management and expatriate management. As stated by the Stahl, Mendenhall, and Oddou, (2012) it is revealed that three types of employees need to be handled by international human resource management are-
As per the views of Bonhoeffer, (2015) it is observed that for the better understanding of International Human Resource management, below are some features-
As stated by the Dickmann, Brewster, and Sparrow, 2016) it is divulged that international HRM is not a simple thing as it has many complexities. There are some boundaries that are really difficult to cope up with. Therefore, with the expansion of business on the international level, there are several issues and complexity arises in managing the employees in the business. Some of the major issues and challenges faced by International Human Resource management are-
As a result of increasing complexity of the business, there are several challenges developed which are given as below.
Conflict in domestic and international HRM policies- Organizations working on the international level need to analyse all the internal and external factors of the international market before setting organizational policies. It may be complex for the organization to establish harmonization in the domestic and international HRM policies.
Approaches to management of staffs- Management needs to adopt the decentralized management decision making to manage the employees in an efficient manner. However, proper management meeting will be conducted through the communication online portal to manage meeting program.
Culture differences- International HRM program can only persist if the company is MNC. Culture diversity is the foremost challenges which each and every international company faces in its value chain activities. The culture diversity arises due to the different values, belief, and perception of the employees in the organization.
There are some theories that help in the management of international workforce-
Leading the Talk- It is important for the HR manager to advocate a large workforce at the organizational level otherwise it can create demotivation for the employees and they will start thinking that they need to switch early. It is important to show respect for each diversity as it can help to motivate the employees. He should be responsible enough to behave equally with every employee and complete the ethical responsibilities (MACHADO, 2016). The motivation of employees could be done by using the proper reward program and incentives scheme. It will assist HRM of the organization to promote healthy and motivational work program for employees
Control- There should be the proper assessment of the performance of the employees and on regular things like the work environment, pays, benefits, management behavior, and promotion opportunities. It is also necessary to measure the initiatives for diversity management. These issues need to be taken care as it is important to manage people belong to different diversities (Maddux, 2006). This theory assists HRM management to control the labor turnover. It includes proper motivation, staffing and employees development program to mitigate the process employee’s issues in an effective manner.
Motivational approach- Motivation is really important for an organization as it helps to maintain the performance of the employees and they never feel disappointed. Motivational practices are really necessary as today many employees are facing from work-life balance issues so human resource department should take some initiatives to motivate the employees and create a sense of responsibility in them. It actually creates an influence to achieve organizational goals. Motivational needs vary from employee to employee due to diversity so firstly it needs to be identified and then take an approach to apply all the possible motivational tools. It enhances the productivity of the company. There are some basic things that motivate the employees like a good leave policy, proper work environment, flexibilities and benefits. (Rossouw and Van Vuuren, 2017) There should be incentives or rewards for the employees who worked really hard and there should be time to time performance appraisals. It is considered as the strongest motivational approach. This increases job satisfaction as well as the motivation of the employees. They feel comfortable and start putting their best efforts to compete with other employees. (Harzing and Pinnington, 2015)
Profit Sharing- As stated by Gomes, et al. (2015). It is depicted that it basically refers to provide timely incentives to the employees or the incentive programs started by the companies. It is known that every organization has to put some efforts to improve the performance of the employees so to increase their regular compensation is one of them. Organizations started to provide annual or semiannual appraisals and increments in the compensation of the employees as they know that it will result in increased economic gains for the business. Some organization also gives the equity shares of the organization to the employees as gift or bonus to motivate them. It is also known as gain- sharing formula that helps organizations to make their employees work more effectively. (Davidson, 2012) This is the foremost employee’s development program. The company needs to set up nexus between employees development with the organization growth. It could be done by using the dip program, issue of employee’s stock options and other benefits programs.
Employee’s oriented culture- As per the views of Farndale, et al. (2017) it is reflected that after analyzing the international business program; it is observed that every employee in the organization has different work culture and perception. It is observed that company needs to focus on the development of the employee’s oriented culture. It will assist the organization to set up new plan and program to assist the organizational development program. It will not only increase the overall output of the business but also help HRM department to establish an effective motivational program for its employees.
Development of standards HRM policies- As stated by Dickmann, Brewster, and Sparrow, (2016), it is revealed that company needs to manage proper HRM policies and program for employees. It will work as role path for their work and motivation programs. Each and every international company needs to focus on management of employees development program and motivating employees towards standards HRM policies and work program for their better work management program. Nonetheless, the HRM policies and program should be arranged in such a way which motivates employees to perform efficiently in the work process system.
As per the views of Harzing, and Pinnington, (2015) it is reflected that international HRM practices should not only focus on recruiting, selecting and motivating employees but also align employee’s interest with the growth of the organization. There are several factors such as political, social, legal and economical which may affect the international policies program. It is evaluated that HRM practices of the organization should endeavor towards complying with the all the applicable rules of employment program of the host country. It will assist the organization to mitigate the possible recruiting, selecting and motivating employee’s issues in determined approach.
Conclusion
With the expansion of organizations globally, there is an increase in the transmission of human resources from one place to another. They use to work in other countries. Global organizations are making higher profits but at the same time, they are facing some issues and challenges in managing human resources belong to different culture and geography. It has become a major task to manage international human resources as there are contain perspectives that vary from country to country (Milkovich, 2014). There are many issues that companies are facing. It is not an easy task to manage various employees belong to different geographies at the same time. They need to be managed in a proper way too because they are responsible for the growth and the success of the organization. The key issues are like managing training and development, compensation and benefits, law compliances and cultural diversities. There are ways to manage it but for the same, there should be proper knowledge to the owner and human resource management department of the organization. Like applicability of correct law is not an easy task and it needs the wide knowledge of laws and regulation so human resource manager should possess the knowledge. When an organization gets success in managing International human resources then it can easily achieve their goals and objectives.
References
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