International Human Resource Management - Essay Example

CSR and IHRM Name Institution Executive summary In a bid to develop and attain a global competitive advantage, many MNCs in the world have found that it important to integrate the concept of social responsibility in their HRM practices. The key factor here is the slow transition from the common and hailed notion of application of IHRM to work welfare and administration capacities to motivation and satisfaction of the employees. The analysis conducted in this paper relate to the fact that many companies which practice these IHRM practices consistently find favor in the eyes of the society. There are many tenets of employee satisfaction as the paper shows. The link between performance improvement and satisfaction of employees is identified in this case. When MNCs adopt the social responsible international human resource management practices (SRIHRM), they gain social licence, legitimacy and long-term sustainability. It is also clear from the analysis that the concept of social standing and long-term company perpetuity in a given area is enhanced. It therefore becomes important for companies, as established here, to ensure that they have a good mixture of the CSR and IHRM practices to improve on this social value and achieve the much sort competitive advantage. Key words CSR- corporate social responsibility IHRM- international human resource management SRIHRM- socially responsible international human resource management Contents Executive summary 2 Contents 3 Introduction 4 Corporate Social Responsibility defined 5 International human resources management defined 5 Relationship between CSR and IHRM 6 Volunteering on CSR projects 7 Strategic partnerships with NGO's 7 Transparency, equity and fairness in operations 7 Job security for employees 8 Reflection from Shen’s article 8 Recommendations 9 Assumptions of the Shen’s article 9 Implication to HRM 10 Conclusion 10 References 11 Introduction CSR and IHRM are two key concepts in corporate law and corporate society that have a heightened level of intermarriage (Elaine et al nd, 1). Some CSR activities have an impact in international human resource management and IHRM practices have some impacts on corporate social responsibility (Katz 1978, 4). The relationship between the two concepts has been a subject of discussion amongst many scholars in the world today. The key factor in these discussions has been to try to establish the relationship between the CSR and IHRM. This paper considers this and tries to establish how the CSR practices affect HRM on an international scale and how the IHRM practices relate to CSR. It will be observed that the connection between the two is indeed huge and sometimes it becomes hard to distinguish between the two in a certain environment. A conflict arises when companies try to establish their IHRM practices without affecting the CSR (Shen 2011, 1352). To enable a more comprehensive analysis of this case, a special level of importance will be based on the analysis of Shen (2011) article, Developing the concept of socially responsible international human resource management. The society expects the companies to act in such a way that increases their responsibility on a social scale. The company has a responsibility to expend its HRM practices in such a way that meets the vision and mission of the company and at the same time resolving the possible conflict that may arise between the IHRM and CSR. Individual corporations need to devise a plan that offers a concrete balance between CSR and enterprise profits. The paper looks at the various practices conducted in this scale and follows to establish the connection that may arise in this category and how collisions between the two is resolved in an amicable manner for the benefit of both parties. Corporate Social Responsibility defined Corporate social responsibility is a concept that shows how the actions of a certain organization affect upon the society and the environment (Shen 2011, 1352). It reflects the various actions angles that have been put in place by organizations to give back to the society in one manner or the other. CSR may vary from one company to another. It may also vary in definition from one scholar to the next. The key factor in this case is the identification of the fact that CSR involves a service to the community by the organization. It has become a norm in most companies in this world to engage in CSR activities as a way of promoting their image. International human resources management defined IHRM is a concept that shows the various activities that a company (mostly a multinational company) engages in through its promotion of the culture of ethical lines as well as compliance with applicable laws in the society and the company goals (Belli et al 2007, 394; Shen 2011, 1354). Organizations get involved through the concept of HRM in many activities. What should be taken into notice is the fact that these activities are designed for the management of the employees in a given organizational setup. The companies, which operate on an international scale, the MNCs, have to adopt very strong HRM practices. Relationship between CSR and IHRM Shen (2011, 1352) shows that even though the two terms are wide apart in their definitions and applicability, they often find themselves integrated in one level or the other. The definition of CSR as actions of companies to take responsibilities that impact upon the society as well as the environment while presenting consistency with interests of the society and sustainability of development based on ethical behavior, compliance with applicable laws as well as international organizations presents serious challenges to the application of IHRM (Shanine et al 2011, 3). Achieving this and at the same time integrating the ongoing activities of the company is not an easy fete. A delicate balance exists between the applicability of CSR and the IHRM. While the latter advocates for the conduct of the employees, CSR demands that the activities of these employees within an organizational setup should be in tandem with societal demands (Gupta, 2013, 45). It is therefore the responsibility of the human resource managers to ensure that they keep this balance stable. The adoption and implementation of CSR programs lies squarely as a responsibility of the HRM. However, the decision on the CSR policies to adopt is in the hands of the management. To be able to balance the CSR activities and still gain enterprise profits is a delicate balance that organizations must deal with. To understand how the two interrelate, it would be important to note that CSR is the one that has an effect on IHRM. In a bid to fulfill the CSR responsibilities, the organization must ensure that it has aligned its IHRM policies to be in accordance to the expectations of the society. The following paragraphs highlight how CSR integrates with HRM especially on an international scale. Volunteering on CSR projects HRM offers the employees a chance to volunteer for various CSR activities in various places (Doaei and Najminia, nd, 164). It is important to note that this society also forms the customer base for the company. Because of this reason, collaborating with these customers on voluntary programs on a CSR capacity resonates with the society members. The community responds warmly to the organizations which incorporate CSR into their programs and which allow their employee to volunteer in the society. This creates a lot of goodwill among the society members and leads to more business for the organization. Strategic partnerships with NGO's Another way in which IHRM integrates with CSR is through the development of strategic partnerships with various NGOs that operate in the society (Dickmann, nd, 4). Sometimes it becomes hard for an organization, especially during its formative stages to actively engage itself or its personnel in matters that relate to CSR. This is because most times, the MNC is still in the process of trying to establish its footing and identify market niche and market advantages. The organization still has social responsibility. However, to safeguard its personnel from direct engagement in the initial stages, they form strategic alliances with NGOs, which are instrumental in the implementation of various CSR activities and policies. These NGOs work for nonprofit and their main agenda is to see the improvement of the society in which they live in. As such, they form the best partners to implement various HR policies designed by these MNCs. Transparency, equity and fairness in operations As a service to the community, a MNC is required to ensure that it incorporates the concepts of fairness, equity and transparency in all its operations. This ensures that the organization attains a sense of viability and goodwill among the member of the society. The fairness relates to the IHRM policy of recruiting people through a process of qualification rather than favoritism (Schuler, 2000, 242). When a company recruits people based on merit, people gain trust in the organization and they attach a lot of goodwill to it. This boosts the sales revenues of the company, as more volumes will be sold due to a good response. This also assists in the maintenance of a healthy relationship between the internal clients as well. Job security for employees Another anecdote in this category is the fact that many of these MNCs offer competitive packages for their employees. These packages are designed tom assist the employees live a healthy life and attain healthy relationships with other members of the society. There are various ways of ensuring that this happens. These ways include emphasis on long-term employment strategies to ensure that the employees and their families are not disrupted. This serves as an extension of CSR and it goes a long way in boosting the image of the company in the eyes of the society members. Reflection from Shen’s article The article has some notable advantages as well as disadvantages in my opinion, in the analysis of the application of the IHRM and CSR policies. The notable advantage is the capacity to link how various SRIHRM practices affect business development and growth as well as the employee motivation and job satisfaction. The capacity of these organizations to practice various CSR activities enables them to gain social value in the society. This social value enables them to gain and retain competitive advantages over other companies in the same locality. A disadvantage identified is the failure of the article to provide a one-stop solution to all the MNCs in the society. In my opinion, each MNC has different forms of management practices and as such, the application of SRIHRM practices needs to be customized to suit a specific organization. However, i still think that the article develops very insightful and thoughtful ideologies pertaining to the IHRM case and CSR. It is evident from this article that CSR does indeed play a very critical role in ensuring that organizations gain and retain goodwill in the society. Recommendations The following recommendations are offered on this concept of IHRM and CSR. HR managers should conduct a study first to identify what are the possible CSR activities to get involved in a certain society. Organizations should take advantage of this involvement to market the company more to the society. HR managers should be on the frontline to advocate for CSR inclusion in the company’s agenda and budget. Assumptions of the Shen’s article Shen’s article has a number of assumptions based on this topic. Firstly, the country of origin affects various MNCs on their decision in regard to whether they want to implement SRIHRM initiatives or not. The policies that the MNCs put in place may have been brought about by the context of factors in form of localization. Thirdly the MNCs decision on whether to take a certain approach to SRIHRM may be affected by the identity orientation of the MNC. The authors are qualified human resource personnel who have been in operation for some time. They have been published in various other works. Their credibility and their capacity to conduct prefect research on matters relating to SRIHRM and CSR is unquestionable. Implication to HRM The above discussion has provided a connection between IHRM and CSR. Most MNCs as observed here strive to enact good HR policies in their CSR functionality. It has been seen that good CSR policies creates a lot of goodwill for the organization. HRM provides a basis through which CSR can become integrated and Shen’s work provides an insightful approach into this perspective. Conclusion The paper has provided a connection into CSR and IHRM. Through an investigation into the IHRM policies and practices, it has been shown that CSR forms a huge part of the IHRM policies of many MNCs. An investigation into an article by Shen has served to bring this point out into the light in a better manner. CSR does indeed integrate itself into IHRM practices and practice of CSR leads to a development of better IHRM policies. References Bartlett, Ghoshal. 1989. Managing Across Borders, London: Hutchinson Business Books Belli, Stephen, Ellison, Ales,Fajgelj, Ilya Kuselman, Umberto Sansone and Wolfhard Wegscheider. 2007. “Implementation of proficiency testing schemes for a limited number of participants”. Accrued Quality Assurance 12:391–398. DOI 10.1007/s00769- 006-0247-06 Dickmann Michael. Nd. “Configuring for ihrm innovation: a typology and empirical assessment of strategies, structures and processes of international hrm”. http://www.iese.edu/en/files/Dickmann_tcm4-29452.pdf Doaei Habib Allah and Najminia Rahim. Nd.“How far does HRM differ from PM”. European Scientific Journal June edition. 8(13): 161-172. Elaine Cohen, Sully Taylor, and Michael Muller-Camen. “HR’s Role in Corporate Social Responsibility and Sustainability”. http://www.b-yond.biz/images/pages/file/SHRM_CSR_HR_Exec_Briefing_CohenTaylorMuller.pdf Gupta, Abhishek. 2013. “International HRM in Sustaining International Business Operations”. Educational conference journal. 2(5): 43-53 Katz Kahn.1978. The social psychology of organizations. New York: Wiley Sai Rekha and Gayathri. “Human Resource Management and Corporate Social Responsibility”. November 26, 2013. http://ijars.in/iJARS%20378.pdf Schuler Randall. 2000. “The internationalization of human resource management”. Journal of International Management. 6: 239 – 260 Shanine, Aaron Buchko and Anthony Wheeler. 2011. “International Human Resource Management Practices from a Complex Adaptive Systems Perspective: An Exploratory Investigation”. International Journal of Business and Social Science. 2(6): 1- Shen, jie. 2011.“Developing the concept of socially responsible international human resource management”. The International Journal of Human Resource Management 22 (6): 1351– 1363. Read More