Often in business it is more about asking the right questions than having the right answers. As any human resource director knows, your network of resources is vital for successful analyzing of policy issues and recommending positions to management. Nowhere is this more apparent than in global human resource management. As quickly as markets and economies change, so too will policy have to be adapted for those changes.
In this assignment, you will decide what kind of information is important to have and who you want to advise you on it. Just like the regulatory environment, the specialist holds the most current information and unless you are a large conglomerate, you probably will not choose to have that expertise in house. The cost does not make sense for most companies.
Currently, there are a number of excellent consultants specializing in human resource global strategy who provide well-recognized surveys. Many of the surveys are quite expensive but contain rich data. Far more economical will be the professional human resource organizations that will collect information for their membership. And, then there are always the popular management books.
Directions for assignment:
Consider what combination of resources you would like for effective decision making within your company if you are to be an international human resource function. Ask yourself two questions:
â?¢ Who will be on your advisory board for getting the pulse of the local country policies and practices for compensation and benefits?
â?¢ Why is an advisory board important in assisting the operations of a multi- national corporation.
â?¢ What kind of information would you want to know for developing a total compensation strategy that includes benefits and incentive plans?
Assume you are representing a multinational company known for being a leader in the industry. In this assignment:
â?¢ Prepare a report that selects a team of advisors for your compensation and benefits policy team.
â?¢ Explain why you choose this combination and what information you specifically want from each member.
â?¢ Analyze how you expect your company to retain its position as the premiere employer wherever it may operate in the world.
â?¢ You may want to review the Web sites of some of the larger human resource consultants, as well as professional organizations to determine which ones might be good for your needs.
International HR Consultants with helpful surveys:
â?¢ Buck Consultants.
â?¢ Hay Group.
â?¢ Mercer Human Resource Consulting.
â?¢ Watson Wyatt.
International Professional HR Organizations:
â?¢ American Society for Training and Development.
â?¢ Human Resources Planning Society.
â?¢ Society for Human Resource Management.
* Who will be on your advisory board for getting the pulse of the local country policies and practices for compensation and benefits?
A key aspect in helping our MNC to be successful in global recruiting and retention is the creation of an effective advisory board that has the resources to skillfully guide the MNC through the global transition and help ensure they make the most accurate management decisions to ensure maximum success. For our MNC, we will select leaders from across a broad range of industries that have served in senior management positions for a minimum of 10 years. Also, the members of the advisory board will need to represent a cross functional knowledge base with expertise in all levels of global HRM and its implementation. The advisors will also have experience in the global regions for which our MNC will be transitioning (Sherman, 2009). In addition, our MNC will seek to partner with local business leaders or HR consultants from the region to guide the board on current conditions and trends in the country and location of interest.
* Why is an advisory board important in assisting the operations of a multi- national corporation?
The advisory board consists of leaders in the industries that have keen insight into business operations and have demonstrated long term success in managing MNC's. The culmination of these individuals' talents and wisdom serves as a guide to the MNC and helps the organization navigate a successful course as it moves into the global area. Advisory boards provide keen insight and rational that is critical in keeping a MNC's operations on track and remaining profitable (Sherman, 2009).
* What kind of information would you want to know for developing a total compensation strategy that includes benefits and incentive plans?
The MNC's compensation and benefits managers will ...
Some of the methods may be to purchase salary surveys to obtain data from competitors in the region and ensure the pay is comparable. Also, analyzing market data for things such as cost of living factors, housing, food prices, general economic conditions and customs, will be necessary to establish a fair and equitable incentive plan (Sherman, 2009). The goal will be to use as much current market data as possible to formulate a competitive benefit and incentive plan that enables our MNC to pursue top talent and retain them in the region.