hiring individuals having required skills for doing a particular task is not different. The challenge faced is mainly the development of tools promoting corporate culture which is mostly same everywhere except for the local sensitivities which are of due concern.
The decision management at top management or key positions level gets very difficult as there is a conflict of views in choosing between a local from the host country and one from the headquarters for a key position assuming needs of sincerity; and finally giving decision in support of whether to observe a uniform hiring policy at all levels poses to be a tough challenge.
The decision of hiring by an organization may be in accordance with any of the staffing policies listed below:
Ethnocentric: The important management positions are held managed by the parent country individuals.
Polycentric: This staffing policy basically have the host country nationals managing subsidiaries whereas the parent company nationals mainly held the headquarter positions.
Geocentric: This staffing policy concentrates on the most competent and the best individuals and has them holding the important positions regardless of the nationalities.
Real Life Case of International Resource Management
In the International HRM Case Study by Fiona L. Robson has mentioned about Brunt Hotels, PLC Group of Hotels. The organization had owned hotels only in UK before and not outside it and so it hired a team of management consultants who worked independently in order to guide them with the proceedings for the objective of setting up new hotels in France. The consultants were provided the following information by the company to carry on with a purpose to solve the issue:
Majority of their existing managers wanted to have a chance to work abroad.
However they didn't have any manager who was able to speak French fluently.
The time given for rebranding the hotel was four weeks. The new hotels must be completely ready to be opened after that time.
The organization had the expectations for recruitment of a large number new staff for the new French hotels, as they more than 70 percent of their employee strength reduced.
Also they had to have flexible managers to be able to move between countries in cases of any conflict resolving.
Need of International Human Resource Management
The employees in multinational organizations may be home country nationals, impetrates third country nationals, host country nationals or expatriates. The question arises here is whether a Host country national or expatriate will be good for the organization. The answer can be judged based on these basic questions, Do they have the expertise for the position? Are they willing to work on any project for the organization?
The understanding of different cultures is an important and critical aspect for the achievement of successful acquisitions and mergers in international business. A mixed company will be lacking the growth or advancement it expects by streamlining existing operations if it lacks proper knowledge of the cultures involved of the diverse nature, however it will experience uneconomical disarray and unfeasible, harmful conflict. And on the far side international mergers and acquisitions have potential negative outcomes which may give r
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