Essay on "Evaluating and Compensating Employees in a Global Business Environment"

Essay 9 pages (3194 words) Sources: 17 Style: Harvard

[EXCERPT] . . . .

For instance, government regulations regarding staffing practices for foreign locations, codes of conduct, and local influence of religious groups are experienced in the sectors. In the case American organizations are sanctioned to licensing from Indian government, they set up subsidiaries under legal obligations of providing employment for residents (Fan, Zhang & Zhu, 2013). The international HRM practices address distinct HRM activities even as the domestic HRM address issues relating to employees who belong to independent nationalities (Schuler, Budhwar & Florkowski, 2012). Greater risk exposures during international assignments enable IHRM managers to evaluate the employee performance and the human and financial implications of their actions. The aim of developing the functions includes providing well-trained personnel within the company while diversifying on capability of fulfilling the goals and contributing to better growth and performance in their work. Employee development is treated as special human resource management fields that include planned organization development, individual learning, education, career training, and development (Lamond & Zheng, 2010).

While expatriates give special attention towards advancing their work organizations, the paper observes that the description of additional challenges occurs within management of such employees (Brewster, Sparrow, & Harris, 2012). Various factors play important roles in the determination of compensation schemes such as nature of expatriate's job and the differences in the culture of host countries. Other elements include family and spouse considerations coupled with local nationals' salary levels. The challenges include the development of equitable compensation systems for the expatriates, the parent country employees, and local nationals where sufficient incentives motivate, attract, and retain more employees in overseas settings. The centralized compensation administration of systems becomes effective in the development of consistent and equitable systems such as decentralized programs of sensitive local conditions.

In international organizations, staffing and managing approaches strongly influence the scope of employee that the company prefers. Companies using ethnocentric approaches engage parent country nationals to staff important positions within the headquarters and subsidiaries (Zheng, 2013). Polycentric approaches allow host country nationals to work within foreign subsidiaries even as parent country nationals maintain the strategic headquarters positions. Organizations that endorse geocentric approaches choose among the suitable individuals to fit in the respective position despite the type (Van Vuuren, de Jong, & Seydel, 2008).

For companies functioning within global environments, it is important to distinguish different employee types. Initially, there were classifications such as a parent country national where the employee's nationality remains within similar as organization. For instance, Slovenian citizens can work within a Slovenian subsidiary in Macedonia (Kamoche, 2011). For the long-term, sophisticated systems in global compensation are more effective. Global compensation systems involve implementation of similar pay-for-similar jobs in all countries irrespective of whether such positions are staffed with expatriates from the parent country, third country expatriates (from another country) or locals. The compensation differentials have higher addition to basic pay through the country. On the other hand, MNCs do not have current levels of sophistication. Establishing culturally sensitive reward systems has particular relevance to employment for local country nationals while expatriates within other countries are found to have motivation variances with significant influence on work dimensions.

The host country national is an employee whose nationality is similar to the subsidiary's location. For instance, Macedonian citizens who work for Slovenian company based in Macedonia (Ferner, Tregaskis, Edwards, Adam, & Meyer, 2011). However, compensation administration has a general sensitive or geocentric implication on the overseas schedules. Certain compensation aspects that have higher sensitivity to the local environments include financing coupled with delegation of overseas subsidiaries. Overall, the focus presents trends towards increased compensation centralization programs for corporate headquarters. The item also finds the suggestive focus on MNCs in moving towards the ideal HR phases. The third country national is employees whose nationality does not match that of the firm nor does it tally with the subsidiary's location. For instance, Albanian citizen who work within Slovenian firms in Macedonia. Most Japanese MNCs engage centralized compensation structures in administering policies, control, and procedures.

Most companies consider performance evaluation as a frequent undertaking their development or administration intentions is met. For purposes of administration, performance evaluation arises when such decisions of work conditions among promotions, employees, rewards, or layoffs are put in jeopardy. Performance evaluation aligns work improvement among employees besides enhancing the respective abilities with the set targets (Cooke, 2011). Adequacy of training programs advises employees on the best behavior within work environments.

Within an international level, professionals in human resource development take responsibility training of employees located in company subsidiaries across the world. They also specialize in training for preparation of expatriates for abroad assignments. The professionals also develop special groups to cater to globally minded management. Employees' remuneration plays an essential role in the acquisition of employees coupled with the relevance for employees and employers (Brewster, Sparrow, & Harris, 2012). Pay remains a basic living resource for the employees and benefits include better health care and possibility of spending holidays within the company's vacation facilities through favorable prices among other advantages.

The centralized approaches facilitate training origination from the headquarters through corporate trainers to cascade to subsidiaries. The approach often adapts to certain local situations. The ethnocentric model is developed on geocentric approaches that are centralized through training and development of inputs within headquarters and subsidiaries. Trainers are sent from different positions of the subsidiaries or headquarters to different company locations (Cooke, 2009).

Maximization of training effectiveness requires consideration of how trainees engage in effective learning. The cultural factors used in turn have strong impacts on the training practices from distinct parts of the globe. For instance, North America presents a small power distance and the relationships between trainees and trainers lean towards equality (Ferner, Tregaskis, Edwards, Adam, & Meyer, 2011). Trainers and trainees apply first names coupled with followers feeling welcome to question or challenge the content. In Malaysia, the power distance is huge and trainers receive increased respect. Students are required to use surnames and titles and rarely do the students challenge the expert.

Performance evaluation for international organizations is challenging (Sparrow, 2014). The international scale fosters beneficial complexities with devolved dependency, as organizations are required to evaluate employees within different countries while working with them to deliver on the subsidiaries' objectives. The essence of having consistency in the subsidiaries permits for performance comparisons of conflicts where there is consideration of cultural background for the employees in making meaningful evaluation (Fenton-O'Creevy, Gooderham, & Nordhaug, 2012). For instance, Mexico presents individual's public image with relevance to public criticism for employees' justification for departure from the company. The delivery of such balanced performance reviews includes focusing on strengths and weaknesses that require both tact and delicacy.

In conclusion, the realm of international human resource management is dependent on management of all human resources in the company's global presence. The overall organization's strategy towards globalization has a strong influence on approaches taken by international human resource management. Approaches used in international human resource management influence implementation of critical functions in the international human resource management for recruitment and selection, remuneration and benefits, performance evaluation, development and training, and labor relations. The instrumentation takes ethnocentric approaches in imposing the home country methods to subsidiaries. On the other hand, polycentric approaches follow local practices while geocentric and global approaches develop worldwide practices.

References

Brewster, C., Sparrow, P. & Harris, H. 2012. 'Towards A New Model of Globalizing Human Resource Management,' The International Journal of Human Resource Management, vol. 16, no. 5, pp. 949-70.

Cooke, F.L. 2009. 'A Decade of Transformation Of HRM In China: A Review of Literature and Suggestion for Future Studies,' Asia Pacific Journal of Human Resources, vol. 47, no. 6, pp. 6-40.

Cooke, F.L. 2011. 'The Role of the State and Human Resource Management in China,' International Journal of Human Resource Management, vol. 22, no. 18, pp. 3830-3848.

Cooke, F.L. 2012. 'The Globalization Of Chinese Telecom Corporations: Strategy, Challenges and HR Implications for the MNCs and Host Countries,' the International Human Resource Management, vol. 23, no. 9, pp. 1832-1852.

Fan, D., Zhang, M.M. & Zhu. C.J. 2013. 'International Human Resource Management Strategies of Chinese Multinationals Operating Abroad,' Asia Pacific Business Review, Vol. 19, no. 4, pp. 526-541.

Fenton-O'Creevy, M., Gooderham, P., & Nordhaug, O. 2012. Human Resource Management In U.S. Subsidiaries In Europe And Australia: Centralization Or Autonomy? Journal of International Business Studies, 39(1., 151-166.

Ferner, A., Tregaskis, O., Edwards, P., Adam, D. & Meyer, M. 2011. 'HRM structures and subsidiary discretion in foreign multinationals in the UK,' The International Journal of Human Resource Management, vol. 22, no. 3, pp. 483-509.

Goldstein, A. 2009. New multinationals from emerging Asia: the case of national oil companies. Asian Development Review, 26(2., 26-56.

Gu, J. 2009. 'China's private enterprises in Africa and the implications for African development,' European Journal of Development Research Special Issue, vol. 24, no. 1.

Kamoche, K. 2011. 'Contemporary developments in the management of human resources in Africa,' Journal of World Business, vol. 46, pp. 1-4.

Lamond, D. & Zheng, C. 2010.… READ MORE

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