Important Announcement
PubHTML5 Scheduled Server Maintenance on (GMT) Sunday, June 26th, 2:00 am - 8:00 am.
PubHTML5 site will be inoperative during the times indicated!

Home Explore CU-MBA-SEM-IV-International HRM

CU-MBA-SEM-IV-International HRM

Published by Teamlease Edtech Ltd (Amita Chitroda), 2021-11-02 18:22:34

Description: CU-MBA-SEM-IV-International HRM

Search

Read the Text Version

lump-sum payment has at least three advantages. First expatriates realize that they are paid this only once and that too when they accept an overseas assignment. So the payment tends to retain its motivational value. Second, costs to the company are less because there is only one payment and no future financial commitment. This is so because incentive is separate payment, distinguishable for a regular pay and it is more readily for saving or spending. 6. Taxes The final component of the expatriate’s compensation relates to taxes. MNCs generally select one of the following approaches to handle international taxation. 1. Tax equalization: – Firm withhold an amount equal to the home country tax obligation of the expatriate and pay all taxes in the host country. 2. Tax Protection :- The employee pays up to the amount of taxes he or she would pay on remuneration in the home country. In such a situation, The employee is entitled to any windfall received if total taxes are less in the foreign country then in the home country. 7. Long Term Benefits or Stock Benefits The most common long term benefits offered to employees of MNCs are Employee Stock Option Schemes (ESOS). Traditionally ESOS were used as means to reward top management or key people of the MNCs. Some of the commonly used stock option schemes are:  Employee Stock Option Plan (ESOP)- a certain nos. of shares are reserved for purchase and issuance to key employees. Such shares serve as incentive for employees to build long term value for the company.  Restricted Stock Unit (RSU) — This is a plan established by a company, wherein units of stocks are provided with restrictions on when they can be exercised. It is usually issued as partial compensation for employees. The restrictions generally lifts in 3-5 years when the stock vests.  Employee Stock Purchase Plan (ESPP) — This is a plan wherein the company sells shares to its employees usually, at a discount. Importantly, the company deducts the purchase price of these shares every month from the employee’s salary. Hence, the primary objective for providing stock options is to reward and improve employee’s performance and /or attract / retain critical talent in the Organization. 7.3 APPROACHES AND PRACTICES 1. Going Rate Approach This is based on local market rates. It relies on comparisons of surveys of the local nationals, expatriates of same nationality and expatriates of all nationalities’ pay packages. In this 151 CU IDOL SELF LEARNING MATERIAL (SLM)

approach, the compensation is based on the selected survey comparison. The base pay and benefits may be supplemented by additional payments for low pay countries. The advantages of the Going Rate Approach are,  Equality with local nationals  Simplicity  Identification with the host country  Equity amongst different nationalities The disadvantages of Going Rate Approach are,  Variation between assignments for the same employees  The rivalry between expatriates of the same nationality in getting assignments to some countries  Potential re-entry problems in the home country 2. Balance Sheet Approach: The Balance Sheet Approach to international compensation is a system designed to equalize the purchasing power of employees at comparable position levels living abroad and in the home country and to provide incentives to offset qualitative differences between assignment locations. The balance sheet approach is widely used by international organizations to determine the compensation package of the expatriates. The basic objective is the maintenance of living standards of the home country plus financial inducement. 1. Goods and Services: Outlays incurred in the home country for food, personal care, clothing, household furnishing, recreation, transportation, and medical care. 2. Housing: All major costs associated with housing in the host country. 3. Income Taxes: Parent country and host country income tax expenditures. 4. Reserve: Contribution to savings, payments for benefits, pension contributions, investments, education expenses, social security taxes, etc. The advantages of the Balance Sheet Approach are:  Equality between assignments and between expatriates of the same nationality.  Facilitates expatriate re-entry  Easy to communicate to the employees The disadvantages of the Balance Sheet Approach are:  It can result in considerable disparities between the expatriates of different nationalities and between expatriates and local nationals.  It can be quite complex to administer due to changing economic conditions, taxation etc. 152 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Citizen’s Approach – In this approach, an international basket of goods is used for all expatriates, regardless of country of origin. The basket of goods includes food, clothing, housing, and so forth. However, expatriates are not provided salary adjustments that would allow them to purchase exactly the same items in the host country as in the home country. Rather, they receive adjustments that would allow them to purchase a comparable local product of the same nature; e.g., rather than a Mercedes (which they had in the home country), they would buy a local luxury car.  Alternatively called the global salary systems, the international citizen’s approach is appropriate when an MNC has a team of dedicated international managers Europeans, Americans or Asians – who are ready to move to any part of the globe easily and effectively. Global salary systems seek to provide worldwide equity in rewards and allow managers to move between countries with minimal effects on lifestyle. 4. Lump Sum Approach – This involves giving the expatriate a predetermined salary and letting the individual decide about how to spend it. Finally, there is the regional system, under which the MNC sets a compensation system for all expatriates who are assigned to a particular region. Thus, everyone going to Europe falls under one particular system and those going to South Africa come under a different system. 7.4 FACTORS AFFECTING INTERNATIONAL COMPENSATION STRATEGY The understanding of the economic, political and social conditions of the business where they are is vital to make sound compensation strategy in the competing markets. Though compensation and reward system is used to motivate employees, but it isn’t just used to attract and hold talents. It serves as a comparative advantage for companies if used properly. Thus, the establishment of international compensation and reward system has been at the top agenda of multinational giants. It becomes a new boom that many multinational giants try to establish compensation and reward system in a perspective of global mind-sets rather than local. Global knowledge and information are collected to overcome the limits of local experience and the result is that the integration of global mind-sets in the system contributes to the competitive advantage of those brilliant companies. 1. Social Contract Considered as part of the social contract, the employment relationship is not just an interaction between an employee and an employer, and it also includes the government, all 153 CU IDOL SELF LEARNING MATERIAL (SLM)

managers and all employees. The relationships and expectations of these groups form the social contract. When thinking about how people get salaries around the world, it is apparent that different people have different ideas, so they think variously of government, employers and employees. The understanding of employee compensation management requires understanding of the social contract in that country. How to change employee compensation systems–for example, to make them serve better to customers, encourage innovative and quality service, or control costs–requires changing the expectations of groups to the social contract. 2. Culture Culture is an abstract but collective concept, which is not defined as a certain object but covers more than one object. It is a collection of Material wealth and Spiritual wealth including religious, customs, education, regulations, laws, economy and even science. Culture also plays its part in the international compensation system. People with different cultural backgrounds will view compensation system differently under the influence of culture. So does the management of the system. Culture is a thing deeply rooted in the blood of people. People in the same nation tends hold the same or similar mental programming way to process ideas and information. In other countries, the way may differ. So is the case of compensation system, the certain culture will inclines to match one culture of a nation if global mind-sets are not brought in and lead people to manage systems in a certain way. A simple and direct way to confirm it is to see the different meanings compensation in different countries. Culture which forms a system of knowledge, information and beliefs will affect attitudes and behaviors associated with the work. Culture affects the variables of the established compensation system. Though equity customs are shared among the employees from many countries, America and Japan for example, the force of the customs really works differently in different countries. In all, having the awareness of focusing the influence of culture values on employees is extremely important for corporate leaders. When dealing with compensation system, the controlling for context of culture should be paid attention. 3. Trade Unions Europe keeps highly solidaric and Asia is less heavily unionized. In some countries, team agreement sets how much the workers can earn even though the workers may not be union members. In France for example a majority of workers are paid by collective agreements, but only a few are union members. Social legislation differs among European countries; UK has the fewest requirements, because it has no minimum salaries, no maximum working hours, 154 CU IDOL SELF LEARNING MATERIAL (SLM)

and no common methods for employee participation. Social insurance in Germany and France are the most generous. 4. Ownership and Capital Markets Ownership and financing of companies are dramatically different around the world. These differences are vital to the understanding and managing of international payment. These patterns of ownership make certain kinds of pay systems have no significance. Employees in these corporations have various values and expectations. One research indicated that people who work for local or public corporations like salaries according to one’s performance more; however, those who work in federal-owned corporations are on the opposite side. So it is obvious that ownership differences have great effects on types of payment. It is very misleading to consider that every place is just like home. 5. Managers Autonomy Managerial autonomy reflects managers set his employees to make decisions by themselves. There is a relationship between it and the degree of centralization. Government, trade unions and corporate police are responsible to restrict managerial autonomy. Compensation decisions made in the domestic corporate offices and exported to subsidies all over the world may relate to the corporate strategy but discount local economics and social conditions. To sum up, international compensation is affected by economic, institutional, organizational, and individual conditions, globalization really represents that these conditions are varying– thus international pay system are altering too. Other Factors Besides the factors affecting compensation strategy talked about above, there exist some other important factors worth consideration. Global national policy is an example. Global national policy concerns many parts of the society, like tax. Taxation burden for the citizens vary across different countries. And so does welfare policy like retirement plan. The two are only two small parts of the national policy. National policy relates to the relationships among employers, employees, government and companies, which can exert influence on the compensation and reward systems as well. National policy of different countries will vary, so it will influence the international compensation and reward system. Some examples can be listed to support it. In German and Japan and in America and England, taxation and some regulation policies will show differently in the use of stock options. And the taxation will in turn decide the variable payment of a person. Different tax rates will decide different variable pay schemes. Besides, bonuses and allowances win popularity among employees in Korea or Japan. The increase of bonuses and allowances are not directly decided by the performance at 155 CU IDOL SELF LEARNING MATERIAL (SLM)

work. However, this is not the case in other places. As we all know, only the base pay rather than bonuses and allowances can be the base point to be calculated in some welfare schemes like national health insurance rates. And in America, the income tax doesn’t mean too much to benefit schemes. In this way, the taxation can function more effective to create employment. Besides, the complying with national policies is also a problem. When the government takes some initiatives, the corporate leaders is not easy to deal with even they are given discretion. They can’t just follow what others do. In many cases, companies can still have the clear mind to make decision about whether to follow the pervasiveness or to persist in the traditions. This just depends on the real condition of the company. For example, America once put forward some creative and innovative compensation schemes like phantom, ESOPs. The fact is that some companies adopted the initiatives and benefited a lot. And some didn’t, they just picked out what was proper for their companies. So whether to observe the national policies is a big choice worth consideration. Finally, there are social contracts in terms of the national policies. Social contracts are related to fairness and justice. The other concept is psychological contract. It means the company can benefit from benefiting employees. That is to say, though the psychological contract is invisible, the company can use to motivate. It concerns the employee participation and the emotions of employees. Companies can benefit development by satisfying the inner needs of employees to increase employee participation. The national policies put forward by government can show the social contract customs. Some public policies are issued to put limits to the employment relationship like minimum wage and family leave statutes. However, those national policies will influence the psychological contract by influencing the expectations related to the psychological contract. 7.5 MANAGING PEOPLE IN INTERNATIONAL FIRMS 7.5.1 Expatriation Process: An expatriate is somebody who has left their country of origin in order to reside in another country. Ex-pats may leave home for work reasons, including migrant labor who seeks more lucrative employment in a different country. Expatriates may live for a while overseas, or completely renounce their citizenship of one country in favor of another. The typical phases of the expat adjustment cycle are Preparation, Honeymoon, Culture Shock, and Adaptation. Preparation for Relocation 156 CU IDOL SELF LEARNING MATERIAL (SLM)

This is an exciting time for most assignees. They and their families will experience a mix of emotions ranging from the excitement of experiencing a new country to anxiety about the move and “starting over.” Honeymoon Phase Once They’re Abroad When a family first arrives in their host country and beings to explore their new home, they enter into the honeymoon phase of the expat adjustment cycle. The new language, culture, and way of life is exciting and strange, and families enjoy learning new vocabulary and meeting their new neighbors and co-workers. This stage lasts for about two months as they settle in. Culture Shock as Relocation Reality Sets In Once the honeymoon state has faded, the reality of life starts to set in. This begins the culture shock phase. Families begin to realize their own inabilities to interact with the culture, leading to feelings of isolation and frustration. These feelings can manifest in many different ways. People experiencing culture shock may lash out and become angry, or they may withdraw from the world and become uncommunicative. This is without a doubt the most difficult stage of the cycle, and can often last six to twelve months. Adaptation to Life Abroad Culture shock eventually wears off, and assignees and families begin to integrate more into their new home. The adaptation stage is when they begin to adjust to their new way of life, and accept and assimilate into the culture around them. Usually language skills improve tremendously, families broaden their social circles, and are able to move confidently around in their new surroundings in this stage. Provide assignees and their families resources based on the different needs that manifest as they progress through the expat adjustment cycle. By understanding the common emotions and experiences felt during the relocation process, you can ensure you’re providing the emotional and tactical support to set everyone up for success in their new home. 7.5.2 REPATRIATION PROCESS Repatriation is a process of returning back from a international assignment to a home country after completing the assignment or some other issues. Repatriation is the last step in the expatriation cycle and it involves readjustment and re-entry of international managers and their families back to their home country. Expatriation and repatriation are not two separated 157 CU IDOL SELF LEARNING MATERIAL (SLM)

processes, rather the former is a beginning and the latter the closure. The term may also refer to the process of converting a foreign currency into the currency of one’s own country. The Importance of Repatriates The employee of any organization who adjust well in a HCN in an international assignment and performed effectively there would be highly imported. The repatriate perspective, here are some of the reasons why repatriated employees are important: There are a many successful international assignments which are very important to the employee career as well as for the company’s growth. So many companies send expatriate to other countries for doing business internationally. The employees who are send to abroad for international assignment are expatriates those employees who learned many things that would be useful to those who will be sent to that same country if some means could be identified as to how they might be mentors to future expatriate employees. Expatriates can bring new and unusual approaches to cultural environment, information gathering, analysis of data, and problem-solving as a result of having work cross-culturally in an effective manner. Expatriates may have been more flexible, or less rigid, in changing circumstances. In that different approaches have been tried in other contexts, they may be able to bring insights and innovation to the planning process that may not have been considered previously. The repatriate who have performed at a high level in a HCN may bring a dimension of confidence and competence that will enhance his or her value to the company as it competes in a changing world market. Expatriates who are work outside the culture of the company and the country, the repatriated employee may well have insights that can effect needed change. That perspective ought to be valued and given a voice within the company. The repatriated employees would likely to bring motivated by some factors to encourage them for the sharing of their experience. The effective international employees may well have gained insights in how to affect a more coordinated group effort than encouraging individual achievement. 158 CU IDOL SELF LEARNING MATERIAL (SLM)

Repatriation Process 1. Preparation: before 3-4 months of expatriate return Developing plans for future and info about new position Checklist of items before leaving (closure of bank a/c, bills etc.) 2. Physical Relocation Removal of personal belongings , breaking ties with friends, colleagues before returning Re-entry training for home country’s update, socio-cultural contrast orientation, psychological aspects etc. 3. Transition: Finding accommodations, school for children, opening bank A/c etc. for comfortable living. Relocation consultants used. 4. Readjustment Coping with aspects as company changes , reverse culture shock and career demands Eg. Repatriate returning from country where power distance is large as Thailand may experience stress on returning to small power distance countries like Denmark. Repatriation of Expatriates Repatriation Return to one’s home country from an overseas management assignment Reasons for returning Formally agreed-on tour of duty is over Expats want their children educated in the home country Unhappiness with foreign assignment Failure to perform well Major concerns of expatriates Cultural Re-entry Financial Implications Nature of job assignment Multinational responses to repatriation 1. Staff availability: current and future needs If repatriate promoted ,International assignments as a positive career move If repatriate demoted or given pink slips so vice versa. 2. Return on investment (ROI) Expatriates are expensive Accomplishing assignment objectives at the expected cost 3. Knowledge Transfer Cross-fertilization of ideas and practices that assist in developing competitive advantage. 159 CU IDOL SELF LEARNING MATERIAL (SLM)

Build upon international experience of repatriates Designing a Repatriation Program 1. Mentor programs (Pairing expat with a member of home office senior mgmt): Maintaining contact with the expatriate throughout the assignment Ensuring that expatriates are kept up- to-date with developments in home country Assisting expatriates in repatriation process 2. Inviting repatriates in developing repatriation program Steps suggested for smooth transition: Arrange an event to welcome & recognize the employee & family Establish support to facilitate family reintegration Offer repatriation counseling or workshops to ease the adjustment Assist the spouse with job counseling, resume writing & interviewing techniques Provide educational counseling for the children Provide employees with thorough debriefing to identify new knowledge, insights & skills to provide a forum to showcase new competencies Offer international outplacement to the employee if no positions are possible Arrange an interview with the expatriate & spouse to review their view of the assignment & address any repatriation issues 7.6 SUMMARY  International compensation can be defined as the provision of monetary and non- monetary rewards, including base salary, benefits, and perquisites, long- and short- term incentives, valued by employees in accordance with their relative contributions to MNC performance.  Objectives: o Attracting and Retaining Personnel o Motivating Personnel o Optimizing Cost of Compensation o Consistency in Compensation  The following are the major components of an international compensation package. o Base Salary o Foreign Service Inducement Premium o Allowances o Benefits o Incentives o Taxes 160 CU IDOL SELF LEARNING MATERIAL (SLM)

o Long Term Benefits or Stock Benefits  Going Rate Approach- This is based on local market rates. It relies on comparisons of surveys of the local nationals, expatriates of same nationality and expatriates of all nationalities’ pay packages.  The Balance Sheet Approach to international compensation is a system designed to equalize the purchasing power of employees at comparable position levels living abroad and in the home country and to provide incentives to offset qualitative differences between assignment locations.  Citizen’s Approach – In this approach, an international basket of goods is used for all expatriates, regardless of country of origin.  Lump Sum Approach – This involves giving the expatriate a predetermined salary and letting the individual decide about how to spend it.  The main factors affecting international compensation strategy are; (1) social contract (2) culture (3) trade union (4) ownership and capital markets, and (5) managers’ autonomy.  An expatriate is somebody who has left their country of origin in order to reside in another country. Ex-pats may leave home for work reasons, including migrant labor who seeks more lucrative employment in a different country.  Repatriation is a process of returning back from a international assignment to a home country after completing the assignment or some other issues. Repatriation is the last step in the expatriation cycle and it involves readjustment and re-entry of international managers and their families back to their home country. 7.7 KEYWORDS 1. Tax equalization: – Firm withhold an amount equal to the home country tax obligation of the expatriate and pay all taxes in the host country. 2. Tax Protection :- The employee pays up to the amount of taxes he or she would pay on remuneration in the home country. In such a situation, the employee is entitled to any windfall received if total taxes are less in the foreign country then in the home country. 3. Employee Stock Option Plan (ESOP)- a certain nos. of shares are reserved for purchase and issuance to key employees. Such shares serve as incentive for employees to build long term value for the company. 4. Restricted Stock Unit (RSU) — This is a plan established by a company, wherein units of stocks are provided with restrictions on when they can be exercised. It is 161 CU IDOL SELF LEARNING MATERIAL (SLM)

usually issued as partial compensation for employees. The restrictions generally lifts in 3-5 years when the stock vests. 5. Employee Stock Purchase Plan (ESPP) — This is a plan wherein the company sells shares to its employees usually, at a discount. Importantly, the company deducts the purchase price of these shares every month from the employee’s salary. 7.8 LEARNING ACTIVITY 1. State the significance of the compensation in Expatriate Management. _________________________________________________________________________ __________________________________________________________________________ 2. Is tax component of the compensation having a positive or negative motivational impact on Expatriate Performance. ________________________________________________________________________ ________________________________________________________________________ 7.9 UNIT END QUESTIONS A. Descriptive Questions Short Answers: 1. What is an International Compensation? 2. Explain the Foreign Service Inducement Premium. 3. State and explain the objectives of International Compensation Management. 4. Write a note on Citizen’s Approach. 5. Describe the Expatriation Process. Long Answers: 1. Describe the various components of the International Compensation. 2. Compare Going rate approach with Balance Sheet Approach. 3. Explain the objectives of the International Compensation Management. 4. Discuss the factors involved in International Compensation. 5. Enumerate Repatriation Management B. Multiple Choice Questions 162 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Relocation is ________________ part of Compensation. a. Incentives b. Allowances c. Benefits d. Base Salary 2. Which type ofshares serve as incentive for employees to build long term value for the company? a. ESOP b. RSU c. ESPP d. ETOP 3. What is Spouse assistance? a. Provide some temporary assignment for Spouse b. Provide Training for the spouse c. Provides sponsorship for educational certification of the Spouse d.compensates for the loss of income due to spouse losing their job 4. ___________involves giving the expatriate a predetermined salary and letting the individual decide about how to spend it. a. Citizen Approach b. Balance Sheet Approach c. Lump Sum Approach d. Going rate Approach 5. Finding accommodation is considered in _________________ step of Repatriation. 163 a.Transition: b. Readjustment CU IDOL SELF LEARNING MATERIAL (SLM)

c. Physical Relocation d. Preparation Answers 1 – b; 2 – a; 3 – d; 4 – c; 5 – a; 7.10 SUGGESTED READINGS Text Book:  Wilhelm Schmeisser, Dieter Krimphove, Rebecca Popp, International Human Resource Management and International Labour Law, De Gruyter Oldenbourg,  Peter J. Dowling, Marion Festing and Allen D. Engle, Sr., International Human Resource Management, Cengage Learning EMEA  By Veronica Velo, Cross-Cultural Management, Business Expert Press  Srinivas R. Kandula International Human Resource Management , SAGE Publications Pvt. Ltd  Pravin Durai, Human Resource Management, Pearson India Reference Book  K Aswathappa , Sadhna Dash, International Human Resource Management, McGraw Hill  Gary Dessler, Fundamentals of Human Resource Management, Pearson  Ekta Sharma, Strategic Human Resource Management and Development, Pearson India  Parissa Haghirian, Successful Cross-Cultural Management, Business Expert Press Open Sources:  https://www.Shrm.org/  https://www.ncbi.nlm.nih.gov/  https://www.futurelearn.com/  International Journal of Human Resource Studies  changingminds.org  assignmentpoint.com  interculturalmanagement.fandom.com  diva-portal.org  cvs.edu.in 164 CU IDOL SELF LEARNING MATERIAL (SLM)

 strategy-business.com  www.mbaknol.com (Integrity-Asia & ispatguru)  publications.anveshanaindia.com  smallbusiness.chron.com  resources.workable.com  whatishumanresource.com  resources.workable.com  jigsawacademy.com  www.personio.com 165 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 8: JOB ANALYSIS STRUCTURE 8.0 Learning Objective 8.1 Introduction 8.2 Job Analysis 8.2.1 Definition And Concept 8.2.2 Features of Job Analysis 8.2.3 Purpose of Job Analysis 8.2.4 Job Analysis Process 8.3 Techniques of Data Collection For Job Analysis: 8.4 Job Description: 8.5 Job Specification: 8.6 Factors Influencing Job Analysis 8.7 Summary 8.8 Keywords 8.9 Learning Activity 8.10 Unit End Questions 8.11References 8.0 LEARNING OBJECTIVE After studying this unit, you will be able to:  Explain the Concept and significance of Job Analysis Process  Describe the techniques involved in data collection of Job Analysis  Compare the significance of Job Description and Job Specification  Highlight the factors that influences Job Analysis 8.1 INTRODUCTION Job analysis can help firms enhance management efficiency by gathering comprehensive intelligence and providing extensive information about related tasks. It refers to specifying job-specific requirements and performing the work, which necessitated deciding on a path of action. The job description and statement of work are the two sections of the job analysis. Job 166 CU IDOL SELF LEARNING MATERIAL (SLM)

analysis - job specification is formed by analysing the work input, conversion work, work output, work associated features, job resources, work environment background, and the result of these analyses (also known as the statement of work). Job specifications, job summaries, job duties and responsibilities, and information on qualification criteria were all part of the identifying information work, which made it easier to employ functions for other human resource management. Job analysis is the foundation for human resource management, and the quality of its analysis has a considerable impact on other human resource management modules. Job analysis, which is an important and universal human resource management technique, is also characterised as a system process for identifying the abilities needed to execute the work, as well as responsibility and knowledge. It is the foundation of all human resource management activities, as it collects data for other HRM processes like as selection, training, performance review, and compensation design. Enterprises can identify the problem, discover gaps through analysis of existing work, and redesign work to be more efficient or incentive-based, or undo the old hierarchical structure, arrangement, and replace it with a more flexible and liquid organisational structure. 8.2 JOB ANALYSIS 8.2.1 DEFINITION AND CONCEPT: Dale Yoder (1983) defines job analysis as “a process in which jobs are studied to determine what tasks and responsibilities they include their relationships to other jobs, the conditions under which work is performed, and the personnel capabilities required for satisfactory performance.” Mathis and Jackson (1999) view job analysis as a systematic way to gather and analyze information about the content and human requirements of jobs and the context in which jobs are performed. Dessier (2005) defines job analysis as the procedure through which job analyst determines the duties of different positions of an’ organization and the characteristics of the people to hire them. Job Analysis is a systematic exploration, study and recording the responsibilities, duties, skills, accountabilities, work environment and ability requirements of a specific job. It includes determining the relative importance of the duties, responsibilities and physical and emotional skills for a given job. Job analysis highlights the factors which are critical for performing the job and what the required skill set of an employee to perform a job productively. 167 CU IDOL SELF LEARNING MATERIAL (SLM)

8.2.2 FEATURES OF JOB ANALYSIS: From the definitions in the preceding section, we can list out the features of job analysis as follows: 1. Job analysis is a process of gathering relevant information about various aspects of a job and identifying tasks required to be performed as part of it. 2. It approaches systematically defining the role, context, conditions, human behavior, performance standards, and responsibilities of a job. 3. It helps in establishing the job’s worth to an organization. In other words, it measures the value and contribution of a job to the growth of the organization. 4. It establishes job-relatedness, which is crucial for HR decisions involving recruitment, selection, compensations, training, health, and safety. 8.2.3 PURPOSE OF JOB ANALYSIS The purpose of Job Analysis are as follows: Recruitment & Selection Compensation Performance Management Analysis Purpose of Job Analysis Training & Job Design Development Fig 8.2.1: Purpose of Job Analysis 168 CU IDOL SELF LEARNING MATERIAL (SLM)

 Recruitment and Selection: Job specification results from the process of Job Analysis and it highlights the qualification, skills which are necessary to perform a particular job. It points out the level of experience, technical, physical, emotional and personal skills required to carry out a job in particular way. The objective is to select best fit.  Performance Analysis: Job analysis helps in finalizing the performance standards, evaluation criteria and individual’s output. It acts as a guideline for the employees’ performance and also provides comparison point to HR department. Job targets are decided on the basis of job analysis and then the performance of the employees to check if goals and objectives of a particular job are met or not. This step helps in appraising performance and then rewards and recognitions are decided accordingly.  Training and Development: Training and development programme is based on the gap analysis between expected and actual performance of the employee. Gap analysis is dependent on the Job Analysis that helps to decide the training need of the employees and conduct the training programme respectively. Thus, all the decision related to the training content, tools and equipment’s to be used to conduct training and methods of training is decided on the basis of gap analysis.  Compensation Management: Job analysis helps to understand and decide the worth of the job. Various components of the compensation like reimbursement, pay perks, incentives, bonuses are finalized on the basis of the job analysis as it provides the detail of efforts required to perform the job. Even compensation is directly linked with the job title ,duties and responsibilities which is decided in the Job Analysis process.  Job Designing and Redesigning: The finalization of the different aspect of the jobs like job title, key performance area, key results area, duties, reporting structure, etc. is the main purpose of Job Analysis. It’s very important to utilize the human resource in best possible way. So, there is an always need of modifying the existing job or designing the new one as per the technological advancement, changing customer preference and industry dynamics. This not only improves the overall effectiveness of the organization but also helps in enhancing the employee satisfaction. 8.2.4 JOB ANALYSIS PROCESS: 169 CU IDOL SELF LEARNING MATERIAL (SLM)

Identific Who How to Strategic Training Preparat Data Docume Developi ation of Will Conduct Decision of Job ion of Collectio ntation, ng Job Conduct Making Analyst Job Verificat Descript Job Job the n ion and ion and Analysis Analysis Process: Analysis Review Purpose: Process Job Specifica tion: Fig 8.2.2: Job Analysis Process  Identification of Job Analysis Purpose: Well, any process is futile until its purpose is not identified and defined. Therefore, the first step in the process is to determine its need and desired output. Spending human efforts, energy as well as money is useless until HR managers don’t know why data is to be collected and what is to be done with it.  Who Will Conduct Job Analysis: The second most important step in the process of job analysis is to decide who will conduct it. Some companies prefer getting it done by their own HR department while some hire job analysis consultants. Job analysis consultants may prove to be extremely helpful as they offer unbiased advice, guidelines and methods. They don’t have any personal likes and dislikes when it comes to analyze a job.  How to Conduct the Process: Deciding the way in which job analysis process needs to be conducted is surely the next step. A planned approach about how to carry the whole process is required in order to investigate a specific job.  Strategic Decision Making: Now is the time to make strategic decision. It’s about deciding the extent of employee involvement in the process, the level of details to be collected and recorded, sources from where data is to be collected, data collection methods, the processing of information and segregation of collected data.  Training of Job Analyst: Next is to train the job analyst about how to conduct the process and use the selected methods for collection and recoding of job data. 170 CU IDOL SELF LEARNING MATERIAL (SLM)

 Preparation of Job Analysis Process: Communicating it within the organization is the next step. HR managers need to communicate the whole thing properly so that employees offer their full support to the job analyst. The stage also involves preparation of documents, questionnaires, interviews and feedback forms.  Data Collection: Next is to collect job-related data including educational qualifications of employees, skills and abilities required to perform the job, working conditions, job activities, reporting hierarchy, required human traits, job activities, duties and responsibilities involved and employee behaviour.  Documentation, Verification and Review: Proper documentation is done to verify the authenticity of collected data and then review it. This is the final information that is used to describe a specific job.  Developing Job Description and Job Specification: Now is the time to segregate the collected data in to useful information. Job Description describes the roles, activities, duties and responsibilities of the job while job specification is a statement of educational qualification, experience, personal traits and skills required to perform the job. Thus, the process of job analysis helps in identifying the worth of specific job, utilizing the human talent in the best possible manner, eliminating unneeded jobs and setting realistic performance measurement standards. 8.3 TECHNIQUES OF DATA COLLECTION FOR JOB ANALYSIS: An organization uses different methods to collect information and conduct job analysis. Observation method In this method, the observer observes a worker or a group of workers doing a job. He makes a list of all the duties performed by the worker and the qualities required to perform those duties. It is a direct method. Direct exposure to jobs can provide a richer and deeper understanding of job requirements than works’ descriptions of what they do. If the work in question is primarily mental, observations alone may reveal little useful information. Job performance With this approach, an analyst does the job understudy to get firsthand exposure to what it demands. 171 CU IDOL SELF LEARNING MATERIAL (SLM)

With this method, there is exposure to actual job tasks and the physical, environmental, and social demands of the jobs. It is suitable for jobs that can be learned in a relatively short period. Its main limitation is that when the employee’s work is being observed, the employee becomes conscious. This method is inappropriate for jobs that require extensive training or are hazardous to perform. Work sampling Under this method, a manager can determine the content and pace of a typical workday through a statistical sampling of certain actions rather than through continuous observation and timing of all actions. Individual interview Here a manager or job analyst visit each job site and talks with employees performing each job. A standardized interview form is used most often to record the information. Frequently, both the employee and the employee’s supervisor must be interviewed to obtain a complete understanding of the job. In some cases, a group of experts conducts the interview. They ask questions about the job, skill levels, and difficulty levels. They ask questions and collect information, and based on this information, and job analysis is prepared. This method can provide information about standard and non-standard activities and physical and mental work. In short, the worker can provide the analyst with information that might not be available from any other source. Its main limitation is that workers may be suspicious of interviewers and their motives.; interviewers may ask ambiguous questions. Thus, the distortion of information is a real possibility. Structured questionnaire A survey instrument is developed and given to employees and managers to complete. The main advantage of this method is that information on many jobs can be collected inexpensively in a relatively short time. This method is usually cheaper and quicker to administer than other methods. Questionnaires can be completed off the job, thus avoiding lost productive time. Its main limitation is that it is time-consuming and expensive to develop. The rapport between analyst and respondent is impossible unless the analyst is present to explain and clarify misunderstandings. Such an impersonal approach may have adverse effects on respondent cooperation and motivation. 172 CU IDOL SELF LEARNING MATERIAL (SLM)

Critical incident method In this method, the employee is asked to write one or more critical incident that has taken place on the job. The incident will explain the problem, how it is handled, qualities required and difficulty levels, etc. The critical incident method gives an idea about the job and its importance. A critical means important, and incident means anything which takes place on the job. This method focuses directly on what people do in their jobs, and thus, it provides insight into job dynamics. But this method takes much time to gather, abstract, and categorize the incidents. It may be difficult to develop a profile of average job behavior as this method describes particularly effective or ineffective behavior. Diary method Under this method, companies can ask employees to maintain log records or daily diaries, and job analysis can be done based on information collected from the record. A log record is a book in which employee records /writes all the activities performed by him on the job. The records are extensive and exhausted in nature and provide a fair idea about the duties and responsibilities in any job. In this method, the worker does the work himself, and the idea of the skill required, the difficulty level of the job, and the efforts required can be known easily. 8.4 JOB DESCRIPTION Job description provides the necessary information which is used for job posting and attracting applicants to apply for the same. It has information like job title, job location, reporting to and of employees, job summary, nature and objectives of a job, tasks and duties to be performed, working conditions, machines, tools and equipment’s to be used by a prospective worker and hazards involved in it. A comprehensive JD helps in creating positive impression of the organization to the employees. Purpose of Job Description  The primary objective of the job description is to gather job-related data in order to post the details of a particular job. It helps in attracting, targeting, recruiting and selecting the right candidate for the right job.  It helps to outline the responsibilities of the employee who is selected. It also highlights the expectation of the employer for specific job role.  It provides clear information about the quality and skill set of the candidate required to fill the vacancies. 173 CU IDOL SELF LEARNING MATERIAL (SLM)

 It even states the reporting structure of the department. Job Description Components Fig 8.4.1: Components of Job Description A Job description will include the following components: o Roles and responsibilities of the job. o Goals of the organization as well the goals to be achieved as a part of the profile are mentioned in the job description. o Qualifications in terms of education and work experience required have to be clearly mentioned. o Skill sets like leadership, team management, time management, communication management etc required to fulfill the job o Salary range of the job are mentioned in the job description The table above shows a sample job description. Formats for job description may vary from company to company but the overall details would be similar. 174 CU IDOL SELF LEARNING MATERIAL (SLM)

Job Description Writing Guide: This guide provides the basics of writing a job description and covers the following sections of the job description:  Position Details  Job Duties (“What you do”)  Performance Standards (“How you do it”)  Job Factors For more comprehensive instruction, the Compensation Department offers Job Description workshops to provide administrators, managers, supervisors, and staff employees with the necessary tools to write effective job descriptions. Position Details This Position Details section contains general information about the job – the current or requested classification, working title, pay range, exemption status, department name and number, position number, percentage of effort, the job description summary, comparable positions, etc. Working Title The working title for a job should be based upon the main function or role of the job. It is important to stray away from vague and particular job titles instead create a working title that appropriately describes both the level of responsibility and role of the job. Here are some examples of good working titles and those that need some improvement: Job Description Summary The job description summary:  Contains 1-3 paragraphs  Summarizes the main points of the job description, which may include key responsibilities, functions, and duties; education and experience requirements; and any other pertinent information (i.e., scheduling requirements, travel, etc.)  It is used in job postings Comparable Positions Use this section to list any positions in the department that have a similar role or level of responsibility. It is useful to the Compensation Analyst during the classification process and helps to ensure positions are classified consistently. 175 CU IDOL SELF LEARNING MATERIAL (SLM)

Job Duties The Job Duties section is the foundation of the Job Description. It conveys the complexity, scope, and level of responsibility of a job. Due to the significance of this section, it is important to accurately, concisely, and completely describe the duties and responsibilities of a job. This section of the Job Description is comprised of three main elements: Key Accountabilities The main areas of responsibility within a job or “buckets of work.” Job description usually contains three to five Key Accountabilities. Duty Statements Sentences that provide additional information about the tasks associated with Key Accountability. Percentage of Time Estimates the portion of the job that is spent on a particular Key Accountability. 8.5 JOB SPECIFICATION Job specification highlights the quality required to perform the specific job. A job specification is a written statement that provides all the necessary details of educational qualifications, specific qualities, level of experience, physical, emotional, technical and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands.It also includes general health, mental health, intelligence, aptitude, memory, judgment, leadership skills, emotional ability, adaptability, flexibility, values and ethics, manners and creativity, etc. Purpose of Job Specification  Job specifications provide basis to the potential candidates whether they fit in the criteria of the job or not.  It furnishes all necessary information to recruiting team about the level of qualifications, qualities and set of characteristics are necessary in a candidate, so that they can be shortlisted for next process  Job Specification also provide information about any job including job responsibilities, desired technical and physical skills, conversational ability and much more.  It helps in finalizing the most appropriate candidate for a particular job. 176 CU IDOL SELF LEARNING MATERIAL (SLM)

Job description and job specification are two integral parts of job analysis that provide basis for carrying out the recruitment and selection procedure. Job description and job specification help to define the criteria for best fit, identifying the training needs and also define performance standards for comparison. Job description and job specification provides primary details for determining the worth of the job. How to write a job specification or Job Spec? Job specification is blue print for the recruitment and selection process. Thus, job specification has to be drafted very carefully. The HR manager working on job specification should have vision to collect the information about the ideal candidate for the job. There are four components of job specification: Educational qualification, experience, skills and knowledge, characteristics and personality traits. Four Components of Job Spec Fig 8.5.1: Components of Job Specification  Educational qualification: This part covers the desired education of the candidate. Specific terms, such as graduate, post graduate can be used here. The stream of education should be mentioned, along with the necessary grades which are required. Many companies also provide notes in terms of over qualification 177 CU IDOL SELF LEARNING MATERIAL (SLM)

like- MBA are not required or graduates should not apply in the job specification.  Experience: Job specification should clearly highlight the required experience in a precise domain to perform the job. It includes details such as experience required in which industry, number of years of experience, position and domain. For the higher job profile managerial or team handling experience is often required by the organization.  Skills & Knowledge: This section explains the skills such as communication skills, leadership quality, team management and many more which are necessary for the given job role. The term knowledge includes market knowledge, domain knowledge, computer language knowledge based on the profile.  Personality traits and characteristics: Here a situational based traits and characteristics are covered. The way the person should handle the complex situation in the organization, generic behavior of the candidate is covered in this section. The emotional intelligence has also given importance in this section of job specification. Steps to Write the Job Specification or Job Spec Once you are aware of the four components of the job specification it becomes easy to write the draft for a particular job.  Step I- Check the job role and decide the educational qualification required to perform the duty. One should check the nature of job, its importance and the background which will be helpful to work on the job.  Step II- The job title and position provides brief idea about the duration of experience required to perform the job. Once the experience of domain work is certain, one should look for other experience such as managerial, client handling, as a service provider, grievances handling which are required for long term performance of the job.  Step III- Along with the qualification and experience there are certain skills which are essential to perform the assigned job duties. The skills and knowledge which are mentioned as mandatory in the job specification are often verified during the selection process by the HR department.  Step IV- The situational intelligence, emotional stability, personality traits and attributes should be mentioned in the job specification. It also includes general and mental health, aptitude, judgment, memory, adaptability, values flexibility, and ethics. 178 CU IDOL SELF LEARNING MATERIAL (SLM)

 Step V- Once all the four components are well defined in the job specification, it is necessary to verify the job specification with the help of people working the domain. Generally the reporting manager of the profile approves the drafted job specification.  Step VI- Once the job specification is approved it is circulated among the HR department to add it in the official documents. Note: During the preparation of the job specification it is important to avoid the discriminatory terms. Once should not cover the personal aspects of the candidate such as race, sexual orientation or civil partnership as a criteria in the job specification. Job specification or Job Spec Example Here is a sample job specification for Marketing Manager in Service Industry. The sample provided here is only for understanding purpose, different companies can make changes in the job specification based on the need of the organization. The sample job specification is just an outline for the job specification which need practical verification before implementing the corporate world. 8.6 FACTORS CONSIDERED IN THE JOB ANALYSIS PROCESS Most expatriates are managers or highly-trained technical experts. They have the necessary technical and managerial skills, enhanced communication between parent company and foreign subsidiary. They are more familiar with corporate culture, enhancing parent- subsidiary relations. Assigning expatriates to foreign posts is an essential ingredient of their management development programme and their progress toward becoming an international manager. Despite these advantages of using the expatriates for the international assignments, there are a number of factors that contribute to expatriate success or failure. There has been considerable research that has attempted to identify factors that may moderate performance and affect the decision to stay or leave the international assignment. The primary intention has been to link reasons for early recall to predictors of success and thereby generate selection criteria that may assist multinationals in their staffing decisions. 179 CU IDOL SELF LEARNING MATERIAL (SLM)

Table 8.6.1: Job Factors considered for International Assignment While the focus has predominately been on cross-cultural adjustment, other factors have also been identified, as depicted in the figure above. The importance of family considerations in cultural acculturation is also important factor determining the success of the expatriate Factors can be broadly grouped under two heads affecting the success of expatriates, such as; general factors and specific attributes. General factors deals with the job-related factor while specific attributes refers to the technical skills and attributes. Inability to adjust to the foreign culture: This factor has been a consistent reason given for expatriate failure and has been the subject of considerable interest to researchers. The ‘inability of the spouse to adjust’ to foreign environment has also been recognised as a significant reason. Let us understand the model described below. Expatriation Adjustment Model: In recent years international human resource scholars have developed theoretical models that help explain the factors involved in effectively adjusting to overseas assignments. There are two major types of adjustments that an expatriate must make when going on an overseas assignment. One is the anticipatory adjustment which is carried out before the expatriate leaves for the assignment. The other is the in-country adjustment which takes place on-site. Anticipatory adjustment is influenced by several important factors. One individual factor is the pre-departure training that is provided. Other is the previous experience the 180 CU IDOL SELF LEARNING MATERIAL (SLM)

expatriate may have had with the assigned country or similar cultures. These two factors help determine the accuracy of the expatriate’s expectations. Once on-site, there are a number of factors that will influence ability to adjust effectively. These include: 1. The ability to maintain a positive outlook in the face of high pressure, to interact with host nationals, and to correctly perceive and evaluate the host countries values a norm. 2. The job factor itself as reflected by the role the expatriate plays in managing the host country’s management team, the authority he/she has to make the decisions, the new ambience of work-related challenges and the amount of role-conflict that exists. 3. Organisational culture and how easily the expatriate can adjust to it. 4. The non-work factors such as the toughness with which the expatriate can adjust to the rigours of the new cultural experience and how well his or her family can adjust to the rigours of the new assignment. 5. Effective socialization tactics, to know ‘what is what’ and ‘who is who’ in the host’s organisation. These anticipatory and in-country factors will influence the expatriate’s mode and degree of adjustment to an overseas assignment. T his explains why effective selection is so important and difficult. Length of assignment: There is some evidence that length of assignment does contribute to adjustment and performance. A longer assignment allows the expatriate more time to adjust to the foreign situation and become productive. Example: Japanese firms often do not expect the expatriate to perform up to full capacity until the third year; the first year of the foreign assignment is seen mainly as a period of adjustment to the foreign environment. Willingness to move: In a situation where an employee is a reluctant expatriate or accompanied by reluctant family members, it is more likely that they may interpret negatively events and situations encountered in the new environment. A study says that managers who are most ready for international relocations are those whose spouses are also supportive of that move – a not surprising finding. Other studies support the importance of a positive outlook. Example: The reasons for lower British expatriate failure rates were that British managers were more internationally mobile than US managers, and that perhaps British companies had developed more effective expatriate policies. Work environment-related factors: Adjustment to the work role itself was negatively associated with ‘intent to stay’. Support for these factors as moderators has come from a study by Shaffer et al. of expatriates working in ten US multinationals. Job autonomy is also a powerful factor influencing expatriate turnover. 181 CU IDOL SELF LEARNING MATERIAL (SLM)

Another moderator is the perceived level of organisational support – from home as well as from the host unit. Further, once the expatriate has mastered, or nearly completed, the assigned work, other factors may surface and assume relative importance. For instance, if the work becomes less demanding and no longer so time-consuming, the expatriate may have time to pay more attention to negative cross-cultural experiences that the family is encountering. These negative experiences can become distorted when combined with lack of challenge at work and thus sow seeds for early recall, or under-performance. 8.7 SUMMARY  Job Analysis is a systematic exploration, study and recording the responsibilities, duties, skills, accountabilities, work environment and ability requirements of a specific job.  The features of job analysis as follows:  Job analysis is a process of gathering relevant information about various aspects of a job and identifying tasks.  It approaches systematically defining the role, context, conditions, human behavior, performance standards, and responsibilities of a job.  It helps in establishing the job’s worth to an organization.  It establishes job-relatedness.  Purpose of Job Analysis o Recruitment and Selection: o Performance Analysis: o Training and Development: o Compensation Management: o Job Designing and Redesigning:  Job Analysis Process o Identification of Job Analysis Purpose: o Who Will Conduct Job Analysis: o How to Conduct the Process: o Strategic Decision Making: o Training of Job Analyst: o Preparation of Job Analysis Process: o Data Collection: o Documentation, Verification and Review o Developing Job Description and Job Specification 182 CU IDOL SELF LEARNING MATERIAL (SLM)

 An organization uses different methods to collect information and conduct job analysis o Observation method o Job performance o Work sampling o Individual interview o Structured questionnaire o Critical incident method o Diary method  Job description provides the necessary information which is used for job posting and attracting applicants to apply for the same.  The job description summary: o Contains 1-3 paragraphs o Summarizes the main points of the job description, which may include key responsibilities, functions, and duties; education and experience requirements; and any other pertinent information (i.e., scheduling requirements, travel, etc.) o It is used in job postings  A job specification is a written statement that provides all the necessary details of educational qualifications, specific qualities, level of experience, physical, emotional, technical and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands. 8.8 KEYWORDS 1. Exploration - an act or instance of exploring or investigating; examination. 2. Performance measurement is the process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization. 3. A log record is a book in which employee records /writes all the activities performed by him on the job. 4. An inability refers to lacking the capacity to do something 5. An assignment is a task or piece of work that you are given to do, especially as part of your job or studies. 8.9 LEARNING ACTIVITY 1. Differentiate between Job Description and Job Specification 183 CU IDOL SELF LEARNING MATERIAL (SLM)

__________________________________________________________________________ __________________________________________________________________________ 2. Justify the significance of the components of Job Specification with respect to International Business Operations __________________________________________________________________________ __________________________________________________________________________ 8.10 UNIT END QUESTIONS A. Descriptive Questions: Short Answers: 1. Define the Job Analysis and state its features. 2. Write a note on Work Sampling 3. Compare the Merits and Demerits of Individual Interview and Critical Incident Method. 4. Explain the concept of Job Specification 5. State and explain the factors that affect the adjustment ability of the Expatriate. Long Answers 1. Explain the purpose of Job Analysis Process 2. Describe the process of Job Analysis. 3. Discuss any 4 methods of Data Collection in Job Analysis Process. 4. State and explain the components of Job Description 5. Enumerate the role of different job factors in the International Assignment B. Multiple Choice Questions: 1. What is directly linked with the job title, duties and responsibilities? 184 a. Compensation b. Group Insurance c. Commutation facilities d. Check in and Check out system 2. Which method of Job Analysis is based on effective or ineffective behavior? a. Observation b. Critical Incident Method c. Diary d. Interview CU IDOL SELF LEARNING MATERIAL (SLM)

3. What appropriately describes both the level of responsibility and role of the job? a. Job Duties b. KRAs c. Working Title d. Performance Standards 4. Which sentences provides additional information about the tasks associated with Key Accountability? a. Duty Statements b. Job Duties c. Comparable Positions d. Position Details 5. Which job factor specifies congruence of assignment with career path? a. Language Skills b. Motivational State c. Family Situations d. Relational Traits Answers 1 – a; 2 – b; 3 - c; 4 – a; 5 -b 8.11 REFERENCE Text Book:  Wilhelm Schmeisser, Dieter Krimphove, Rebecca Popp, International Human Resource Management and International Labour Law, De Gruyter Oldenbourg,  Peter J. Dowling, Marion Festing and Allen D. Engle, Sr., International Human Resource Management, Cengage Learning EMEA  By Veronica Velo, Cross-Cultural Management, Business Expert Press  Srinivas R. Kandula International Human Resource Management , SAGE Publications Pvt. Ltd  Pravin Durai, Human Resource Management, Pearson India Reference Book  K Aswathappa , Sadhna Dash, International Human Resource Management, McGraw Hill  Gary Dessler, Fundamentals of Human Resource Management, Pearson  Ekta Sharma, Strategic Human Resource Management and Development, Pearson India  Parissa Haghirian, Successful Cross-Cultural Management, Business Expert Press Open Sources: 185 CU IDOL SELF LEARNING MATERIAL (SLM)

 https://www.Shrm.org/  https://www.ncbi.nlm.nih.gov/  https://www.futurelearn.com/  International Journal of Human Resource Studies  changingminds.org  assignmentpoint.com  interculturalmanagement.fandom.com  diva-portal.org  cvs.edu.in  strategy-business.com  www.mbaknol.com (Integrity-Asia & ispatguru)  publications.anveshanaindia.com  smallbusiness.chron.com  resources.workable.com  whatishumanresource.com  resources.workable.com  jigsawacademy.com  www.personio.com 186 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 9: INTERNATIONAL HR PLANNING STRUCTURE 9.0 Learning Objective 9.1 Introduction 9.2 Human resource planning 9.2.1 Definition And Meaning: 9.2.2 Characteristics Of Human Resource Planning: 9.2.3 Significance Of Human Resource Planning: 9.2.4 Human Resource Planning Process: 9.3 Factors that affect Human Resource Planning 9.3.1 Factors that affect Human Resource Planning 9.3.2 Global Factors That Affect Human Resource Planning 9.3.3 Barriers to Human Resource Planning 9.4 Summary 9.5 Keywords 9.6 Learning Activity 9.7 Unit End Questions 9.8 References 9.0 LEARNING OBJECTIVE After studying this unit, you will be able to:  Explain the Concept and significance of Human Resource Planning  Describe the factors that affects the Human Resource Planning  Comprehend the Human Resource Planning Process 9.1 INTRODUCTION Human Resource Planning (HRP) is the process of predicting an organization's future need for and supply of the right people in the correct amounts. HRP is more important in international businesses where effective human resource management is required to achieve strategic worldwide goals. Identifying top management potential early, identifying critical success factors for future international managers, providing developmental opportunities, tracking and maintaining commitments to individuals in international career paths, attempting 187 CU IDOL SELF LEARNING MATERIAL (SLM)

strategic business planning to HR planning and vice versa, and dealing with multiple business units are all issues that need to be addressed in international HR planning. Understanding what motivates people from different societies and how it is reflected in the structure of multinational assignments are all important aspects of a global HR view. Special insurance should cover emergency evacuations for significant health problems in China, for example, and telephone communication may be required in Russia. As a result, the cultural, political, legal, and economic variations between countries and their people add to the difficulty of doing HR activities abroad. HRM focuses on both local responsiveness and global integration in the global phase of human resource management. How to meet the criteria for global integration and national responsiveness is a fundamental issue for global human resource management. There is a great deal of cultural variety, and HRM focuses on providing opportunities for bright managers to grow and gain experience so that an environment of continuous learning may be created throughout the firm. 9.2 HUMAN RESOURCE PLANNING 9.2.1 DEFINITION AND MEANING: Human Resource Planning (HRP) is the process of forecasting an organization’s future demand for and supply of, the right type of people in the right numbers. HRP assumes greater relevance in international businesses where efficient use of human resources is necessary to realize strategic global objectives. The key issues in international HR planning are identifying top management potential early, identifying critical success factors for future international managers, providing developmental opportunities, tracking and maintaining commitments to individuals in international career paths, trying strategic business planning to HR planning and vice versa and dealing with multiple business units while attempting to achieve globally and regionally. Dale S. Beach has defined it as “a process of determining and assuring that the organisation will have an adequate number of qualified persons available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved.” In the words of Leon C. Megginson, human resource planning is “an integration approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organisational objectives and satisfy the individual’s needs and goals of organisational members.” 188 CU IDOL SELF LEARNING MATERIAL (SLM)

On the analysis of above definitions, human resource planning may be viewed as foreseeing the human resource requirements of an organisation and the future supply of human resources and making necessary adjustments between these two and organisation plans, and foreseeing the possibility of developing the supply of human resources in order to match it with requirements by introducing necessary changes in the functions of human resource management. Global HR outlook need appreciative of different cultures, understanding what motivates people from different societies, and how that is reflected in the structure of international assignments. In China, for instance, special insurance should cover emergency evacuations for serious health problems; telephone communication can be a necessity in Russia. So, the challenge of conducting HR activities abroad comes also from the cultural, political, legal, and economic differences among countries and their peoples. In the global phase of human resource management, HRM focuses on both local responsiveness and global integration. The major issue for global human resource management is how to satisfy the requirements for global integration and national responsiveness. There exists large measure of cultural diversity and HRM focuses on offering promising managers the opportunity to grow and gain experience so that an environment for continuous learning will be created throughout the entire organization. 9.2.2 CHARACTERISTICS OF HUMAN RESOURCE PLANNING: Characteristics of effective human resource planning are as follows: Future-Oriented: Human resource planning is prepared to assess the future requirement of the workforce in the organization. It helps identify the size and composition of resources for future purposes Continuous Process: Human resource planning is a continuous process. The human resource planning prepared today may not be applicable for the future due to the ever- changing external forces of the environment. Hence, to address such changing factors, human resource planning needs to be revised and updated continuously. Optimum Utilization of Human Resources: Human resource planning focuses on optimum utilization of resources in the organization. It checks how employees are utilized productively. It also identifies employees’ existing capabilities and future potentialities to perform the work. Right Kinds and Numbers: Human resource planning determines the right number and kind of people at the right time and right place who can perform the required jobs. It also assesses the future requirement of human resources for the organizational objective. 189 CU IDOL SELF LEARNING MATERIAL (SLM)

Determination of Demand and Supply: Human resource planning is determining the demand for and supply of human resources in the organization. Then a match between demand and supply estimates the optimum level of human resources. Environmental Influence: Environmental changes influence human resource planning; hence, it is updated as per the change occupied in the external environment. Related to Corporate Plan: Human resource planning is an integral part of the overall corporate plan of the organization. It can be formulated at strategic, tactical, and operational levels. A Part of the Human Resource Management System: As a part of the total human resource management system, human resource planning is regarded as a component or element of HRM concerned with the acquisition and assessment of the workforce. It serves as a foundation for the management of human resources effectively and efficiently. 9.2.3 SIGNIFICANCE OR IMPORTANCE OF HUMAN RESOURCE PLANNING Human resource planning aims at fulfilling the objectives of the human resources requirement. It helps to mobilize the recruited resources for productive activities. Human resource planning is an important process aiming to link business strategy and its operation. The importance of human resource planning is as follows: 1. Human resource planning determines the future needs of human resources in terms of number and kind. 2. Human resource planning is important to cope with the change associated with external environmental factors such as technological, political, socio-cultural, and economic forces. 3. Another purpose of HR planning is to recruit and select the most suitable personnel to fill job vacancies. 4. Human resource planning/human resources planning helps find out the surplus/ shortage of human resources. 5. It is helpful in employee development through various training and development campaigns to impart the required skill and ability in employees to perform the task efficiently and effectively. 6. It focuses on the optimum utilization of human resources to minimize the overall cost of production. 7. Another importance of human resource planning is that it reduces labor costs substantially by maintaining a balance between the demand for and supply of human resources. 8. An effective human resource plan provides multiple gains to the employee through promotions, increases in salary, and other fringe benefits. This boosts employee morale. 190 CU IDOL SELF LEARNING MATERIAL (SLM)

9. It is useful in finding out the deficiencies in the existing workforce and providing corrective training. 10. Another importance of human resource planning is the safety of health. It provides for the welfare, health, and safety of its employees, leading to an increase in employee productivity in the long run. In a word, Human resource planning is helpful in the overall planning process of the organization. It is essential for businesses because of the reasons shown above that have been elaborated very effectively. 9.2.4 HUMAN RESOURCE PLANNING PROCESS: Following are the major steps involved in human resource planning: Fig 9.2.1 Human Resource Planning Process Integration of HR planning with corporate planning The HR planning process begins with considering organizational objectives and strategies. The first stage of HR planning is to integrate it with corporate planning. All staffing planning stems from business plans with a corporate strategy. Assessment of environmental factors The second stage in HR planning is to forecast or assess the internal and external environmental factors that affect the demand and supply of labor. Some of the most significant environmental factors are government influences, economic environment, geographic and competitive conditions, technological factors, workforce composition, management philosophy, and work patterns. There are several techniques now available for doing HR forecasts. The most important techniques, among others, are the Delphi technique, Brain Storming, Nominal technique, Committee Board, Expert opinion, Consultancy, Trend analysis, Regression, and Correlation Analysis. 191 CU IDOL SELF LEARNING MATERIAL (SLM)

Assessment of human resources The assessment of HR begins with environmental analysis, under which the external and internal (objectives, resources, and structure are analyzed to assess the currently available HR inventory level. After the analysis of the external and internal forces of the organization, it will be easier for an HR manager to find out the internal strengths and weaknesses of the organization on the one hand and opportunities and threats on the other. Moreover, it includes an inventory of the workers and skills already available within the organization. Demand forecasting HR forecasting is the process of estimating the demand for and supply of HR in an organization. Demand forecasting is a process of determining future needs for HR in terms of quantity and quality. It is done to meet the future personnel requirements of the organization to achieve the desired level of output. Future human resource needs can be estimated with the help of the organization’s current human resource situation and analysis of organizational plans and procedures. It will be necessary to perform a year-by-year analysis for every significant level and type. Forecasts of demand may be either judgmental or mathematical. The HR forecast is concerned with anticipating the number of replacements required due to resignations, retirements, death, dismissals, transfer and promotions, and technological changes resulting in increased productivity. This highlights shortage and overstaffs positions. Supply forecasting Supply is another side of human resource assessment. It is concerned with estimating the supply of workforce given the analysis of current resources and future availability of the human resource in the organization. It estimates the future sources of HR that are likely to be available from within and outside the organization. The internal source includes promotion, transfer, job enlargement, and enrichment, whereas the external source includes recruiting fresh candidates capable of performing well in the organization. Matching demand and supply It is another step of human resource planning. It is concerned with bringing the forecast of future demand and supply of HR. 192 CU IDOL SELF LEARNING MATERIAL (SLM)

The matching process refers to bring demand and supply in an equilibrium position so that shortages and overstaffing positions will be solved. In case of shortages, an organization has to hire the more required number of employees. Conversely, in the case of overstaffing, it has to reduce the level of existing employment. Hence, it is concluded that this matching process gives knowledge about requirements and sources of HR. Action plan It is the last phase of human resource planning, which is concerned with a surplus and shortages of human resources. Under it, the HR plan is executed by designing different HR activities. The major activities required to execute the HR plan are recruitment, selection, placement, training, development, socialization, etc. Finally, this step is followed by control and evaluation of the performance of HR to check whether the HR planning matches the HR objectives and policies. This action plan should be updated according to change in time and condition. HRP is concerned with the allocation of human resources within an organization over time 9.2.5: PLANNING IN INTERNATIONAL HUMAN RESOURCE MANAGEMENT Important aspects need to be considered in HRP for International Business operation and these steps are: • Collection and analysis of data to forecast the demand and supply of human resources for the expected future business planners • Develop Human Resources planning purposes • Design and implement programs that can facilitate the achievement of the company in Human Resources planning purposes • Supervision and Evaluate programs that are running. The fourth stage can be implemented for the achievement of short-term goals < 1 year, 2-3 years medium, and long term > 3 years. In International Human Resource planning there is requirement of an external labour market analysis for finalizing the decision for selecting PCN, HCN, TCN, etc. This analysis is necessary to determine the needs or in the provision of labour associated with the skills and expertise required in international business. In the framework of this plan need to consider several aspects, Including: • Determination as well as the identification of potential or criteria that must be met at each level of the management. • Process of identifying crucial factors in International business 193 CU IDOL SELF LEARNING MATERIAL (SLM)

• Formulation of steps that must be done to Strength then the commitment to the development of an international career. • Linking Human Resources planning by strengthening the skills required by the executive using strategic business planning. • Expansion of opportunities for self- development workers. • Distribution of units in the business held by focusing efforts on international business goal achievement. 9.3 FACTORS THAT AFFECT HUMAN RESOURCE PLANNING 9.3.1 Factors that affect Human Resource Planning Type and Strategy of Organization The type of organization is an important consideration because it determines the production processes involved, number and type of staff needed, and the supervisory and managerial personnel required. Manufacturing organizations are more complex in this respect than those that render services. The strategic plan of the organization defines the organization’s HR needs. For example, a strategy of organic growth means that additional employees must be hired. Acquisitions or mergers, on the other hand, probably mean that the organization will need to plan for layoffs, since mergers tend to create, duplicate or overlapping positions that can be handled more efficiently with fewer employees. Primarily, the organization decides either to be proactive or reactive in human resource planning. It can either decide to carefully anticipate the needs and systematically plan them to fill them far in advance, or it can simply react to needs as they arise. Of course, careful planning to fill HR needs better helps ensure that the organization obtains the right number of HR people with proper skills and competencies when they are needed. Similarly, the organization must determine the breadth of the plan. Essentially, the organization can choose a narrow focus by planning in only one or two HR areas, such as recruitment or selection, or it can choose a broad focus by planning in all areas including training, remuneration and so on. The organization must also decide upon the formality of the plan. It can decide to have an informal plan that lies mostly in the minds of the managers and personnel staff. Alternatively, the organization can have a formalized plan which is clearly spell out in writing, backed by documentation and data. Finally, the organization must make a decision on flexibility- the ability of the HR plan to anticipate and deal with contingencies. No organization likes high levels of uncertainty. Organizations seek to reduce uncertainty by planning, which includes forecasting and predicting possible future conditions and events. Human resource planning can contain many 194 CU IDOL SELF LEARNING MATERIAL (SLM)

contingencies, which reflect different scenarios thereby assuring that the plan is flexible and adaptable. Organizational Growth Cycles and Planning The stage of an organization’s growth can have considerable influence on human resource planning. Small organizations in the embryonic stage may not have personnel planning. Need for planning is felt when the organization enters the growth stage. HR forecasting becomes essential. Internal development of people also begins to receive attention in order to keep up with the growth. A mature organization experiences less flexibility and variability. Growth slows down. The workforce becomes old as few younger people are hired. Planning becomes more fonnalised and less flexible and innovative. Issues like retirement and possible retrenchment dominate planning. Finally, in the declining stage, human resource planning takes a different focus. Planning is done for layoff, retrenchment and retirement. Since decisions are often made after serious financial and sales shocks are experienced by the organization, planning is often reactive in nature. Environmental Uncertainties HR managers rarely have the privilege of operating in a stable and predictable environment. Political, social and economic changes affect all organizations. Personnel planners deal with environmental uncertainties by carefully formulating recruitment, selection, and training and development policies and programmes. Balancing mechanisms are built into the HRM programme through succession planning, promotion channels, layoffs, flexitime, job sharing, retirement, VRS and other personnel related arrangements. Time Horizons Yet another major factor affecting personnel planning is the time horizon. A plan cannot be for too long on a time horizon as the operating environment itself may undergo charges. On one hand, there are short-term plans spanning six months to one year. On the other hand, there are long-term plans -which spread over three to twenty years. The exact time span, however, depends on the degree of uncertainty prevailing in an organization’s environment. Plans for companies operating in an unstable environment, computers for example, must be for a short period. Plans for others where environment is fairly stable, for example a university plan, may be long-term. In general, the greater the uncertainty, the shorter the plan’s time horizon and vice-versa. Type and Quality of Information The information used to forecast personnel needs originates from a multitude of sources. A major issue in personnel planning is the type of information which should be used in making forecasts. 195 CU IDOL SELF LEARNING MATERIAL (SLM)

Closely related to the type of information is the quality of data used. The quality and accuracy of information depend upon the clarity with which the organizational decision makers have defined their strategy, organizational structure, budgets, production schedules and so forth. In addition, the HR department must maintain well-developed job-analysis information and HR information systems (HRIS) that provide accurate and timely data. Generally speaking, organizations operating in stable environments are in a better position to obtain comprehensive, timely and accurate information because of longer planning horizons, clearer definition of strategy and objectives, and fewer disruptions. 9.3.2 GLOBAL FACTORS THAT AFFECT HUMAN RESOURCE PLANNING Global Talent Environment: Challenges include working with an ever-increasing mobile workforce with trade and visa restrictions generally making it easier for employees to move from country to country. HR professionals must understand the various forms and methods of visas and the employer responsibilities to effectively promote and manage talent across borders, including employee taxation issues. Technology advances have also increased the ability of remote access, telecommunications, managing employees on a 24/7 basis and project transfer to “follow the sun” as operations move from one geographic region to another during the workday in other regions. Different generations in the workplace, combined with country and cultural differences impact all aspects of talent management including recruitment, selection, onboarding, coaching, training, performance management, compensation, and retirement issues. A “one size fits all” approach is not effective so a balancing act between globalization and localization is critical. Among the talent issues to be addressed:  Dealing with 24/7 global operations  Millennial / generational differences regarding values and workplace expectations  Intellectual capital and knowledge transfer  Mobility issues  Market skill shortages and competition for talent  Phased and early retirement issues Technology and Privacy Issues Global technology, data collection, and privacy regulations must be understood and followed. Identify theft, hacking, privacy notification, and data security factors must be taken into consideration. HRMS tools must be configured to determined appropriate system design accounting for tracking personal data, currency conversion, language, pay rates and frequency methods combined with data encryption. 196 CU IDOL SELF LEARNING MATERIAL (SLM)

Global Economy New competitors, changing labor markets, labor force availability, currency and inflation factors, tariffs, customs and import laws, grease payments and corporate social responsibility within global markets must be considered including:  New and emerging labor markets  Inflation and corporate/employee taxation  New skills sets  Unemployment levels Understanding Cultural Diversity A key trait of effective human resource management is to understand and reconcile cultural differences within the organization and harmonize these relationships. Different cultural norms and nuances, color and numerology issues, gestures, societal norms, power/distance relationships, recruiting efforts and performance management must be clearly understood on a country by country basis. Agility with Reward Systems On a country by country basis, total reward systems (base compensation, variable pay and benefits) must be effectively applied. A total reward philosophy statement may provide guidance to assist in developing global systems based on what is provided by the home country, normative practices, taxation levels and employee expectations. For example, in some countries the government provides comprehensive health care, life insurance, disability and retirement plans. In other countries, minimum health care may be provided by the government with a common practice to have the employer provide supplemental health insurance. Managing Global Leadership Effective global leaders have several key characteristics, many of which are similar to any leadership role such as integrity, trust, interpersonal communication skills, people development, vision, problem solving and strategic planning. Some of the key differences are greater flexibility and agility to adapt, appreciation for subtle and not so subtle cultural nuances, diversity and inclusion awareness, influencing skills, international business experience along with the ability to travel internationally. Managing International Assignments Most organizations do not handle expatriation and repatriation well. In general, there is a lack of assignee assessment and preparation including family interviews, broader cultural and 197 CU IDOL SELF LEARNING MATERIAL (SLM)

language training, ongoing feedback and discussion, visa requirements, knowledge of local customs and laws, tax reconciliation and identification of the repatriation process. International assignments typically cost three times the individuals base salary and roughly 60% repatriations result in the assignee leaving within six months after return. Awareness of culture shock and reverse culture shock will assist in managing assignments. Having additional resources to assist with managing travel, emergency evacuations, language and cultural training along with balance sheet evaluation of appropriate compensation and living expenses, tax equalization and lodging assistance are invaluable. Communication Skills Proficiency in multiple language skills are a huge plus. French, Spanish, German and Flemish are preferred in addition to English. But beyond language skills, understanding cultural nuances and avoiding US based idioms or phrases may create difficulties and relationship challenges. Executives with experiences in living in multiple countries will provide greater understanding of the issues. While the above are only a partial list of global HR competencies, certification with SHRM- SCP or HRCI – GPHR will also assist HR in understanding many of these concepts and critical issues. 9.3.3 BARRIERS TO HUMAN RESOURCE PLANNING: Human Resource Planners face significant barriers while formulating a Human Resource Planning in any manufacturing concern or service Organizations. The following are few barriers 1. Many people argued on this saying when needed offer attractive packages of benefits to them to quit when you find them in surplus. When an elaborate and time-consuming planning for human resources? 2. Human Resourced practitioners are perceived as experts in handling personnel matters, but are not experts in managing business. The personnel plan conceived and formulated by the human resource practitioners when enmeshed with organizational plan, might make the overall strategic plan itself defective. 3. Human Resource planning is a difficult activity to be performed in the organization. Sometimes the desired quality people may not available or job specification itself become difficult to formulate. 4. Human Resource information often is incompatible with the information used in strategy formulation. Strategic planning efforts have long been oriented towards financial forecasting often to the exclusion of other types of information. Financial forecasting takes precedence over Human Resource Planning. 198 CU IDOL SELF LEARNING MATERIAL (SLM)

5. Conflicts may exist between short-term and long-term Human Resource needs. For example, there arises a conflict between the pressure to get the work done on time and long- term needs, such as preparing people for assuming greater responsibilities. Many managers are of the belief that Human Resource needs can be met immediately because skills are available on the market as long as wages and salaries are competitive. These managers fail to recognize that by resorting to hiring or promoting depending on short-term needs alone, long- term issues are neglected. 6. There is conflict between quantitative approaches to Human Resource Planning. Some people view HRP as a numbers game designed to track the flow of people across the departments. These people take a strictly quantitative approach to planning. Others take a qualitative approach and focus on individual employee concerns such as promotability and career development. Best results would accrue if there is a balance between the quantitative and qualitative approaches. 7. Non-involvement of operating managers renders Human Resource Planning ineffective. Human Resource Planning is not strictly a Human Resource department function. Successful planning needs a co-ordinate effort on the part of operating managers and Human Resource personnel 9.4 SUMMARY  Human Resource Planning (HRP) is the process of forecasting an organization’s future demand for and supply of, the right type of people in the right numbers.  Characteristics of effective human resource planning are as follows: o Future-Oriented. o Continuous Process. o Optimum Utilization of Human Resources. o Right Kinds and Numbers. o Determination of Demand and Supply. o Environmental Influence. o Related to Corporate Plan. o A Part of the Human Resource Management System.  Human resource planning is an important process aiming to link business strategy and its operation. o Factors that affect Human Resource Planning o Type And Strategy of Organization  Following Are the Major Steps Involved in Human Resource Planning: 199 CU IDOL SELF LEARNING MATERIAL (SLM)

o Integration Of HR Planning With Corporate Planning o Assessment Of Environmental Factors o Assessment Of Human Resources o Demand Forecasting o Supply Forecasting o Matching Demand And Supply o Action Plan  Factors That Affect Human Resource Planning o Type and Strategy of Organization- The type of organization is an important consideration because it determines the production processes involved, number and type of staff needed, and the supervisory and managerial personnel required. o Organizational Growth Cycles and Planning- The stage of an organization’s growth can have considerable influence on human resource planning. Environmental Uncertainties - Political, social and economic changes affect all organizations. Time Horizons  Global Factors That Affect Human Resource Planning o Global Talent Environment: o Technology And Privacy Issues o Global Economy o Understanding Cultural Diversity o Agility With Reward Systems o Managing Global Leadership o Managing International Assignments o Communication Skills  Barriers To Human Resource Planning: o Human Resource Planners Face Significant Barriers While Formulating A Human Resource Planning In Any Manufacturing Concern Or Service Organizations. o Many People Argued On This Saying When Needed Offer Attractive Packages Of Benefits To Them To Quit When You Find Them In Surplus. o Human Resourced Practitioners Are Perceived As Experts In Handling Personnel Matters, But Are Not Experts In Managing Business. 200 CU IDOL SELF LEARNING MATERIAL (SLM)


Like this book? You can publish your book online for free in a few minutes!
Create your own flipbook