The aim of this paper is to discuss HRM in an international context and develop staffing policies and provide recommendations for the Bosch Group in the proposed market of Kazakhstan. International HRM practices cover wider areas than domestic HRM practices. The study found five key variables (attitudes of management, complexities and difficulties in global markets, the cultural issues, dependency of multinational companies on home-country or domestic market, and the type of industry where the business operates) that differ international HRM from domestic HRM.
In addition, domestic HRM mainly focuses on procurements, allocation, and utilization, and internal HRM mainly focuses on staff types, HRM performance, and the country’s operation. The staffing strategies are classified as ethnocentric staffing, polycentric staffing, egocentric staffing, and geocentric staffing. Among these staffing policies, Bosch is now using a geocentric staffing approach in its existing operations; it can apply the same approach in the proposed market in Kazakhstan. Applying a geocentric staffing approach, Bosch Group can hire local talents for the Kazakhstan office. In addition, Bosch Group should ensure diversity and equality in the workplace of Kazakhstan and need to develop attractive incentives and rewards to attract the talents and retain them within Bosch’s business in the Kazakhstan market.
Bosch should offer intensive training and development to increase the staff’s knowledge and understanding and motivate them towards the organizational goals in the Kazakhstan market. Bosch should also offer to develop attractive incentives and rewards schemes (including flexibility workplace, bonuses, paid annual holidays, sick payment, maternity, and paternity paid holidays, pension schemes, etc.) to motivate and retain the employees.
Table of Contents
2.0 International perspective.
3.0 Staffing strategy for Bosch in Kazakhstan.
2.2.3 Geocentric staffing approach for Bosch in Kazakhstan.
4.0 Intuitional and cultural context
4.0 HRM functions at Bosch.
4.1 Recruitment and selection.
4.2 Training and Development
4.4 Talent management
4.4 Performance and Rewards.
5.1 Recommendation 1.
5.3 Recommendation 3.
5.4 Recommendation 4.
6.0 Action plan for Bosch.
Organizations cannot achieve organizational goals and objectives without the integration of employee and employer interest (Chand, 2016). Personal planning and staffing issues are considered as the critical success factor of multinational companies. Therefore, they must be designed to focus on organizational goals and objectives (Mullins, 2015). This paper develops strategic forecasts and formulates staffing policies for Bosch in Kazakhstan. Bosch is a leading international manufacturer of building technologies, consumer goods, automotive and industrial technology. It manufactures sells and provides after-sales service to more than 350 regional and subsidiaries and over 15000 Bosch service centers in 150 countries across the world. Bosch has now more than 283507 employees and has a particular interest in Kazakhstan (Bosch, 2017).
Therefore, understanding HR philosophy and staffing policies have been a significant issue for Bosch. This paper first discusses the term “HRM” in an international context. Then, the staffing strategies are discussed to staffing policy for Bosch. Next, HRM functions at Bosch are analyzed. Then, this paper provides recommendations for Bosch. Finally, an action plan is developed to implement the recommendation provided for Bosch in Kazakhstan.
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2.0 International perspective
In general, the key functions of HRM are staff selection and recruitment, staffing and developing staffing strategies, training, and development, motivating staff by developing incentive and reward schemes, performance management (Mullins, 2015). However, HRM from an international perspective covers wider areas including host government interest, relocation, and orientation, taxation, administrative and language translation services (Torrington et al., 2014). This is because these issues differ from country to country. For example, the taxation system in the UK differs from developing countries like India. Bratton and Gold (2014) said global HRM mainly focuses on host-government and visa issues, the extensive outlook of cultural diversity, public advantages, and interests.
Gunningle and Morley (2016) stated that international HRM concentrates on economic fluctuations, political issues, social and cultural issues, and ethical and legal issues, whereas these issues are less significant in local human resource practices. Thomson (2015) said HRM practices from an internal perspective faces more difficulties than from a local perspective. This is because HRM from an international perspective faces more issues (such as cultural and political issues, traveling and relocation issues, training and development issues, damage of business and status losses issue) than from a domestic perspective.
The global HR practices also face more global terrorism, political instability, and business environmental issues than in domestic HR practices. This means the external business environmental issues (including political, economic, social, technological, legal, and environmental issues) affect more the performance of international HRM than the local HRM practices. According to David et al. (2014), global HRM faces higher labor costs, government, and political issues, cultural and racial issues in comparison to local HRM. For example, labor is cheaper in developing countries like India than developed countries like the UK, but political issues are higher in developing countries like Bangladesh than in developed countries like the US.
David et al. (2014) defined five main variables to separate international HRM from local HRM. These five variables are outlined in the diagram below:
Diagram: 5 variables which differ global HRM from local HRM Source: David et al. (2014)
David et al. (2014) in the above diagram defined five key variables to differ internal perspectives of HRM perspectives from local HRM perspectives. These five variables are attitudes of management, complexities, and difficulties in global markets, the cultural issues, dependency of multinational companies on home-country or domestic market, and the type of industry where the business operates. Boxall et al. (2014) said the main cause of variation between global and local HRM is in local business employees are coming from their own nationality and ethnic groups but international HRM staff come from diverse cultural, educational, ethnic backgrounds. Mullins (2015) stated that HRM performance also differs from nation to nation because of variation in organizational culture and structure, HR roles, and competencies……………