Abstract: This essay discusses about how it is impossible to compare South-East Asian Human Resource practices with those employed in Australian companies due to substantial differences in political, legal and social environments. In the political aspect, governments from south-east Asian companies and Australian companies are compared based on their compliance with the labor rights and standards. While in the legal aspect, the Australian flexibility on labor law and the Philippine labor code which states otherwise is discussed and how Australian and Philippine HRM practices are affected. Lastly how culture, norms, attitude, and the social environment of Australians and Filipinos become factors in HRM trying to lay out rules regarding …show more content…
While in south-east Asian companies, HR managers are not faced with the same scenario. In the Philippines for instance, “Only Filipino citizens or corporations, partnerships or entities at least seventy-five percent (75%) of the authorized and voting capital stock of which is owned and controlled by Filipino citizens shall be permitted to participate in the recruitment and placement of workers, locally or overseas.” (Labor code of the Philippines, art. 27), therefore in a Philippine company mostly Filipino employees are working there. An HR manager practices decisions and makes plans based on the culture of the Filipino people. The social environment affects Human resource management practices by putting into account what the set of standard norms are accepted in the society. One example of this is the development of human resources as influenced by the company’s demographic location. As stated in the journal made by Kim, 2012 “Societal development can be defined and applied in various situations. Compared to social, societal is often used by social scientists when they are referring to the influence of societies, or things arising from the conditions set by society.” Although there is no definite or universal way as to how human resources should develop, it is often how each and every employee perceives what the norms are in their society do they act upon the boundaries of right and wrong. Human
This report examines cultural and institutional factors of Mexico and how they can impact global HR management and practices. Specifically, by analyzing Mexican culture based on Hofstede’s dimensions, economy, labor legislation, union and employment tradition we reached the conclusion that the features of Mexican culture (high power distance, strong collectivism, high level of masculinity and uncertainty avoidance) and institutional factors have a strong impact on management styles and HR practices of business in Mexico and may arouse some challenges for global company and their expatriates, especially those from countries that bear different cultural features and institutional conditions. In order to minimize the potential conflict between Mexican local employees and expatriates, parent companies need to provide trainings (culture assimilation, country condition, etc.) before sending anybody to Mexico. Also, whether the expatriates should put more effort to disseminate home country (headquarter) culture or to adjust to local culture depends on the company’s strategy in terms of being localized or standardized around the globe.
It is hypothesized that cultural differences in behaviour will mean differences in HRM practices within different cultures but those within the same cultural cluster will be similar whereas those in different clusters will be dissimilar. Employees and managers from different cultures take decisions in different ways – the processes, behaviours and values are not the same. People have different value orientations as a result of individual psychology, life-stage and generation and assumptions about behaviour determined by cultures are linked to a variety of organisational behaviours.
They need to build integration among HR practices and strategies of its auxiliary firms in distinctive region with a specific end goal to accomplish general organizational targets. Then again, these associations additionally guarantee a critical level of adaptability in their IHRM procedure on the grounds that representatives from distinctive nations are sponsored by diverse cultures and social qualities. Adaptability impacts the workers' execution. Due to the strengths of globalization and the associations' interest to create and implement a worldwide methodology, International Human Resource Management (IHRM) is turning into an essential to accomplishment of the organizational. The essential distinction between domestic and global human resource administration is the knowledge and obligations
While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the
This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.
Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,
This assignment is a portfolio, based on three current topics in Human Resource Management. The common theme of all the media articles I reviewed is the recognition of people as an asset by the organisations to achieve their strategic goals and objectives. It is observed that organisations are directing their efforts to recruit, retain and develop this asset.
Abstract: Human Resource Management is fast gaining popularity and its importance is becoming unavoidable, this is due to the fact that Human Resource Management plays a huge role in the growth of any company irrespective of its size. Unfortunately it is yet to achieve global standards or strategy of operation; this can be attributed to the various differences between environmental factors, employment attitudes, cultural
Borders are no longer restrictive and companies are not constrained by the physical boundaries of the countries where they are located. Many companies would stretch across borders and choose to build innovative and competitive global workforces. With the increase of global and interconnected work environment, the connectivity among workers across the world will increase. This will increase the personal, organizational and economic links among workers globally. As business will lose a “typical” worker identity, the new persona of the global workforce will offer new challenges for HR managers to understand the underlying drivers and to adapt to the needs of diverse workforce in terms of age, gender, religion and ethnicity. The ability of HR managers in managing the new demographic profile of that workforce will impact the business a
A rapidly changing business environment due to technological changes and the impacts of globalization has resulted in shift of human resources paradigms (Khan, 1997). In every organization
With regard to executive nationality staffing policies, “There are major four categories on the HRM within Multinational corporations : the ethnocentric approach, the
Globalisation, as an integrated and independent world economy, has contributed to the rapid expansion of international trade and world’s economic growth (Paik & Vance, 2006; Mutsuddi, 2012). The increase presence of global firms is shifting domestic HR towards global HR in addition to carry out a wider span of HR responsibilities (Losey, Meisinger & Ulrich, 2005; Rao, 2010; Jie, 2011; Mutsuddi, 2012). The generation of cross-border labour market also had brought human resource management into an international context (Mutsuddi, 2012).
When conducting business in a foreign country, a company needs to consider several different business factors and challenges that might arise. As a company embarks on its venture in Indonesia, Human Resources department needs to be aware of the differences and key challenges that might arise. They need to be aware of key business challenges, key human resources challenges, and how to adapt some of the human resources policies and practices to culture/environment of Indonesia.
Globalization refers to the interconnection among countries, politically, economically and culturally. Globalization has come into existence due to the following factors: (i) betterment in transportation and communication, (ii) human and capital mobility, (iii) increasing formation and existence of NGOs and multinational corporations.
Employees are indispensible to an organization. Personnel management, now known as human resource management (HRM), ensures that an organization produces maximum output with the greatest efficiency. The role of HRM covers selecting and hiring the right employee, training and retaining talent, wage dispensation to maintaining employee relations (Nankervis et al, 2011). In this essay, we will be looking into a case study of HRM in Brunei and will cover three topics. Firstly we explore how culture affects the way a country runs its economy, its legal and political system, and how they adapt to technology. Next, we discuss how HRM allows individual employees to acclimatize themselves to technical differences in an organization.