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• Overview of Human Resources

•Human Resource Management (HRM) is the function within an
organization that focuses and involving main functions such as
human Resources Planning, recruitment and selection, training and
development, career development, performance appraisal
management, compensation management, industrial relationship,
occupational safety and health

•Human Resource Management is the organizational function that

deals with issues related to people such as compensation, hiring,
performance management, organization development, safety,
wellness, benefits, employee motivation, communication,
administration, and training.
• Organizational structure is a formal system of job relationship that
coordinates employees to achieve a company's goals.

• Organizations can be regarded as people management systems.

They range from simple hierachies along traditional lines to complex
networks dependent on computer systems and telecommunications.
• Human resource managers can encourage organizations to adopt
strategies (for their structures) which foster both cost-effectiveness
and employee commitment.

• Organizational structures can be classified into a number of types,

including functional, divisional, matrix, federations and networks.
1. The Organizational Chart
An organizational chart shows how departments, divisions, and various levels of an organization
interact with each other. An organizational chart is often expressed as a visual illustration or outline.

2. Chain of Command
The importance of organizational structure is to identify who's involved in the decision-making
process and how those decisions are actualized.

3. Distribution of Authority
The importance of organizational structure involves determining how a structure is distributing
authority throughout an organization. Important factors must be addressed for an organization to
effectively pursue a goal. For example, (1) Are subordinates involved in the decision making? Or (2)
Is decision-making exclusively reserved for a few main authority figures within their department?

4. Departmentalization
Organizational structure defines how specific tasks and activities are assigned to their functional
departments. For example, sale representatives may be grouped within a sales department or
5. Span of Control
Span of control defines the number of employees over whom a manager exercises authority.

Functional structures

• Early organizational design divided enterprises into relatively

simple parts, splitting them into defined activities such as
production, marketing or personnel.

• A functional organizational structure groups employees based on

the positions they hold or by the tasks they perform.

• The benefits of structuring employees by common job titles and

activities include better communication between specialists,
increased teamwork and shared knowledge, and it allows for
quicker decision making.
Divisional organizations

• Split into self-contained units, able to react to environmental

changes as quickly as small companies, they are also described
as multidivisional or 'M-form' organizations.

• A divisional structure can group employees by either product

divisions, geographic divisions or market divisions.

• The advantages of divisional structures consist of higher quality

products and customer service because of specialization,
facilitated communication and teamwork within divisions and
encouragement of hands-on problem solving.

• In addition, it is easier for upper management to evaluate and

reward employees through the increased job accountability
inherent in divisional organizational structures.

• One variant of the divisional form which has a particular relevance

because of its human resource implications is the 'federation', a
loosely connected arrangement of businesses with a single holding
company or separate firms in alliance.

• This form of organization has attracted criticism from stock market

analysts who find difficulty in comprehending its subtle informality.
Matrix organizations

• Matrix forms of management can be regarded (arguably) as an early

form of 'network' structure. They focus on project teams, bringing
skilled individuals together from different parts of the organization.

• Individuals were made responsible both to their line manager and

the project manager involved. Before the advent of network
technology, many matrix organizations were dogged by duplication
and confusion: the 'matrix muddle'.

• Matrix structures group employees by a combination of positions

held, tasks performed and product divisions. A matrix structure
results in employees having multiple bosses, facilitates product
development through innovation and creativity, improves
communication and teamwork between divisions and increases
responsibility and freedom of employees.
• Field of International human resources
management broadly covers all issues
related to the management of people in an
international context. Hence IHRM covers
a wide range of human resources issues
facing Multinational companies in different
parts of their organization.
Multinational companies
• Assuming that the world is the market
• More products on sale at other countries comparing
to the origin country.
• Supplies, resources, staff, technologies is made on
considering the worldwide decision aspects.
• Decision making that takes into account local needs
and demands universal or glocalized.
• Research and product development is applied
without taking into account the boundary

1. Background of the psychobiological and sociological.

• Background of the workers include culture, ethnic origin, age,

gender, religion, national origin, linguistic ability and academic
achievement. psychological background is also related to values,
behavior, attitude and personality workers. they should realize that
the greater cultural differences between the two countries with the
guests their own culture, the more difficult for workers to adapt them
in a foreign environment.

• For example employees who are found to have the same culture will
have high level of confidence in their relationship will be sharing
their views and problems and the prefer between each other. This
will reduce anxiety and uncertainty among employees.
2. Efficiency of cross-cultural management in the workplace

Includes 4 aspects psychological tendencies in an effort to

understand and appreciate the culture of others:-

a) Cognitive dimension
Cognitive dimensions of an employee who is considered foreign
when in a foreign environment is an important determinant of the
efficiency of cross-cultural management. this is related to the way
employees acquire and use knowledge in daily interactions.
therefore, as a small group at work that have different cultures, an
employee should be aware of cultural differences within and
between groups in the organization.
b) Behavior dimension

•Rules or norms that regulate social behavior vary between different

cultures or groups. Therefore, human resource managers need to
emphasize the importance of culturally appropriate behavior shows among
employees in a workplace that is considered foreign to them.

•Dimensions in cross-cultural competence management involves aspects

of the ability to build relationships individually high. This includes to
develop and maintain a satisfactory relationship between the individual
employees who are considered foreign, trying to understand their feelings,
work effectively with them, empathy and accept different social customs.

•Next the ability to communicate effectively. This includes the ability to

enter into meaningful dialogue, interaction start, avoid conflict and
misunderstanding and use different communication styles. They also need
to develop social skills because its important to the extent necessary to
implement the important socialization as well as in finishing the work.
c) Attitude and personality

• Social skills in mix culture need to be equipped with the right

attitude and personality. Between personality factors and attitudes is
the flexibility, confidence, self-efficiency, openness, motivation,
orientation, knowledge, cultural empathy, openness to information
and optimism.

• Development of appropriate attitudes such as above is important in

a workplace that is diverse. For example, for minority employees,
self-confidence and efficiency is important because without
confidence, workers may be at the stereotypes that label put on by
others against himself. Cultural empathy is also important to enable
a person appreciate the attitude and behavior dominant group.
d) Experience dimension

• Individuals who have experience in outside assignments will be

easier to adapt to foreign conditions of those who do not have such
experience. Similarly, individuals who have work experience that
vary in many places will be more sensitive to various cultures, the
longer a person is at different workplace the more knowledge he
can acquire which later reduces uncertainty when interacting with
individuals of different culture.
3. Organizational factor
Providing a training for minority workers will be able to improve the
efficiency of cross-cultural management employees. It has been
proven that the efficiency of cross-cultural workers in a workplace
that is influenced by various cultural organizations to support the
level of diversity of the workforce. The higher an organization's
appreciation of diversity, then, policies, systems and organizational
structure introduced will lead to more efforts to improve the efficiency
of cross-cultural management
3. Sosiobiological Background
Ethnicity is a self-recognition and recognition of certain groups against
others. It includes features of ethnicity and talent. Ethnic characteristics
related to matters such as language, customs, beliefs and way of dress,
physical appearance, attitude and behavior. Ethnicity can affect individual
interactions. For example there is among individuals who would reject a
group based on their people and is liked by some other ethnic groups.
Ethnicity will influence how other people see things will affect the
interaction between ethnic culture.
b) Country of origin
An important factor in predicting the behavior of foreign workers
who treat them in the workplace. Country of origin marking status,
efficiency, friendship, hostility, level of civic and so forth. Like
ethnicity, perception of a country affected by stereotypes, prejudices
and ethnocentrism.

Relationship that exists between countries that are interconnected

will also affect the perception of members from these countries. For
example two countries that befriended, the members are more likely
to have a positive attitude towards one another. As for the conflict
would have more likely to have negative perceptions of one another.
c) Religion

Religion which is belief by someone will also affect their adjustment

at work that is considered as foreign place. Individuals may share
the same culture but have practices and religious beliefs in different.
Instead there is among employees who may share the same religion
but different in terms of culture. These differences affect social
interaction. Strength of religious influence cross-cultural
competence is dependent on the type of religion, how religious a
person and stereotypes that are placed against the religion of
d) Gender

Gender refers to the purposes associated with the men and women, as
seen in terms of social status, roles and attitudes. It is available
bahawakesamarataan gender roles is higher in cultures from
individualistik collective culture (Dowling and Schuler, 1990)

Study by Hofstede (1980) showed that certain cultures tend to have

higher differences in gender roles masculinity while others tend to have
low differences in gender roles femininity. Differences between gender
attitudes can be a cause of a misunderstanding that led to the
stereotypes and prejudices. Legal anti-discrimination legislation and
action has been established as a result of failure of organizations to
address gender-based stereotypes.
e) Age

Age is also an important factor in adjusting to a foreign state.

Individuals who are older usually more difficult to adapt to new
cultural system. In other words, young workers are more flexible in
adapting to new environment. In some communities, the age of a
person in respect of the people in the community. in certain
community also, the older the person, the higher their level of sanity
of mind. In conclusion, the workers have more advantages than the
age of young workers in a society that puts the advantage of higher
age workers.
f) Achievement of academic / professional

It has been reported that due to the ability to expand

capacity to learn something new and challenging life,
education enables individuals to adapt more easily to
foreign situations. In certain communities, educational
qualifications are valued higher and can be an important
determinant of social status. Therefore, employees who
have a high level of education will be more respected
and have opportunities in high feedback towards social
g) Linguistic factors

It is found that a foreign worker to understand and speak the native

language of a country will be more effective in carrying out their tasks
because they would be more acceptable and easier to get
cooperation. In addition, there are other dimensions of linguistic ability
should be considered. For example, the language and how language
is used may indicate efficiency, friendship, aggressiveness or a
measure of social status. Converse using language dominant group is
important in eliminating cultural barriers and improve cross-cultural
competence. Attitude to the linguistic ability of an employee is usually
influenced by the level of ethnocentrism dominant group.