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Integration , Global HRM and future of HRM Integration basically means combining of activities on the basis of the value

chain related to the present activity of the company. Sets of interlink activities performed by an organization right from the procurement of the basis raw materials to right down to the marketing of the finished products is a Value Chain. So a company may need to move up or move down the value chain to expand its business.

Human Resource Management Integration & Monitoring Integration and Monitoring Integrate HRM principles and standards to achieve compliance Monitor and implement continuous improvement In Human Resource Management there are agencies reporting on HRM standard compliance In their yearly report, agencies were asked to indicate what methods they used to assess compliance with the HRM Standards. Responses were requested in relation to the Recruitment, Selection and Appointment Standard specifically, as well as the remaining Standards.

Agencies commonly reported the following as indicators of the extent of their compliance: No breach claims were reported Agency conducts internal audit of compliance with Standards (eg reviews of decisions, staff surveys); Staff have access to their Code of Conduct and procedures for breach claims are readily available (mostly on the intranet); A claim occurred, but no breach was determined; Simply stating that compliance was achieved; and External audits of procedures conducted.


Main Issues Raised Job advertising Recruitment, Selection and The approach to recruitment ,Assessment of Appointment applicants The final selection decision Transfers Authority to transfer Taking into account employee interests Employment conditions Work related requirements


The acting period Comparative assessment Taking into account employee interests Application of the process Lodging a grievance Method used to handle a grievance


Key issues raised include: Failure to adequately investigate employee concerns particularly when grievances involve allegations against other employees or managers, or where they involve multiple issues; Lack of decision making or conclusion of grievances; Delays in grievance/complaint processes; and A lack of rigour in the process of investigating all or some of the concerns in the grievance Integration: Is it Happening Organizational examples (small in number but nonetheless important) Models of HRM Integration Organizational Integration Policy Integration Functional Integration Process Integration Organizational Integration Mergers and acquisitions as growth strategies are once again in vogue. Like all deals, long-term success is rarely accomplished by a mere combination of cool stuff and know-how. In the midst of all the hype, a well documented fact is that most merger and acquisition activity rarely delivers the highly anticipated synergies between companies. Throughout a merger or acquisition, people in an acquired company often complain Traditional integration practices have been built around consolidating key resources, financial and physical assets, brand names, and tradable endowments. The most forward thinking integration strategies also capture key pieces of elusive core competencies. Typically excluded are critical root strategic assets, which can make or break a union that is otherwise made in heaven.

Policy Integration Listing the policies The Career Path Policy Recruitment & Selection Policy Compensation policy

Performance Appraisal Policy Career Advancement Policy Developmental Policy

Integrating 1) Employee Development Policy 2) Policy Formulation 3) Implementation 4) Priorities 5) Diagnosis and Support is fundamental to achieving business excellence.

Functional Integration The way the business goes each sub function of business has to move in that way. HR as a function follows the footsteps of business, to know the path of HR and its challenges and perspectives lets see the business path. Therefore today "far from being marginalised, the human resource management function becomes recognized as a central business concern; its performance and delivery are integrated into line management. The new HR Objectives Corporate goals must factor in individual career growth. Company profits must be linked to personal rewards. Organizational learning must involve employee training. Job responsibilities must facilitate personal development. Business strategies must consider HR issues. HR as a function will be more integrated, directly with the business strategy derived mostly from vision. On the other hand it will focus on creating the internal environment and jobs which could maximise the life satisfaction of executives. In the end we could conclude that it will an important pillar of business. Process Integration Accomplishing business excellence, by integrating HR strategy and strategic planning To create business excellence with HRM processes that intrinsically add value, all organisations need to develop HR strategies to support the integration of business planning with business excellence. A holistic approach nurtures proactive incremental change. It also avoids the sudden traumatic change that so many

organisations endure as a result of radical improvement programmes and the inevitable stagnation

Integrating with Line Managers

HRD System and HRD culture is new to many organizations. Even if some organizations have strengthening the HRD processes requires an understanding and acceptance by line managers. Ways of developing such an understanding percolate from top management down. (takes long time). line managers need to be have HRD orientation. So organizations arrange organize orientation workshops &seminars to make the line manager aware . Case studies Example: L & T oriented all other officers to the new HRD system and trained them more intensely in the new appraisal and counseling systems. BEML also followed the same strategy. SBI, however, limited its orientation program largely to the new appraisal system they were evolved annual HRD conference a method of orienting all senior staff to all aspect of HRD. Problem experienced by organizations. When an orientation workshop is conducted for line managers explaining to them a new system, instrument or mechanism, it raises their expectations. They know ideally what should happen and keep looking for the ideal to happen. As a result, it has been found that howsoever well a system is implemented, line managers are normally dissatisfied with HRD implementation. This make the HRD managers role complex so he needs a lot of support from top management.

International HRM International Versus Domestic HRM More functions to perform (taxation culture orientation relocation admin services for expats) Broader perspective (cater to needs of PCNs HCNs TCNs) Greater involvement in the personal lives of employees Greater risk exposure (expat failure family problems terrorism) regulations local ways of doing business code of conduct) More external influences (government

Expatriate Managers Why send expatriates? Why host country nationals (HCNs) or third country nationals (TCNs) are not enough? Advantages and limitations of HCN and TCN expats. Parent-country Nationals Advantages Control and co-ordination by HQ is maintained. Promising managers get international experience. PCNs may be the best people for the job. Assurance that the subsidiary will comply with company objectives policies etc Disadvantages HCNs promotion opportunities are limited. Adaptation to host country may take a long time. PCNs may impose an inappropriate HQ style. Compensation differences between PCNs and HCNs may cause problems. Host-country Nationals Advantages No problems with language and culture. Reduced hiring costs. No work permits required. Continuity of management improves since HCNs stay longer in positions. Govt. policy may force hiring of HCNs. Promotional opportunities not limited - so higher morale among HCNs. Disadvantages HQ may have less control over operations. HCNs may still have limited career opportunities outside the subsidiary. Hiring HCNs limits opportunities for PCNs to gain overseas experience. Hiring HCNs may encourage a federation of disintegrated national units rather than one integrated global unit.

Third-country Nationals (TCNs, e.g. a French manager working for an American MNC in the firms Nigerian Advantages Salary and compensation may be lower than for PCNs. May be more familiar with host country than the PCNs. Disadvantages Transfers must consider national animosities.

Host government may resent TCNs as much as PCNs. TCNs may not comply with HQ style of management. TCNs may not want to return after assignment. International Training & Development Empirical literature give guarded support to the proposition that cross cultural training has a positive impact on cross cultural effectiveness. Cultural awareness training is not just for the employee going overseas. It has numerous applications domestically that will increase organizational effectiveness. Findings indicate that it should be a regular part of personnel training especially management development. The realities of a more pluralistic society and international business make this a necessity. Area studies programs Culture assimilator programs Language training programs Sensitivity training programs Field experience programs IHRM Compensation Even when dealing with one particular HR function area such as compensation, the international HR manager is faced with a great variety of national and international pay issues. For example, while dealing with pay issues, the HQ-based HR manager must coordinate pay systems in different countries with different currencies that may change in relative value to one another over time. An American expatriate in Tokyo who receives a salary of $100,000 may suddenly find the buying power of that salary dramatically diminished if the Japanese yen strengthens in value relative to the US dollar. A US dollar purchased 248 yen in 1985, but less than 110 yen in 2000. International Fringe Benefits In the case of fringe benefits provided to host company employees, some interesting complications might arise. For instance, it is common in the United States to provide health insurance benefits to employees and the employees family, which usually means spouse and children. In some countries however, the term family may include a more extended group of relativesmultiple spouses, aunts, uncles, grandparents, nephews, and nieces. How does the firms benefit plan deal with these different definitions of family? International Compensation Expatriation Premium Cost of Living Allowance Swamp Pay Allowance 6

Shelter Allowance Educational Allowance Home Leave A final aspect of the broader scope of IHRM is that the HQ-based manager deals with employee groups that have different cultural backgrounds. The HQ manager must coordinate policies and procedures to manage expatriates from the firms home country (parent country nationals, PNCs), host-country nationals (HCNs), as well as third country nationals (TCNs, e.g. a French manager working for an American MNC in the firms Nigerian subsidiary) in subsidiaries around the world.

Although such issues are important for the HQ-based manager, they are also relevant to the HR manager located in a subsidiary. This manager must develop HR systems that are not only acceptable to the host country but also compatible with company-wide systems being developed by his or her HQ-based counterpart. These policies and practices must effectively balance the needs and desires of local employees, PCNs and TCNs. Repatriation Virtually all repatriated personnel experienced some personal difficulty in reintegrating on return home. The main complaints were loss of status loss of autonomy lack of recognition of the value of the experience and lack of career direction.

Repatriation: Reverse Culture-shock JOB RELATED FACTORS Out of sight out of mind International experience devalued Loss of status and pay relatively peaking Changes in the HQ SOCIAL FACTORS Expat assignment - different type of social interaction (going from a very close expat community to where everyone is very busy with their own lives) Problems of spouse returning to the workforce Lack of peer support for teenagers