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Human resources:

As most probably the case will be about a company that wants to


invest in Egypt or Middle East, so, HRM has a big role here to
answer the Question of (WHO WILL IMPLEMENT THE
STRATEGY) mainly through the main HR functions and policies
which are:
a. Preparation and selection: Review of the employees' job description, job
specification and job performance standard to match the change of the
organization.

b. Succession Planning: the preparation of the company succession plan will enable
the organization to stand any future challenges.

c. Career Path and development: the preparation of the career path for the
employees will help the stability and minimize the turnover of the employees.

d. Recruitment: designing a good recruitment process (Selection, interviews) with a


high level of orientation to ensure the compatibility of the new recruited
employees with the existing culture to achieve organizational objectives.

e. Training and development: on-the- job” training, Off-the-Job training and


Provide career planning assistance for employees.

f. Incentive system will ensure the motivation of the employees to better


performance (linking incentive to production)

g. Compensation Policies and protection : What employees get in exchange for


their contribution to the organization  maintains, retain productive workforce,
achieve the org. objectives.

h. Managing workforce diversity ( if the organization is going internationally)

i. Enhance employee participation: in implementing our strategy, all employees


from different organizational levels must make a meaningful contribution in
decision-making .this will increase employee's involvement and enhance their
working life balance.

j. Enhance employee organizational commitment : by increasing job involvement,


which results in lower levels of absenteeism and turnover.

k. Implementing employee recognition programs: starting with personal attention


and ending with appreciation for a job well done.

l. Develop effective staffing plans supporting the organizational strategies by


allowing to fill job openings proactively (in terms of number and the quality of the
workforce for the short and long term) VIP in case of international operations.( if
the company is multinational)

2. Adding the culture perspective here will be a good point.


HRM
Human resource management is one of the most important key success
factors in organization, which is not totally implemented in Egypt, and its
improvement will greatly improve the organization performance.
HR should play four important roles within a business:
1. as a strategic partner working to align HR and business strategy,
2. as an administrative expert working to improve organizational processes and
deliver basic HR services,
3. as an employee champion, listening and responding to employees' needs, and
4. as a change agent managing change processes to increase the effectiveness of
the organization.

Human Resource Management (HRM) Activities:


 Job analysis
 Human resource planning
 Employee recruitment, selection, motivation, and orientation
 Performance evaluation and compensation
 Training and development
 Labor relations
 Safety, health, and wellness

Human Resource Objectives


The human resource objective reflects the intention of the senior
management (strategy) with a balance to the related topics such as HR
functions, society, governing rules, etc.
There are four major objectives for the Human resource management;
1. Organizational objectives: to achieve the required organization
effectiveness and objectives and ensure that the organization
always has people with the right abilities available to do the right
work
2. Functional Objectives: maintain the department’s contribution at a
level appropriate to the org. needs
3. Societal Objective : respond ethically and socially to the challenges
of the environment while minimizing the negative impact of such
demands on the organizations
4. Personal objectives: to assist retain and motivate the employees for
achieving their personal goals and guide them to better
achievement (most important )

Key HRM activities in relation to objectives:

Management objective Supporting activities


Societal Objective Legal compliance
Benefits
Union management relations
Organizational Objective Human resources planning
Employee relations
Selection
Training and development
Appraisal
Placement
Assessment
Organizational Objective Appraisal
Placement
Assessment
Personal Objective Training and development
Appraisal
Placement
Compensation
Assessment
Four descriptions of the HRM function:
1. It is action-oriented
1. Effective HRM focuses on action rather than on record keeping,
written procedure, or rules.
2. It stresses on action.
3. It emphasizes the solution of employment problems to help achieve
organizational objectives and facilitate employees’ development and
satisfaction.
2. It is people-oriented
1. Whenever possible, HRM treats each employee as an individual and
offers services and programs to meet the individual’s needs.
3. It is globally-oriented
1. It is a globally oriented function or activity.
2. It is being practiced efficiently and continuously in Mexico, Poland,
and Hong Kong.
3. American practitioners review best-in-class HRM practices in Brazil to
determine if some principles can be applied or modified to work in the
United States.
4. It is future-oriented
1. Effective HRM is concerned with helping an organization achieve its
objectives in the future by providing for competent, well-motivated
employees.
2. Thus, human resources need to be incorporated into an organization’s
long-term strategic plans.

Strategic Importance of HRM


 The HRM function today is much more integrated and strategically involved
in every unit and functional area of an institution.
 The actions, language, and performance of the HRM function must be:
 Measured
 Precisely communicated
 Evaluated

Key Strategic HRM Concepts That Must Be Applied:


 Analyzing and solving problems from a profit-oriented, not just a service
oriented, point of view.
 Assessing and interpreting costs or benefits of HRM issues as productivity,
salaries and benefits, recruitment, training, absenteeism, meetings, and attitude
surveys.
 Using planning models that include realistic, challenging, specific, and
meaningful goals.
 Preparing reports on HRM solutions to problems encountered by the firm.
 Training the human resources staff
 Emphasizing the strategic importance of HRM.
 Emphasizing the importance of contributing to the firm’s profits.

HRM and Organizational Effectiveness


 HRM activities play a major role in ensuring that an organization will survive
and prosper.
 Organizational effectiveness or ineffectiveness is described in terms of:
 Performance
 Employee satisfaction
 Absenteeism and turnover
 Training effectiveness and its return on investment
 Accident rates

Objectives of the HRM Function


 Helping the organization reach its goals.
 Employing the skills and abilities of the workforce efficiently.
 Providing the organization with well-trained and well-motivated employees.
 Increasing to the fullest the employee’s job satisfaction and self-actualization.
 Developing and maintaining a quality of work life that makes employment in
the organization desirable.
 Communicating HRM policies to all employees.
 Helping to maintain ethical policies and socially responsible behavior.

Competencies Needed by HR Professionals:


 Communication skills
 Problem solving
 Leadership
 Recruiting/staffing
 Employment law
 Training and development
 Technology
 Forecasting
 Compensation design
 Benefits design and administration
 Accounting and finance
 Record keeping

HRM’s Place in Management


 HRM must:
 ascertain specific organizational needs for the use of its competence.
 evaluate the use and satisfaction among other departments.
 educate management and employees about the availability and use of
HRM services.

External Environmental Influences


 Government
 laws
 regulations
 The Union
 Economic Conditions
 domestic
 International
 Competitiveness
 Competitive advantage
 Work Sector of the Organization
 private sector
 public sector
 Composition and Diversity of the Labor Force
 Geographic Location of the Organization

Internal Environmental Influences


1. Strategy
2. Goals
3. Organization culture
4. Nature of the task (job)
5. Work group
6. Leader’s style and experience

HRM Activities That Can Enhance and Sustain Competitive Advantage


1. Employment security.
2. Selectivity in recruiting.
3. High wages.
4. Incentive pay.
5. Information sharing.
6. Participation and empowerment.
7. Teams and job redesign.
8. Training as skill development.
9. Cross-utilization and cross training.
10. Promotion from within
11. Measurement of practices.

Key Factors in the Nature of the Task (Job):


 Degree of knowledge and ability to use information technology.
 Degree of empowerment.
 Degree of physical exertion required.
 Degree of environmental unpleasantness.
 Physical location of work.
 Time dimension of work.
 Human interaction on the job.
 Degree of variety in the task.
 Task identity.
 Task differences and job design.

Strategies to face challenges:

1. Workforce diversity: international operations means dealing with more


diversity in home and abroad

National origin, culture, religions, ages, values, skills, educational level,


gender, workforce demographics, cultural and attitudinal diversity (e.g
societal attitude to the work of women  create family programs, parental
leave, flexible working hours)
Diversity through immigration (across national boundaries) and migration
(within the countries)

Training programs related to diversity:


 Cultural diversity sensitivity training
 Communication across cultures
 Gender issues trainnig

Manage diversity as a source of competitive advantage: (is diversity appreciated


in overseas operations + be ready for potential cultural shocks)
2. Professional challenges: certification
3. International challenge: finding executives and staff with the adequate level
of international experience.
Major HRM Problems for the International Corporation
1. Selecting and training local managers.
2. Companywide loyalty and motivation.
3. Speaking local language and understanding local culture.
4. Appraising managers’ overseas performance.
5. Planning systematic management succession.
6. Hiring local sales personnel.
7. Compensating local foreign managers.
8. Hiring and training foreign technical employees.
9. Selecting and training international managers for overseas.
10. Dealing with foreign unions and labor laws.
11. Promoting or transferring foreign managers.
12. Compensating international managers for an overseas assignment.

Criteria for selection for international assignment:


1- Technical skills
2- Managerial Skills
3- Adaptability to both the company and the country’s culture

4. Technological challenge: assess how jobs and jobs skills are affected by
technology that might cause more worker alienation,
5. Economic and legal challenges
6. Organizational challenges: (unions, information systems, organizational
culture {adjust objectives to match the culture} and conflicts).
 Preparation (general):
 Job analysis and design.{needs to be handled through an effective,
continuously updated HRIS especially in flatter organizations to establish a
profile about the requirements and the responsibilities of each job = job
analysis}
 How to deal with shortage in international labor?
 Set challenging and yet realistic performance standards and of course adequate
to the current
 Redesigning jobs if needed:
- Under specialization:
(work simplification, reengineering: identify the desired outcome of a system
and restructure it in a way that increases performance through clustering
responsibilities around one job or one team and eliminating unneeded steps)
- Overspecialization:
(job rotation{employees are moved from one job to the other},
job enlargement {expand the number of related tasks in a job},
job enrichment { adds new sources of satisfaction to the job by increasing
responsibilities, autonomy and control}
- Autonomous work teams: with no leader and performing duties that are
generally reserved to managers
1. Human resources planning:
- Aims at Forecasting through trend analysis or forecasting techniques on
systematic basis the supply and demand of employees.

- Develop effective staffing plans supporting the organizational strategies by


allowing to fill job openings proactively (in terms of number and the quality
of the workforce for the short and long term) VIP in case of international
operations.
- Factors affecting demands:
 Changes in the environment: economic – Social- Political – Legal –
Technology - Competitors
 Changes in the workforce: retirements – resignations – terminations –
deaths – leave of absences
 Changes in the organization: strategic plans – budgets – sales and
production forecasts – new ventures {requires immediate revision of HR
demands and job designs, fully consider the “people side of a merger or
acquisition; how to keep key personnel after mergers, how to design new jobs
to meet new structures ….} – Organizational and job design …

- Factors affecting the supply:


 Internal Supply: through promotion, demotion, transfer to fill openings,
+ Perform HR audit: know the capabilities of the current
employees to decide whether or not they can fill the current openings {skills
inventories for employees} and {management inventories for management}
+ perform Succession planning and develop replacement chart (
showing who will replace whom if there is a job opening based on present
performance and ability to get promotion} and conveying decisions about
future internal job placement based on information of the HR audit) “Hiring or
promoting from within policy”/ if shortage or skills deficiencies are identified
before openings this can be handled through special assignments, job rotation,
training to prepare candidates for their future responsibilities. Help to unify
corporate culture in different locations by moving top managers offshore to
better integrate subsidiaries.
+ In case internal surplus consider “Hiring freeze policies” +
attrition (voluntary departures, encouraging leaves of absences, layoffs, early
retirement, outplacement)
+ In case of internal shortages consider: internal or external
staffing
 External Supply: from outside for job lacking internal replacement or
entry-level positions (often result in from growth strategies).
 Perform labour market analysis (labour market, skill level)
 Consider the community attitudes (anti-business or no-growth attitudes)
 Demographics
 HR planning can minimize the costs associated with the recruitment
and selection
2. Recruitment:
- Process of finding and attracting capable applicants for employment.
- Starts by searching for candidates; ends by candidates submitting their
applications
- Rely on a strategic HR plan to outlines the direction of the firm and suggest
the types of tasks and jobs that need to be undertaken (that might have
changed since the HR planning was accomplished especially in dynamic
environment). Underlines which jobs should be filled in internally or
externally.
- Reconsider environmental factors:{ unemployment rate, projections of the
labor force, spot of shortages in skills, labor laws, and recruitment activities
by competitors.VIP Leading economic indicators , Predictable and actual
volume of business, Wants-ads index in foreign countries, Laws as a
constraint or opportunity}
- Monitor costs of recruitment and act to minimize it
- Revise Organizational policies regarding :
a. compensation policies: Adjust the pay ranges to international openings.
b. Employment status policies: on hiring part time and temporary
employees.
c. International hiring:
d. Promote from within policies:
- Internal recruitment channels:
Job-posting program to inform current employees about openings
and qualifications (company’s newspaper or bulletin boards);
 Self-nomination, recommendations of the supervisor
 Departing employees: (who left).

- External recruitment channels:


 Walk-ins and write-ins.
 Employee referrals.
 Advertising.
 Private placement agencies helping to find capable applicants.
 Professional Search firms (more specialized than the above in a
certain type of skills e.g. executives, technical or scientific or
provide recruits employed in other companies)
 Educational institutions: could be an excellent source for hiring
foreign nationals, and entry level labour.
 Professional associations (professional groups of technical nature
accountants, engineers.)
 Government-funded and community training programs
 Temporary help agencies (source of supplemental workers)
 Open house
 International recruiting: seek help from consular offices or
embassies, get familiar with the employment practices there, costs-
of-living differentials, moving expenses, education for children,
taxation,
3. Selection (or employment functions):
{Series of sequential steps starting from receiving the job application used to decide
which applicants must be hired}
- Based on Job analysis + HR plans + pool of recruits
- Employment tests (psychological, knowledge, performance, graphic response test,
attitude and honesty tests, and medical tests)
- Interviews (formal and in-depth conversation to evaluate the applicant’s
acceptability) and background checks
[1-1 interviews # group interviews, structured # unstructured #
mixed, behavioural interviewing like stress interviews]

4. Orientation and placement:


 Orientation:
 programs for newcomers: (pre-departure orientation and on site orientation in case
of international assignments) help newcomers to fit in.
 Orientation programs: learn the job quickly + lower the beginners turn over +
socialization programs to speed up integration.
 Formal # informal [HR dept. + supervisor + coworkers]
 Issues: organizational – employee benefits – introductions – job duties.
 International implications: cultural practices, languages, local customs, housing,
shopping and differences in business laws should be included in operations that
involve cross-border moves.

 Placement:
 Assignment or reassignment of an employee to a new job. (important even if
the employee is a staff member)
 Promotion: moving to a job that is higher in responsibility, pay or organizational
level. {Merit-based promotion # seniority-based promotions]
 Transfers: from one job to another equal one or demotions from one job to
another lower
 Separation: temporary leaves of absence, attrition, layoffs, termination

5. Training and Development:


 Training and development: rotation programs in different countries, different
functions. # training programs by HR department, universities and private trainers
(all of which will reinforce the corporate culture globally)
 Training (acquiring skills for current jobs) development (acquiring skills for
future jobs)
 Variety of training programs (skills oriented to broad developmental issues).
 Treat workers as assets to be developed not costs to be cut. This will go with the
concept of “Learning organizations” that invest heavily in their human capital.
 Benefits of training HR book (P284)
 Steps: 1- needs assessment 2- set objectives (skills – knowledge – attitude)
 Techniques and approaches for training and development:
1- Job instruction “on-the- job” training  types: Job instruction training,
job rotation, cross-training, apprenticeships, coaching
2- Off-the-Job training  lecture, video presentation vestibule training,
role playing, case studies, simulation, self-study, programmed learning,
lab training.
6. - Evaluation and career development:
 Provide career planning assistance for employees assigned internationally
 Compensation, expatriation and repatriation benefits

7. Performance Appraisal:
 “Process of evaluating individual job performance against performance
standards” Accountability
 Benefits: performance improvement, compensation adjustment, placement
decisions, training and development needs, career planning and development,
identify staffing process deficiencies, pinpoint information inaccuracies in all
the above functions, highlight job design errors, feedback to the human
resources department.
 Design of valid, reliable, practical and standard performance appraisal
systems: evaluation about the direct supervisor and 360 degree appraisal
system, tracking systems via e-mail to identify potential raters.
 Performance standards should be job-related, recorded
 Performance standards (rating) to evaluate performance, easy to use, reliable,
limit bias (halo-effect, error of central tendency, leniency and strictness bias,
cross-cultural biases, personal prejudice, recency effects
 Future-oriented appraisals: self-appraisals, management by objectives,
psychological appraisals, assessment centers

8. Compensation and protection:


 “What employees get in exchange for their contribution to the organization”,
 maintain, retain productive workforce, achieve the org. objectives
 “Direct”: wages and salaries “Indirect” fringe benefits
 Linking compensation to continuous learning “Pay for skills programs” and
“Pay for skills” presenting incentives to encourage employees pursuing
vocational skills this is aligned with the concept of the knowledge
organization.
 Objectives of a compensation management is to help the organization achieve
strategic success while ensuring INTERNAL EQUITY more demanding
positions and more qualified people are paid more and EXTERNAL EQUITY
jobs are fairly compensated in comparison with similar jobs in the labor
market
 An effective compensation system helps the organization to:
- Acquire qualified personnel
- Retain current employees
- Ensure equity
- Reward desired behaviour
- Control costs
- Comply with legal regulations

 Process of compensation management:


- Job analysis (job descriptions, position descriptions).
- Job Evaluation (job ranking, job grading, factor comparison, point system).
- Conduct wages and salaries surveys (Gov. Agencies, professional and
employer associations, self-survey).
- Pricing jobs: (Matching internal and external worth) match the job evaluation
worth with the labour market worth.
 Pay should compensate for additional taxes and living expenses for
international assignment
 Add more incentives if the assignment will take place in a less desirable areas.
 Benefits to compensate extra costs
 Relocation assistance
 Repatriation (get the person back to his country of origin)

9- Employees relations and assessment: (relations between managers and


employees)
Use Matrix management how?? Local HR office handling the culture-specific tasks of
hiring, placing training and compensating employees. The home office department
sets broad policies and serves an assessment function to ensure that local offices are in
compliance with company policies and procedures.
10- How to work proactively with other operational managers to identify
solutions to cultural or national differences that may represent an obstacle to the
company’s strategy?

e.g problems in tech transfer, acceptance or resistance to women as part of the


workforce

11- Ensure providing an equal employment opportunity:


e.g. women mobility to senior levels and participation in international assignments….

 Human resources plans: must reflect the organization’s affirmative action


goals.
 Job descriptions: not contain unneeded requirements that exclude some
groups form being recruited or moving to upper class
 Recruitment: must ensure that all types of applicants are sought without
discrimination
 Selection: should be based on valid and non-discriminatory systems
 Training and development should be available to all workers without
discrimination
 Performance appraisals: should be free of biases
 Compensation programs: based on skills and performance.

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