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INTERNATIONALHUMAN RESOURSE
STRATEGY
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INTRODUCTION
Strategic Management refers tothe process of Formulating,
implementation andevaluating business strategies to achieve
organizational objectives. At the core strategic managementprocess is a team comprising theCEO aided by top executives
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INTERNATIONAL HRSTRATEGY
International Human Resource Strategy refers to the
process of developing practices, programmes and policies that helpachieve organizational objectives
What is essential is that theseprogrammes, policies and practicesneed to be aligned with
organizational strategies.
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4/9/12 MBAO 6030 Human
Human ResourceManagement Strategy
The Meaning of Strategy
A critical factor that affects FirmPerformance
A factor that contributes toCompetitive Advantage in markets
Having a long-term focus
Plans that involve the top executivesand/or board of directors of the firm
A general framework that provides aperspective for selecting specific
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HR Strategy: HR SystemInternal Fit
Performance Management System
HRStrategy
Goal Setting
Performance
Measurement
Coaching
Rewards
Appeal
Performance Evaluation
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HR Strategy: Context of HRSystem
1.The Five Factors Influencing theHR System
External Environment
Social: social values, roles, trends, etc.
Political: political forces, changes. Ex.Bush presidency and its agenda forSocial Security.
Legal: laws, court decisions, regulatoryrules.
Economic: product, labor, capital,
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TRENDS
Integration of the worlds economies andbusiness globalization continues unabated
International trade is growing more rapidly
than world output Foreign direct investment (FDI) flows are
increasing
The number of cross-border, inter-firmagreements has risen dramatically
Social, economic, and political
developments throughout the world
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contd.
The external environment greatly influences HRMactivities
Each country has its own:
Laws
Business customs
Workforce characteristics
Political climate
The most difficult challenge to overcome is the people
challenge
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Issues in IHRM
Managing international assignments Employee and family adjustment
Selecting the right person for a foreign assignment
Culture, communication and gauge
Language and communication
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Barriers to effective global HRM
Variations
Perception of HR
Attitude and actions of headquarterstowards HR
Resistance to change
Cultural differences in learning andteaching styles
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Main challenges in IHRM
High failure rates of expatriation andrepatriation
Deployment getting the right mix of skills inthe organization regardless of geographicallocation
Knowledge and innovation dissemination managing critical knowledge and speed of
information flow
Talent identification and development identify capable people who are able to
function effectively
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The Cultural Nature of Global HRM
Cultural differences between nations caninfluence the effectiveness of HRM policiesand practices
HRM must be congruent with the culturalorientation of the workers
Hefstede says cultures vary in five dimensions:
Individualism versus collectivism
Power distance
Avoidance of uncertainty
Masculinity
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