Google International HRM - Case Study Example

Google International HRM xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Instructor xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date submitted xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Table of Contents Table of Contents 2 Abstract 3 1.0 Introduction 4 2.0 Organizational background 5 3.0 Review of Google IHRM 5 4.0 Issues in International Human Resource Management 7 4.1 Compensation and culture 8 4.2 Terrorism and insecurity 8 4.3 Labor laws and unions 9 4.4 Repatriation concerns 9 4.5 Performance Appraisal 10 5.0 Changing patterns of global staffing 10 6.0 Recommendations 13 7.0 Conclusions 14 References 15 Abstract International human management is a pillar in any organization. This also applies to the Google Company. The Google organization has various problems that may be handled by the human management resources. The paper starts with the introduction of international human management resources (IHRM). Description of the Google Company and their international human resource management is then done in depth. There are various that are affecting the organizations, these includes; changing of careers, increase of the global terrorism which has affected organization significantly and changing of global staffing. However, recommendations are given to the HRM to effectively run the organizations. Several links have been observed between HRM theories and practices, for instance the human capital theory. The goals of an organization are also affected by the HRM strategies. This is because it is the core unit of an organization. 1.0 Introduction Increasing globalization has subsequently caused many organizations to extend their operations to other countries and they no longer limit their operations to national boundaries. Majority of the multinational corporations have established significantly large numbers of oversea expansions. However, it is not an easy venture and many have experienced failure in the efforts go international. Besides financial constraints, poor staffing and management has been closely linked to this failure. Other factors include damaged company reputation, lost business opportunities and weakened customer relations. As a result of this, the need for international human resource management practices is now considered a matter of urgency by many organizations. Using a broader definition, International Human Resource Management (IHRM) is the international dimension of human resource management of multinational corporations. A more specific definition of IHRM is that it a function of the human resource that is responsible for the policies, practices of the strategic activities of multinational organizations and their main function is to link up international operations with the goals and visions of the organizations. This report will address the issue of international human resource management making reference to the case of Google multinational company. It will give a brief introduction of the company profile and will further take an in-depth analysis of the IHRM issues practiced in the company under review. In addition, the report will discuss all the issue underlying IHRM and further assess how practices can be linked to theories. The link between company goals and strategies with the international HRM will also be discussed into details. Recommendations will be proposed on ways of improving the IHRM. 2.0 Organizational background Google was founded in 1998 after years of extensive research into analysis of World Wide Web link structures and generally large scale data mining by two students of Stanford University; Larry and Sergey. The company mission is to make the world information more accessible and properly organized and to make the search experience through the World Wide Web an interesting experience for its users. Products and services of Google are delivered to its customers, both individuals and enterprises via public destination site that is www.google.com and co-branding of its site search and web site products (Coombs and Deleon 2007). Google is privately owned and based in California. Increasing competition in the world of internet has subsequently forced Google to make its operations international and currently, it has offices in 13 countries and it is available in 104 languages. Starting with only three employees during its conception in 1998, Google has grown to over 20000 employees throughout the world. It is for this reason that the management of Google found it appropriate to have an office of global human resource functions are related to development, attraction and retention of Googlers. The international HR practices of Google demonstrate a prosperous HR function that carefully examines and executes its practices and policies (Girard 2009). 3.0 Review of Google IHRM In America alone, over 1 million people apply for jobs in Google and the turnover of voluntary workers is about 5% annually. During the formative years of Google, recruitment of employees focused on hiring the best employees who would increases productivity of the company. The HR ensured that these employees received adequate training in order to increase their creativity and innovativeness. Similarly, the current HR function of Google strives to employ workers to meet the qualifications that will keep the company at a competitive edge against its competitors. Employees of Google have demonstrated satisfaction and reliability of the HR in terms of satisfaction of their needs. The philosophy of Google is to treat its employees fairly so that they can in turn treat customers with respect. For instance, Google provides fair and generous pay packages for its employees and reviews it each year such that it fits prevailing environmental factors such as economical conditions. Besides the usual monthly salaries employees of Google receive additional cash packages such as incentives for best performing workers and compensation for employees who encounter loss while doing work for the company. In addition, employees who engage in creative and innovative projects are awarded 20% of the workweek and there is an annual reward for best performing individuals out of all its operations (Coombs and Deleon 2007). Google has a finely tuned recruitment process. Initially, at least 16 employees were recruited globally on a daily basis via the in-person interview method. This has gradually changed over the years and the number has reduced to 5 persons. The current IHRM demands that Google staff should present their assessment of the candidates at least one week after the interview. Special emphasis is placed on the professional record of the candidates and their competencies are measured using multiple scores. Google has moved from the traditional human resource management and staffing and now refers to this function as talent management as it came to the realization that much of its operations required talent and not academic knowledge alone. According to Sims (2007), talent management refers to the deliberate approach to attract, retain and develop employees with the capabilities to meet needs facing the organization and those predicted in future. Google has actually taken its talent search global by opening Research and Development centers in Norway, Britain, Switzerland, South Korea and Israel. Top competent engineers are identified by the company IHRM via creative “Google jams”. Innovation is the utmost important factor in the search for talent on Google. In addition, Google constantly trains its employees on upcoming technological issues. Another striking practice of the international human resource at Google is that it has HR managers at all its outlets who responsible for the HR operations of the area they have been assigned. They are held accountable for both effective and ineffective performance of employees. They are supposed to oversee issues of recruitment, development and retention of employees. They report to the IHRM. Clearly, Google is a good example of a multinational company that has a well organized and successful IHRM which is the main reason it remains the best internet provider in the world (Girard 2009). 4.0 Issues in International Human Resource Management International Human Resource Management (IHRM) is a constantly evolving and highly dynamic field of operations management with continually arising contemporary theme, issues, and opportunities that transcend traditional approaches. With internalization and globalization, contemporary issues have never demanded attention as they do today for competitiveness purposes. The issues spread across economical, socio-cultural and individual platforms. 4.1 Compensation and culture Multinationals are now faced with the dilemma on either adopting global or multi-local staff rewarding strategies due to cultural concerns. International compensation presents tricky problems (Sim 2007). Cultural values in this reward-culture interplay relate to individualism, materialism, informality, and time orientation. Local influence, institutional arrangements and labor market concerns add pressure for MNCs. This happens to be similar with the issues Google has to deal with when designing marketing strategies. Taking a simplified approach, Google and many other multinationals may adopt global strategy policies but there are cultural considerations that would affect the multi local implementation, understanding and effectiveness (Brewester & Harris 1998). The concern of cultural values is based on the purpose of reward strategies which is to spur corporate performance. Misfit between the organization’s base culture and the employees from another culture gets evident when subsidiaries are found to underperform. This may be due to ethnocentrism where business activities and strategies divergent from the employees’ culture are viewed negatively. In the contemporary setting, Google is faced with an even greater issue of culture due to globalization. Much this enables diversity; the interplay between cultures and the development of new cultures pose a strategic bleak for the organization. As such Google has to be sensitive to the different cultures and their changing faces in designing rewards and remuneration which presents additional operations costs 4.2 Terrorism and insecurity Global terrorism and political instability in various countries is a persistent IHRM concern of the globalised context Google is operating in. The increasing effect of global terrorism has far reaching impacts on IHRM. This is clearly evident in high-profiled events such as the 9/11 and the 7/7 attacks in the US and UK respectively (Scullion, Collings & Gunnicle 2007). Contemporary trends in terrorism impact the role of IHRM professionals due to the risk associated with personnel in volatile countries for assignees and their relations. Terrorism may induce a re-evaluation of staffing arrangements in the volatile nations and higher costs of operations due to schemes such as insurance and security. Additionally, there are greater international concerns on international travelling and expatriates safety, concerns that have now infiltrated into international politics. Thus, Google IHRM professionals must encourage staff to work abroad and understand other cultures. They must implement innovative HR strategies that well retain staff. The issue is aggravated by increasing tension in international politics. 4.3 Labor laws and unions The globalization context presents MNCs with a constraint of choices in several ways. The globalised age has seen the strengthening of labor unions at national and international level. In the highly competitive global business environments, unions influence wage levels to non-competitive points. They may also hinder company’s discretion to vary employment levels may be along market needs. Sims (2007) note that the unions prevent the globalization of the multinationals such that subsidiaries are forced to operate parallel in different countries. The effects are as diverse as the number of subsidiaries especially on planning initiatives and cost of operations. As such the IHRM professionals must decide whether or not to keep labor relations centrally located or adapt local relations and be decentralized (Sims 2007). This is to ease the recurrent power struggles between the unions, and the MNCs. 4.4 Repatriation concerns Sims, 2007 presents repatriation or re-acculturation as a critical issue for international businesses (pp.99). This is when expatriates return to their homelands. According to literature, the bigger percentages of the repatriates are in worse positions than they were financially, career-wise and socially. There is reverse culture shock upon return than what was experienced in the foreign country. This is because of having been used to foreign ways and so they find home-situations quite different and hard to deal with. It is the responsibility of the human resource management to ensure a resettling of the repatriate. This can be solved by communication and validation (Sims 2007). Validation refers to recognition upon repatriation. Even before repatriation there is also the need of close contacts so that one is up to date. This will give companies like Google competitive advantage in the Human resource market. 4.5 Performance Appraisal Multinational human resource managers’ performance appraisal strategies are faced with several challenges. Key in this approach is the concern of culture which helps determine what to appraise and how the appraisal should be done. The employees are also influenced by culture when evaluating the appraisal. Attitude plays a great role and may lead to decreased motivation. According to Sim (2007), there is also concern over who will be responsible for the evaluation: mother-country or host-country. The non-universal application of labor laws affect the question of equitability and equality in the way employees are treated. In a bid to successfully appraise, the company may be forced to apply multiple rates which are a cost concern. 5.0 Changing patterns of global staffing The contemporary IHRM professionals are challenged by an increasing demand for expatriate assignees and a countering fall in supply of qualified candidates. The concern for reduced candidates revolves around dual careers issues, repatriation effects and weak talent management at the international level (Scullion, Collings & Gunnicle 2007). An increased emphasis on career mobility coupled with decreasing personal commitment to organizations present a graver situation. The capitalist attitude and personal growth need spurs this up and as such, any assignment is viewed specifically as an opportunity for self development. To any organization, the International Human Resource Management (IHRM) plays a centre role to enhance performance in the organization. The theories of HRM in an organization are linked to the practices involved in an organization. The HRM acts as a mediator between HRM outcome and HRM strategy. The major HRM practices are supervision, pay practices and job training. Various theories under HRM include the theory of Human capital which suggests that organizations develop internal resources only when the investments made on the employee skills are justifiable in respect to productivity and future. This brings in the aspect of the HRM ensuring that training is made available to the employee so that the theory of human capital is effective (Abang et al. 2009). The theory also raises the issue of a possibility of an organization internalizing employment without investing in the developing of the employees (Conti 2005). Nevertheless, an organization may realize that employee productivity may not exceed the expected investment costs and therefore, the organization may secure skills from the labor market. In this case therefore, the basic decision to externalize or internalize employment will then rest on the comparison between the employees expected productivity and the returns likely to be made. This example clearly indicates a relationship between human resource management practices and human capital theory which when specifically addressed in the given variables, that is, pay practices, job training and supervision are correlated with satisfaction of job. The efficiency wage theories are utilized to explain the turnover and pay practice. The theories do reaffirm that reduction of turnover may be as a result of higher wages. Essentially, the HRM theory should be put into practice in order for the commitment of the employee’s job satisfaction. This is because the HRM practices influence the employees’ commitments, which then lead to effectiveness of the Google organization (Abang et al. 2009). It is evident that there is a link between an organization goals and strategy and international HRM. Organizations set up goal which are mainly created to assist it to be effective and efficient. The goals also assist in competing effectively with its rivals. The HRM should importantly seek to link all the issues that are related to the management strategy of the organization. It has been observed that effective international HRM practices and policies have been efficient in integrating these policies in an organization, therefore, increasing the organization’s culture positively. This implies that HRM policies should be consistent and reflect the organization’s central values. A strong culture will indeed in a way promote organizations’ goals (Sheppeck & Militello 2000). The culture will certainly aim at uniting the employees through cultures, common goals and values, which the employees will identify with. Not only will the employees be satisfied with the work, but also improve the image of the organization as a result of effective work done by the employees. The organization will therefore, maintain its goals. Effective HRM in organization ensure that the attitude that persons are variable cost is replaced by the knowledge that people are resources. This will then be seen as one of the contributor to competitive advantage. It is globally acknowledged that competitive advantage is only gained through committed, motivated, well-educated and trained employees. This then support that development and training are core pillar of HRM. For an organization to effective meet the set objectives, communication should be well established. The HRM should establish an effective communication channel (Conti 2005). This will enhance sharing of knowledge and information which will then facilitate commitment and trust and therefore, lead to productivity in the organization. Adaptability and flexibility are goals in organization, which basically means that ability to manage innovation and change and to respond quickly to market changes and demands. Organization’s goal of quality will ensure that the HRM retain, recruit and develop adaptable and skilled staff. The policies of the organization will then ensure that formulation of performance measure and performance goals are implemented. 6.0 Recommendations International human resources management should have attractive packages that will attract investors and clients to the organization. Google Company should diverse its operation and design in a way that main competitors do not gain advantage of increased terrorism to come up with mechanism that will attract customers in the midst of terrorism. It should embrace diversity in cultures. This will ensure that they appreciated within the present business world where culture activities and taste are different. This will ensure that the organizations activities are globally accepted. Incentives, motivation should be extended to the employees who are the main determiner of the effectiveness of the organization. Training and flexibility in the HRM should be enhanced to ensure the employees are working in a friendly and freely environment. International human resources as they are main pillar of the organization should be effective and efficient in their roles. There should be a positive relationship between the job satisfaction and HRM which eventually create a wisdom way on how the Google Company will motivate the employee to work efficiently. 7.0 Conclusions It is no doubt that the international human resource management has continued to develop rapidly. Organizations require an effective and efficient human resource management in order to be able to achieve its set goals. The Google Company is not immune to this. International HRM has various issues that have affected it. This has been as a result of changing landscapes in the business world. Effective measures should therefore, be implemented to ensure that these both predictable an unpredictable changes do not interfere with the organization goals. HRM theories and practices are related as both affect the running of an organization. In particular the human capital theory which mainly affects the employees output. Organizational goals are affected by the way international human management is managed. This is the core of an organization and the policy set may either low the organization effectiveness or increase. It is therefore, important to ensure that in Google Company international human resource management is effective in order to be able to maintain its operation top of the global business. References Abang A, May-Chiun L, & Maw K, 2009, Human Resource Practices and Organizational Performance, Incentives as Moderator. Journal of Academic Research in Economics, 1(2). Brewester, C., & Harris, H. 1998. International Human Resource Management: A European Perspective. Routledge. Conti, G, 2005, Training, Productivity and Wages in Italy. Labour Economic, 12, 557-576. Coombs, T and Deleon, R, 2007, Google® power tools bible. Indianapolis, Ind.: Wiley Pub. Girard, B, 2009, The Google way : how one company is revolutionizing management as we know it. San Francisco : No Starch Press. Scullion, H., Collings, D., & Gunnicle, P. 2007. International human resource management in the 21st century: emerging themes and contemporary debates. Human Resource Management Journal, Vol 17 (4) , 309-319. Sheppeck, M, & Militello, J, 2000, Strategic HR configurations and organizational performance. Human Resource Management, 39(1), 5-16. Sims, R. 2007. Human resource management : contemporary issues, challenges and opportunities. Greenwich, Conn: Information Age. Read More