COMPENSATION MANAGEMENT

Payroll Home Compensation Management Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees. Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness.

Components

of

Compensation

System

Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:

Types

of

Compensation

Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it contributes to high organizational productivity. Direct Indirect Need of Compensation Management Compensation Compensation Know Know More More

A good compensation package is important to motivate the employees to increase the organizational productivity.

Unless compensation is provided no one will come and work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals.

Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose.

The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards.

Strategic

Compensation

Strategic compensation is determining and providing the compensation packages to the employees that are aligned with the business goals and objectives. In todays competitive scenario organizations have to take special measures regarding compensation of the employees so that the organizations retain the valuable employees. The compensation systems have changed from traditional ones to strategic compensation systems.

Chapter 7: Performance Management

Setting and clearly communicating performance standards and expectations, observing and providing feedback, and conducting appraisals enables you to achieve the best results through managing employee performance. To begin the process, you and the employee will collaborate on the development of performance standards. You will develop a performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discuss goals and objectives throughout the year, providing a framework to ensure employees achieve results through coaching and mutual feedback. At the end of the rating period, you will appraise the employee's performance against existing standards, and establish new goals together for the next rating period. As the immediate supervisor, you play an important role; your closest interaction with the employee occurs at this level.

y y y y y

Observation and Feedback (Coaching) Other Resources Performance Appraisal Performance Standards Training Resources

Observation and Feedback (Coaching)

Once performance objectives and standards are established and clearly communicated, you should observe employees' performance and provide feedback. You have a responsibility to recognize and reinforce strong performance by an employee, and identify and encourage improvement where it is needed. You provide informal feedback almost every day. By observing and providing detailed feedback, you play a critical role in the employee's continued success and motivation to meet your performance expectations. Coaching is a method of strengthening communication between you and the employee. It helps to shape performance and increase the likelihood that the employee's results will meet your expectations. Coaching sessions provide you and the employee the opportunity to discuss progress toward meeting mutually-established standards and goals. A coaching session focuses on one or two aspects of performance, rather than the total review that takes place in a performance evaluation.

Guiding Principles Effective coaching can:

y y y y y

Strengthen communication between you and the employee Help the employee attain performance objectives Increase employee motivation and commitment Maintain and increase the employee's self-esteem Provide support

Key Elements of Coaching To make your coaching session effective, you must understand the key elements of coaching:

y y y y y y y y y

Coach when you want to focus attention on any specific aspect of the employee's performance. Observe the employee's work and solicit feedback from others. When performance is successful, take the time to understand why. Advise the employee ahead of time on issues to be discussed. Discuss alternative solutions. Agree on action to be taken. Schedule follow-up meeting(s) to measure results. Recognize successes and improvements. Document key elements of coaching session.

Questions to Consider When Coaching To provide effective feedback you must understand the elements of performance and analyze marginal performance. Keep these questions in mind:

y y y y y y y y y

How is the employee expected to perform? Does the employee understand these expectations? If not, why not? Does the employee know what successful results look like? How do you know? Does the employee know the performance is marginal? How do you know? Are there obstacles beyond the employee's control? Can you remove them? Has the employee ever performed this task satisfactorily? Is the employee willing and able to learn? Does satisfactory performance result in excessive work being assigned? Does unsatisfactory performance result in positive consequences such as an undesirable task being reassigned?

Coaching Behaviors To make the most of coaching the employee, remember to practice these coaching behaviors:

y y y y

Focus on behavior, not personality. Ask the employee for help in problem identification and resolution. Use active listening to show you understand. Set specific goals and maintain communication. Use reinforcement techniques to shape behavior.

During the Coaching Session If you conduct a coaching session to provide positive feedback to the employee, keep the following ideas in mind:

y y y

Describe the positive performance result or work habit using specific details. Solicit your employee's opinion of the same product or behavior. Ask the employee to identify elements that contributed to success (adequate time or resources, support from management or other employees, the employee's talent and interest in the project).

y y y y

Discuss ways in which you and the employee can support continued positive results. Reinforce for the employee the value of the work and how it fits in with the mission, vision, values and goals of the work unit or department. Show your appreciation of the positive results and your confidence that the employee will continue to perform satisfactorily. Document your discussion for the employee's file, as you would all coaching and counseling sessions, noting day, date, time and key elements.

When you conduct a coaching session to improve performance, you may want to use the following format:

y y y y y y y

Describe the issue or problem, referring to specific behaviors. Involve the employee in the problem-solving process. Discuss causes of the problem. Identify and write down possible solutions. Decide on specific actions to be taken by each of you. Agree on a follow-up date. Document key elements of the session.

If your coaching session is conducted to address poor work habits such as continued tardiness, keep these steps in mind:

y y y y y y

Describe in detail the poor work habit observed. Say why it concerns you. Tie it to the performance standards and goals. Ask why it occurred and listen non-judgmentally to the explanation. Describe the need for change and ask for ideas. Discuss each idea and offer your help. Agree on specific actions to be taken and set a specific follow-up date. Document results from the session.

Follow-Up Discussion To conduct a follow-up discussion, consider the following steps:

y y y y y y

Review the previous discussion(s). Discuss insufficient improvement and ask for reasons why. Indicate consequence of continued lack of improvement. (No threats! This isn't an oral warning.) Agree on action to be taken and set a follow-up date, if appropriate. Convey your confidence in the employee. Document your discussion.

Other Resources
y The Performance Management Program y Relevant personnel policies and collective bargaining agreements y UCSF Supervisory Certification Program including "Setting Performance Expectations", and "Coaching for Performance" at: http://training.ucsf.edu/.

Performance Appraisal
The campus carries out its mission through the individual and collective contributions of its employees. To do their best, staff members need to know that those contributions will be recognized and acknowledged. Overseeing performance and providing feedback is not an isolated event, but rather an ongoing process that takes place throughout the year. The performance appraisal is part of that process, and provides an excellent opportunity for you to communicate with the employee about past performance, evaluate the employee's job satisfaction, and make plans for the employee's future performance. Remember that the performance appraisal summarizes the employee's contributions over the entire appraisal period (usually one year). It is not a step in the disciplinary process. It may occur as often as you believe is necessary to acknowledge the employee for

accomplishments and to plan together for improved performance.

Guiding Principles The goal of the performance appraisal process is to help the employee feel:

y y y y y y

Positive about the job Motivated to do well and to develop Benefited by specific, constructive feedback Appreciated for specific contributions Informed about current and future performance objectives Involved as a participant in the process

Preparing for the Appraisal Both you and the employee play an important role in creating a productive performance appraisal process. Here are some suggestions to get the employee involved:

y y y

Schedule a mutually convenient time and place for the performance appraisal discussion. Allow enough time and ensure privacy. Explain that you would like the discussion to be a dialog, with input from both of you included in the final written document. Give the employee some options about how to prepare for the discussion. For example:

Ask the employee to prepare a self-evaluation using the same form you will use for your draft. The employee can address accomplishments and things that could be done better. Explain that you will be doing the same and that you may exchange these documents a few hours before your meeting

Give the employee a list of questions to consider to evaluate his own performance. Sample questions might be:

o o o o y o o o o o o y

What have been your major accomplishments? What could you have done better? What could I do as your supervisor to help you do your job better? Would you like to see your responsibilities change? If so, how?

Prepare a draft appraisal, making sure you have as much information as possible, including: job description performance standards previous appraisals letters of commendation and/or criticism samples of work records of disciplinary action

Consider the question, What can I do to help the employee do the job better and achieve developmental goals?

Conducting the Appraisal Discussion Continue the momentum you have established throughout the year with your ongoing dialog about performance. You want to set the tone for an open and productive discussion. Here are some steps you can take to make it as successful as possible:

y y

Create a supportive environment by stating clearly the purpose of the discussion. Be as non-threatening and open as possible since the employee may be tense or uncomfortable. Discuss key areas of responsibility and give examples of specific results. Have the employee go first, based on the selfappraisal or the questions you provided in advance. Ask lots of questions and get clarification to make sure you understand the employee's point of view.

y y y

Discuss what could have been done better. Identify your concerns and listen to the employee's explanations. Ask your employee for help in resolving problems. Focus on future performance and be sure the employee takes responsibility for improvement. Make sure you and the employee have an understanding the same understanding of future expectations regarding

performance.

y y y

Give positive recognition for performance that reinforces the goals of the work unit. Discuss the employee's interests and potential new responsibilities. Discuss both of your roles in achieving new objectives while maintaining ongoing responsibilities. Conclude on a positive note, emphasizing the benefits of your dialog.

The Final Appraisal Document Record the results of your discussion on the performance appraisal form. Ask the employee to sign the form, and explain that this signature acknowledges discussion of the contents, not necessarily agreement with them. Route to your manager for final signatures and placement in the employee's departmental personnel file. Give a copy of the signed appraisal to the employee.

Performance Standards
Performance expectations are the basis for appraising employee performance. Written performance standards let you compare the employee's performance with mutually understood expectations and minimize ambiguity in providing feedback. Having performance standards is not a new concept; standards exist whether or not they are discussed or put in writing. When you observe an employee's performance, you usually make a judgment about whether that performance is acceptable. How do you decide what's acceptable and what's unacceptable performance? The answer to this question is the first step in establishing written standards. Standards identify a baseline for measuring performance. From performance standards, supervisors can provide specific feedback describing the gap between expected and actual performance.

Guiding Principles Effective performance standards:

y y y y y

Serve as an objective basis for communicating about performance Enable the employee to differentiate between acceptable and unacceptable results Increase job satisfaction because employees know when tasks are performed well Inform new employees of your expectations about job performance Encourage an open and trusting relationship with employees

Key Areas of Responsibility Write performance standards for each key area of responsibility on the employee's job description. The employee should participate actively in their development. Standards are usually established when an assignment is made, and they should be reviewed if the employee's job description is updated. The discussion of standards should include the criteria for achieving satisfactory performance and the proof of performance (methods you will use to gather information about work performance).

Characteristics of Performance Standards Standards describe the conditions that must exist before the performance can be rated satisfactory. A performance standard should:

y y y y

Be realistic, in other words, attainable by any qualified, competent, and fully trained person who has the authority and resources to achieve the desired result Describe the conditions that exist when performance meets expectations Be expressed in terms of quantity, quality, time, cost, effect, manner of performance, or method of doing Be measurable, with specified method(s) of gathering performance data and measuring performance against standards

Expressing Standards The terms for expressing performance standards are outlined below:

y y y

Quantity: specifies how much work must be completed within a certain period of time, e.g., enters 30 enrollments per day. Quality: describes how well the work must be accomplished. Specifies accuracy, precision, appearance, or effectiveness, e.g., 95% of documents submitted are accepted without revision. Timeliness: answers the questions, By when? , How soon? , or Within what period? , e.g., all work orders completed within

five working days of receipt.

y y

Effective Use of Resources: used when performance can be assessed in terms of utilization of resources: money saved, waste reduced, etc., e.g., the computer handbook project will be completed with only internal resources. Effects of Effort: addresses the ultimate effect to be obtained; expands statements of effectiveness by using phrases such as: so that, in order to, or as shown by, e.g., establish inventory levels for storeroom so that supplies are maintained 100% of the time.

y y

Manner of Performance: describes conditions in which an individual's personal behavior has an effect on performance, e.g., assists other employees in the work unit in accomplishing assignments. Method of Performing Assignments: describes requirements; used when only the officially-prescribed policy, procedure, or rule for accomplishing the work is acceptable, e.g., 100A Forms are completed in accordance with established office procedures.

Performance Measurements Since one of the characteristics of a performance standard is that it can be measured, you should identify how and where evidence about the employee's performance will be gathered. Specifying the performance measurements when the responsibility is assigned will help the employee keep track of his progress, as well as helping you in the future performance discussions. There are many effective ways to monitor and verify performance, the most common of which are:

y y y y

Direct observation Specific work results (tangible evidence that can be reviewed without the employee being present) Reports and records, such as attendance, safety, inventory, financial records, etc. Commendations or constructive or critical comments received about the employee's work

ISSUE/CHALL. In global perspectives

I. Global Issues, Problems, and Challenges To identify major global issues, problems, and challenges, we examined 75 documents on global and international studies education to locate common topics. These documents spanned the last five decades and included several reports and surveys not written by citizens of this country. Unfortunately, few authors prioritized their recommendations. Thus, our compilation of global issues, problems, and challenges reflects only the frequency that a topic received mention. In some cases it was necessary to interpret the author's exact meaning or intent. Some collapsing or rearranging of topics was also necessary to hold the categories to a reasonable number. However, the ten resulting categories include virtually everything intended by those whose work provides the basis for this compilation. The ten categories form a working list meant to be scrutinized, reacted to, and refined by those responsible for improved teaching and learning about the international dimension in K-12 schools. The ten categories are: 1. conflict and its control;

2. economic systems;

3. global belief systems;

4. human rights and social justice; 5. planet management: resources, energy, and environment; 6. political systems; 7. population; 8. race and ethnicity: human commonality and diversity; 9. the technocratic revolution; 10. sustainable development. Why should students learn about global issues, problems, and challenges? All evidence indicates that global issues and problems are growing in magnitude and will neither go away nor resolve themselves. They require action. In turn, that action--if it is to be effective--requires citizens who are trained and willing to deal with difficult and complex global issues. Students should leave school reasonably informed and concerned about one or more of the major global issues, problems, or challenges facing the human race. Knowledge Objectives

No one can claim to know with certainty what students in over 15,000 diverse school districts should study, know, and understand about their world now and in coming years. Nor can any student be expected to master more than a small fraction of the information available on any of the major issues facing our world; each is vast, complex, and changing constantly. But expert opinions, as well as all projected trends, indicate that few of these issues or problems will be resolved in the short run; probably most will not even be partially resolved in the long run. Nevertheless, those responsible for determining curriculum at the district and state levels need to address the following knowledge objectives as best they can. 1. Students will know and understand that global issues and challenges exist and affect their lives. Awareness is a necessary prerequisite to understanding. If we expect today's students--tomorrow's leaders and voters--to make intelligent decisions in the marketplace and at the ballot box, they must have a degree of literacy regarding the global problems, issues, concerns, and trends that increasingly impact their lives. Global literacy does not require in-depth expertise. Rather, it entails reasonable familiarity with a number of global issues that dominate the news, coupled with a working knowledge of the basic

terminology and fundamental concepts of these issues. It means knowing enough about some global issues to intelligently analyze others. 2. Students will study at least one global issue in-depth and over time. When studying any complex issue, "a little knowledge is a dangerous thing." Students may be left with the false impression that they have somehow become experts without expending the time and labor that genuine expertise necessitates. Schools may inadvertently contribute to this condition when they insist on coverage rather than depth. To be effective, the serious study of any global issue requires time and depth. 3. Students will understand that global issues and challenges are interrelated, complex, and changing, and that most issues have a global dimension. Students should be encouraged to find the relationships between different domains of knowledge in order to gain a realistic perspective about any global issue. They should become familiar with some of the mechanisms available for managing global problems and to what degree those mechanisms have functioned successfully in the past. 4. Students will be aware that their information and knowledge on most global issues are incomplete and that they need to continue seeking information about how global and international issues are formed and influenced. Global education is a lifelong process. New global issues will emerge in the future, and new insights into current global challenges will be generated. Opinions and attitudes about international topics are influenced by different channels: parents, peer groups, the media, and private and public interest groups. Students need the skills and abilities to examine and evaluate new information, including understanding the biases of the source.

Skills Objectives

Because global issues and challenges are not static, students need to develop the following skills to help them analyze and evaluate today's global issues and to be able to analyze and evaluate new issues in the future. 1. Students will learn the techniques of studying about global issues, problems, and challenges. The study of any global problem or issue requires time and depth. Having students learn how to learn about global problems and issues may be as important as learning about any single issue. 2. Students will develop informational literacy about global issues and challenges. In our over rich data environment, our chief concern should be to help students, in Charles McClelland's words, "develop criteria for discriminating, evaluating, selecting, and responding to useful and relevant data in the communication flow of reports about conditions and developments in the international environment." In other words, we must help them to become effective at processing data. 3. Students will develop the ability to suspend judgment when confronted with new data or opinions that do not coincide with their present understandings or feelings. When information or beliefs about global issues conflict with students' present perceptions, students must be able to demonstrate thoughtfulness and patience if genuine understanding is to result. Global problems and issues are complex and constantly

changing, often reflecting strongly held divergent views. Students must learn to respect such views while maintaining their own right to respectfully disagree.

Participation Objectives "Education is only worth the difference it makes in the activities of the individual who has been educated," said George Drayton Strayer in his 1912 textbook on teaching methods. Unless the study of global issues, problems, and challenges leads to some positive action, such study is difficult to justify, given the multiple demands already facing today's schools. To be effective, action need not be limited to the physical activities students often engage in to help maintain or improve their local environment. Action also means caring enough about global problems and concerns to become and to stay informed and to act intelligently when civic action is required. Further, it means practicing active U.S. citizenship in an increasingly interdependent, conflictprone, and changing global arena. Some actions that students should be able to perform when confronting the effects of global issues and challenges are noted below. 1. Students will approach global issues, problems, and challenges neither with undue optimism nor unwarranted pessimism. The study of any global issue or challenge can become stressful, particularly for younger students. Depending on the topic, such study can leave them fearful or guilt-ridden. Neither fear nor guilt are good motivators, and neither will lead to civic action. Thus, classroom teachers must select issues that are within both the research capabilities and the maturity level of their students. Leaving students frustrated by the enormity of a global problem or feeling guilty because of their inability to "solve" it serves no purpose. 2. Students will develop a sense of efficacy and civic responsibility by identifying specific ways that they can make some contribution to the resolution of a global issue or challenge. School systems have the obligation to foster effective civic action. Despite the complexity of global issues and challenges, students can contribute toward resolving or ameliorating their effects.
UNIT-1 HRM in global org.

Role of HR in a Global Organisation

31 Jan 2009
Many organisations now operate across the globe. But what is the role of HR in a global organisation and how can it best add value to both the global corporation as well as the local businesses? The key question is - what services and support should HR provide on a global basis, and what should it provide locally? In a previous article we explored how this could be best achieved by organising HR on both a global and a local basis. The purpose of this article is to explore the difference in the roles of global and regional HR in more depth. Role of a Global HR Function The key purpose of a global HR function should be to ensure the organisation employs best practice (and best fit) HR processes, policies and standards and applies them on a consistent basis globally. This will require the function to understand the organisations strategies, as well as external trends, demographics etc that influence how the organisation should manage, develop and reward its employees.

In addition, global HR has a role in supporting the senior management of the organisation to maximise the contribution and performance of key managers globally, for example by coordinating and facilitating key HR processes with them. These global HR processes, policies and standards are likely to be around: Recruitment and selection Talent management Performance management Education and development Moving key managers internationally. Purpose of Local/Country HR Function The key purpose of the local HR Function however, should be to implement the global HR processes, policies and standards set by the global HR function (in line with local laws and culture) and to provide quality HR services and support to the management and staff in the region. A key difference between the two functions will be that local HR will be responsible for managing all aspects of employee and labour relations within each specific country. This may include managing activities such as discipline and grievance procedures, occupational health, employee assistance programs, as well as dealing with union contracts and pay negotiations. However, local HR still has a strategic role to play by working with the local management team to understand their plans and needs for the region and to ensure that the HR function meets those needs balanced with those of the organisation as a whole.

Services
y y y y y y y y y y
Management Development and Training Leadership Development and Training Executive Coaching Performance Management and Accountability Team Building and Development Organisational Development and Change Customer Service and Customer Care Assessment and Development Human Resource Management Case Studies

Human and Cultural variables in Global Organization

This episode is one of the many other similar ones which underscore the HR Challenges in preparing people for Cross Cultural working. Organizational culture is one of the latest concepts in the fields of management and Organizational Theory. Culture which is popularly called as "Shared values and Beliefs" fulfills important functions. 1. 2. 3. 4. It It It It conveys the sense of identity for organizational members. enhances social system ability. facilitates the generation of commitment to some thing larger than self. serves as a sense of making device that can guide and shape behavior.

As business become more globalize, developing and training people across cultural boundaries is becoming increasingly important. Culture of the country is an important determinant of behavior of people, and not being sensitive to these differences can often result in misunderstanding and embarrassments and even in loss of efficiencies. For instance cultures differ widely in terms of concepts of time. Besides the obvious implications for punctuality, the difference also lies in how people from different

cultures use their time. An understanding and sensitivity to such cultural differences in behavior and orientations is necessary perquisites to develop cross cultural competencies. The roots of cultural differences in the business practices lie much deeper. Business cultures in different countries are molded not just by the behavior of culture, such as social institutions, public system, public policy, legal frameworks and culture specific social values. Since these provide the cultural context, in which business is conducted, they are as much if not more important in understanding the culture differences in business practices. Factors affecting cultural variables. 1. Social Institutions:- Countries differs considerably in the kind of social institutions they have e.g., the way their education system functions, the way financial system works, the structures of governance etc. which have a direct impact on how business is conducted in that country. These social institutions are important artifacts of the culture and often embody its basic values and assumptions. Example- Education System in Germany has a heavy emphasis on technical and apprenticeship training, which can be historically traced back to the artisan's guides of the Middle Age. This system focus on imparting hands on technical skills in which the students get assigned at the very early age, beside this it also influences the business practices by bringing the specific set of skills into job market. Similarly one finds the cultural values of individualism and entrepreneurship embodied in the American Venture Capitalist System. This system legitimizes and encourages risk taking and going it alone behavior, but also creates a business environment in which investors have a major impact on how business is run. 2. Public Policy and legal framework:- The government policies and legal frameworks of different countries also reflects the cultural values of the country. These influences the business practices in 2 ways; a) They determine the broader framework for doing business in the country. b) They influence and circumscribe the management practices with in the company. Cultural values also influence the interpretation and implementation of the laws. It determines the nature of the laws, which have direct implication for management practices within the company. Example: - Lifetime employment in Japan which is rooted in the literal interpretation of Article 27 of Japanese Constitution. It is supported by its cultural values Shakaisei (Social Consciousness) and Tate Shakai (Social Hierarchy and paternalism). In contrast US Constitution also guarantees the right work,, the right cultural value of self reliance and " each for him" does not support it. 3. Societal Cultural Values:- The most pervasive impact on the business culture and practices in a country comes from the broad cultural values of the society. These values influence the business in different ways at different levels. At macro level cultural values allow certain kinds of business to flourish, while not providing the right climate for others. Example: - French culture is known for its emphasis on elegance, criticism and concern for Norms. The cultural values of the society define the meaning and reason of business and how it is organized. In many cultures, high profits and market capitalization are not the criteria for doing business.

Such cultural difference has direct impact on the Strategic Orientation of companies across cultures. Example: - While US Companies emphasizes more on the profit dividends And stock prices, Japanese companies focus more on new product development and market share. The cultural values also influence how the business is organized and conducted in the societies. In collective societies for instance, personal contacts play an important role in conducting business. In China people conduct business based on personal relationship ( Guanxi - Interpersonal relationship). At the end the cultural values have a major influence on the way people relate to each other and what they aspire for in a job. In many hierarchical cultures (e.g. India, Japan etc) the meaning and value of job lies in the status more than in the pay packet. In these countries people also expect to be recognized for their seniority and age. ON the other hand in more egalitarian cultures ( USA, Germany etc) people expect rewards and compensation for their performance than their seniority. Therefore it is evident that developing people to adapt to and operate across business cultures of different countries, require an appreciation of aspects which are deeper and more pervasive than just cross cultural differences in behavior. While an understanding of differences in behavioral orientation and etiquettes help people in becoming cross culturally literate but to develop truly cross culturally educated global managers, it is essential to provide an understanding into the deeper structures which mould the culture.

Global Human Resource Management - Meaning and Objectives

With the advent of globalization, organizations - big or small have ceased to be local, they have become global! This has increased the workforce diversity and cultural sensitivities have emerged like never before. All this led to the development of Global Human Resource Management. Even those organizations who consider themselves immune to transactions across geographical boundaries are connected to the wider network globally. They are in one way or the other dependent upon organizations that may even not have heard about. There is interdependence between organizations in various areas and functions. The preliminary function of global Human Resource Management is that the organization carries a local appeal in the host country despite maintaining an international feel. To exemplify, any multinational / international company would not like to be called as local, however the same wants a domestic touch in the host country and there lies the challenge.
We may therefore, enumerate the objectives of global HRM as follows: 1. 2. 3. Create a local appeal without compromising upon the global identity. Generating awareness of cross cultural sensitivities among managers globally and hiring of staff across geographic boundaries. Training upon cultures and sensitivities of the host country.

The strategic role of Human resources Management in such a scenario is to ensure that HRM policies are in tandem with and in support of the firms strategy, structure and controls. Specifically, when we talk of structures and controls the following become worth mentioning in the context of Global HRM.

  

Decision Making: There is a certain degree of centralization of operating decision making. Compare this to the International strategy, the core competencies are centralized and the rest are decentralized. Co-ordination: A high degree of coordination is required in wake of the cross cultural sensitivities. There is in addition also a high need for cultural control. Integrating Mechanisms: Many integrating mechanisms operate simultaneously.

Global HRM and the Staffing Policy

Here also the role is no different i.e. hiring individuals with requisite skills to do a particular job. The challenge here is developing tools to promote a corporate culture that is almost the same everywhere except that the local sensitivities are taken care of. Also, the deciding upon the top management or key positions gets very tricky. Whether to choose a local from the host country for a key position or deploy one from the headquarters assumes importance; and finally whether or not to have a uniform hiring policy globally remains a big challenge. Nevertheless an organization can choose to hire according to any of the staffing policies mentioned below:

  

Ethnocentric: Here the Key management positions are filled by the parent country individuals. Polycentric: In polycentric staffing policy the host country nationals manage subsidiaries whereas the headquarter positions are held by the parent company nationals. Geocentric: In this staffing policy the best and the most competent individuals hold key positions irrespective of the nationalities. Geocentric staffing policy it seems is the best when it comes to Global HRM. The human resources are deployed productively and it also helps build a strong cultural and informal management network. The flip side is that human resources become a bit expensive when hired on a geocentric basis. Besides the national immigration policies may limit implementation.

Global HRM therefore is a very challenging front in HRM. If one is able to strike the right chord in designing structures and controls, the job is half done. Subsidiaries are held together by global HRM, different subsidiaries can function operate coherently only when it is enabled by efficient structures and controls.

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