INTERNATIONAL HUMAN RESOURCES MANAGEMENT

FINAL EXAMINATION ANSWER

By:

NI Kadek Raras Komalasari

1815744049/15

6A MBI

INTERNATIONAL BUSINESS MANAGEMENT

BUSINESS DEPARTMENT

BALI STATE POLYTECHNIC

2021
1. Explain the developing staff through international assignment. What should
companies do in two areas namely management development and organizational
development?
ANSWER:
• Management Development
The most important of these common elements for MNEs is the priority placed on
identifying and developing management talent. At firms such as IBM, Shell, Philips,
and Unilever, responsibility for international executive development is so important
that it is specifically a board concern and the executive in charge of this activity
reports directly to the CEO. These firms have found that the lack of globally savvy
management talent has been a major inhibitor in setting up overseas businesses or
developing new global projects, even in some cases preventing them from staffing
projects which have been technically feasible. Even smaller firms have come to
understand the importance of having a cadre of global managers. Firms from different
countries appear to have evolved varying approaches to management development.
Yet there are some common elements among them. These include practices such as:
a. The early identification of individuals with executive potential, either through
early-in career assessment procedures and close monitoring of job performance or
recruiting at only elite universities and “grand écoles” or the use of in-house
apprenticeships that lead to increasing levels of management responsibility;
b. The use of close monitoring and mentoring of those individuals—who have been
identified through whichever procedure(s) to be candidates for positions of
executive leadership.
The primary purpose of the close monitoring is to manage the careers and job
assignments of these high-potential employees. The movement (or mobility) of these
individuals is controlled so as to ensure that they experience job assignments,
including overseas assignments, of adequate variety, challenge, and appropriate
responsibility (to include multiple functional, product, and country experiences, and
important developmental content, often away from the individual’s area of proven
expertise) and length, so as to ensure that individuals learn how to achieve results in
new settings and through new associates, particularly colleagues from other countries
and cultures. IHR managers must ask themselves the following questions: if global
enterprises do indeed have such shortages, then what does a global executive “look
like” (so that they can be developed)? That is, what are their characteristics? And how
 can an MNE develop them? Or is it possible to just copy in the international arena that
which is done on the domestic front? Those are what companies should do in
management development.
• Organizational Development
As MNEs increasingly develop (or hire) local nationals to manage their local
operations in countries around the world, it is often suggested that the numbers of
international assignees would therefore be decreasing. Countering this possibility,
though, is the increased use of expatriation for individual and organizational
development coupled with the obvious increase in the number of firms operating
internationally.
As the number of HQ international assignees decreases, local nationals
increasingly receive regional assignments. Thus, survey results from most consulting
firms which come primarily from larger, more experienced MNEs show a declining
use of international assignees.
In explanation of this, the use of international assignees (especially from HQs)
is high during the initial stages of foreign operations in order to accomplish
technology transfer, including production and management technologies, product-
knowledge transfer, and staffing and implementing a start-up. The number of
international assignees will then decline as the firm’s local managers and technical
and functional staff assimilate this knowledge. The number may later expand, again,
as local operations become increasingly integrated into a global operational
framework. In addition, as the enterprise becomes more global, it develops a need for
international managers with greater international experience as it develops its
worldwide competitive advantages. However, at this stage, these global managers
may well come from any country, not necessarily, or even primarily, from the country
of the parent company.
2. How to build up employee performance appraisal? Use and explain with US
performance appraisal system!
ANSWER:
Performance Appraisal is the systematic evaluation of the performance of employees
and to understand the abilities of a person for further growth and development. Based on
US performance appraisal system, To build up employee performance plan, there are 6
ways, they are:
1. Discuss Performance Plan
 Managers can start by implementing the suggestions that are made in this
performance development planning process and this performance development
process checklist. As a result of using these tools, managers can end up with the
required performance appraisal document but make the performance appraisal process
useful—for the employee and the organization.
Managers can make sure that the employee is clear about their goals by the approach
they used to accomplish the task. They can make certain that any component of their
employer's process that causes the manager to rate, rank, or limit the employee's
performance is minimized.
2. Evaluating
HR must continuously evaluate the system to determine if it is effective and to
identify opportunities for improving it. Perception is reality when it comes to
employee and managerial acceptance of a performance management process.
3. Rewarding
Once HR has planned, evaluated and measured performance, the next step of the
process to determine if a reward or compensation is due. Many companies tie
performance to salaries, pay increases and bonuses. A compensation management
system, synced with performance management, allows managers to automate
increases and bonuses based on merit.
4. Provide Assistant
Provide feedback to employees regularly—not just in the annual performance
appraisal. Employees want and like regular feedback (particularly millennial
employees) and effective managers take time every day to provide employee
feedback.
5. Repositioning or removing
In performance appraisal, repositioning or deleting becomes one of the ways to
improve performance. At the time of the assessment, if employees feel that they are
not doing well in carrying out their duties, they will be transferred to their work
positions to adjust their work with employee performance Likewise with removing,
HR decided to take the action of removing so that the poor performance of one
employee does not affect the performance of other employees and also the company's
performance.
6. Identifying
 Identifying is done by HR with the aim of reviewing what things need to be improved
in the results of the performance appraisal. So from all the assessments, HR makes an
identification for deficiencies and things that must be evaluated, so that the company
can get maximum performance

3. Explain the essential factors leading to organizational and personal wellbeing!

ANSWER:
The essential factors leading to organizational and personal wellbeing will be explained
below:
 Values-based working environment and management style
Organizations and companies have their own management style and work
environment. This management style and work environment will have an impact on
employee welfare. An organization/company should have a value-based
management style. Value-based management style is an approach that ensures the
company continues to run according to predetermined values. A shared corporate
value shapes the corporate culture and influences the way the company operates, the
company lives and practices its values, and achieves common goals through
information sharing and team involvement in planning and implementing change.
Information must be shared across the company so that employees are encouraged
for continuous improvement. Thus, a company or organization should apply this
value-based management style.
The work environment also has an impact on the welfare of its employees. The work
environment can provide inspiration, motivation and comfort in doing work. An
example is the work environment at Google headquarters. A company as big as
Google implements a work environment that can be said to be very out of the box.
The design of an attractive and colorful work environment aims to make employees
feel relaxed in doing their work. On the other hand, by implementing this unique
work environment, it helps Google employees to think outside the box as well. They
can find ideas to continue to innovate for the company. So that the goals of the
company and personal well-being can be achieved in tandem.
 Open communication and dialogue
 Communication and dialogue is essential in personal well-being. Good
communication will create a good working atmosphere too. In this case a human
resource manager in communicating with employees openly, both in informing
something and solving a problem Two-way communication is also needed in a
company or organization. If a company or organization experiences problems, this is
where the importance of communication and open dialogue in order to find out the
existing problems and solutions to these problems so as not to create assumptions.
 Teamworking and co-operation
In achieving a goal, companies and organizations need good teamwork.
Teamwork will make it easier for companies to solve a problem. It is also an
important factor in achieving personal well-being. With good cooperation and
teamwork, a problem can be handled effectively and efficiently. In this case, a
human resource manager has good teamwork skills.
 Clarity and unity of purpose
Clarity and unity of purpose are also essential factors in achieving personal
well-being. A human resource manager must know the goals of the company and
organization. Thus, human resource managers can explain properly and correctly to
employees about the goals to be achieved. In this case, all parties have one common
goal for the company and organization.
 Flexibility, discretion and support for reasonable risk-taking
In running a company or organization, problems are often found that can
change the previously established system. Of course, this will be risky so flexibility
and wise decision making are needed and support from all parties so that companies
can find solutions to these problems.
 A balance between work and personal life
In achieving personal well-being in a company, a balance between work and
personal life is required. In this case, one must be professional in dividing personal
life with work. Personal life should not be brought into work because it can result in
solving office problems and disrupting work processes. In this case, it is better for all
parties in a professional company to position themselves between work and personal
life.
 The ability to negotiate workload and work pace without fear of reprisals or
punishment
 This negotiation ability is inseparable from good communication. If an
employee feels that the workload is not in accordance with his abilities, it should be
communicated so as not to cause new problems in the future. In this case, good and
clear communication is needed when conveying problems.

 Being fairly compensated in terms of salary and benefits

Each company compensates its employees. Compensation is all income

received by employees, whether in the form of money or goods, directly or
indirectly received by employees, in return for services provided to the company.
Direct compensation is in the form of salaries, wages and incentives, and allowances
received periodically. Meanwhile, indirect compensation in the form of benefits
(allowances) is given for employee welfare which is not received periodically by
employees. Compensation is closely related to personal well-being. So the company
should provide fair compensation to all employees.

The employer also has a duty to ensure that its culture fosters a positive
working environment. Employers should focus on creating a workplace culture in
which everyone feels included, valued and respected. To foster personal
responsibility and
engagement, a balanced approach is needed to address diverse stakeholder and
organizational interests and preferences. Creating a climate of mutual respect and
dignity will foster improved working relationships and contribute to productivity and
business performance.
4. Why national culture and local wisdom influence the IHRM?
ANSWER:
Since the national culture, as a system of deeply founded values, attitudes and
behaviours of the members of a society to a large extent determines the characteristics of
other systems of the country (legal, political, economic and others), it implies that the
culture of observed countries is one of the most important factors that must be taken into
account in the case of entering at the international business scene. Consequently, the
national culture becomes a very important factor when it comes to designing the content
 of international human resource management (IHRM), too. The fact that national culture
is very important for the content of IHRM is clearly singled out by the fact that within
this concept a special segment, comparative human resource management, which
examines the differences in the content of HRM between countries primarily caused by
the characteristics of the national culture, has emerged. National culture is the category
which is very much studied, among the other things because of the fact that it is a
convenient tool for explaining many phenomena in management, such as leadership
style, organizational structure, motivation, etc.
In addition, it is important for the design of policies and procedures within IHRM to
know the dimensions of the national culture of a certain country, it is important to bear in
mind the fact that the characteristics of the culture of a certain country are not static, but
dynamic category which can change during the time. These changes can have two
directions: (a) reducing the cultural differences between different countries, which is
known as cultural convergence and (b) the deepening of differences, which is known as
cultural divergence.
The influence of national culture can be recognized when it comes to the usual
methods of selection, too. For example, in cultures that are characterized by high risk
avoidance, organizations use a wide range of methods in order to gather enough
information upon which will be based valid decision. Also, in cultures that are highly
performance-oriented the methods that are standardized and closely linked to the job
requirements are used to a much greater extent.
For the example, regarding the influence of national culture on the recruitment of
candidates this impact can be analyzed how national culture affects this process through
the system of values of the recruiters, but also through the system of values and
preferences of the job applicants the example of influence of national culture can be seen
on the recruitment of candidates if recruiters come from countries with collectivistic
values, in that case it is more likely that the priority will be given to the personal or
relationship-oriented recruitment sources, such as employee referrals, networking at job
fairs etc. In contrast, when recruiters belong to countries where individualistic values are
dominated the recruiters in this case will opt for recruitment sources such as employment
agencies, newspapers advertisements, online recruiting, or sources where personal
acquaintance and personal contacts are not of great importance
5. Explain the future trends and challenge of HR!
ANSWER:
 These “new world” demands impact HR (and IHR) even more than many other fields
of organizational leadership. Shift from personnel administration (mainly transactional)
to strategic HR, from mostly domestic HR to mostly global, from traditional HR (paper
and pencil) to the delivery of services via an electronic interface (e-HR). Traditional HR
transactions have not disappeared, but have begun to decrease and switch to a more
automatic direction. HR Practitioner are now challenged to develop new mindsets and
different new professional HR competencies, such as a global mindset and skills in
computer and HR process outcome measurement. In the case of traditional HR
transactions, such as registering new employees for payroll and service benefits and
update those services when changes are made, technology has made them it is possible to
deliver these transactions through in-sourcing (i.e., shared services) and outsourcing
(initially only involving certain individual HR business processes and now involving all
HR function). So now HR professionals have to focus on integrating HR processes and
manage HR projects across organizational and national boundaries.
Here’s the challenges of HR:
a) There is a growing realization, particularly in large MNEs, that there is a lack of HR
talent around the world. There are too few opportunities for university education in
HR and IHR; firms do too little to develop IHR talent internally, including the use of
expatriates in HR assignments; and the new structures for delivering IHR services—
such as outsourcing, shared services, and centers of excellence—are not being
incorporated into HR development yet, either internally or externally.
b) There is an increased number of employee relations issues—for example,
comparisons between the rights and benefits of workers in various countries—
making IHR programming and service delivery increasingly complex and difficult
c) Globalization and freer trade are leading many countries to change their legal
frameworks (e.g., China joining WTO, India), which impacts IHR practices and local
country management.
d) There is too little consistency in HR infrastructures for effective delivery of IHR
programs around the world.
e) And what employees want in various locations around the world is constantly
changing and often creates new and difficult challenges:
- Global workforces want top-level leadership from within their own countries, not
just from headquarters.
- Local workforces and local HR staffs want their local office dynamics to be
respected by corporate HQs.
- Local subsidiary and joint venture managements want expatriates to take
ownership of becoming part of the country they are assigned to.
- Local employees want defined career paths for themselves and to be included in
corporate career planning, as well. They expect the parent firm to initiate
development opportunities for local employees.
- Local offices often feel left out of corporate planning. They want and expect to be
included particularly in communication on upcoming organizational changes.
- Local business units expect to be included in executive visits from headquarters,
that is, to not be taken for granted
- Increasingly, employees in foreign subsidiaries around the globe want variable
compensation schemes to include them. And they also expect to be included in
parent-company total rewards planning and bonus schemes