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Unit 12: Basics of International HRM

the right jobs in the right place at the right time for right salary. GE, in 1990s, globalizes notes
its intellect seeking learning and transferring ideas throughout its global operations. This
is transnational strategy which has been successful due to application of reused HRM
philosophy.
3. Value creation for International Company: The Human Capital Index, based upon a
comprehensive global study of over 2000 companies found that superior human resource
practices were a leading indicator of increased shareholder value. This implies that superior
IHRM system enhances the value for the international company.

figure 12.3: strategic Decisions and their implications for Hrm.

Task Explain briefly how better human resources can lead to better productivity.

12.3 Staffing Policies (Recruitment and Selection)

Staffing policy is concerned with the selection of employees for particular jobs. At one level,
this involves selecting individuals who have the skills required to do particular jobs. At another
level, staffing policy can be a tool for developing and promoting the desired corporate culture of
the firm. By corporate culture, we mean the organization’s norms and value systems. A strong
corporate culture can help a firm to implement its strategy. General Electric, for example, is not
just concerned with hiring people who have the skills required for performing particular jobs;
it wants to hire individuals whose behavioral styles, beliefs, and value systems are consistent
with those of GE. This is true whether an American is being hired, an Italian, a German, or an
Australian and whether the hiring is for a US operation or a foreign operation. The belief is
that if employees are predisposed toward the organization’s norms and value systems by their
personality type, the firm will be able to attain higher performance.

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