International HR management

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Different businesses are started with different objectives, but all aim at making profits. This has contributed to the controversy in which people have been arguing on what should be the corporate responsibility of business organisations. Does it have to be only based on economic gain, or should the organizations be compelled to look into ethical issues (http://www.rocw.raifoundation.org/management/bba/IHRM/lecture-notes/lecture-32.pdf.). It has become even more complex with globalisation and the World Trade Organisation which have ensured that businesses can be carried out easily in an international level. There arise many ethical concerns especially when multinational organisations carry out businesses in host countries that have different standards or conducting their operations as what they do in their mother country (Lau, 2007).

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            Ethical issues can affect the multinational companies not only in terms of employment, but in decision making and other main managerial operations. It is important to note that, while some behaviors can be seen in one place as being unethical, the same can not be of a problem in the another region. This can pose a big challenge to the International Human Resource Management (IHRM). IHRM is increasingly gaining recognition in the roles it is playing in the society. It thus calls for the IHR managers to be able to distinguish between differences in cultures and what is morally right or wrong (Chan, 2006). It is their obligation to realise what is morally right across the boundaries, from which they can know which of the norms can be actually respected. This can be achieved at looking at what consequences might be translated to the stakeholders if certain managerial decisions are taken (Vadera & Aguilera, 2007).

            Due to globalisation, it has become very difficult to come up with common cultural values, putting in mind the different religious, political and social views that exist. It is not possible for instance to expect that a company from a country that believes in hard work for success to start giving alms just because it has started operations in a nation that believes in giving alms to the poor. IHRM is very important but it is not possible to internationalise all the HR policies to suit each and every region which an organisation can take its operations to, despite the fact that an organisation that has proper IHRM will most probably have greater competitive advantage over the others (Eriksson & Kobin, 2007).

            As earlier mentioned, results that have been produced in one regional culture can due to a certain policy cannot necessarily be produced in a different culture. This can be due to various reasons. First, there exist a lot of variations in the institutions in different countries. Therefore, it cannot be easy to have standardised policies to be passed and effectively implemented. Secondly, a company will need to have its own different internationalisation policies which will affect IHRM practices even if it means disregarding the cultures of the area (Cyr, 1995).

            In some areas, the locals claim that certain positions in an organisation should be given to them. However, as an IHR manager, it is not good to bow to such pressure, but it calls for one to use the best human resource even if it implies bringing in expatriates. In international level, it is just not easy to get the right employees as the process of recruitment is usually culture sensitive (Luo, Shenkar & Nyaw, 2001). In such a case, IHR manager might be forced to use ethnocentric or geocentric approach to fill the required posts. In ethnocentric approach, the manager will use the home country expatriates, while in geocentric approach, it does not matter which is the nationality of the employer, but the HR manager is only interested with competency. It is of great importance for the IHR when filling posts in the organisation hence they have to look for specific characters from an employee and overlook some ethical issues. First, each job has required qualifications, and thus the employee characters and background should be able to match with those qualifications. It is also important that in doing so, the IHR manager must look at the objectives of the organisation and be able to match them with global strategies (Grainger, & Nankervis, 2001).

            However, since globalisation has been fully embraced in many regions, it becomes clear even if it is not necessary to adopt all the ethical issues in the host country, an organization might find itself in a fixed spot which forces it to respond to certain cultures (Madhok, 2006). This can come in handy when IHR managers trains and develops local employees who can take up responsibilities from those sent for international assignments in other areas. In essence, the expatriates need to be prepared to work in areas that can pose challenge to them in order to ensure the goals of the organisation are attained. This is especially in areas that there exists a wide disparity of culture between the host and the home country.  All these responsibilities lie with the IHRM (Grossman & Schoenfeldt, 2001).

            In conclusion, the attainment of the goals and objectives of the organisation should be the first priority to any management, whether in the international or local market. With the complexities experienced in the international markets, the IHRM should concentrate on what can make the organisation achieve these goals, more than looking at the ethical issues that might occur in the host countries due to the cultural differences that might be experienced.

Bibliography:

Chan C (2006): International Human Resource Management, retrieved on 20th September 2008 from http://teaching.fec.anu.edu.au/BUSN3025/2006/BUSN3025%20Seminar%201%20Introduction%20to%20IHRMa.ppt.

Cyr D. J (1995): The Human Resource Challenge of International Joint Ventures, retrieved on 20th September 2008 from http://www.questia.com/library/book/the-human-resource-challenge-of-international-joint-ventures-by-dianne-j-cyr.jsp

Eriksson S & Kobin U (2007): International Human Resource Training in Swedish MNCs, retrieved on 20th September 2008 from http://epubl.luth.se/1402-1552/2007/026/LTU-DUPP-07026-SE.pdf

Grainger, R. J. & Nankervis, A. R. (2001): Expatriation Practices in the Global Business Environment, Research and Practice in Human Resource Management, 9(2), 77-92.

Grossman W & Schoenfeldt L. F (2001): Resolving ethical dilemmas through international human resource management: a transaction cost economics perspective, retrieved on 20th September 2008 from http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6W4J-42VV8SX-4&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_version=1&_urlVersion=0&_userid=10&md5=a64f7defdfddd92c384f24c617f628b1

Lau P (2007):Pre-departure training for expatriates who are sent to China retrieved on 20th September 2008 from http://www.erim.eur.nl/portal/page/portal/362C1424B88AB770E0401BAC4D016C03.

Luo Y, Shenkar O & Nyaw M A (2001): Dual Parent Perspective on Control and Performance in International Joint Ventures: Lessons from a Developing Economy, Journal of International Business Studies, Vol. 32,
Madhok A (2006): Revisiting Multinational Firms’ Tolerance for Joint Ventures: A Trust-Based Approach, Journal of International Business Studies, Vol. 37.

Social and Cultural Issues of IHRM, retrieved on 20th September 2008 from http://www.rocw.raifoundation.org/management/bba/IHRM/lecture-notes/lecture-32.pdf.

Vadera A. ; Aguilera R. V (2007): The Role of International Human Resource Management in the Formulation and Implementation of Ethics Programs in Multinational Enterprises, retrieved on 20th September 2008 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=990045

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