Human Resource Management Principles

Talent Management

• Talent management is the process of hiring, developing, keeping, and placing skilled employees in key roles.
• Hiring involves finding suitable candidates and assessing their skills.
• Development entails training and preparing employees for crucial roles.
• Challenges in talent management include insufficient time/resources from leaders, ineffective teamwork, and a mismatch between talent goals and company objectives.
• These issues are prevalent with 59% of leaders lacking enough time/resources, 48% of teams not working effectively together, and 37% of talent goals failing to align with company goals.

Employee Engagement

• Engaged employees are enthusiastic about their work, dedicated to their best, and connected to company values.
• Engaged employees lead to increased profitability and productivity.
• Disengaged employees impose substantial costs globally, estimated at $8.8 trillion.
• Factors driving engagement include good leadership, support for employees, opportunities for learning and development, and recognition for effort.
• Examples of companies with successful engagement strategies include Southwest Airlines, praising collaboration, communication, and reward systems, and Ryanair focusing on cost-cutting which leads to employees being unhappy and frequently leaving.

Organizational Culture in IHRM

• Standardization involves enforcing the parent company's procedures everywhere for consistency.
• Localization involves adapting to host country culture by respecting local values and rules.
• Company approaches include ethnocentric (decisions at headquarters), polycentric (localized decisions), geocentric (global consistency coupled with local needs), and regiocentric (regional hubs making decisions).
• Hofstede's dimensions include individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, power distance, time orientation, and indulgence vs. restraint.
• Trompenaars' dimensions include universalism vs. particularism, achievement vs. ascription.

Business Ethics in IHRM

• Ethical HR practices include respect for cultural differences, fair treatment, adherence to local laws, and protecting employee information.
• Ethical considerations are crucial to avoid issues like lawsuits, damaged reputation, reduced employee motivation (and retention).
• Ethical challenges can arise from cultural differences like nepotism, gift-giving, and attitudes towards incentives and bribes.

Workforce Planning

• Workforce planning ensures the proper number of skilled employees are in the right roles.
• Activities include reviewing current staff, anticipating future needs, planning hiring, training, promotion, salaries, and performance analysis.

HR Demand and Supply

• Demand assessment involves determining the number and kinds of employees an organization needs. External factors (market trends, economic conditions, political climate) and internal elements (company strategy, budgets, and sales goals) affect the demand.
• Supply assessment determines the availability of suitable employees. Factors include internal resources (existing staff, talent management, and succession plans) and external sources (labor market, immigration patterns, demographics).

Job Analysis and Description

• Job analysis entails understanding job tasks, tools, needed skills, and processes. Methods include surveys, interviews, observations, and company documents.
• Job descriptions outline job titles, duties, responsibilities, required qualifications, and necessary workers.

Expatriates and International Assignments

• Expatriates are employees transferred to work abroad.
• Expatriate types include parent-country nationals (PCNs), host-country nationals (HCNs), and third-country nationals (TCNs).
• Expatriates present difficulties with high costs, cultural adjustments, and early relocation.

Recruitment

• Recruitment identifies and attracts potential candidates.
• Recruiting methods include leveraging internal avenues like promotions or transferals, engaging with external resources such as job fairs, online platforms, and recruitment agencies, utilizing creative methods like games and marketing campaigns.
• Measuring recruitment success involves evaluating the cost of hiring, time to fill open positions, and the performance of recruited personnel.

Selection

• Selection is the procedure of choosing qualified candidates.
• A strong selection process is reliable, valid, and impartial.
• Selection approaches include structured interviews, practical work samples, and assessment centers.

Performance Management and Appraisal

• Performance management is an ongoing process aiming to enhance employee performance.
• Performance appraisals provide structured reviews of past performance, often annually and using metrics and standards.
• Performance depends on ability, opportunity, and motivation.
• Performance criteria should be readily understandable and emphasize vital job activities.

How Performance is Measured

• Rating scales use numeric scores to evaluate performance.
• Comparisons involve ranking employees against each other.
• Narratives provide qualitative descriptions of performance.
• BARS are performance criteria with specific examples of good, average, and poor performance.
• Performance evaluations can be conducted by various parties.

Compensation

• Compensation aims to attract talent, promote performance, and control associated costs.
• Components include fixed pay, such as salary and benefits, as well as variable pay, such as bonuses.

Rewards

• Extrinsic rewards are tangible benefits like increased pay, bonuses, and benefits.
• Intrinsic benefits are intangible like acknowledgment, opportunities for professional development, and positive work environments.

Expat vs. Local Pay

• Expatriates (working abroad) receive extra compensation for relocation and living expenses.
• Local employees receive standard pay and benefits that reflect in-country costs of living.

Training and Development

• Training focuses on enhancing existing skills.
• Development focuses on developing long-term career growth.
• Expatriate training involves language, culture, and etiquette training for both the employee and their family.
• Training helps improve productivity, boost retention, and enhance communication.

Training and Development Processes

• Onboarding aims to introduce employees to company culture and policies.
• Training focuses on skill gaps with structured steps and assessments.
• A structured step-by-step process to conduct training, from needs analysis to evaluation, is essential.

Test your knowledge on key concepts of Human Resource Management, including ethical practices, expatriate assignments, and recruitment strategies. This quiz covers fundamental theories and dimensions relevant to HR practices in a global context.