Premium Essay

International Hr

In: Business and Management

Submitted By ship
Words 2717
Pages 11
International Human Resource Management:

Chapter – 6:

COMPENSATION MANAGEMENT

Introduction: One of the key components of IHRM is the compensation administration in MNCs. Today, compensation and employee benefits contribute to 40-50% of the total costs. Compensation is strategically reported and monitored at the broad – levels and with the investors to assess the health of the organization. What is compensation management? Effective and efficient process of managing the earnings – financial and non financial rewards of the employees in an organization based on their performance towards organizational goal is called compensation management. International Compensation is an internal rate of return (monetary or non monetary rewards / package) including base salary, benefits, perquisites and long term & short term incentives that valued by employee’s in accordance with their relative contributions to performance towards achieving the desired goal of an organization. It influences: • • • Organizational culture Recruitment and selection of competent employees Motivation and performance

Objectives of compensation:
Compensation decisions are strategic decisions and play a key role in achieving performance and sustainable competitive advantages for national as well as international firms. Therefore the key objectives are: • • • • • Attract employees who are qualified , experienced and interested in international assignments. Facilitate the movement of expatriate’s from one subsidiary to another, from home to subsidiary, and back from subsidiary to home. Provide a consistent and reasonable relationship between the pay levels of employees at headquarters, domestic affiliates and foreign subsidiaries. Be cost effective by reducing unnecessary expenses. Should be easily understood and easy to administer.

Components of Compensation: components of international…...

Similar Documents

Free Essay

International Hr Issues

...Indiatimes | The Times of India | The Econom ic Tim es | More | Log In | Join | News The page Stock Quote Follow ITeS Type Company Name You are here: ET Home » Tech » ITeS 24 SEP, 2012, 06.53AM IST, INDU NANDAKUMAR,ET BUREAU Idle staff in US, Europe to drag profits of Indian software companies like TCS, Infosys and Wipro A ds by Googl e The page is blocked due to Vel Tech 3 Tw eet Share 0 Prestige BellaVista Porur PropT iger.com/ - 1 BHK@2 5.2 Lacs, 2 BHK@4 8.9 7 Lacs 3 BHK@7 5 Lacs. Av ail Spl Offer Now BANGALORE: The rising number of idle workers in the US and Europe for Indian software companies could drag profitability lower. This will add to troubles already caused by an uncertain business environment, where clients are delaying decisions around technology projects. The so-called 'bench' consisting of engineers who are not working on any active projects has increased by at least seven percentage points at TCS, Infosys BSE -0.31 % and Wipro, analysts said. Industry executives and analysts are of the view that the swelling bench could shave off up to 150 basis points from operating margins in the coming quarters. Onsite utilisation rates, or the proportion of engineers in client locations assigned to billable projects, have fallen to below 90 per cent from 97 per cent at the beginning of the year. A senior industry executive, who works closely with large IT companies, said that up to 18 per cent of onsite staff are sitting idle at......

Words: 1048 - Pages: 5

Premium Essay

International Hr

... Company: Starbucks Country: China Going to do an international joint venture with “----“company in China. Advantages International joint ventures allow for much faster and less costly access to foreign markets than can be achieved by purchasing an existing company in the jurisdiction or starting a new venture. IJVs provide quick access to channels of distribution, and they provide access for the non-resident partner to knowledge and know-how of the local marketplace, which substantially enhances the probability of success for the venture. The resident partner also often has existing relationships with key suppliers and customers, and proficiency in the local language and customs. These benefits can be especially critical to a small or medium-sized business that does not have the capital, resources or Expertise necessary to pursue the opportunity unless it is able to share the risks and the costs through an alliance such as an international joint venture. IJVs allow the partners to move quickly, cost effectively and with credibility (provided by the reputation of the resident partner) in the local marketplace. The parties to an IJV can also take advantage of complementary lines of business and synergies that may exist between the two companies. Disadvantages An international joint venture can result in a frustrating experience and ultimately a failure if it lacks adequate planning and strategy....

Words: 520 - Pages: 3

Premium Essay

Hr Outsourcing

...Running Head: HR OUTSOURCING AT PEPSICO HR Outsourcing at PepsiCo HR Outsourcing We all are aware with the truth that Human resources are the most crucial assets of every organization as the success of organization depends upon the management of its human resources. Ensuring the satisfaction of employees requires expert human resources department that is in reality a costly affaire for most of the organizations and due to this in present most companies are making decision regarding outsourcing their human resources management functions from offshore destinations (HR Outsourcing, 2008). Basically in this process of HR outsourcing an organization generally make use of the services of a third party for taking care of its HR functions. An organization may outsource a little or all of its HR related activities from a particular or grouping of service provides situated in offshore destinations. Role of HR Outsourcing at PepsiCo In this stream of HR outsourcing, PepsiCo is also not left behind from it as HR outsourcing plays a prominent role in its business operations. For getting various advantages of HR Outsourcing PepsiCo had selected Hewitt Associates for a 10-year deal that concentrates on HR business process outsourcing services like workforce and benefits administration, payroll and contact centre support (Bednarz, 2005). This HR outsourcing deal of PepsiCo with Hewitt Associates also concentrates on the...

Words: 715 - Pages: 3

Premium Essay

Hr Specialist

...Position: HR Specialist * Sol Melia' Pharaoh (367 Rooms) Hotel 5* “International Chain. Spanish” based at Hurghada , Red Sea Position: Human Resources Specialist From: 01/11/2006 To:31/12/2007 | Computer qualifications | * Microsoft (Word and Excel under Windows,2000.2003.2007&XP –Power Point –Access-Outlook) * Comsys (Payroll)+ Matrix (Payroll)+( H.R. Solution) * Internet Use * | Training | * Training Housekeeping Skills. * One (Health & Safety protections course) * Quality trainer For Human Resources Division * G.U.E.S.T. Training Program the Sonesta Pharaoh Beach Resort * Off-Job Training Receptionist & Reservation (03 Months) Training. | Private Courses | * Intermediate English Course (Cambridge College) * Interpersonal Skills Level1 ( 7 Challenges of communication-Planning – Time Management – Leadership – Mind Mapping) * Interpersonal Skills Level 2 ( Changes –Self Confidence –The present –Negative Emotions- Stress Management) * Presentation Skills (Preparing Presentation- Preparing the Presenter- Handling the audience- Role Playing ) * ICDL Program. | Job Overview | * Responsible for various HR activities related to the business strategy. * Participate in developing department goals, objectives and system * Conduct recruitment efforts, writes and places advertisements when necessary * Prepare Human Resources Monthly and Yearly reports for the HR Manager......

Words: 383 - Pages: 2

Free Essay

It in Hr

...and Time out. The time which u check in and goes out with check out the full survey and the records it s being stored out which let the judgment to get in progress about the work to get competed out with in various department u worked . 3. Module working As the department the employee working and kept to shift from various department to department as this gives out employee on continuously basis mapping and can be figure out in emergency. Map:- USER ID ----------------------------MATCH---------------------------------------HR SOFTWARE:- As such in the software we have a eye on various activities such as we have SOFTWARE USER ID (CHECK IN TO CHECK OUT HR :- With the new employee to join the organisation have a various factors to go and have to kep up the records which the process have to be complete out HR HR RECIRTMENT:- The task to have a new employee get into the organisation have a many process to figure out and then to have a process out mass selection a few get absorbed. 1. Many phone calls are made so that the eligible employee are get into the selection process. 2. Data search as bunch of many data have to search out many resumes as like online resumes, emails, phone calls etc. 3. Performance as one of the most important to finalised out and then get the absorbed out. CALCULATIONS:- 1. The employee as being hired up As then due to......

Words: 587 - Pages: 3

Premium Essay

Bus 3040 International Hr

...INTERNATIONAL HR It is evident that in today’s economy, globalization has affected every facet of the way businesses are run and the way customs view companies. This is also true of HRM and IHRM. We have seen that businesses that usually operated in a monolithic culture and environment are now finding their markets, suppliers and customers from all over the globe. Some of them even outsource their HR functions to other countries. For this discussion, I chose a country I had visited a few years ago, United Arab Emirates - U.A.E. In UAE, status is important and must be recognized by using the correct title when addressing someone. Their custom is to use Sheikh meaning Chief, or Sheikha for a woman. In this part of the world, people are addressed generally by their first names such as Mr. John. When greeting people it is important to acknowledge the most senior person in the room first. Handshakes are used and can last a long time. Etiquette recommends that one waits for the other to withdraw their hand first before doing the same. When introducing a man to a woman, it is advisable to wait and see if a hand is extended. The right hand is always used as the left is preserved for bodily hygiene and considered unclean. Holding hands among men is common and does not carry the same connotations as it does in the U.S. Many people in the Middle East claim a more modest area of personal space than is usual in the U.S. Accordingly, it could seem rude for an individual to step away......

Words: 522 - Pages: 3

Free Essay

Hr Policies and Hr Prospectives

...Retention of HR and other related records The legal position There is a substantial and complex amount of EU and UK legislation which has an impact upon the retention of HR and other related records. Examples of legislation dealing with particular categories of records are provided in the boxes below. Other important statutes, statutory instruments, EU Directives, and further provisions and proposals include the following: Acts      Limitation Act 1980 Data Protection Act 1998 Freedom of Information Act 2000 The Regulation of Investigatory Powers Act 2000 Anti-Terrorism, Crime and Security Act 2001 Statutory instruments    Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2003/2426) The Regulation of Investigatory Powers (Acquisition and Disclosure of Communications Data: Code of Practice) Order 2007 (SI 2007/2197) The Data Retention (EC Directive) Regulations 2009 (SI 2009/859) Directives   Data Protection Directive 95/46/EC Privacy and electronic communications Directive 2002/58/EC Further special provisions may arise affecting the retention of or access to data, for example:    In the context of the criminal law, the Anti Terrorism, Crime and Security Act 2001 Part 11 provides a lengthy code of practice for voluntary retention of communications data. To provide security services with a reliable log of mobile and fixed phone calls, telecommunication companies must keep telephone call logs for one year.......

Words: 1158 - Pages: 5

Premium Essay

Hr Metrics and the Measurement of Hr

...HR Metrics and The Measurement of HR Tony Guse Human Resources Management AL359 Instructor: Mary Felder 5/10/2014 The goal of an effective HR department is to add value, make an organization more viable, and contribute towards the objectives and goals of a business. Human Resources Metrics convey the value added by the HR function; demonstrate the contributions made by human capital; and measure job-related duties. To be considered a strategic partner, HR must understand business. Intrinsic to that understanding are HR metrics. Simply put, metrics are a way to calculate, measure and track key performance indicators. In the same way that a company has a strategy, so must HR. Most HR activities can be measured and benchmarked (Mathis, 58). There are practically an infinite amount of metrics that HR can use spanning recruitment, retention, payroll, compensation, benefits, productivity, and training, among others. Each metric can provide insight in to how HR is performing. Some metrics are more important than others. This is all dependent upon the company’s goals, strategy, and how much useful data is available. There are, however, key questions to consider when establishing metrics: * What metrics are most valuable to the organization? * What data needs to be collected to calculate the metrics? * How will the data from the metrics be analyzed and benchmarked? * How will the data be used to improve processes and develop new action......

Words: 1106 - Pages: 5

Premium Essay

Sustainability in Hr

...Role of HR in driving Corporate Sustainability measures Executive Summary After the Brundtland report in 1987, special emphasis has been given towards sustainable development and its interrelationship between firm productivity, societal equity and environment quality. Proactive organizations are accountable for facilitating, demonstrating and promoting corporate social responsibility. Companies have to rethink their strategy from being profit driven to corporate citizenship. There has been immense pressure from government, customer, employees and competitors to think towards environmental management. HR can play a critical role in this regard by acting as a medium to communicate and educate firms about the importance of CSR. At the same time HR can integrate business goals and CSR goals by implementing HR practices. Introduction Since rapid industrialisation, natural resources are getting depleted at a fast pace. There is a need to conserve and judiciously use natural resources so that there is no burden on our future generation. Corporate sustainability was once seen as a philanthropic activity but now it is getting its due importance in leading companies. Companies have gone to the extent of proactive environmental management which encourages corporations to prevent pollution at the source rather than at the end of pipeline (Annexure 01). Cutting edge firms are going beyond pollution prevention and exploring new opportunities for developing eco-friendly products, processes......

Words: 2201 - Pages: 9

Premium Essay

International Hr

...International Human Resource Management Introduction Manpower resources are available throughout the world. Therefore, International Human Resource Management is universal. National issues have effected the IHRM practices. According to Dessler (1991), training and development, recruitment, reward systems are areas used to analyze in IHRM practices. Dessler (1991) also suggested four areas that could be used for the same purpose (Dessler, 1991). These areas are; selection, evaluation, development and rewards. The concept of globalization has been facilitated by the European Union. International Human Resource Practices Effected Gender Equality According to Rodrigues (2004), the European Employment Commission (EEC) identified that gender equality is an area that contribute to quality in work (Rodrigues, 2004). Since European governments found this aspect having a profound effect on employees’ rewards, they affirmed it through legislation. Neal (2004) proved that EU used the ideas of this aspect and they passed as laws that govern employment procedures (Neal, 2004). Health and Safety Neal (2004) suggests that in the past decade, European countries have made significant changes to the structures that promote, regulate and enforce rights in relation to their health, safety and hygiene at work (Neal, 2004). With considerations that healthy people work more efficiently and effectively, the European......

Words: 992 - Pages: 4

Premium Essay

Hr Activities

...The HR activities which differentiate multinational and domestic firm include the following: 1.) More HR activities. To operate in an international environment, a human resources department must engage in a number of activities that would not be necessary in a domestic environment. Examples of required international activities are International Taxation, International Relocation and Orientation, Administrative Services for Expatriates, Host-Government Relations and, Language Translation Services. Expatriates are subject to international taxation, and often have both domestic (i.e. their home-country) and host-country tax liabilities. Therefore, tax equalization policies must be designed to ensure that there is no tax incentive or disincentive associated with any particular international assignment. The administration of tax equalization policies is complicated by the wide variations in tax laws across host countries and by the possible time lag between the completion of an expatriate assignment and the settlement of domestic and international tax liabilities. In recognition of these difficulties, many MNEs retain the services of a major accounting firm for international taxation advice. The United States Department of the Treasury and the Internal Revenue Service (IRS) would be providing more guidance on the International Taxation issues starting 2014-15. International relocation and orientation involves the following activities: * Arranging for pre-departure......

Words: 440 - Pages: 2

Free Essay

Hr Mission

...Mission statement of Marriott international is ‘“To enhance the lives of our customers by creating and enabling unsurpassed vacation and leisure experiences.” Vision statement of Marriott international is “To become the premiere provider and facilitator of leisure and vacation experiences in the world.” The core values of the organization are "Take care of associates and they will take care of the customers”,” Our dedication to the customer shows in everything we do” ” Innovation has always been part of the Marriott story” “How we do business is as important as the business we do”,” Our “spirit to serve” makes our company stronger” HR has a responsibility to initiate these core and corporate values in within the employees. This even involves, recognizing their associates for their hard work, providing for their health and the well-being of their family members, opening avenues of growth and career development, easing the balance between work and personal life – are all part of the Marriott compensations package. In addition, Marriott’s total compensation package includes, Medical, Dental, Life and Disability Insurance, Annual Salary Increases, 401(k) Retirement Savings Plan, Continuing Education/Tuition Reimbursement, Hotel Room and Food & Beverage Discounts, Ongoing Training and Career Development. For environmental and occupational health, HR initiates all associates to fully comply with all......

Words: 356 - Pages: 2

Premium Essay

Hr Proposal

...Rawalpindi 2015 By HAROON EHSAN CMS:7801 Riphah School of Leadership Faculty of Management Sciences RIPHAH INTERNATIONAL UNIVERSITY ISLAMABAD Human Resource Management Project Pearl Continental Hotel Rawalpindi Vision and Theme: Being a student of Riphah international University (RIU) and Riphah School of Leadership (RSL) in Particular, it was long my awaited wish and heartily desire to write a Report .During my four years in RIU I had been supported and facilitated at all forums to represent RIU and to observe, learn and gain exposure so in order to write Report. Pearl Continental Hotel Rawalpindi The origin of the Pearl Continental Hotel takes us back to 1958, when Pakistan airlines in collaboration with international hotel corporation of USA established Pakistan services limited. Pakistan services was a public limited company and was quoted in stock exchange with an object to set and operate a chain of five star hotels in the major commercial canters of the country. It took start from Karachi in 1964; later in 1967 it expanded the range of hotels to Lahore and Rawalpindi and then in 1974 made a place in Peshawar as well. In 1991-92 another grand hotel was built and started operations in the hills of Bhurban. Help From PC HR: PC HR provided us with all the opportunities and encouraged us to achieve our objectives. They spelled out the strong points, HR management techniques and some of their shortcomings and steps they are taking to further improve......

Words: 377 - Pages: 2

Premium Essay

International Marketing - Do You Think That Globalization Needs Innovation in Technology or Hr Processes Critically Analyze

...Need Answer Sheet of this Question paper, contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 International Marketing Q1. Discuss the challenges faced by Asian Paints during the process of globalization. Q2. “Leveraging the supply chain across the international subsidiaries would yield best results for the company” Comment. Q3. Do you think that globalization needs innovation in technology or HR processes? Critically analyze. Q4. How important is local manufacturing for an international marketer? Q1. Discuss the statement “In the market for biotech products, patents are very important in preserving competitive advantage”. Q2. Learning the “solid state fermentation” technology made Biocon stronger in the Global market – Discuss. Q3. Can India develop as a global hub for biotech in the next twenty years? Q4. “Retention of professionals in Indian firms is not difficult, given the right environment”. Can this statement be supported by the case facts? Q5. On which future product areas should Biocon concentrate? Q1. Focus is the key to success in International Markets. Do you agree? Why or why not? Q2. Suggest some strategies for Indus Fila in the local market. Is there any link between domestic and international growth? Q3. What are the prominent issues that might challenge Indus Fila in a couple of decades from now? Q4. Which new strategies should the company frame for future......

Words: 399 - Pages: 2

Premium Essay

Identify the Factors That Most Strongly Influence Hr Planning in International Markets.

...• Identify the factors that most strongly influence HR planning in international markets. The factors affecting HRM in international markets are culture, education, economic systems and political – legal systems. Culture affects a country’s laws, values, people’s economic systems and efforts to invest in education. Practices that are effective in some countries are ineffective in some other countries. The five dimensions of culture are individualism/collectivism, power distance, uncertainty avoidance, masculinity/femininity, long term short term orientation. Education – involves countries differing in skill level and educational opportunities. Organizations have to find suitable employees in different companies. Economic System – a company’s economic system – capitalism or socialism, government’s involvement and control, price controls, and other activities influence human resource management practices of an organization. Political – Legal System – the political legal system of a country affects the human resources practices. Sometimes, enforcement might be an issue in some countries. In some countries, laws are enforced, in others they are not. • Describe how companies select and train human resources in a global labor market. Most organizations fill most positions with host country’s nationals. This is because, nationals are used to the culture, legal system, and can relate with the culture and the people easily. Instead of foreigners who might have to learn the...

Words: 280 - Pages: 2