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MSC INTERNATIONAL BUSINESS
INTERNATIONAL LEADERSHIP AND
HRMSESSION 1
The Nature of International HRM
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Welcoe to Se!!ion On
Aims and Learning Outcomes: Outline the diferences betweenpersonnel management and humanresource management,
Domestic and international HRM a Discuss the variables that moderatthese diferences.
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Denitions
Human Resource Management !HRM" is a di#cult tas$ as t
man% competing denitions.
&his arises because o' the debate centred over whether HR
diferent 'rom, or an advance upon, the more traditional te
Per!onnel Mana"eent#
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Per!onnel Mana"een
()ersonnel Management( has been den
responsibility for all those who manage pwell as being a description of those employed as specialists; that is, It is tha
management which is concerned with pwork and with their relationship wenterprise.
+ nstitute o' )ersonnel and Development
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Per!onnel Mana"een
-owada%s, personnel managers ocposts at the most senior level and messential contribution to polic% 'orm
&heir advice must, however, be bas
$no%le&"eand e'(erienceand mseen as valuable, and pre'erabl% asessential i' it is to be listened to.
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Per!onnel Mana"er!
&he% are involved in three main areas o' wor$:
1# E(lo)ee Re!ourcin"
Recruitment election
Remuneration
/ob 0valuation
Human Resource !manpower" planning and 'orecasting terms and conditio
Managing staf turnover and retention
Record+$eeping
Health and a'et%
1el'are
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Per!onnel Mana"er!
*# E(lo)ee Relation! 2 &his covers+
ndustrial Relations
ndividual and collective relationships at wor$
3ollective 4argaining
-egotiation
3onsultation
n'ormation
3ommunication
)articipation
Redundanc%
Dismissal
5rievance Handling
06ual Opportunities
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Per!onnel Mana"er!
,# E(lo)ee De-elo(ent
. nduction
&raining needs anal%sis
Design o' training programmes
Direct &raining
0valuation o' training
Managing training consultants
0ducation+4usiness lin$s
Management development
3areer development and succession planning
Appraisal o' per'ormance and potential
3ounselling and 3oaching
THIS IS B/ NO MEANS AN E0HAUSTIE LIST2 BUT IT CERTAINL/ COMPRISES A ER/ W
ACTIITIES WHICH ARE WITHIN THE PURIEW O4 MAN/ PERSONNEL DEPARTMENTS#
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Ori"in! an& De-elo(ent of Per!onnel Mana
/ear E-ent
151, 1el'are 1or$ers Association 'ounded
1516 -ame changed to 3entral Association o' 1el'are 1or$ers
1515 -ame changed to 3entral Association o' 1el'are 1or$ers !industrial"
1515 -ame changed to 1el'are 1or$ers nstitute
15*7 -ame changed to nstitute o' ndustrial 1el'are 1or$ers ncorporated
15,1 -ame changed to nstitute o' Labour Management
15,7 taf Management Association 'ormed as an a#liated group
1578 -ame changed to nstitute o' )ersonnel Management
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Ori"in! an& De-elo(enPer!onnel Mana"een
&here have been various attempts to describe these develthese, 3uming !789" describes 'our main stages:
1el'are )eriod
cientic Management
ndustrial Relations
Manpower )lanning
4rie;%, the origins o' personnel management lie in the 78th cre'orm movement 'or the improvement o' wor$ing and living and the religious movements concerned with the wel'are o' inwor$ers
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4ro Per!onnel to Huan Re!ource Mana"ee
&he availabilit% o' computers to assist planning, and the concern 'or core wor$'orce, pushed personnel in the direction o' s%stematic and strategic mo' the human resource + Huan Re!ource Mana"eent#
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Di:erence!+ Per!onnel an& Huan Re!ource Mana"
&he degree o' identication with management interests
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There are a nu;er of (o!!i;le cau!e!%hich can ;e u!e& to e'(lain the!e
&i:erence!#
An increasing identication with management interests, rather than emplocan be traced to two 'actors:
&he changing role o' line managers.
&he concern o' personnel specialists to establish their own power base wiorganisations + Role A;i"uit)< Lo% Statu! an& Lac$ of Po%er an& Aetc#
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The Mo-e To%ar&! a More Strate"ic A
&here has been an increasing emphasis on planning, monitoring, and contthan re+ghting and problem solving
&he availabilit% o' computer applications in the area o' computerised persin'ormation s%stems !3)" can ta$e personnel administration be%ond me$eeping.
An increasing 'ocus on (human resources( rather than (emplo%ees( is againto the process o' ac6uisition, merger, and corporate restructuring over the
%ears. &he 3hanging 0mplo%ment Relationship
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I! HRM reall) &i:erent fro Per!oMana"eent9
... HRM is a strategic approach to the ac6uisition, motivation,and management o' the organisation(s human resou
=Ar!tron"2 Per!onnel Mana"eent2 4e;ruar)
&here is no complete consensus, and indeed 6uite a considerto the precise content o' HRM, and even as to whether it is
distinct in practice 'rom sophisticated personnel manag
I! HRM reall) &i:erent fro Per!onnel Mana"
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I! HRM reall) &i:erent fro Per!onnel Mana"
@Ol& %ine in ne% ;ottle!@+ Here HRM is >ust seen as relabelling o' personnel management >obs withcorresponding change in roles.
HRM i! a reection of the chan"in" en-ironent of ;u!ine!!+ 1ith the increased competitiveness o' the 78?@s, and the appearance o'management(, (the new realism(, and the (new right(, HRM is an attempt tshi't awa% 'rom the pluralistic perspective o' personnel management to th'ramewor$ that assumes that the interests o' the business and its emplo%necessaril% be congruent !eeno%, )ersonnel Review, Bol. 78
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HRM i! not nece!!aril) i&eal for all or"ani!ation!
everal observers claim that there is ample evidence that diferent busineenvironments and 'unctions need diferent organisational structures and c!owler, )ersonnel Management, /anuar% 78?9"
HRM ta$e! a !tereot)(e& -ie% of the (rece&in" (er!onnel (ractic
)eople management has alwa%s been a responsibilit% o' line managers ane=clusive preserve o' the personnel pro'ession.
The central concern! of HRM are not ne%
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Denin" International HRM
HRM re'ers to the activities which an organisation must utilise to manage resource efectivel%.
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The "ure @A o&el of IHRM@ (re!ent! three $e) IHRM &ien!ion!+
HR activit% including procurement, allocation and utilisation.
&he national or countr% categories involved in HRM activities.
&he three categories o' emplo%ee o' an international rm.
HR Acti-itie! inclu&e+
Human resource planning
ta#ng
Recruitment
election )lacement
&raining and development
3ompensation !remuneration" and benets
ndustrial relations
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The Ne% Huan Re!ourceMana"er
The) 4ocu! More on Strate"ic2 Bi".Picture I!!ue!
&he% ocus on mproving )er'ormance
The) Mea!ure HR Perforance an& Re!ult!
U!e E-i&ence.Ba!e& Huan Re!ource Mana"eent
The) A&& alue
The) U!e Ne% Wa)! to Pro-i&e HR Ser-ice! The) Ta$e a Talent Mana"eent A((roach to Mana"
Re!ource!
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Di:erence! ;et%een Doan& International HRM
Domestic and International HRM differs beca
Are more HR activities.
s the need 'or a broader perspe
s more involvement in emplo
lives.
Are changes in emphasis as the
o' e=patriates and locals varies.
s ris$ e=posure.
Are broader e=ternal in;uences
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&his gure highlights 'our $e% elements that crediferences between domestic and international
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3hanges in the operating environment challenge and dstrategic responses 'rom management. &hese responseo'ten dramatic changes to the global wor$ environmenprocess is displa%ed in the gure below.
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