Explain how balancing the interests of global and local, occupational and functional perspectives may play out in a compensation decision scenario?

QUESTION

Please respond to each question. They do not require paragraphs and are short answer only.

1. Explain how balancing the interests of global and local, occupational and functional perspectives may play out in a compensation decision scenario?

2. A sound promotion policy is important. List the characteristics necessary for an effective promotion policy.

3.What information should be included in a targeted internal communication message?

4. Compare and contrast a closed internal recruitment system with an open internal recruitment system.

5. What are some of the typical challenges for HRM in international SMEs? How do they differ from challenges for larger multinational corporations? What are strategies HRMs can use to meet these challenges?

6. Determine three (3) advantages and three (3) disadvantages of using traditional predictors (e.g., resume-bio presentations, interviews, reference checks, etc.) versus substantive assessment methods (e.g., personality tests, cognitive tests, integrity tests, etc.) when selecting new employees. Next, select the one (1) assessment method that you believe is the most reliable for hiring new employees, and specifiy two (2) benefits of utilizing your selected method within an organization. Justify your response.

ANSWER

Balancing the interests of global and local, occupational and functional perspectives in a compensation decision scenario requires careful consideration of various factors. From a global perspective, organizations need to ensure that their compensation practices align with international standards and market competitiveness. This involves benchmarking salaries and benefits against global industry norms to attract and retain top talent. However, local perspectives also come into play, as organizations must consider regional cost of living, cultural norms, and legal requirements when determining compensation levels. Occupational perspectives focus on aligning compensation with job roles and responsibilities, ensuring that employees are fairly rewarded based on their skills and contributions. Functional perspectives involve considering the overall strategic goals and financial capabilities of the organization. Balancing these interests requires a comprehensive approach that takes into account both global and local considerations, while also ensuring equity and alignment with job roles and organizational objectives.

Characteristics necessary for an effective promotion policy include

Clear Criteria: A promotion policy should clearly outline the criteria and qualifications required for employees to be considered for promotion. This helps ensure transparency and fairness in the promotion process.

Performance-based: Promotions should be based on merit and performance, rewarding employees who consistently demonstrate exceptional skills, knowledge, and results. Performance evaluations and objective criteria can be used to assess employees’ readiness for promotion

Equal Opportunities: An effective promotion policy should provide equal opportunities for all employees, regardless of their background, gender, or ethnicity. It should foster a diverse and inclusive workplace and prevent favoritism or bias in promotion decisions

Development and Training: The policy should emphasize the importance of employee development and provide opportunities for employees to enhance their skills and competencies. This can include offering training programs, mentorship, and career development initiatives to prepare employees for higher-level roles.

  Communication and Transparency: A transparent promotion policy ensures that employees understand the criteria and process for promotion. Regular communication and feedback help employees track their progress and understand areas for improvement.

A targeted internal communication message should include specific information tailored to the intended audience. It should provide clear and concise details related to the topic or objective of the message. Some key information to include:

Purpose: Clearly state the purpose of the communication to help employees understand the importance and relevance of the message.

Key Points: Summarize the main points or key information that needs to be conveyed. Use bullet points or headings to make the information easily readable and understandable.

Context: Provide relevant context or background information to help employees understand the significance of the message and its impact on their work or the organization.

Action Steps: If there are specific actions or steps that employees need to take, clearly outline them in a step-by-step format. Use simple and actionable language to ensure comprehension.

Contact Information: Include contact details or resources where employees can seek further clarification or support if needed.

Deadline: If there is a deadline associated with the message or required actions, clearly communicate it to ensure timely response or completion.

A closed internal recruitment system and an open internal recruitment system differ in terms of their approach and scope:

In a closed internal recruitment system, job openings are communicated only to current employees within the organization. This approach restricts the pool of potential candidates to existing employees, limiting the external competition for the position. It promotes internal mobility, development, and retention of talent. However, it may lead to limited diversity and fresh perspectives within the organization.

In contrast, an open internal recruitment system allows current employees as well as external candidates to apply for job openings. This approach opens up opportunities to a wider talent pool, increasing the chances of finding the best fit for the position. It brings in fresh ideas, diverse perspectives, and potentially new skill sets. However, it may require additional resources for screening and evaluating external candidates.

HRM in international SMEs (Small and Medium Enterprises) faces unique challenges compared to larger multinational corporations. Some typical challenges for HRM in international SMEs include:

Limited Resources: SMEs often have limited financial and human resources, making it challenging to establish robust HR departments or implement comprehensive HR practices.  

 Cultural and Language Differences: Operating in international markets introduces cultural and language barriers that require HRM to navigate diverse workforces and ensure effective communication and integration.

Legal and Regulatory Compliance: SMEs operating globally need to navigate complex legal and regulatory frameworks in different countries, requiring HRM to stay updated and ensure compliance.

Talent Acquisition and Retention: Attracting and retaining talent can be challenging for SMEs, especially when competing with larger organizations that may offer more attractive compensation and benefits packages.

Global HR Strategy Alignment: Aligning HR strategies with the organization’s global objectives and ensuring consistency across different locations can be challenging for SMEs with limited resources and expertise.

To meet these challenges, HRMs in international SMEs can implement strategies such as:

Developing Local Expertise: Building a team with local expertise and knowledge can help navigate cultural and legal differences, foster effective communication, and ensure compliance with local regulations.

Strategic Workforce Planning: Conducting thorough workforce planning, identifying critical talent gaps, and implementing targeted recruitment and development strategies to attract and retain key employees.

Employee Engagement and Retention Initiatives: Implementing employee engagement programs, recognition schemes, and career development opportunities to enhance employee satisfaction and retention.

Collaborative Partnerships: Collaborating with local organizations, industry associations, and educational institutions to tap into talent pools, gain market insights, and enhance recruitment and training efforts.

Continuous Learning and Development: Investing in employee training and development programs to enhance skills, capabilities, and cross-cultural competence, ensuring employees are equipped to work effectively in diverse settings.

Advantages of traditional predictors (e.g., resume-bio presentations, interviews, reference checks) include:

Familiarity: Traditional predictors have been widely used for a long time, making them familiar to both employers and job applicants. This familiarity can ease the selection process and increase comfort levels for both parties.

Personal Interaction: Traditional predictors, such as interviews, provide an opportunity for personal interaction, allowing employers to assess the candidates’ communication skills, personality, and cultural fit within the organization.

Contextual Insight: Traditional predictors often provide contextual information about candidates’ past experiences, qualifications, and references, offering valuable insights into their capabilities and potential.

   Disadvantages of traditional predictors include

Bias and Subjectivity: Traditional predictors can be prone to biases, such as unconscious biases, leading to subjective judgments and potential discrimination in the selection process.

Limited Predictive Validity: Traditional predictors may have limited predictive validity, as they rely heavily on self-reported information and may not accurately predict job performance or future success.

Inconsistencies: Traditional predictors can suffer from inconsistencies in evaluation standards and interpretations, as different interviewers or reference checkers may have varying criteria and biases.

Among the assessment methods, substantive assessment methods (e.g., personality tests, cognitive tests, integrity tests) offer several advantages. These methods provide objective and standardized measures of candidates’ traits, abilities, and integrity, minimizing biases and subjectivity in the selection process. They offer a more scientific and evidence-based approach to candidate evaluation, enhancing the reliability and validity of the hiring process. Additionally, substantive assessment methods can provide insights into candidates’ potential for job performance and future success, helping organizations make more informed hiring decisions. Using substantive assessment methods can save time and resources by identifying candidates with the desired qualities and skills, reducing the risk of making poor hiring decisions and improving the overall quality of the workforce.