International Human Resource Management

Dr Katalin Illes

Overview
Competencies of the HR manager The matrixed role of the of the HR manager The place and role of the HR function in organisations Shifting paradigms Future direction

Key aspects of IHRM

Global workforce International context National context Strategic issues Operational issues IHRM career Competencies The future

 Business competencies

Competencies of the Human Resource Manager

Industry knowledge Competitor understanding Financial understanding Global perspective/knowledge Strategic analysis Partner orientation Multiple stakeholder sensitivity

Competencies of the Human Resource Manager

Leadership competencies
Strategic visioning Managing cultural diversity Creator of learning culture Planning and decision making skills Value shaper

Competencies of the Human Resource Manager

Change and knowledge-management competencies
Network building Designing and working in flexible structures HR alignment Managing and learning knowledge transfer Consulting/influencing Group/process facilitation Organisation development/effectiveness Managing large scale change

Competencies of the Human Resource Manager

Professional/technical competencies
Staffing Performance management Education/development Remuneration/reward systems Employee relations Employee communications Succession planning Union relations Safety/health/wellness Diversity management

Evans (2002) The Matrixed Split Egg Role of the Manager

Some of the Dualities Confronting Organizations

CEO EXPECTATIONS FROM HR

Involvement in managing overall business. To look at business priorities before functional priorities. HR is in the same boat with other Management Team members. HR targets inseparable from business targets.

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How HR Links to Overall Strategy?

Assessing Organisations Executing Strategy Managing Change Attracting & Selecting Talent Developing Careers & Managing Performance Retaining Talent & Managing Succession

Assessing Leaders Coaching Leaders Developing Leaders & Teams

qSource:Right

Management

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Consultants

Whats the reality?

qBehind

the scene...

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HR Reality
HR has had Bad Press: Line Management not involved/interested. HR People too detached from business. One size fits all approach. Perception of limited added value. No clear link between HR efforts and shareholder value. HR is like a WOLF.. everybody hears about it but nobody sees it!
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HR work today

Communicating effectively.

Collating HR reports for Management Information. Managing admin issues. Keeping the company out of court. Executing change programs. BUT HR IS STILL TRANSACTIONAL
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What are the key HR Challenges?

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It is a balancing act
q

HR gets pulled in both Directions

The resources & directions of the company

The needs & expectations of employees

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HR Role in Change programs

Change demands common vision, understanding and behaviour to keep focus during the transition and beyond. HR must provide clear, consistent leadership. HR must show a consistent face to the internal customers. HR must find a balance between stability and uncertainty.

Talent Development
Develop your Star of Tomorrow. Define your Star of Today.
q

SYMBOLS

qThe

gap is your development needs. the Star shine.

qMake

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Work / Life balance Work/Life Balance

The most cherished values:

Happiness Inner Peace Fulfillment Feel Good

are these values never mentioned in any mission statement?

qWhy

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The New Roles Of Human Resource Management

Strategic

Strategic Business Partner

translates business strategy into action, assesses and aligns systematically HR practices with the business strategy.

Change Agent
listens to employees and finds the right balance between demands on employees and resources available to employees, and promotes employee contributions.

Process

People

Administrative Expert

qHR rotation

Performance Coach
understands the theory and applies the tools of change, leads transformation by doing it first within the HR function, serves as catalysts and facilitators of change.

improves processes, applies the principles of BPR to HR processes, rethinks value creation, and measures HR results in terms of efficiency and effectiveness.

Operational
Based on D. Ulrich, Human Resource Champions, Boston 1997

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Can HR get un-stuck?

qYes!

Only if...

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Shifting Paradigms
Whats Out:
Last Port of call. Job Analysis. Personnel Management. Rulemaker. Functional Orientation. One Size Fits All. Centralised Decisions. Mutual Distrust. Focus on Tasks. Following. Transactional HR.

Whats In:

First Port of Call. Competency Assessment. HR Management. Consultant. Business Orientation. Tailored Programs. Framework for Others to Decide. Partnering. Focus on Impact. Leading. Transformational HR.

Can HR survive?

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HR Etiquette for future survival

Break and let go of bureaucratic patterns; move away from administrative, transactional, and policy elements of HR work. Focus on achieving organisational outcomes. Facilitate organisational change. Create efficient HRM and HRD processes. Promote people as a valued resource. Grasp the bigger picture: Be visionary. Plan effectively, reach decisions and set goals. Alignment of HR Programs and Practices with Strategic Directions.

IHRM approaches
Ethnocentric: key positions filled by nationals of parent company Polycentric: host country nationals recruited to manage subsidiary in their own country Geocentric: best people recruited, whatever their nationality Regiocentric: best people recruited within region in which the subsidiary operates (e.g. EU, USA)

Decentralised IHRM
Advantages Groups within the subsidiary can gain in status Groups within the subsidiary become more cohesive, fostering group identity IHRM takes place within a culture appropriate to the local workforce and customers Disadvantages Tendency to become exclusive Loss of central control, higher administrative costs as HRM function is sent down the line Loss of organisational control and organisational identity

Cross-cultural awareness
Supports for employees moving to overseas subsidiaries 1. Environmental briefings 2. Cultural orientation 3. Cultural assimilation 4. Language training 5. Sensitivity training 6. Field experience

Appraisal
Identifies individuals strengths and weaknesses Reveals organisational obstacles blocking progress Provides feedback to improve human resource planning Improves communication

Food for thought

Whose responsibility is the HR function? Organisational culture, change, trust, respect, knowledge sharing , knowledge creation Organisational and Personal Development Work life balance

Recommended reading
Key text : Wall and Rees (2004) International Business, Pearson, chapter 9 Further reading : Evans, et al (2002) The Global Challenge, Frameworks for International Human Resource Management, McGraw-Hill