Human resources are the individuals who support andmanage the organization’s people an associated process.
It is concerned withthe management of people in an organization, focusing on policies and onsystem. Since every organization is made up of people, human resourcemanagement is seen as a core business function essential to the organization’seffective operation. Human resource management is the body knowledge and a setof practices that define the nature of work and regulate the employmentrelationship. It is also responsible for maximizing employees’ performances andproductivity in order to achieve their goals. Boxall, P.
(1992) defined International Human Resource Management (IHRM) as ‘concernedwith the human resource problems of multinational firms in foreign subsidiaries(such as expatriate management) or more broadly, with the unfolding HRM issuesthat are associated with the various stages of the internationalizationprocess. (Boxhall, P. 1992). International human resource management includestypical human resource management functions such as staffing, recruitment,selection, compensation, training and development, careers and dismissal doneat international level and additional activities like global skills management,expatriate management and so forth. Staffing, recruitment andselection Recruitment refers to searching for and obtainingpotential job candidates.
Selection is the process of evaluating the candidatesand deciding who should be employed for a particular job (Griffin and Pustay, 2015). The first decision forinternational human resource management is where workers for the variouspositions should come from. For example, Victory Recovery Resources Sdn Bhdneed to fill an executive position in a subsidiary in Indonesia, there arethree alternatives, which are a Malaysia national, an Indonesia national or amanager from a third country. Thus, there are three main types of staffing policiesapproached by internationalize firms which included ethnocentric, polycentricand geocentric policies. In ethnocentric policy, the parent country nationalsfill the key positions; in polycentric policy, host country nationals managesubsidiaries while headquarter positions are held by the parent countrynationals; in geocentric policy, the most competent individuals hold keypositions regardless of nationalities. For Victory Recovery Resources Sdn Bhd, thehuman resources management is using ethnocentric staffing policy.
For instance,the executive positions of Victory Recovery Resources Sdn Bhd are given toMalaysian in an office of a Malaysian company located in Vietnam and Indonesia.The main advantage of ethnocentric policy approach is that the parent companynationals may be the best people for the job because of special skills andexperiences. It also enable the company to ensure that the organizationalcontrol and coordination is maintained and facilitated. In Victory RecoveryResources Sdn Bhd, Human Resource Manager is concerning on how to ensure that thoseexpatriates perform as expected in the context of operation in the company. As selectioncriteria for a position in a foreign subsidiary, the candidate must possessskills and abilities necessary to the job and the skills and abilities necessaryto work in a foreign area with employees from different countries. The expatriateschosen must have adaptability to new situations and location specific skills towork with high proficiency in the foreign subsidiary.