16 and 16.1: The Strategic role of International HRM Flashcards
What is the strategic role of human resource management in international business?
The strategic role of HRM in international business is to enhance the character, development, quality, and productivity of the firm’s human resources to achieve strategic goals such as reducing costs, adding value, and serving customers more effectively.
What are the major tasks of HRM in an international business?
Major tasks of HRM include staffing policy, management training and development, performance appraisal, and compensation policy.
These tasks are complicated by differences in labor markets, culture, legal systems, and economic systems across countries.
How can compensation practices vary in international HRM?
Compensation practices may vary depending on prevailing management customs, labor laws, equal employment legislation, and the need for modification of company policies.
Why must HRM in an international firm deal with issues related to expatriate managers?
HRM must address issues related to expatriate managers such as deciding when to use expatriates, determining whom to send on expatriate postings, compensating expatriates appropriately, and debriefing and reorienting them once they return home.
What are some challenges HRM faces when managing a global workforce?
Challenges include managing diverse labor laws and practices, compensating and evaluating performance across different countries, and transferring skills and developing leaders familiar with global business nuances.
Why is a strong fit between human resource practices and strategy important?
A strong fit is required for high profitability, as it ensures that the right organizational architecture supports the firm’s strategy. HRM is instrumental in placing the right people in the right postings and training them to align with the firm’s culture and strategy.
What is the linchpin of a firm’s organizational architecture in the global marketplace?
People are the linchpin. They must possess the appropriate skills for their roles and be incentivized to take actions that are congruent with the firm’s strategy, which is facilitated through effective HRM practices.
How do compensation and performance appraisal systems play into the strategic role of HRM?
These systems must create incentives for desired behavior and measure performance in a way that encourages actions consistent with the firm’s strategic objectives, thus having a critical impact on the people, culture, incentive, and control elements of organizational architecture.
What is the strategic role of HRM professionals within an international firm?
HRM professionals have a critically important role in shaping staffing, training, compensation, and performance appraisal policies to be consistent with the firm’s organizational architecture and strategy.
How can the effectiveness of international HRM practices impact a firm?
Improving the effectiveness of international HRM practices can lead to substantial performance benefits, as these are often one of the weakest capabilities in firms, affecting productivity and competitive advantage.
