Making an effective selection decision for an overseas assignment can prove to be a major problem. Typically, this decision is based on international selection criteria, which are factors used to choose international managers. These selections are influenced by the Multinational Corporations experience and often are culturally based. Sometimes as many as a dozen criteria are used, although most Multinational Corporations give serious consideration to only five or six. 1. Adaptability to Cultural Change Overseas managers must be able to adapt to change. They also need a degree of cultural toughness. Research shows that many managers are exhilarated at the beginning of their overseas assignment. After a few months, however, a form of culture shock creeps in, and they begin to encounter frustration and feel confused in their new environment. One analysis noted that many of the most effective international managers suffer this cultural shock. Organizations examine a number of characteristics Continue reading
HRM Functions
Recruitment – Definition, Process, Need and Purpose
People are integral part of any organization today. No organization can run without its human resources. In today’s highly complex and competitive situation, choice of right person at the right place has far reaching implications for an organization’s functioning. Employee well selected and well placed would not only contribute to the efficient running of the organization but offer significant potential for future replacement. Recruitment comes at this point of time in the picture. Recruitment is a strategic function for HR department. Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. Recruitment is understood as the process of searching for and obtaining applicants for the jobs, from among whom the right people can be selected. A formal definition states, “It is the process of finding and attracting capable applicants for the employment. The process begins when new recruits are sought and ends when Continue reading
The Importance of Reward Management
Reward management in a business organisation is basically the way in which that particular business forms and implements strategies and policies to reward the employees to a fair standard and in accordance with how the organisation values them. Reward management in a business organisation usually consists of the business analyzing and controlling the employee’s remuneration and all of the other benefits for the employees. The main aim of reward management in a business organisation is to reward the employees fairly for the work that they have completed. The main reason reward management exists in business organisations is to motivate the employees in that particular organisation to work hard and try their best to achieve the goals which are set out by the business. Reward management in business organisations not only consist of financial rewards such as pay but they also consist of non-financial rewards such as employee recognition, employee training/development Continue reading
Employee Assistance Program (EAP)
Employee Assistance Programmes (EAPs) are used to make professional help available to the employees. Typical Employee Assistance Programmes offer assistance to employees in such areas as alcoholism, drug abuse, emotional stress, family problems and financial indebtedness. Although research findings tend to vary, it is believed that EAPs are valuable contributors to both employees and employers. First of all, giving employee assistance is simply the right thing to do from the standpoint of humanity, and there are some cost-benefit arguments in favor of EAPS. Certainly, the resolution of personal problems tends to make the employee a more effective contributor to employer objectives. That is, money spent on abating alcoholism among the workforce is perceived to be cheaper than money spent on ineffective performance, lost time, illness and death on the part of employees suffering from the disease of alcoholism. Characteristics of an effective EAP The EAP should be staffed with competent Continue reading
Guidelines for Effective Performance Appraisals
The performance appraisal requires willingness and a commitment to focus on improving performance at the level of the individual or team every day. Like a compass, an ongoing performance appraisal system provides instantaneous, real-time information that describes the difference between one’s current and desired course. To practice sound performance appraisal system, managers must do the same thing-provide timely feedback about performance, while constantly focusing everyone’s attention on the ultimate objective of being the best among the competitors in the market. Well-written performance appraisals are among the most effective tools for developing people. The following guidelines would be used for effective performance appraisals to significantly increase your team’s effectiveness and perceived value within your organization. Increase employees comfort level with performance appraisals. At the beginning of each review period, explain the appraisal process, rating system, and appraisal form. Agree on performance objectives and measurements for the upcoming review period. Start thinking Continue reading
International Compensation Management
Designing and developing a better compensation package for HR professionals for the international assignments requires knowledge of taxation, employment laws, and foreign currency fluctuation by the HR professionals. Moreover, the socio-economic conditions of the country have to be taken into consideration while developing a compensation package. It is easy to develop the compensation package for the parent country national but difficult to manage the host and third country nationals. When a firm develops international compensation policies, it tries to fulfills some broad objectives: The compensation policy should be in line with the structure, business needs and overall strategy of the organization. The policy should aim at attracting and retaining the best talent. It should enhance employee satisfaction. It should be clear in terms of understanding of the employees and also convenient to administer. The employee also has a number of objectives that he wishes to achieve from the compensation policy Continue reading