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To what extent does international human resource management represent a distinct approach to people

发布时间:2017-03-30
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As a result of the developing of the Human Resource Management trend, many arguments, which are concerned about the differentiate between Personnel Management (PM), Human Resource Management (HRM), and International Human Resources (IHRM), were created more than a thousand pieces of work because it is the most interested debate point in the historical of Human Resource Management's development. Hence, this assignment will be analysed into two main parts; firstly, it will look at the differences between Personnel management (PM) and Human resource management (HRM). Then, it will show the comparison of HRM and International HRM. Besides, it will conclude by focus on how far International HRM distinct approach from People management.

People Management is a kind of managerial learning about the human behaviour in the organisation which developed from Personnel Management (PM) to Human Resource Management (HRM). Until the present, HRM has adopted the historical idea and techniques from a wide range of sources included in the theories and practices (Price, 2007). Though, there are both come from the changing of people management, but it is likely that some people believed they are exactly the same meaning and activities, whereas some of them suggested that there is a slight difference between PM and HRM. Thus, it brings the point to many debated articles that created by supporters and opponents for over the past decade.

The improving trend of PM to HRM had changed from the historical developing of people management. Torrington (1989) gave a suggestion that there is no new idea and no any differentiate between PM and HRM. Likewise, Armstrong (1987a; 2003 p.34) defined the new label under the name of HRM, which is the reason for “old wine into new bottles” phrase, which means there is no any new theory added. had become the most approval from many organisation around the world just only in the short period. Additionally, Guest (1987) also suggested that even the label of PM has changed to be HRM but the substance is still nothing different from PM.

On the other hand, some critics argued the distinctive of both PM and HRM. There are several arguments which suggested that PM is approach to HRM but still quite differs from HRM. First of all, it can be seen that PM lacks of the strategic HR plan, which is adapted from the activities of people management, because PM mostly pays more attention to administrative function (such as payroll and benefit and managerial people in the workplace), whereas HRM obviously is developed by adding more values of strategic progress (such as staff training, transforming leadership) for making organisation to gain the competitive advantage (Plessis, 2009) Marchington and Wilkinson, 2002 suggested that HRM makes a line manager has more responsibilities when compared to PM. Furthermore, Legge (1989; 1995) which cited in Ezzamel et al.(2007) suggested that there are three major components that HRM differs from PM; firstly, HRM is more involved in employee management. Secondly, HRM is much more combined all line management activities together, while PM attempts to control line management. The last aspect is the senior management concerning about the cultural management will be more focus on HRM.

In contrast, after the globalisation has developed and spread to worldwide, there are many Multinational Enterprise (MNE) established, thus, IHRM can enable the organisation to be successful. Moreover, some organisation needs to employ both domestic workers and expatriate staffs for running their business to achieve the organisation's goal; for example, when MNEs prefer to relocate firms to the developing country where has an English to be a second language, they will need to recruit expatriate staffs because they can be an aspect that help firms to reach the goal while some international assignments need to be achieved.

Although it is not all researchers totally persuaded in which sides, this, therefore, will be identified how far of the differences of domestic HRM and IHRM. As Morgan, 1986; Scullion, 2005; Storey, 1995 explained that IHRM and HRM are related to the similar activities, such as planning, staffing, and recruitment and selection. For example, the HR department must response to the selected country where the firm might gain the most competitive advantage in the term of wage when it has to recruit, and the department should be interested in the number of employees when firm is necessarily to relocate/expand the plants to be a MNC (Briscoe et al.,2009). While, some writer disagreed that there is a little difference. According to Dowling et al.(2008 p.3) defined “domestic HRM is concerned with employees without only one national boundary, while IHRM is more involved in a multicultural workforce”. Furthermore, Dowling also described the six factors attributed the complexities, which create a difference of IHRM from HRM (see more Dowling et al, 2008). Particularly, the most attractive points which will be identified in this paper are broader HR activities and risk exposure of IHRM that is higher than HR.

Many writers agreed with Dowling that IHRM has, firstly, broader activities and more responsibilities for manager than HR. As a result of Multinational Company (MNC) which hires the expatriate workers, for supporting the dealing business with across the country, HR department needs to be more interested in the both domestic and international taxation, relocation, culture orientation, and a host-government relation. Moreover, the HR department ought to provide host-countries administrative services for the expatriate employees because they may not understand the regulation in the host-countries clearly so that these services can help them understand the legal and avoid the illegal regulations when they are in the host-countries. Secondly, a high risk exposure, which defined by Dowling as the human and financial consequences of failure are generally more severe than the domestic context because Hence, the HR department should be more careful and prepare the procedure and cost to support if an unexpected situation occurs and the firms may necessary to spend high costs with the problems as repatriation of expatriate failure worker before the end of the contract, for example, the happening of terrorisms and the epidemic crisis such as H1N1, SARS, and Tuberculosis.

In conclusion, it seems that this argument, which is mentioned above, can be shown that PM slightly different from HRM because HRM can overcome the traditional PM by looking at the change of PM to HRM which is provided more beneficial for employees in the organisation as Legge (1995) suggested HRM was added and paid more attention to the strategic role so that HRM is not just only change the label, but it is also add more benefits to adapt PM to be more useful and professionally. On the contrary, this assignment is shown that HRM is quite different from IHRM regarding all the supports and arguments above, especially, Dowling et al, 2008 that has explained the distinction of domestic HRM from International HRM. Nevertheless, it probably say that IHRM is a part of people management, which obviously concerned by starting from PM, before changing to HRM by added more professional content into it. After that, HRM has extended itself to be IHRM due to the internationalisation in the present. Therefore, it is possible that IHRM does not distinct approach form people management, but it is the combination of managerial employee in the workplaces by adapting the new trend of the globalisation that makes our world connected to play significant roles in the business strategy of the international context.

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