To compete in today’s business environment, corporations must be globally responsive. This response should also cover the HR system. A good HR system management in a multinational company comes down to getting the right people in the right jobs in the right places at the right times and at the right cost. This demands a prudent implementation of global HR system. In the process of implementing global HR system, the following steps can be useful:
1. Adoption of Global Perspective:
The foremost step toward building a global HR system is to end all favouritism toward managers who are nationals of the country in which the company is based. In reality, it may be assumed by the company that its own nationals are more competitive than others. This conception holds them back to get other country’s nationals. It puts the company in a disadvantageous position.
2. Identify Essential Activities:
Based on your company’s business strategy, identify the activities that are essential to achieving success around the world and specify the positions that hold responsibility for performing them. These positions represent the “lifeline” of your company. Typically, they account for about 10 percent of management. Then define the technical, functional and soft skills needed for success in each “lifeline” role.
3. Building Database to Getting Matching Talent:
The main tool of a global H.R. policy has to be a global database simply because multinational companies now have many more strategic posts scattered around the globe and must monitor the career development of their managers. It helps them identify the right people for particular posting.
4. Construct a Career Graph:
Evaluation of progress of employees should be done in terms of their willingness to move to new locations as well as their ability and experience. In today’s global markets this concept should be viewed as a graduated scale and constantly reassessed because of changing circumstances in managers’ lives and company opportunities. This will encourage many more managers to opt for overseas assignments and open the thinking of line and H.R. managers to different ways to use available in-house talent.
5. Identify your leadership talent:
Multinationals may have an organisational structure which includes strategic business units. Building a database of company’s mix of managerial skills and their potential would be helpful to identify functional specialists who show general management potential.
6. Assess strength and skills gap:
Ask each executive to compare his or her skills and characteristics with the ideal requirements defined for the executive’s current post and preferred next post. Invite each to propose ways to close any personal skills gaps — for example, through in -house training, mentoring, outside courses or participation in cross – border task forces. This information should form the basis for your management development and training programs and show whether you can prepare internal candidates for new job descriptions.
7. Regular recruitment:
Search for new recruits in every important local market as regularly as you do in the headquarters country. Develop a reputation as “the company to join”. The best way to attract local national recruits is to demonstrate how far up the organisation they can climb.
8. Advertise your posts internally:
It is like running own global labour market. Routine internal advertising has many advantages in that. It allows a competitive internal job market to function across nationalities, genders and other categories. It shows ambitious people they can make their future in the company. It may reduce inbreeding by transferring managers across businesses and divisions. It solidifies company culture and consistent with giving employees responsibility to manage their own careers.
Example: In a large company, it is hard to keep track of the best candidates. For this reason, I.B.M. now advertises many of its posts on its worldwide Intranet.
9. Challenge and retain your talent:
Global networks that transfer knowledge and good practices run on people-to-people contact and continuity. Executive continuity also cuts down on turnover, recruitment and opportunity costs. As international competition for talent intensifies, therefore, it becomes increasingly important for companies to retain their good managers. A policy should be adopted that invites employees to grow with the company, in every market.