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Unit 13: GHRM Trends and Future Challenges

down on turnover, recruitment and opportunity costs. As international competition for Notes
talent intensifies, therefore, it becomes increasingly important for companies to retain
their good managers. Monetary incentives are not sufficient: the package must include
challenge, personal growth and job satisfaction.
A policy should be adopted that invites employees to grow with the company, in every
market. In addition, a career plan should be drawn up for every executive within his or her
first 100 days in the organisation. And plans should be reviewed regularly to be sure they
stay aligned with the business strategy and the individual’s need for job satisfaction and
employability.

Overseas assignments and cross-border task forces are excellent ways to challenge, develop and
retain good managers. They can also be awarded as horizontal “promotions.” This is particularly
useful since the fiat organisations currently in fashion do not have enough levels for hierarchical
promotions alone to provide sufficient motivation.
Unilever has long had a policy of retentive development and manages to hold on to 50 percent
of its high-flyers. As an integral part of its global HR policy, it develops the “good” as well as the
“best.” Unilever reasons realistically that it needs to back up its high-flyers at every stage and
location with a strong bench of crisis-proof, experienced supporters who also understand how
to move with the markets.

Notes Unilever bases these policies on three principles:
1. Be very open with people about the company’s assessment of their potential and
future.
2. Pay people well — and pay those with high potential really well, even though it
may look like a distortion to others.
3. Don’t hesitate too long to promote people who have shown ability.

Sometimes this policy involves taking risks with people. But the point of a good system is to
enable a company to place bets on the right people.

13.3.2 Make It Work

Above described IHRM strategies have the potential to affect every executive in every location.
Following business ethics is necessary at each step. This scale of culture change has to be led by
a company’s chief executive, with full commitment from the top management team. A task force
of HR and business strategists will be needed to facilitate and implement the program, but its
success in the end will depend on line managers.

Notes As Rex Adams, former worldwide director of human resources at Mobil Oil, has
commented, “The development of jobs and the people who fill them has to be the prime
responsibility of line managers, supported by HR as diagnosticians and strategists.”

Line managers will have to be won over to the business case for a multi-cultural mix, trained
seriously for their career-development roles and offered strong incentives to implement world-
class HR practices.

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