A303 Q08
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International Human Resource Management Qn. 8. Compare and contrast the mainstream and critical approaches to HRM. Give examples in an international context. By: Xiaolian Michelle Joyz
Framework
Introduction
Body
Define HRM & IHRM Define Mainstream approach of HRM Define Critical approach of HRM Compare & contrast both approaches to HRM functions Examples in international context
Conclusion
Human Resource Management
HRM is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business
HRM is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce.
International Human Resource Management
IHRM is the management of people and organization in an international context
Adaptation of managers across countries
Aims: competitive globally, efficient, locally responsive, flexible & adaptable within shortest time, capable of transferring knowledge & learning across globally
Human Resource Management
HRM functions consists of Staffing, Training & Development, Performance Management, Compensation Management and Employee Relations How?
Mainstream Approaches
Hard HRM Soft HRM
Critical Approach
Hard HRM
Ability to promote shareholder value for the firm by just looking at the bottom line result
The Liberal perspective: HR managers should maximize shareholder value only.
Hard HRM
Is business afterall just only about business?
What about the human elements?
Soft HRM
Ability to create shareholder’s value at the same time take into consideration of the interest of workers.
The Social perspective: HRM managers should seek to strike a balance between capital and labour
Critical HRM
Create an illusion to show that firm are concern of workers’ well-being, in actual fact they merely treat them as a means to create profit.
Believes that Soft HRM is human resource management w/o a heart, they’re only concern with bottom line results.
The Marxist perspective: HR managers are servants of capital used to create an illusion that workers are ends, not means.
Corporate Social Responsibility
Liberal HRM: total waste of time, unless it leads to profit
Social HRM: all firms have an obligation to adhere to a CSR-based code of conduct
Marxist Critique: CSR is an illusion
Comparison of Both Approaches to HRM Functions HRM Functions
Mainstream (Hard & Soft) Hard:
Staffing Planning Recruitment Selection
Staffing
of employees to various dept w/o seeking their views. Employ child labour to cut cost.
Soft: Seek
employees’ views and opinion on job posting. Enable children in poorer countries to earn a living on their own.
Critical Create
an illusion that such decision was made to equip them with various skills.
Create
an illusion to employees that co. is concern with their views towards personal career advancement. Exploiting child labour to cut cost and creating an illusion that they are trying to en-skill them.
E.g. in International context Generally Japanese employees in Japanese MNCs will not be allowed to choose their career path & posting.
- FairPlay 2008 on the Beijing Olympics. - Child labour in Nike factory
Comparison of both approaches to HRM HRM Functions
Mainstream (Hard & Soft) Hard:
Training & Development Identify
learning needs Deliver training Evaluate outcomes (Eg: Courses, Workshops)
Making
it compulsory for employees to go training w/o taking into considerations of their constraint (eg: Training required for promotion)
Soft: Seek
employees’ views and opinion on courses they would like to take, equip themselves with new skills.
Critical Create
an illusion that manager is concern with employees’ personal development, future promotion.
E.g. in International context MNCs usually see this as a must-have, sending expatriates for overseas training, experience gathering in order to be able to perform on their job well later.
Comparison of both approaches to HRM HRM Functions
Mainstream (Hard & Soft) Hard:
Performance Management Assessment
of individual/ Team performance Yearly, bi-yearly appraisals Maybe viewed by workers as surveillance
Top-down
assessment, autocratic way of assessing staff.
Soft: 360º
appraisal, Peer-appraisal etc.
Critical Create
an illusion that appraisal is fair, but how genuine is the result, will employees be putting on an act? (esp. 360º appraisal) An illusion that teamwork works better but it is only easier for mgtm to do evaluation.
E.g. in International context Assessment across borders are especially tough. E.g. Regional managers travel very frequently for meetings etcs, but how have they spend their stay in regional countries performing tasks in China is thus questionable. DBS: Yearly appraisals – the 5 KPIs. (Dept target)
Comparison of both approaches to HRM HRM Functions
Compensation Management Compensating
employees Usually based on performance, in terms of yearly bonuses, salary increment, sales commission etc For expats will be the country deployed to, living expenses etc
Mainstream (Hard & Soft)
Create
Hard: Fixed
increment/bonus yearly, fixed salary + allw packages for all expats going to same part of the world, did not take into consideration of other factors.
Soft: Concern
Critical
with each
and every employees, expats. deployment across the borders
an illusion that company was concern about your well-being on new assignment overseas thru customized salary package. (avoid corruption) Surveillance on expats – to make sure that they are really working.
E.g. in International context UK: Andersen Consulting paying extra bonus of ₤ 10,000 upfront to attract best graduates from top universities. In trying to get the best, to beat the competition by getting these people first. Argentina: Employees generally prefer fringe benefits like food vouchers and medical insurance than monetary increase in salary or bonus due to unstable currency.
Comparison of both approaches to HRM HRM Functions
Employee Relations Relationship
between the management and employees and between the employees
Mainstream (Hard & Soft) Hard: See employee relations as a waste of time, rather focus on promoting shareholders’ value Soft: See ER as a crucial factor to foster HRM, hence focus a lot on relationship developing
Critical Appears
to be nice to everyone, sharing information but this just aid to stop grapevine. Social event After working hours party (beer bash) etc. To gain employees’ trust & encouraging unity.
E.g. in International context UK: ‘Britco’ gave free alcohol at the co.’s social event the night before the EWC interaction. Thus at the meeting in the next morning, managers are able to manoeuvre freely thru the meeting with minimal resistance due to the high absenteeism. (For those workers who were there, impaired abilities to reason sensibly and lack of support)
Conclusion
HR managers must always weigh what is deemed right or wrong; ethical or not ethical.
The national context & consistent communication to all - workers, management and stakeholders on HR issues are important and crucial in all decisions made.
There is no one definitive conclusion.
Framework
Introduction
Body
Define HRM & IHRM Define Mainstream approach of HRM Define Critical approach of HRM Compare & contrast both approaches to HRM functions Examples in international context
Conclusion
Human Resource Management
HRM is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business
HRM is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce.
International Human Resource Management
IHRM is the management of people and organization in an international context
Adaptation of managers across countries
Aims: competitive globally, efficient, locally responsive, flexible & adaptable within shortest time, capable of transferring knowledge & learning across globally
Human Resource Management
HRM functions consists of Staffing, Training & Development, Performance Management, Compensation Management and Employee Relations How?
Mainstream Approaches
Hard HRM Soft HRM
Critical Approach
Hard HRM
Ability to promote shareholder value for the firm by just looking at the bottom line result
The Liberal perspective: HR managers should maximize shareholder value only.
Hard HRM
Is business afterall just only about business?
What about the human elements?
Soft HRM
Ability to create shareholder’s value at the same time take into consideration of the interest of workers.
The Social perspective: HRM managers should seek to strike a balance between capital and labour
Critical HRM
Create an illusion to show that firm are concern of workers’ well-being, in actual fact they merely treat them as a means to create profit.
Believes that Soft HRM is human resource management w/o a heart, they’re only concern with bottom line results.
The Marxist perspective: HR managers are servants of capital used to create an illusion that workers are ends, not means.
Corporate Social Responsibility
Liberal HRM: total waste of time, unless it leads to profit
Social HRM: all firms have an obligation to adhere to a CSR-based code of conduct
Marxist Critique: CSR is an illusion
Comparison of Both Approaches to HRM Functions HRM Functions
Mainstream (Hard & Soft) Hard:
Staffing Planning Recruitment Selection
Staffing
of employees to various dept w/o seeking their views. Employ child labour to cut cost.
Soft: Seek
employees’ views and opinion on job posting. Enable children in poorer countries to earn a living on their own.
Critical Create
an illusion that such decision was made to equip them with various skills.
Create
an illusion to employees that co. is concern with their views towards personal career advancement. Exploiting child labour to cut cost and creating an illusion that they are trying to en-skill them.
E.g. in International context Generally Japanese employees in Japanese MNCs will not be allowed to choose their career path & posting.
- FairPlay 2008 on the Beijing Olympics. - Child labour in Nike factory
Comparison of both approaches to HRM HRM Functions
Mainstream (Hard & Soft) Hard:
Training & Development Identify
learning needs Deliver training Evaluate outcomes (Eg: Courses, Workshops)
Making
it compulsory for employees to go training w/o taking into considerations of their constraint (eg: Training required for promotion)
Soft: Seek
employees’ views and opinion on courses they would like to take, equip themselves with new skills.
Critical Create
an illusion that manager is concern with employees’ personal development, future promotion.
E.g. in International context MNCs usually see this as a must-have, sending expatriates for overseas training, experience gathering in order to be able to perform on their job well later.
Comparison of both approaches to HRM HRM Functions
Mainstream (Hard & Soft) Hard:
Performance Management Assessment
of individual/ Team performance Yearly, bi-yearly appraisals Maybe viewed by workers as surveillance
Top-down
assessment, autocratic way of assessing staff.
Soft: 360º
appraisal, Peer-appraisal etc.
Critical Create
an illusion that appraisal is fair, but how genuine is the result, will employees be putting on an act? (esp. 360º appraisal) An illusion that teamwork works better but it is only easier for mgtm to do evaluation.
E.g. in International context Assessment across borders are especially tough. E.g. Regional managers travel very frequently for meetings etcs, but how have they spend their stay in regional countries performing tasks in China is thus questionable. DBS: Yearly appraisals – the 5 KPIs. (Dept target)
Comparison of both approaches to HRM HRM Functions
Compensation Management Compensating
employees Usually based on performance, in terms of yearly bonuses, salary increment, sales commission etc For expats will be the country deployed to, living expenses etc
Mainstream (Hard & Soft)
Create
Hard: Fixed
increment/bonus yearly, fixed salary + allw packages for all expats going to same part of the world, did not take into consideration of other factors.
Soft: Concern
Critical
with each
and every employees, expats. deployment across the borders
an illusion that company was concern about your well-being on new assignment overseas thru customized salary package. (avoid corruption) Surveillance on expats – to make sure that they are really working.
E.g. in International context UK: Andersen Consulting paying extra bonus of ₤ 10,000 upfront to attract best graduates from top universities. In trying to get the best, to beat the competition by getting these people first. Argentina: Employees generally prefer fringe benefits like food vouchers and medical insurance than monetary increase in salary or bonus due to unstable currency.
Comparison of both approaches to HRM HRM Functions
Employee Relations Relationship
between the management and employees and between the employees
Mainstream (Hard & Soft) Hard: See employee relations as a waste of time, rather focus on promoting shareholders’ value Soft: See ER as a crucial factor to foster HRM, hence focus a lot on relationship developing
Critical Appears
to be nice to everyone, sharing information but this just aid to stop grapevine. Social event After working hours party (beer bash) etc. To gain employees’ trust & encouraging unity.
E.g. in International context UK: ‘Britco’ gave free alcohol at the co.’s social event the night before the EWC interaction. Thus at the meeting in the next morning, managers are able to manoeuvre freely thru the meeting with minimal resistance due to the high absenteeism. (For those workers who were there, impaired abilities to reason sensibly and lack of support)
Conclusion
HR managers must always weigh what is deemed right or wrong; ethical or not ethical.
The national context & consistent communication to all - workers, management and stakeholders on HR issues are important and crucial in all decisions made.
There is no one definitive conclusion.
