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International Human Resource
Management
Dr Katalin Illes
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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
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Key aspects of IHRM
Global workforce
International context
National context
Strategic issues
Operational issues
IHRM career
Competencies
The future
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Competencies of the Human
Resource Manager Business competencies Industry knowledge
Competitor understanding
Financial understanding
Global perspective/knowledge
Strategic analysis
Partner orientation
Multiple stakeholder sensitivity
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Competencies of the Human
Resource Manager
Leadership competencies
Strategic visioning
Managing cultural diversity
Creator of learning culture
Planning and decision making skills
Value shaper
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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
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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
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Evans (2002) The Matrixed Split Egg Role
of the Manager
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Some of the Dualities Confronting
Organizations
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CEO EXPECTATIONS FROM HR
Involvement in managing overall business.
To look at business priorities before functionalpriorities.
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
Assessing Leaders
Coaching Leaders
Developing Leaders &
Teams
Attracting &
Selecting Talent
Developing Careers &
Managing
Performance
Retaining Talent &
Managing Succession
qSource:Right ManagementConsultants
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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 shareholdervalue.
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
The needs &
expectationsof employees
The
resources &
directions of
the company
q HR gets pulled in both Directions
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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.
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Talent Development
Define your
Star of Today.
Develop
yourStar of
Tomorrow. q SYMBOLS
q
The gap is your development needs.qMake the Star shine.
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Work/Life Balance
The most cherished values:
HappinessInner PeaceFulfillmentFeel Good
qWhy are these
values never
mentioned in any
mission statement?
Work / Life balance
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The New Roles Of Human Resource
Management
Operational
Strategic
Strategic Business Partnertranslates business strategy into action,
assesses and aligns systematically HR
practices with the business strategy.
Change Agentlistens to employees and finds the right
balance between demands on employees
and resources available to employees, and
promotes employee contributions.
Administrative Expertimproves processes, applies the principles
of BPR to HR processes, rethinks value
creation, and measures HR results in
terms of efficiency and effectiveness.
Performance Coachunderstands the theory and applies the
tools of change, leads transformation by
doing it first within the HR function,
serves as catalysts and facilitators ofchange.
Process
Peo
ple
Based on D. Ulrich, Human Resource Champions,Boston 1997
qHR
rotation
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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 onImpact. Leading.
Transformational HR.
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Can HR survive?
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HR Etiquette for future survival
Break and let go of bureaucratic patterns; move awayfrom administrative, transactional, and policy elements ofHR 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 decisionsand set goals. Alignment of HR Programs and Practices with Strategic
Directions.
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IHRM approaches
Ethnocentric: key positions filled bynationals of parent company
Polycentric: host country nationals
recruited to manage subsidiary in theirown country
Geocentric: best people recruited,
whatever their nationality Regiocentric: best people recruited within
region in which the subsidiary operates(e.g. EU, USA)
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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
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Cross-cultural awareness
Supports for employees moving to overseas
subsidiaries
1. Environmental briefings2. Cultural orientation
3. Cultural assimilation
4. Language training5. Sensitivity training
6. Field experience
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Appraisal
Identifies individuals strengths and
weaknesses
Reveals organisational obstacles blocking
progress
Provides feedback to improve human
resource planning
Improves communication
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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
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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