HRM STRATEGY

Global and Local: The Case of the Inoperable HRM Strategy



Global and Local: The Case of the Inoperable HRM Strategy

Question No.1

International Human Resource Strategy refers to the process of developing practices, programmes and policies that help achieve organizational objectives. What is essential is that these programmes, policies and practices need to be aligned with organizational strategies. Elaborating further, strategic human resource management considers the implications of business strategy for all hr systems within the firm by translating company objectives into people management systems. The approach and process utilized will vary from organization to the organization, but the key concept is consistent, that is, essentially all HR programmes and policies are integrated within a larger framework helping achieve the firm's objectives. Managing human resources in different cultures, economies, and legal systems present some challenges. However, when well done, HR management pays dividends. A seven-year study in Britain of over 100 foreign companies showed that good HR management, as well as other factors, accounted for more of the variance in profitability and productivity than did technology, or research and development (Benson, 1999, 58).

The most general obstacles to effective HR management are cross-cultural adaptation, different organizational/workforce values, differences in management style, and management turnover. Doing business globally requires that adaptations be made to reflect these factors. It is crucial that such concerns be seen as interrelated by managers and professionals as they do business and establish operations globally (Tsang, 1994, 1). In the age of the global economy, dealing with different sets of workforce from different nationalities and cultural background would be more prevalent nowadays.

In the case, of Medical Precision System (“MPS”), unlike HR nationalities arising from their expansion to overseas region specifically Europe certainly poses HR challenges for MPS to overcome. There are after all a number of critical differences between the North American and the European context.

American Vs European Models of Human Resources Management

Expectation of governmental involvement in employment relationships

In comparing the American (“United States of America or USA”) and European HRM models, we can review based on the following perspectives:-

Perspectives/Dimensions

American

European

1

State regulations

Low Trade Union

Strong Trade Union

2

Individualism vs. Collectivism

Individualistic

Collectivism

State regulations

Under the institutional perspectives, a major difference between HRM in the USA and Europe is the degree to which HRM is influenced and determined by state regulations (Brewster, 2004).Legislation affording employees consultation and negotiation rights is stronger in Europe than in USA Europe is the region of the world with the largest percentages of employees in membership of independent trade unions. In this context, the USA where membership is probably less than one-tenth of the working population is considered weaker. Management consults the unions in Europe; about economic goals to try to achieve a harmony of interests. In most European countries, there is legislation requiring employers over a certain size to recognize unions for consultative purposes (Selmer, 2000, 237). Thus, in MPS we can see strong union presence in the United Kingdom (“UK”) and Sweden operations. In UK, Joe Mendes did not understand this perspective when he started negotiation with ...