HUMAN RESOURCE MANAGEMENT

The 'varieties of capitalism' approach to employment systems

The 'varieties of capitalism' approach to employment systems

Introduction

Human resource management (HRM) refers to activities that an organization uses its workforce effectively, these activities are: the determination of human resources strategy of the company, hiring, performance evaluation, management development, and compensation and labour relations. The strategic role of human resource management is complex in itself a national company, but even more in an international company, where the activities of recruitment, management development, performance evaluation and compensation are complicated by the deep differences in labour markets, culture, legal systems and economic systems, among others (Streeck, 2009: 25). For example, compensation practices vary from country to country according to their customs administration; labour laws may prohibit the organization in a country and make it mandatory in another. Similarly, while a country can look with great interest the legislation on employment equity, it may well not happen in another.

If the function of ARH wants to form a cadre of international managers capable of managing a multinational corporation, it must address several issues: deciding who to hire for key administrative positions in the company, managers who know how to make small differences in the ways of carrying doing business in different countries, how rewarding and how to evaluate the performance of managers in different countries. Administration of human resources should also try the expatriate managers (Standing, 2009: 78).HRM Practice in Different Countries

An expatriate manager is a citizen of a country working abroad, a subsidiary of the company. HRM must decide when to employ expatriates, who to send as an expatriate for the various posts, be very clear about the reason why it does, remunerate them properly and ensure that render their reports and redirect appropriately to return to home. According to extensive recent studies, it requires a strong link between human resources and overall business strategy to achieve high organizational performance. As is commonly known, the strategy depends on the organizational structure where people are the cornerstone of it (Polanyi, 1944: 197).

Therefore, for a company to outperform its rivals in the world market, should have the right people in the right places, with good training, with the necessary skills and that their behaviour is consistent with the desired culture for the company. The human resources function, through the activities of recruitment, training, compensation and performance evaluation, has a critical effect on people, culture, incentives and control system elements of the organizational structure of the company (Lindblom, 1982: 32). Therefore, human resource professionals play a strategic role within the company with critical, it is your responsibility to configure these elements of the organizational structure so that they are consistent with the strategy to implement it effectively.

As a result, we can say that human resources than can be a continuous source of high productivity and competitive advantage in the global economy. At the same time, research has found that many international companies still have room to improve the effectiveness of their HR function. Within the overall framework, there are four strategies ...