Organizations do not operate in vacuum; however, diverse environments such as the social-cultural environment influence their operations. One of the ways through which the society directly influences organizations is through employee recruitment. In a bid to attain a high-level competitiveness with regard to human capital, organizations incorporate the concept of diversity. This move leads to the development of a human resource base that is very diverse. According to Bono, Heijden, and Jones (2011), the term diversity explains the differences that prevail amongst employees. The differences may be based on their attitudes, values, and/or beliefs. A combination of these differences constitutes the organizational culture (Bono, Heijden & Jones, 2011). Organizational culture comes out as one of the main issues that firms have to incorporate in their management practices. In the contemporary business environment, firms’ management teams face numerous cultural dimensions that have to be addressed. This aspect means that culture cannot be separated from organizations. Alvesson (2002, p.1) affirms that culture is well integrated even in organizations that do not portray explicit support for cultural issues such as their employees’ values, ideas, and feelings. Likewise, lack of a unique corporate culture cannot result in diminution of its importance.
In most modern-day firms, culture is a very crucial element in organizational operations, which explains why the subject attracts such extensive attention. Despite this aspect, most organizations’ top management teams do not have sufficient understanding regarding operation of organizational culture and people, which makes culture to be a composite and intricate issue to understand and implement. The level of awareness and interest regarding culture varies across organizations and managers. Additionally, managers also face a major challenge in their effort to entrench effective organizational culture. According to Alvesson (2002, p.1), firms win or lose based on the culture they have nurtured. Previous studies conducted on the subject reveal that the role of conventional sources of firms’ competitiveness such as regulated markets, processes, economies of scale, and product technology cannot supersede the role of organizational capabilities and culture in the modern business environment. Considering the complex nature of the contemporary business environment, knowledge has become an important component in organizations’ effort to develop sustainable competitive advantage. Alvesson (2002, p.2) asserts that there is a strong correlation between organizational culture and knowledge. Therefore, knowledge management is an important aspect that firms have to incorporate in developing their organizational culture.
Culture is a complex issue to define. Previous studies on the subject assert that organizational culture entails how firms deal with people and the uniqueness of its style and quality. Alvesson (2002, p.2) defines organizational or corporate culture as a system that is constituted of shared meaning amongst members of a particular entity that differentiates it from other entities. Likewise, Hofstede, a renowned scholar on cultural issues, defines organizational culture to include the collective programming of the employees’ mind that differentiates a particular organization from another. In spite of operating in the same industry, organizations develop varying organizational cultures. The various shared aspects such as values, attitudes, beliefs, practices, behaviors, and norms collectively form organizational culture (Abu-Jarad, Yusof & Nikbin, 2010, p.10).
Scholars have hypothesized different dimensions and levels of organizational culture over the years. Corporate culture falls in three main areas, which include surface level, espoused values, and basic assumptions. The surface level is depicted by the organization’s physical environment, language used, organizational products, and symbols adopted. Nurturing the surface level of corporate culture enables firms to develop a physical environment that is attractive to people irrespective of their cultural differences such as race and ethnic backgrounds. The espoused values relate to organizational leaders’ commitment towards formulating strategies and goals that address the needs of the entire firm. On the other hand, basic assumptions entail developing a belief that every employee can contribute towards organizational growth. The degree to which an organization has integrated this basic assumption is vital in developing organizational culture (Abu-Jarad, Yusof & Nikbin, 2010, p. 10). In their internationalization process, it is paramount for firms’ management teams to develop a comprehensive understanding of the prevailing cultural dimensions in the host country. This assertion holds because the nurtured cultural dimensions will have an influence on the effectiveness with which human resource strategies are implemented.
A study conducted by Hofstede reveals the existence of five main cultural dimensions amongst countries. They include masculinity/feminity, uncertainty avoidance, power distance, and individualism/collectivism (Abu-Jarad, Yusof & Nikbin, 2010, p. 10).
Masculinity/feminity dimension entails allocation of duties between the two genders. In most cases, assertive duties are allocated to male employees in countries characterized by a high degree of masculinity (Hofstede, 2001, p. 22). Different countries have varying masculinity/ feminity indexes. For example, the UK has a high masculinity index at 66 while that of the US is 62. Consequently, employee roles are clearly differentiated between the two genders. Additionally, women hold fewer qualified positions in such a country. According to Abu-Jarad, Yusof, and Nikbin (2011, p. 11), employees in highly masculine firms experience higher job-related stress levels. This aspect arises from the fact that such organizations have developed a culture whereby work is highly esteemed (Kerr & Slocum, 2007, p.130).
Power distance dimension underscores the extent to which an organization has nurtured equality or inequality. Abu-Jarad, Yusof, and Nikbin (2010, p. 11) opine that power distance illustrates a number of cultural issue such as the extent of centralization versus decentralization and the prevailing wage differentials.
Uncertainty avoidance entails the extent to which employees perceive a high degree of uncertainty. Uncertainty avoidance index covers a number of organizational cultural issues such as the extent to which managers are involved in strategy formulation, managers’ task-oriented characteristic, risk-taking characteristic of managers, and level of employee satisfaction. Firms with high uncertainty index are more aggressive compared to those with low uncertainty index.
On the other hand, individualism dimension entails the degree to which an organization nurtures collective achievement and inter-personal relationship. A high individualism score indicates that a particular organization values individualism. Accordingly, such an organization undoubtedly develops a poor interpersonal relationship culture. On the other hand, a low individualism index is an indicator that a firm has nurtured an exceptional organizational culture for example by addressing the employees’ interests and influencing employees positively, hence improving their loyalty and promoting teamwork (Abu-Jarad, Yusof & Nikbin, 2010, p. 11).
In their internationalization process, it is paramount for organizations to undertake a cultural analysis of the targeted investment destination. Due diligence is one of the main aspects that should be taken into account. Integration of the due diligence concept enables organizations to prioritize issues such as employees’ values, beliefs, attitudes, and norms. Consequently, firms stand a better chance of addressing emerging cultural issues. In their internationalization effort, organizations face an enormous task of eliminating cultural conflict, which comes due to diversity amongst employees.
There is a direct relationship between the success of firms in the international market and the effectiveness with which they undertake international recruitment and selection (Scullion, 2006). Findings of previous studies conducted on the subject reveal that international recruitment plays a critical role in enhancing the competitiveness of international firms. Conventionally, every organization endeavors to hire and deploy employees in positions that contribute towards improvement in its domestic and international performance, which can only be realized through an effective recruitment process. Sparrow (2010) defines recruitment as the process of seeking and obtaining potential job applicants who possess sufficient employability qualities. The recruitment process provides companies with an opportunity to select candidates most suited for the job. Employee recruitment and selection are distinct practices that firm’s management teams should ensure are undertaken effectively.
International recruitment approaches are similar to domestic recruitment in a number of ways. Domestic HR managers may use a number of staffing orientations, which entail ethnocentric, geocentric, regiocentric, and polycentric dimensions. On the other hand, international human resource managers have three main recruitment approaches they can adopt, which include ethnographic, polycentric, and geocentric approaches. Pravin (2008) asserts that ethnocentric approach entails recruiting job applicants from the parent country of the international firm to work in a foreign country. Four main steps underscore ethnocentric recruitment approach and they include self-selection, developing a pool of candidates, assessing the candidates’ technical skills, and mutual decision-making. Polycentric approach restricts international firms to recruit from the host country. This approach aims at helping organizations reduce their international cost of operation. On the other hand, geocentric approach entails recruiting employees to hold positions in the firm’s international operations internally.
In the process of recruiting employees to assist in international operations, it is paramount for managers of multinational firms to establish the global competitiveness of the potential job candidates. Additionally, multinational companies (MNCs) should also evaluate the extent to which the recruited job candidates understand the global market. The human resource managers should also possess sufficient knowledge on the availability and skills of the global market. It is also vital for HR managers to have a strong insight on the changes in the international labor market (Pravin, 2008). Despite this assertion, multinational firms face a challenge in their recruitment process. Some host country governments impose restrictions such as immigration rules and tight work-visa requirements. Additionally, host governments may demand organizations to produce evidence why they should not recruit locals. Such rules and requirements may adversely affect the effectiveness with which international firms undertake their recruitment process.
International human resource departments should formulate comprehensive employee recruitment strategy. The recruitment strategy should entail sourcing employees from both the domestic and international market (Pravin, 2008). There are different methods that organizations can adopt in their expatriate recruitment process. Nevertheless, internal recruitment is considered as the most effective method of expatriate recruitment because a firm can identify potential candidates effectively from their domestic and international workforces. Previous studies conducted in Sweden on expatriate recruitment reveal that 85 per cent of Swedish multinational companies recruit from within. Similarly, most Japanese firms conduct expatriate recruitment. International firms can accrue various advantages from internal recruitment. Firstly, a firm has a better understanding regarding the candidates’ skills, personality traits, and family background.
Internal recruitment also provides a firm’s management team with an opportunity to select candidates who have sufficient understanding of the organizational goals and culture. The firm also benefits because it does not have to incur high costs in accessing the labor market. According to Scullion (2006), internal recruitment is very cost-effective. Internally recruited employees adjust very fast to the international market compared to those who are externally recruited. Previous studies conducted on the same issue suggest that externally recruited expatriates take up to 9 months to adjust to the external working environment, while internally recruited expatriates only take 6 months to adjust. In an attempt to be effective in their internal recruitment, it is paramount for organizations to maintain an internal database. From the database, the firm stands a good chance to select the most qualified employee to fill its global postings (Pravin, 2008).
International firms can also recruit externally from the international and the domestic labor market. According to Scullion (2006), the Internet, international graduate programs, cross-national advertising, and headhunting are some of the main external recruitment methods that are increasing becoming famous in international human resource management. Headhunting entails the use of recruitment agencies to search for job candidates to fill managerial positions. Headhunting method can also be used to search for specialized employees. On the other hand, cross-national advertising entails seeking employees from the international labor market by undertaking cross-border campaigning. Various methods of cross-border advertising such as press advertising and placing posters on strategic positions such as airport lounges and international magazines (Sparrow, 2010).
After the recruitment, a number of elements are taken into account in selecting the employees. In most cases, employee selection for both domestic and international firms are undertaken on the basis of their skills, personality, cultural adaptability, attitudes, personality, and their level of motivation. In addition to these elements, international human resource management also integrates other aspects such as the employees’ family flexibility, interpersonal skills, country-specific experience, technical and professional expertise coupled with one’s global experience. By incorporating these elements, international human resource managers can select the most suited job candidate.
Training and development
The purpose of employee training is similar in all organizations irrespective of their region and country of operation. Most organizations rank improving employees’ technical abilities as the core objective of their training programs. Despite the similarity of employee training and development in domestic and international human resource management, training and development in the international market is very essential. This aspect arises from the fact that international firms face unique situations such as organizational structures and jobs. Through employee training and development, international firms can standardize their human resource management practices with their business operations. Pravin (2008) posits that expatriate training that organizations can integrate exist in three main stages, which include pre-moving training, continual training, and repatriation training.
This stage entails training employees who have already been short-listed for foreign assignments. In most cases, pre-move training is conducted on expatriates and in some instances on their family members prior to being deployed in the foreign market. The objective of pre-move training is to provide selected job candidates with an opportunity to familiarize themselves with the dynamics of the host country such as their culture, customers, and languages. Given the merits of pre-move training, the selected expatriates can adjust to the foreign working environment at a faster rate (Pravin, 2008).
This expatriate training stage entails formulation of a continuous employee-training program. Consequently, after posting the selected employees to the foreign country, the HR department formulates a training program for the expatriates. The training program aims at assisting employees to eliminate any doubts they may be harboring. Continuous training contributes to improvement in employees’ knowledge and skills. Continuous training also enhances the effectiveness with which employees address their work-related stress.
The importance of employee training and development on employee career development cannot be over-emphasized. In the course of executing their duties, employees have their personal career objectives. The effectiveness with which the employer guides employees towards attaining these personal career objectives influences workers’ level of job-satisfaction. Considering the competitive nature of the contemporary labor market, most organizations have identified employee training and development as a key component of their human resource management practices. According to Majunder (2012), employee training and development improves an organization’s competitive advantage by increasing the level of productivity amongst its workforce. This goal is realizable by improving the extent of employee engagement in the firm’s operation. For example, training and development increases the employees’ understanding of their performance expectations. Additionally, training and development also improves an organization’s performance by enhancing the effectiveness and efficiency with which employees execute their duties.
This form of training is undertaken when the expatriate completes his or her foreign assignment. The objective of repatriation training is to refresh the employee regarding the workplace and practices of their home country.
Formulating and implementing an employee-training program is a costly process for both domestic and multinational firms (Cooper & Burke, 2011, p. 24). However, previous studies conducted suggest that effective employee training and development can enable firms to derive higher values from their workforces. This aspect arises from the fact that the businesses will be in a position to address the challenges they face in their operations more effectively. For example, employee training and development will result in effective decision-making. Additionally, training and development also adds value to organizations through transfer of leadership skills. Findings of a study conducted in the United States on leadership training reveal that firms that have incorporated leadership training in their strategic management processes experience a 25 per cent increment in their revenue (Cooper & Burke, 2011, p. 24). By investing in training and development, organizations stand a chance to improve the employees’ input to the organization given that they become focused towards attainment of the outlined organizational missions and goals. Training and development is also beneficial for it leads to entrenchment of a strong organizational culture amongst the employees.
Considering the competitiveness of the contemporary global labor market, reducing the rate of employee turnover has become a key consideration for most organizations. One of the ways through which firms can attain this objective is by investing in training and development. According to Cooper and Burke (2011, p. 24), training and development increases the level of job satisfaction amongst employees, which culminates in development of employee loyalty and thus a particular organization can maintain its human capital efficiently.
Support in employees personal life
Both domestic and international HR managers should formulate policies that are supportive to their workforces. According to Clutterbuck (2003), the success of organizations is largely dependent on the extent to which it is committed towards supporting its employees. In a bid to ensure that their organizations remain competitive, it is paramount for HR managers to be conscious of the changing business environment. Consequently, they should formulate policies that assist their employees to adapt to changes in the working environment. One of the issues that domestic and international HR managers should address relates to work-life balance. Over the past few years, the concept of work-life balance has become a major concern for human resource managers. Employees are increasingly demanding their employers to formulate HR policies that can allow them to address other personal issues. As a result, HR managers are increasingly considering integrating various HR policies and provisions such as job sharing, flexible working hours, compressed working hours, and possibility of working from home. The objective of these policies is to enable employees to balance their social life and career, and thus employees would be in a position to enjoy a more satisfying career (Duxbury & Higgins, 2005, p. 113). The concept of work-life balance in both domestic and international HR management is based on the precept that leading a satisfying personal life and working to receive remuneration should not be competing priorities. On the contrary, the two aspects should complement each other. Incorporating better HR policies and practices can enable organizations to develop a sustainable working environment (Duxbury & Higgins, 2005, p. 113).
Previously, scholars and managers perceived work-life balance to entail allocation of equal time to particular tasks and life demands only. However, recent studies conducted on the subject reveal that work-life balance is a complex issue that entails various perspectives such as time management, involvement balance, and satisfaction balance. Time management entails allocation of duties to both work and life related duties. Involvement satisfaction refers to the extent to which employees are psychologically involved in the execution of various employment related tasks and responsibilities. On the other hand, satisfaction balance refers to the extent to which the employees are satisfied in their various life and job roles.
Supporting employees through policies such as work-life balance can enable HR managers of both domestic and international firms to save on some critical costs. For example, one of the policies that are widely being used by HR managers entails giving employees an opportunity to work from home. This element is playing a decisive role in enhancing employees’ efforts to achieve financial freedom. For example, an employee can save the money he or she would have used in commuting and use it on something else. Employees can channel the money saved to other economic avenues such as investing in shares or supporting their family, which improves their wellbeing. Conventionally, employees that are fairing well in life will perform optimally because as aforementioned, work life cannot be divorced from the other facets of life. In an effort to support the implementation of these HR policies and provisions, organizations are increasingly implementing emerging information communication technologies such as video conferencing among others (Richenda, 2006, p. 67).
Incorporation of flexible working hours provides employees with an opportunity to enjoy flexibility in executing their tasks. Therefore, employees have an opportunity to engage in other personal issues because they do not have to be at a particular workstation in order to complete a particular assignment. Incorporation of flexible working hours enhances the employees’ level of motivation. This assertion emanates from the fact that the employees develop a perception that they are in control of their work. Such HR policies also contribute towards employee development. For example, incorporation of flexible working hours demands employees to be effective in time management (Richenda, 2006, p 67).
Providing employees with an opportunity to work from home is particularly supportive of the employees’ personal life. This element arises from the fact that it provides an employee with an opportunity to develop a strong relationship with his or her family. Consequently, employees develop a strong sense of belonging considering the fact that the demanding nature of the business environment is forcing employees to work for long hours (Stevens, 2004, p 91). Some jobs require employees to work for long hours, and this aspect can have negative effects on the employees’ health, for example developing health conditions that result from burnout. However, incorporating the concept of work-life balance provides employees with an opportunity to rest thus avoiding health risks. Maintaining employee’s health in good status benefits both the employee and the organization. Provisions of flexible working hours enable employees to enjoy their work. Consequently, they stand in a position to deal with other personal issues such as advancing their educational level. Lack of sufficient time to address such issues may result in conflicts of interest between the employee and the organization. For example, the employee may only be concerned with fulfilling his or her personal goals whereas he or she should be focused at his or her job description. Pressure from supervisors to complete the assigned tasks may lead to the employee experiencing an increment in his or her job-related stress levels, and thus the employee’s health declines ultimately affecting his or her productivity adversely.
Job sharing entails allocating a particular role to two individuals possessing sufficient knowledge, skills, and experience to execute the job. The job sharing formula used should be acceptable to all the employees. Job sharing is usually undertaken based on business and individual needs. Examples of job sharing formula that can be used entails one employee working for 2.5 days per week or alternating the number of weeks worked. According to Clutterbuck (2003), it is important for HR managers to formulate effective handover arrangements to ensure that their work is effectively executed. Incorporating weekly, monthly, and annual leaves is another HR policy that domestic and international HR managers integrate. Through such leaves and work-offs, employees are provided with an opportunity to rest and have time with their family. Leaves are very important aspects to both domestic and expatriate employees because they prevent employees from becoming alienated from their families (Clutterbuck, 2003). Career breaks is another policy that organizations should consider to integrate in their effort to support their employees’ personal life. Career breaks usually take a considerable duration for example 5 years. However, HR managers should ensure that the employees granted career breaks would return to the organization. Therefore, it is important for organizations to maintain constant contact with employees on career breaks.
According to Kandula (2007), an effective compensation system forms the backbone of human resource management. A firm can develop a high competitive advantage by implementing effective employee compensation policies. The compensation policy adopted influences firms’ ability to attract, retain, and motivate their workforce. This aspect in turn influences the firm’s performance efficiency. Employees regard compensation as an important measure of their market value. Additionally, compensation policy is important to managers because they have to balance the employees’ remuneration needs with the shareholders and other stakeholders’ requirements (Shields, 2003).
Firms’ management teams face a major challenge of ensuring that they formulate a compensation policy that is acceptable to both employees and the firms’ shareholders and stakeholders. In the process of formulating employee compensation, HR managers should take into account a number of issues. First, they should evaluate the prevailing labor market conditions. This move should entail analyzing the employees’ demographics such as their skills and the demand and supply characteristic of the labor market. Additionally, firms’ management teams should analyze the compensation policy adopted by their competitors in a bid to counter competition through gaining a competitive advantage.
An analysis of socio-political and economic environment should also be undertaken to develop a comprehensive understanding on the power of the labor union and the business cycles in the country. In addition to this, it is also vital for firm’s management teams to evaluate employees’ characteristics such as their level of education, experience, seniority, and qualifications.
Kandula (2007) emphasizes that it is vital for HR managers to evaluate the prevailing organizational culture in their effort to formulate compensation policies. Some of the issues, which should be taken into account, include the firm’s organizational structure, profitability, size of the organization, strategies, and policies implemented coupled with salary compression. Job characteristic is another variable that HR managers should incorporate when formulating compensation policies. For example, some jobs require high intellectual capability compared to others. Compensation for such jobs should be relatively high when compared to those that do not require high intellectual capacity. Other job characteristics that should be considered include skills requirement, physical requirement, working conditions, effort required to execute the job, and decision-making needs.
Compliance with regulation
In the course of executing their duties, international and domestic HR managers are required to adhere to the laid down rules and regulations. Numerous rules and regulations, which are clearly outlined by both governmental and non-governmental organizations, should be observed. Firstly, HR managers should ensure that they desist from any form of discrimination. International and domestic firms assume the responsibility of providing all potential job candidates with an opportunity to work in the firm. Therefore, HR managers should not discriminate potential job candidates on the basis of gender, race, ethnicity, disability, sexual orientation or religion. Additionally, HR managers should be committed towards ensuring that their organizations adhere to the requirement of equality and equity. This aspect means that all incumbent employees should be treated with a high degree of equality, for example by ensuring that employees receive fair remunerations and compensations.
In addition, HR manager of domestic and international firms should comply with the laid down rules and regulations regarding safety of employees in the course of executing their duties. As a result, firms should ensure that the working environment does not harm the employees in any way (Kandula, 2007). HR managers should also ensure that they comply with the contract established between employees and their organizations.
Domestic and international HR managers should ensure that their organizations adhere to company values. One of the most important values that firms should nurture is continuous improvement. Considering the competitive nature of the contemporary business environment, it is paramount for HR managers to ensure that they formulate a policy, which requires subordinate managers to review their HR strategies continuously. Through continuous improvement, it will be possible for both domestic and international HR managers to address the changing demands of the labor market. The success of every organization is determined by the effective with which it serves its customers (Cohen, 2006). International and domestic HR managers should ensure that they nurture customer focus values amongst the employees. This element is critical in ensuring that employees are in a position to serve their clients more effectively and efficiently. One of the ways through which HR managers can achieve this aspect is by ensuring that employees desist from pursuing their personal interests at the expense of the customers. HR managers should nurture an environment whereby employees work hard towards understanding consumer needs and expectations and endeavoring to meet the needs thereof (O’Reilly & Pfeffer, 2000, p.54).
Developing their employees is another company value that HR managers should integrate in their strategic management practices. HR managers should steer their organizations away from being driven by profit only and rather include developing employees’ skills, knowledge, and experience. Being concerned of the employees’ welfare will play an important role in nurturing a strong organizational culture where the entire employee will be concerned with attaining organizational goals and missions (O’Reilly & Pfeffer, 2000, p.54). In the 21st century, the business environment has become very dynamic. Consequently, it is paramount for HR managers to ensure that their organizations’ operations are based on values of innovation. Adherence to innovation values can remarkably contribute to a firm’s future success. One of the innovation values that HR managers should consider is research and development. Through such values, the likelihood of the firms venturing into new markets and business sectors will increase because it will be in a position to address emerging market issues. In addition to the above values, it is crucial for HR managers to incorporate corporate social responsibility values. Through corporate social responsibility, firms will stand a chance to address social issues emerging from the society within which they operate.
Human resource managers of both domestic and international firms face a major task of ensuring that their organizations attain competitiveness with regard to human capital. In an attempt to achieve this objective, effective HR practices and policies should be implemented. Development of effective organizational culture is one of the aspects that HR managers should take into account. The organizational culture developed determines how employees are treated. Respecting employee diversity is one of the most important issues that firms’ management teams should consider when developing organizational culture. HR managers should ensure that all employees feel respected irrespective of their differences with regard to the values, beliefs, attitudes, and norms they possess. Respecting organizational diversity is vital in nurturing a contributive environment for working because such an environment eliminates possible interpersonal conflicts. During the process of formulating organizational human resource policies, it is vital for HR managers to have a comprehensive understanding of the prevailing cultural dimensions in the country. The culture of a particular country has a significant effect on the HR policies and strategies implemented. One of the most effective cultural analysis models that both domestic and international firms should use is the Hofstede model. The model enables HR managers to rank the culture of a country based on masculinity or feminity, uncertainty avoidance, power distance, and individualism/collectivism dimensions. Consequently, the HR manager can formulate and implement effective HR operational strategies and policies.
Employee recruitment is one of the most important roles that HR managers should execute effectively. The quality of recruitment undertaken determines the effectiveness with which a firm attains a strong competitive advantage with regard to human capital. Organizations can select from employees different sources of workforce including international recruitment. However, international recruitment is more challenging compared to recruiting from the domestic labor market for there are limitations associated with international recruitment. One source of difficulty in international recruitment arises from the existence of government recruitment policies. Another source of complexity in international recruitment arises from the fact that the firms must understand various dynamics in the international market. HR managers of both domestic and international firms can recruit either internally or externally. Employee compensation is another factor that both domestic HR and international HR managers should consider in their operations. Through implementation of effective employee compensation policies, it is possible for domestic and international HR managers to develop higher competitive advantage with regard to human capital compared to their competitors. This aspect stems from the fact that the implemented compensation policy influences firms’ ability to attract, retain, and motivate their workforce.
In a bid to develop a strong workforce, it is essential for domestic and international HR managers to formulate and implement effective training and development policies. Employee training and development enables employees to acquire new skills and knowledge. This aspect increases their ability to achieve their career goals hence developing strong level of job satisfaction, and ultimately the firm’s performance is improved remarkably. In addition to employee compensation, training and development, it is important for domestic and international HR managers to implement personal employee support programs and practices. Examples of support programs that the firm should implement include job sharing, annual leaves, career breaks, and other work-life balances programs such as part-time and flexible working hours. This move aids in improving the employees’ level of satisfaction and hence their loyalty to the firm. Complying with the laid down rules and regulations is crucial in the success of every firm. Consequently, HR managers should have a comprehensive understanding of the rules and regulations that directly affect their workforces. One such rule that the firm should adhere to entails ensuring that employees get proper remunerations. HR managers should also be committed towards providing all employees with equal treatment, which means that they should desist from discriminating against employees based on any variable such as race, gender, sexual orientation, or religion. In a bid to steer their firms towards attaining high competitive advantage with regard to human capital, domestic and international HR managers should nurture effective company values such as innovation, employee development, commitment to the society, and customer delight.
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