Sources of human resources in an international organisation
The sources of human resources in international organisations are expatriates, host countries and third parties (Scullion 1995; Gomez-Mejia et al. 2009). There are several advantages with each source of human resources as shown in Table.
Table ; The relevance of expatriates, host and home country staff
Data in Table suggests that depending on whether the country is a host, home or third party to the staff, there are advantages and preferences assigned to each scenario. For example, for a host country, domestic staff will be cheaper than foreign and hence more preferred but they may not be as competent and experienced. Similarly, the host country will have greater control over local staff but will miss the gains of an international outlook from foreign staff.
International human resources management activities
Recruitment and selection
Recruitment for international human resources should allow opportunities for people outside the country to get information and apply. The media could be international magazines and websites. Prior to advertisement, permit to recruit from abroad has to be sought from the government. Selection criteria differ across cultures. Although merit is dominant, some countries like India consider things like family ties, religion, social status etc. as being important.
In the selection process one needs to consider the job requirement and the cultural issues that require adaptation. Where the job involves frequent contact with the local community – the local person will be preferred as long as he/she has the minimum qualifications. In selecting expatriates, core skills should be considered. These include among others:
1. Multidimensional perspective – product, industry functional, company, environmental experience.
2. Proficiency in line management positions.
3. Prudent decision making skills.
4. Resourcefulness – skills in getting self-known.
5. Cultural adaptability.
6. Cultural sensitivity – ability to live with diverse culture.
7. Team leading.
8. Physical fitness and mental maturity.
9. Having vision.
10. Ability to manage change.
Training and development
Skills necessary for a global manager will include language proficiency, management of diversity, cultural issues in management, interpersonal relations, team building and current issues in economics, politics, technology, marketing and the like.
Performance appraisal
In order to meet the requirements and expectations of each stakeholder, the 360 degree approach should be used. This states that it is good practice to get assessment from peers, subordinates, clients, associates and all other people who have contact with the staff including their own manager at the home country if staff are working in a foreign company branch.
Rewarding
As noted earlier, there is no perfect way to reward staff because of individual differences and other reasons depending on the context. Usually, when monetary rewards are used, domestic factors such as the cost of living and the alien working environment are considered one of the stress factors which should be rewarded. Therefore, managers need to be cautious with the motivational use of incentives and rewards in foreign countries. Matching rewards with what is considered acceptable in the culture of that member of staff, this includes piece/hour rates, seniority, and legislation.
Industrial relations
The management of industrial relations differs from country to country, especially in the following areas:
1. The scope, degree and extent of legislation,
2. The power of trade unions,
3. The extent to which the government can effectively intervene and
4. Management being committed to worker participation in management.
In this case, the management of industrial relations will be greatly influenced by the degree to which the organisation is international and the number and positions of expatriates. Therefore, there is a need to reconcile the differences with a common sense. Some organisations use laws applying in their own home countries with limited flexibility in the host country. When in doubt, embassies of the home country or the ministry of foreign or internal affairs should be consulted.