International Human resources management Essay Example | Topics and Well Written Essays - 2000 words

International Human resources management - Essay Example II. LITERATURE REVIEW i. Provides what other researchers have discussed about the factors taken into considerations before setting wage such as setting the wage high in order to motivate and attract good labor force. ii. Labor market conditions or the bargaining power of employees or existing laws of labor unions can influence wage payment. iii. The empirical research carried out provided the theoretical prediction that the bargaining wage tends to be lower in places where there are high rate of unemployment. III. FACTORS TO CONSIDER IN SETTING THE WAGES a) British expatriate managers and engineers i. Availability of expatriate managers and engineers capable of fulfilling the obligations and responsibilities of the job ii. Determining the level of job demand for prospective employees or unemployment level in a certain country iii. Employment setting and organizational needs. b) Local manager’s engineers and manufacturing staff i. The wage compensation laws prevailing in a give n area and the attractiveness of the community ii. The cost of living and benefits that the company would realize iii. Performing job evaluation IV. CONCLUSION i. Provides the summary of the factors that IHRM should take into considerations before setting wage payment International Human Resources Management Introduction The International human resource directors and other top management teams of multinational companies have nowadays realized that globalization is the most critical problems many multinational enterprises are facing today. They also acknowledge that it has become difficult to determine the internalization strategies and factors that they will employ in setting wages for their employees. The IHRM director of a British Multi-National Food Processing Company, which is now planning to open new sites in Australia, Russia and India need to evaluate effective factors for setting wage payment for their employees. Many companies get stuck in the job evaluation process because of the complexity nature of job evaluation process. Many grading and wage payment structures for varied employment aspects have evolved over time and this can be hard for IHRM director to justify why one job is graded or paid higher than the other job. It is vital to employ unique methods for job evaluation, identify effective factors for setting wage payment of expatriate managers, engineers, manager’s engenders and manufacturing staffs. Therefore, before determining wage payment of employees, it is crucial to determine the organizational needs by carrying out job evaluation, job relevant skills, work experience for applicants and understand the economic conditions of the region in which the company will function. Literature Review Many multinational companies evaluate varied factors before making a decision of what to pay the new recruited employees. Thus, varied literatures have attempted to reveal the way many companies carry out labor evaluation process or employ varied factors when setting the wages for their employees. When setting the level of monetary compensation of employees, one need to take into consideration varied factors. Snell and Bohlander (2010, p. 121) argue that one of the first factors that should be taken into considerations when setting wage is setting the wage high in order to motivate and attract good labor force. The wage should be equitable meaning that it should accurately reflect the value of the labor performance. Sparrow, Brewster and Harris 2004, p.49)