IHRM is the methods of selecting, allocating, and utilising human resources effectively in an international context. Monash is distinguished as a leading Australian and Worldwide famous university. To be successful, the university focuses on attracting, retaining and patronising those educators who are dedicated to best quality student experiences and outcomes. The University has introduced recognizing and rewarding existing educational staff members for exceptional assistance in learning, training and research. The university follow a strong international human resource management strategy for managing its international stuff. This report focuses on IHRM practices in and the IHRM issues face by Monash University. This report focus on following issues:
How Monash manage its global workforce
IHRM policies and practices of Monash.
Recruitment and selection, training, performance management and remuneration process of Monash and etc.
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IHRM PRACTICES OF
UNIVERSITY OF MONASH
MD. MUKTADIR HOSSAIN
University of Dhaka
10/31/2011
Email: spirkle10@gmail.com
Profile: http://mdmuktadirhossain.blogspot.com/
Blog: http://spirkleexpress.blogspot.com/
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Table of Contents
Executive Summary ....................................................................................................................... 3
Introduction ................................................................................................................................... 4
International HRM Activities ......................................................................................................... 6
Staffing international operations ............................................................................................. 6
International training and development .................................................................................... 7
International remuneration........................................................................................................7
Ethics in IHRM.............................................................................................................................7
Trends and future challenges in IHRM...........................................................................................8
About University of Monash...........................................................................................................9
IHRM ISSUES IN MONASH UNIVERSITY...........................................................................................9
Recruitment Policy in Monash University..................................................................................9
Process of appointment of academic staff...............................................................................10
Mechanism for the selection of educational employees.........................................................10
Expatriate selection..................................................................................................................11
Eligibility criteria.......................................................................................................................11
International Compensation ...................................................................................................12
Staff Development and Performance Management................................................................12
Conclusion....................................................................................................................................13
Reference List...............................................................................................................................14
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Executive Summary
IHRM is the methods of selecting, allocating, and utilising human resources effectively in an
international context. Monash is distinguished as a leading Australian and Worldwide famous
university. To be successful, the university focuses on attracting, retaining and patronising those
educators who are dedicated to best quality student experiences and outcomes. The University
has introduced recognizing and rewarding existing educational staff members for exceptional
assistance in learning, training and research. The university follow a strong international human
resource management strategy for managing its international stuff. This report focuses on IHRM
practices in and the IHRM issues face by Monash University. This report focus on following
issues:
How Monash manage its global workforce
IHRM policies and practices of Monash.
Recruitment and selection, training, performance management and remuneration
process of Monash and etc.
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Introduction
Human Resource Management (HRM) is process of recruiting, managing, and providing
direction to the personnel who work in an organization Human Resource Management is an
important organizational activity that focuses on issues regarding personnel such as hiring,
compensation, organization development, performance management, wellness, safety, benefits,
employee motivation, training, administration, and communication. Human Resource
Management is called a comprehensive and strategic approach to managing workforce and
environment of the workplace. Efficient HRM enables workforce to perform effectively and
efficiently to increase the production and achieve the organizational goal.
One of the important parts of HRM is International HRM. IHRM is the methods of selecting,
allocating, and utilising human resources effectively in an international context. IHRM refers a
set of activities that enables organizations to manage workforces at international level to ensure
goal achievement organizational objectives and IHRM includes performing HRM activities such
as such as hiring, compensation, organization development, performance management, wellness,
safety, benefits, employee motivation, training, administration, and communication at an
international context.
The process of IHRM would be very simple if the multinational corporations simply trade its
products, operating only a few offices in foreign countries. Bit in present world, organisations
spread their activities and operations in a large number of countries. Thus IHRM is an important
point for organisations. IHRM is very complex for many organisations. They have to build
integration among HR practices and policies of its subsidiary firms in different territory in order
to achieve overall organisational objectives. On the other hand, these organisations also ensure a
significant level of flexibility in their IHRM strategy because employees from different countries
are backed by different cultures and social values. Flexibility has a significant influence on the
performance of the employees (Richman et al. May 2008).
Because of the forces of globalisation and the demand of the organisations to develop and
implement a strong global strategy, International Human Resource Management (IHRM) is
becoming a prerequisite to success of the organisational. IHRM managers often face difficulties
to decide whether an organisation should develop its human resource policies and practices
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based on the local context (Lloyd & Härtel 2004). In developing an effective HRM system it is
important to focus on alignment with performance management system in the organization. For
example, criteria used for performance management is to be the same as those used for staffing,
recruitment and training. This conveys a strong message about what is expected by the
organization from the employees (Pulakos 2004).
For the survival in this competitive marketplace, it is necessary to develop a capable and efficient
workforce. Even if there is a probability of shutdown in the global market, Companies continue
to expect growth of its activities. But Companies cannot find required number of qualified global
candidates. It has been a complex issue to determine how companies achieve their goals for staff
development, control and coordination, knowledge transfer, by taking effective staffing policies
and. There are two broad contrasts in global staffing options. The first is an ethnocentric
practices and policy. These policies may based on the view that the first choice for global or
parent country positions are the parent country nationals. The second choice may be either a
region-based or geocentric policy that ensures the most suitable employee for the position is
selected irrespective of their origin country. Emphasizing on the movement to overseas locations
from parent company location is considered to be an important strategy for staffing and
workforce development in a global position. Firms which follow a geocentric staffing policy
focus on employing best person irrespective of nationality and that may include third country
nationals other than the country of the subsidiary and the company’s parent country (Reiche &
Harzing December 2009). This
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INTERNATIONAL HRM ACTIVITIES
Staffing international operations
Staffing is one of the major IHRM activities which helps the Multinational National Enterprises
(MNEs) to control and co-ordinate their globally spread activities. MNEs traditionally sent
employee from parent-country to abroad to ensure a consistency and compliance between the
strategies and practices of the foreign office and local office. But due to cost issue and career
issue, MNEs started increasingly to employ host-country and nationals to meet the global
staffing needs (Schuler, Budhwar & Florkowski 2002). There are two types of philosophies for
staffing global operations. One is ethnocentric approach and another is polycentric approach.
Organizations that follow ethnocentric approach employ parent-country nationals (PCNs) in key
managerial positions. Organizations that follow polycentric approach employ host country
nationals to fill key positions in that country.
One of the important advantages of ethnocentric approach is that PCNs are familiar with the
policies and procedures, goals, technology and products of the organization. While disadvantages
of this approach are that it does not develop local managers and expatriates are not coat effective.
This approach is used when there is adequacy of local management. It is also useful at the
primary stages of internationalization and when there is a need for close communication and
coordination with Head Quarter.
On the other hand, one of the important advantages of polycentric approach is that it is less
expensive to hire a local employee than to assign an expatriate. Another important point is that
local managers can handle sensitive local political issues which are very necessary in many
countries. On the other hand, in this approach it is sometimes difficult to coordinate with Head
Quarter.
In the modern age, managers are hired from parent country or host country or third country
regardless of nationality of the person. Thus MNCs can select employees from a greater pool of
candidates. Staffing in this way is cost effective and helps to be more adaptable with local
cultures. Sometimes recruitment is done on a regional basis.
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International training and development
Several types of training are required such as orientation, language instruction, cultural training for
employees of MNCs. Many expatriates face different types of social and cultural difficulties in host
country. For example, in Japan, though there is sufficient medical care, expatriates and their family
members remain worried that the Japanese doctors may be able to reveal little to the patients. Another
important issue is cultural shock. Culture shock refers a state of confusion and anxiety resulting from lack
of knowledge about how to behave in a specific unfamiliar culture. Cross-Cultural Training is a good
way to reduce the probability of cultural shock. Expatriates also need language training and sensitivity
training and field experiences. Host country nationals also need continuous training for ensuring long-
term success of the organization.
International remuneration
Remuneration sets a relation between strategy setting and its successful implementation. A proper
compensation plan is very important though it is very complex task. Both for expatriates and host country
nationals, proper compensation plan is important. Salary of expatriates is to be determined considering
local salary buying power and currency exchange compared with home salary. Any differential effects on
taxes aroused in the assignment should be equalized. Different types of benefits and allowances such as
cost-of-living adjustments, stock options, trips home for family, health insurance should be provided.
Compensating host-Country Nationals depends on a set of variables including cost of living, local market
factors, unions, pay scales, and the government involvement in benefits. It is very important to make clear
exactly what facilities and salary will be provided for a position.
Ethics in IHRM
HR needs to play a special role to develop, communicate, monitor, and enforce an organisation’s ethics
program. HR is a suitable position to make a significant contribution to create and implement a
sustainable ethical organizational behaviour. HR managers have specialized skill in organizational
culture, performance management, training, and motivation. These are important factors for integrating
responsibility for ethics into all aspects of organizational structure. Ethical issues are more complicated
for IHRM because of the difference in cultural, legal and social environments in the organisation is
operated.
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Trends and future challenges in IHRM
In this modern business world, success of HRM across cultures significantly depends on
manager’s capability to adjust with the global trends in HRM (Česynien 2005).Followings are
examples of some recent trends in International Human Resource Management:
Employee recruitment needs to be done through careful evaluation of the characteristics of the
candidate and his/her family members. Performance evaluation processes should integrate the
two sources of assessment information. It helps bringing a balance between host country and
home country evaluations. Remuneration systems should comply with the overall strategic goal
of the enterprise. But it should also be consistent with local conditions. Area of Training and
development should be extended. Besides orientation training, development process should
include field experiences and sensitivity training that will help to deal with differences of culture.
Managers should be supported to be safe from re-entry complexities, culture shock and career
development risks.
A group of studies investigates the impact of Australian and Western IHRM practices on the
performance of their subsidiaries operated in Asian economy. These studies show business
solutions to enhance the IHRM practices and contribute in improving Australian-Asian relations.
China has created a strong position in the global market. In the Chinese economy competition is
increased inevitably. With response to intense competition organizations are adopting more
market-oriented HRM approaches. A survey conducted in 2005 on 813 HR personnel in China,
shows that there is a positive relationship between integration of HRM policies with business
strategies and the performance of the firm. The study also shows that HR activities are emerging
as an impotent factor in Chinese Businesses (Zhu & De Cieri 2006).Another study examines the
certain features of knowledge sharing in Western enterprises in China and the issues that helps
determining the motivation or reluctance of individuals to share knowledge within the enterprise.
This study states that organizations in China are more willing to share knowledge than that in
Western countries which is contrary to earlier studies (Hutchings 2005) .
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About University of Monash
University of Monash is a Victorian University which was established in 1958 by an act of the
state as a result of the Murray report was commissioned by then Prime Minister Robert Menzies
in 1957. It is the second university in the state of Victoria. For the first time, the university was
named after the prominent Australian general Sir John Monash, in Australia that university was
named after a person rather than a city or state. This is a public university and also a member of
Australia's ASAIHL and Group of Eight. Monash has the largest student body in Australia with
near about 39,000 undergraduate and 16000 graduate students. Other than any other university in
the state of Victoria, Monash have a large number of applicants. In 2008 this university attracted
more than $210 million of research investment and grants from various officials and
corporations. With one campus in Malaysia and another in South Arica Monash have eight
campuses six of which situated in the state of Victoria. This university has a graduate research
school in Mumbai, India and a research and teaching centre in Prato, Italy. For the excellence in
research and education Monash is distinguished as a leading Australian and Worldwide famous
university. Monash has established a great reputation in different sectors and made contribution
in different sector of science and technology.
IHRM ISSUES IN MONASH UNIVERSITY
Recruitment Policy in Monash University
In case of recruitment, Monash University follows a specified policy. The policy to appoint an
employee complies with a lot of legislative and employment frameworks. These policies are
implemented by all of its campus in Australia, Malaysia and South Africa. This policy is
designed to implement in all the University campuses together in Australia and Internationally.
To be a part of this university one has to prove that he/she will best advance its objectives and
strategic vision. The University tries to make sure that from the most suitable labour market the
university able to attract quality applicants in an efficient manner. The university make sure, in
case of promotion of staff and employee, proper screening processes are adopted. It tries to prove
that the employees of the organization are best fit for the position he/she appointed for and the
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staff members meet the goals and objective of the position. It presents a choice of staff direction
and introduction agendas to acclimatise novel staff to their working atmosphere, and the
organisation’s worth and priorities.
Process of appointment of academic staff
It is recognized by the Monash University that excellence in teaching and learning is the key to
success in changing the lives of the students. To be successful the university try to attract, keep
and support those educators who are dedicated to best quality student experiences and outcomes.
The University has introduced recognizing and rewarding existing educational staff members for
exceptional assistance in learning, training and research. Such type of motivation is applicable
for all eligible, existing fixed term and all other academic staff.
Mechanism for the selection of educational employees
Three mechanisms are followed for the appointment of academic staff member to an education
focused role. Dean makes an offer that individual educational employee member following their
presentation review. Deans, by the advice of chief of Schools or sections and designated
intellectual performance supervisors may, in the way of conversations arising from
the presentation development procedure, and concern of the Faculty’s research and teaching
requirements, offer educational employees who meet up eligibility criterion the option of
accepting an agreement variation for an education-focused position. Educational employees
members try to find re-negotiate his/her agreement. It may be possible for academic staff to
renegotiate academic roles when building upon the Faculty’s research and teaching requirements.
The performance development process is the key mechanism for this. The academic staff can
signal their interest at this time, to change positions and suggest sensible steps to move about to
the new role. A schedule for the alteration to the new mix of responsibilities will also be argued.
The responsibilities will focus on manifestation of eligibility criterion for the teaching -focused
role. Dean makes call for terminology of attention for teaching -focused roles by the use of
email; or to respond teaching load requirements, and to develop and foster teaching superiority in
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their disciplines, faculties may come to a decision to call for expressions of significance from
current educational staff to education-focused roles.
Expatriate selection
Monash University send expatriate in both in Short-term assignment and Long-term assignment.
Monash takes certain criteria into consideration before sending their employees for international
assignment. The interpersonal and technical skills of the employees are assessed by the selection
committee. A brief pre-departure training for developing skills on cross-cultural management
and issues is provided to selected expatriates. This includes assistance about the relocation and
information about the host country. Repatriates are provided with physical relocation and re-
entry services to their home location, which includes property and general utilities services as
well.
Eligibility criteria
The head of unit, the academic performance supervisor should consider qualities when judge the
eligibility criteria. These are
• Learning and teaching accomplishments
• Records of development performance
• The aspiration of career and three work goals.
• Sets of unique or specific skill.
Relative to their level, the educational staff member have to demonstrate:
• promise to learning and teaching superiority
• constantly exceptional teaching assessments
• management in the growth of education performance and program and
• new idea in program that will increase the level of knowledge.
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International Compensation
Monash considers several factors for determining international compensation. Its compensation
policy includes basic salary, performance pay, superannuation, and many other benefits. Benefits
include cost of living adjustment, relocation allowance, housing allowance or provision of
housing, expatriate allowance, living away from home allowance, utilities, expatriate medical
insurance, and etc.
Staff Development and Performance Management
Monash has its academic performance development plan for both academic staffs and
professional staff. It has process for different conferences, field work, workshop etc for
development of staffs. Monash supports its staff in developing their performance by providing
the facilities and support. It helps staff to develop and maintain standard level of performance.
However, Monash takes appropriate disciplinary action if a staff member is performing bellow
standards.
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Conclusion
Employee recruitment needs to be done through careful evaluation of the characteristics of the
candidate and his/her family members. Performance evaluation processes should integrate the
two sources of assessment information. It helps bringing a balance between host country and
home country evaluations. Besides orientation training, development process should include field
experiences and sensitivity training that will help to deal with differences of culture. Managers
should be supported to be safe from re-entry complexities, culture shock and career development
risks. Monash is distinguished as a leading Australian and Worldwide famous university.
Monash has established a great reputation in different sectors and made contribution in different
sector of science and technology. The university follow a strong international human resource
management strategy for managing its international stuff. It has its academic performance
development plan for both academic staffs and professional staff that helps staff to develop and
maintain standard level of performance.
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Reference List:
Česynienė, R 2005, 'The Most Recent Trends and Emerging Values in Human Resource
Management:Comparative Analysis', ENGINEERING ECONOMICS , vol 4 (44), no. 50-51.
Hutchings, K 2005, 'Examining the impacts of institutional change on knowledge sharing and
management learning in China: Some challenges for international managers ', Thunderbird
International Business Review , no. 47(4) , pp. 447-468.
Lloyd, SLL & Härtel, CEJ 2004, 'Predicting IHRM strategy and practice decisions: development of
the IHRM orientation typology', Cross Cultural Management: An International Journal, vol 11,
no. 4, pp. 60 - 76.
Pulakos, ED 2004, 'Performance Management-A roadmap for developing,implementing and
evaluatingimplementing and evaluating', SHRM Foundation, p. 34.
Reiche, S & Harzing, A-W December 2009, 'INTERNATIONAL ASSIGNMENTS', International
Human Resource Management, vol A.W.K.; Pinnington A. (ed.), pp. 6-20.
Richman, AL, Civian, JT, Shannon, LL, Hill, EJ & Brennan, RT May 2008, , Community, Work &
Family, vol 11 No 2, pp. 194-195.
Schuler, RS, Budhwar, PS & Florkowski, GW 2002, 'International Human Resource Management:
Review and Critique', International Journal of Management Reviews , vol 4, no. 1, p. 41–70.
Zhu, CJ,CB & De Cieri, H 2006, , Academy of International Business Annual Conference, Beijing
China.
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