The Global Talent Crunch Over the next decade, it is estimated that the growth in

demand for college-educated talent will exceed the growth in supply for most of the
developed world. India’s educated workforce is growing 2% annually, while America’s is
shrinking 0.8% each year.Graphic Source: Oxford Economics

Nurturing and retaining the best talent has always been a

significant challenge for organizations. During difficult and
uncertain global economic conditions, where should companies
focus their HR strategies to attract, develop and retain top talent
for future growth?

For this reason, I want to share seven great hiring strategies with you:

1. Identify what your retainable employees have in common.

It is essential to find out why key people stay with your organization. What backgrounds, skills, or
personality traits do they have in common? Make a list. Also, use confidential employee surveys to ask
them why they stay and what they would like to see you do in order to keep them. Their answers can
help you to hire right in the first place.

2. Power through the talent crunch.

If the current available talent doesn't meet the demand, you will need to change how and where you
search for them. Start with your competitors. Can you lure their top performers to your company?
Also, consider casting a wider net. If before, you were able to find key talent within 50 miles and that's
changed, expand your reach… even to thinking globally. In addition, you will need to be creative.
Consider using telecommuters, contractors, consultants, or even retired executives who would be
open to part-time hours.

3. Build a talent pipeline even when not actively hiring.

A talent pipeline should be developed in order to identify potential candidates who can be
continuously nurtured and approached when vacancies arise. There are several key reasons why it's
absolutely necessary to implement a long-term sourcing strategy: to develop relationships with future
talent; shorten the time to hire; improve the interview process; and minimize business disruption.
4. Use mobile technologies and social media.

Today, it is estimated that 90% of job-seekers are using mobile devices during their search for a new
job opportunity. Employers need to adapt by making mobile recruiting an important hiring strategy.
They should be posting jobs on mobile-friendly platforms and consider using FaceTime to initially
screen candidates. In addition to mobile strategies, employers should make use of social media. Find
out what social media platforms your desired job candidates are using and reach them there. The
most popular are LinkedIn, Twitter and Facebook.

5. Brand your company as a "Best Workplace."

Research the different types of awards available to your company. Having your organization named to
a workplace "Best of" list can be a positive recruiting and retention tool. Earning these types of
accolades can serve as a way to positively brand your company as a thriving and vibrant place to work.
Not only will this boost the number of people wanting to work for your firm, but will increase the
morale and pride of current employees.

6. Transparency throughout the hiring process.

Today's era of transparency in talent acquisition requires greater attention to detail. That means
creating a precise job description, stating why the job is open, making it easy for top candidates to
speak with would-be co-workers, being upfront about the downsides of the position (e.g., long hours),
and talking candidly about the possible reasons there would be a delay in the hiring process. It really
stands out when an employer is transparent and open with candidates.

7. Develop relationships with reputable recruiters.

It makes sense to contact a reputable, industry-specific recruiter because they can improve your
chances of acquiring the right people with the experience and skills you need. Recruiters have an
extensive network of the industry's top performers and can save you time and money, especially when
you're faced with a hard-to-fill position. In addition, all information exchanged remains confidential.
Globalization poses four major challenges that will have to be addressed by governments, civil
society, and other policy actors.

 One is to ensure that the benefits of globalization extend to all countries. That will certainly not
happen automatically.

 The second is to deal with the fear that globalization leads to instability, which is particularly
marked in the developing world.

 The third challenge is to address the very real fear in the industrial world that increased global
competition will lead inexorably to a race to the bottom in wages, labor rights, employment
practices, and the environment.

 And finally, globalization and all of the complicated problems related to it must not be used as
excuses to avoid searching for new ways to cooperate in the overall interest of countries and
people.

Role o f Ihrm Role of International HRM: International human resource management is the basis
of success of any global multinational organization. International HRM enhances employee’s
effectiveness to achieve goals of the organization and meet the needs; to develop employees
to assume more diverse tasks, assignments, face challenging situations and better understand
 the cultural variations across the nations. IHRM department deals with heterogeneous
functions and has to give additional focus on various aspects, such as: 1. More involvement in
the employee’s personal life. 2. Deal with different groups of employees i.e. PCN, HCN and
TCN for which HR policies and practices may differ. International HR managers have to
understand cultural differentiation in multicultural environment. 3. Manage external
influences, i.e host government authorities, business and other interest pressure and labour
groups, etc. 4. Lay different emphasis on management training to deal diverse workforce, their
orientation and to meet international environment and 5. Provide guidance on taxation and
compensation aspects.

STAFFING POLICY
Human resource management in international business presents issues that are different
from those in domestic or local business. The nature and characteristics of international
business are more complicated than domestic or local business. As such, it is necessary
to account for different types of human resource management issues in international
business. HR managers must also choose the right staffing policy approach based on the
needs of the organization. Effectively addressing the various types of human resource
management issues and deciding on the most suitable staffing policy approach leads to
success in HRM in international business

Types of Human Resource Management Issues in International Business

Three types of human resource management issues in international business are
as follows:

 Expatriation
 Compensation
 Repatriation

In staffing in international business, HR managers must determine when or where

to expatriation. Expatriate workers are frequently assigned to key positions in
overseas operations. Human resource managers must also decide on the issue of
compensation. The compensation of expatriate workers must be examined along
with compensation of local workers and the compensation of workers in the
home country. Differences in compensation packages have significant
implications on staffing success, expatriate performance and business
performance. HR managers must also address the issue of repatriation.
Repatriation happens when the worker needs to come back to the home country,
usually to continue working for the company. Repatriation also happens when the
expatriate worker retires. These issues have significant effects on the
 perspectives and performance of expatriate workers and local workers, and the
effectiveness of HRM in staffing.

Types of Staffing Policy Approaches in International HRM

In international human resource management, the types of staffing policy
approaches are as follows:

 Ethnocentric staffing
 Polycentric staffing
 Geocentric staffing

The ethnocentric policy approach to staffing designates home country nationals

as top ranking employees in global operations. For instance, executive positions
are given to Americans in an office of an American company located in Indonesia.
The main benefit of this staffing policy approach is that it allows the organization
to ensure that the people in the top positions are experienced in the business of
the firm. This is especially the case where the host country does not have enough
qualified workers for staffing top positions in the organization. The ethnocentric
staffing policy approach is also used to ensure that the culture of the entire
organization is unified rather than diversified. However, the problem with the
ethnocentric policy approach is that it does not fully support the transfer of local
knowledge to the company. Also, this staffing policy approach could block locals
from promotion in the organization.

The polycentric policy approach to staffing assigns home country workers to top
positions in the central offices or headquarters, and overseas local workers to
other positions. The main advantage of this policy approach is that it facilitates
organizational learning on local markets. This staffing policy approach also
provides better opportunities for locals to improve their careers through
promotion. However, this promotion is limited to key positions in the local
operations, and does not include central or corporate top positions. This staffing
policy approach is disadvantageous because it could create knowledge and
performance gaps between overseas managers and managers in the home
country.

The geocentric policy approach to staffing assigns job positions to any person
best suited for the position, regardless of the employee’s background, culture or
country of origin. The main advantage of this staffing policy approach is that it is
highly flexible. It can increase the firm’s cultural knowledge about the different
markets and countries. However, a disadvantage of this staffing policy approach
is that it could be difficult to apply. Immigration policies, costs of worker
relocation and diversity management create pressure on HR management.
Case Example: UAE Expatriate Management Policy in HRM
In the UAE, expatriate management policy in HRM is on how to manage
expatriate workers to succeed in staffing operations in the country. A firm’s
expatriate management policy would consider the needs of expatriate workers in
relation to the needs of other workers in the organization, who may be locals in
the UAE or the region. In staffing, HR managers would be concerned about how to
bring expatriates to the UAE and how to ensure that these expatriates perform as
expected in the context of operations in the UAE.

The expatriate management policy in the UAE would also limit expatriate workers
to staffing key positions in the organization. The UAE government supports
expatriate workers and allows expatriate management policies that require
expatriate workers in top ranking positions. However, a firm’s expatriate
management policy and staffing policy in the UAE must support local workers in

the organization to ensure that the regulations of the country are satisfied. These
regulations cover local employment in addition to expatriate employment in the
firm’s staffing policy. The involvement of local workers also has the benefit of
organizational learning based on workers’ local knowledge of the UAE market.

The staffing policy approach suitable for the UAE is either polycentric or
ethnocentric. The final choice depends on the specific needs of the organization
at the time of the implementation of the staffing policy approach. Overall, the
expatriate management policy in the UAE is comparable to those of the US and
other countries in the Middle East.

Industrial democracy
 Industrial democracy
1. 1. The concept of industrial democracy is a complete departure from the traditional concept of
autocratic management or one-man governance. “ It means the application of democratic principal in
managing industrial units.” In industrial democracy, worker are treated as responsible
the enterprise and are allowed to participate in the decision -making process through different
methods. Workers are given the right of self-expression and an opportunity to communicate their
views on framing the polices of the company.
2. 2. H.A. Clegg, “Just as political democracy is based on the existence of an opposition ,
industrial democracy is contingent upon the existence of an opposition within the
industry to prevailing power of management ownership”
3. 3. First – Trade unions must be independent both of the State and the management
Second – Only the unions can represent the industrial interest of the workers Third –
Ownership of industry is irrelevant to good industrial relations
4. 4. (i) The workers are treated as partners in the productive process and are given an
opportunity to participate in the management ( ii ) Workers committees, joint
management councils, and suggestion schemes are some methods through which
industrial democracy can be introduced at the unit level.
5. 5. ( iii) Workers’ participation is generally indirect, i.e., through representatives and also
restricted to certain aspects of management particularly those which are related to
workers. ( iv ) The workers enjoy higher status as they have an effective say in the
working of the enterprise where they are working.
6. 6. Existence of trade union strong enough to oppose management. A management
which accepts trade unionism as a “loyal opposition” and is willing to comprise and to
some agreement which may be in interests of industrial harmony and unity.
7. 7. 1. Industrial democracy brings effective communication between workers and
management, and thereby joint decisions acceptable to both parties are possible 2.
Industrial democracy leads to cordial labour – management relations industrial peace.
8. 8. 3. Industrial democracy gives higher status to worker and makes them more
responsible in their outlook and behaviour. 4. Workers feel committed to the decision
taken by them jointly with the management.
9. 9. 5. Industrial democracy gives training in democratic norms and traditions to workers
through participation in the affairs of their company. This develops the sprit of tolerance
and co-operation which is useful in a democratic society. This crates true democratic
spirit in the minds of workers and make political strong and stable.
10. 10. To improve a sense of commitment to the organizational objectives, plans and
activities among employees. To satisfy psychological needs of the employees.
respect the human dignity of employees
11. 11. 1. There should be strong trade union with constructive leadership in every enterprise.
2. The employers should have the willingness to treat workers as equal partners in
industry.
12. 12. 3. All the parties to industrial relations, namely, employers, employees and
government should have full faith in industrial democracy. 4. The workers and

Challenges faced by indian MNCs abroad

1. 1. Challenges faced by Indian MNCs AbroadPresentation By : Arjun.Govind

2. 2. INTRODUCTION A few MNC’s in India: Asian Paints, ONGC, Ranbaxy, IBM
Reliance and Kingfisher.
3. 3. CompetitionMajor Challenges Indigenous business – a threat Restricted MNC’s - Already
rooted foreign investments Technologically behind; Unfriendly to resources and the
environment; Engaged in the exploitation of minerals that are specifically protected by the State; or
Classified as industries that the government is opening up in stages
4. 4. Increased surveillance and Criticisms: Indian MNCs face surveillance abroad, the territorial
governments keep watchdogs to assess the overall activity of the corporation. Steps to face (2)
Strengthening legitimacy (1) Reducing cost and risk;critisisms: (4) Creating (3) Building
competitive advantage; andand reputation; win–win situations through synergistic value creation.
5. 5. Cross cultural issues and values affecting Organizational culture • Motivational approaches
Ethical• Eg. Asian Paints manager issues • Manipulation of stock markets • Lobbying • Fudging of
accounts and balance sheet: • Product Piracy • Surrogate and deceptive advertising • Discrimination in
selection, compensation and promotion
6. 6.  CSR is becoming compulsion (1) Clear in terms of objectives and aspirations, (2) Transparent from
both sides and (3) Committed with a better prospect through continuous feedback.
7. 7. Corruption• Of India• Subversion•Of the other nation Riots, political emergency situations,
terrorism and government regulations to protect domestic business
8. 8.  Norms, Policies and Political challenges a. Unfair legal proceedings b. Government regulations c.
Reserved workers d. Taxation
9. 9. Conclusion An MNC must focus on the following aspects to sustain globally: Face the CSR
challenges Focus on developing the HRM Training on work culture and ethos internally Reputation
management Competence analysis
10. 10. THANK YOU

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