Management Styles in International Business
Management Styles in International Business
In international practice, a set of ethical principles and norms of business communication, human resource management is an integral part of international business, and takes it one of the most important places. Major management decisions are made through the recruitment and filling of an effective culture of the company.
International Human Resource Management
Human Resource Management (HRM) in an international company significantly differs from the human resources management in the country. International HRM has a more significant influence on environmental factors, greater heterogeneity of management functions and a differentiated approach to the training of management personnel. On the selection of features international HRM is primarily influenced by: the cultural and economic factors, management style and practice, the differences of labor markets and labor costs, the problem of movement of labor, factors of industrial relations, the national orientation and control factors (Relocation Expert, 2011).
Human resource management functions in multinational companies are extremely complicated by the need to adapt policies and procedures related to personnel, to the differences between the countries, where other branches are located. In particular, the countries cultural differences, differences in economic development and legal systems may require an international company adaptation programs of hiring, firing, training and remuneration for each country, which has open branches of international companies (BizShifts, 2011).
Main Problems in International Human Resource Management
Particularly great difficulties occur when the native culture and laws of the country contradict the culture and laws of the host country. For example, the current US laws on equality in employment, prohibiting discrimination based on sex, are contrary to the laws and customs of Saudi Arabia with regarding to the role of women. Such conflicts cause problems for US MNCs seeking to ensure that their women leaders have the same opportunities to work abroad, as well as their male counterparts (N.D., 2008). Some serious problems faced by all international companies are the organization of the learning process, and staff development. Managers selected to work abroad, must also be provided with training of the relevant intercultural skills. There should be adjusted similarly productive workers training programs in the host countries, taking into account the level of education provided by the local educational system.
Working Conditions in International Human Resource Management
The working conditions in different countries may differ significantly. The cost of living also differs. Consequently, international companies often have to adjust their payment systems to the needs of the labor market of a particular host. The peculiarities of local laws must be taken into account, which may require payment of the minimum wage, or to oblige the company to provide employees certain benefits such as annual bonuses or medical insurance. In addition, managers need to determine how to remunerate executives working abroad, who potentially face a higher cost of living, worsening living conditions and stress related to separation from friends and relatives (Savas, 2012). Between now and the national company operating in the international arena, there are a number of fundamental differences. In the field of international companies planning oriented to the world market, and nationally oriented companies - on a bilateral market; the formation of human resources policy, national companies are based on the situation on the domestic labor market and are guided, as a rule, by the principle of ethnocentrism. International companies are distinguished mainly by geocentric orientation.
What Should International Management Pay Attention to?
According to experts, international management needs to pay extremely close attention to the performance and the detriment of employees (Gallant, 2013). Multinational companies tend to listen only to its staff in the "parent" country, while people abroad - no more than anonymous costs to be "optimized" and to shift back and forth as needed. Attitude to people abroad as "resources", and not as human beings, only exacerbates the negative perception of globalization. An effective personnel policy in a multinational company must be based on a comparison of a number of factors, ensuring the achievement of the organization's strategic business objectives and meeting the needs of the staff.
References
Relocation Expert . (2011). Cultural Influences on Management Style. Moveone. Web. 19 Mar. 2016. Retrieved from https://www.moveoneinc.com/blog/relocations/culture-influences-management-style/
BizShifts. (2011). Management Styles: U.S., Europe, Japan, China, India, Brazil, Russia. BizShifts-Trends. Web. 19 Mar. 2016. Retrieved from http://bizshifts-trends.com/2011/01/10/management-styles-u-s-europe-japan-china-india-brazil-russia/
Savas, S. (2012). Culture, Management Style, and Business Systems. SlideShare. Web. 19 Mar. 2016. Retrieved from http://www.slideshare.net/savassakar/culture-management-style-and-business-systems
Gallant, M. (2013). The Business of Culture: How Culture Affects Management Around the World. TalentSpace. Web. 19 Mar. 2016. Retrieved from http://www.halogensoftware.com/blog/the-business-of-culture-how-culture-affects-management-around-the-world
