Factors That Underpin the Differences between Domestic and International HRM
Most multinational ventures fail due to a lack of understanding of the significant differences in managing human resources in foreign countries. The world has become more competitive, globalized, uncertain, and dynamic than ever before. The need to search for aspects of international competitive advantage is a critical objective in the management literature as more firms are operating globally. The purpose of International Human Resource Management is to ensure that the multinational enterprise (MNE) is successful on a global level.
Overview of Johnson and Johnson Company
Johnson and Johnson (JNJ) is an American multinational company founded in 1886. It is among the most significant pharmaceuticals, biologics, and premier customer Health Company across the world. It has over 275 operating companies across the globe in over 60 nations employing about 128,000 workers. JNJ embraces ideas, science, research, and developing innovative products to improve people’s wellbeing. They say, “Johnson and Johnson cares for the world, one person at a time” (Johnson, J. a.). As the organization continues to expand, the need to have a strong HR department that responds to the company’s aim to succeed in a competitive market becomes crucial. It is essential to keep all staff aligned with the objectives of the organization. This kind of plan will help managers to see a clear line in sight between the company’s competencies and goals. As more and more firms operate internationally, there is a clear need to understand how to manage human resources outside the domestic environment. Therefore, JNJ has an international and domestic human resource management team.
International human resource management (IHRM) and domestic Human Resource management practices have similarities such as HR staffing and planning, selection, recruitment, development, and appraisal. The main distinctions lie in the fact that domestic HRM is concerned with employees at a national level while the IHRM is concerned with managing employees belonging to many nations (Lavelle, 2018).
Johnson and Johnson’s global Human resource management addresses a wide range of activities than domestic Human resource management. These activities include coordinating foreign currencies, exchange rates, and international taxation, relocation, and orientation employees hired abroad (Fattaah, 2020).
International Human resource managers experience the problem of addressing HR issues of workers with different cultures from more than one country. Thus, these HR managers should establish different HRM systems for different cultural backgrounds (Lavelle, 2018). Human resource managers in a domestic setting run HR practices to people from a particular nationality. The IHRM is greatly affected by external factors such as cultural differences and institutional factors. Domestic HRM deals with limited HRM activities.
International HRM is more involved in the employee’s personal life. The HR manager of JNJ ensures that an executive posted to a foreign country understands that all aspects of International HRM require greater involvement in employees’ personal lives. The HR manager makes sure that management posted to a foreign nation knows all issues of the compensation package offered in the international obligation, such as taxes and cost of living. In the domestic setting, the HR department’s involvement with an employee’s personal life is limited to offering family insurance programs or transport services in case of a local transfer (Fattaah, 2020).
Strategies of Organizational Performance
Human Resources Department
Department of human resources, any company plays a significant role in the organizational performance of a company. Human resource personnel offer assistance with organizational effectiveness by helping with the design of business strategies (Daniel, 2018). Because human resources experts in a company play a vital role in hiring employees, they also affect the company’s goals and performance.
Education and Growth Strategies
The leadership of a multinational company requires active measures to work with different individuals and groups. The manager should understand the weaknesses and strengths of various fields before making a plan of action to enhance the organization’s effectiveness (Daniel, 2018). JNJ Company considers the education of professionals in different areas of the organization before making changes to the company. Find out about their skills, abilities, weaknesses, and strengths; this helps a company focus on the company’s growth by establishing effective teams.
Keep The Consumers in Mind
Organizational works better when the interests and needs of customers are evaluated. Quality management is essential as the overall company’s effectiveness. If employees do not provide quality services or products, then consumers search for other options. JNJ asks its customers to fill in surveys about the services offered. Find out what the consumers need from the business or the services they find the most helpful for their goals and needs.
Contributions of Human Resource Practices
The human resources department plays an essential role in determining the organization’s culture. It establishes and implements procedures and policies in central areas such as employee behavior and conduct, hiring practices, management relations, and compensation. The decisions that the department of HR make can have positive and negative implications for the business’ overall cultural quality (Arvanitis,2016).
Human resources personnel offer the benefit of educating top management as to what the culture entails. While this may lead to positive changes in the company culture, it could also bring changes that meet with staff resistance, for instance, when management makes a decision to eliminate or change popular worker programs that it considered unproductive or inefficient (Arvanitis,2016).
HR is usually responsible for designing compensation plans for the company. This could have a negative or positive implication on organizational culture, depending on how the employees accomplish it. For instance, an incentive program for salespeople may present workers’ opportunities to boost their compensation through better productivity. Though, it could also build a surrounding where the salespeople are competing against themselves, resulting in deterioration of teamwork and morale.
HR is involved in recruiting and hiring practices, which has a significant impact on the organization’s culture. Putting more emphasis on job applicants’ characteristics such as experience and education can ensure the corporation hires staff that can perform the job (Arvanitis,2016). If there is no focus on aspects such as individual skills and personality, the organization may employ applicants who have trouble fitting into the business culture.
Another main segment that falls under human resources is the conduct of the organization’s members. In Johnson and Johnson Company, this involves the development of ethics or a code of conduct that instructs how workers ought to treat each other and carry out their everyday activities (“About Johnson & Johnson,” 2017). An efficient code of conduct captures the organization’s core values and, if strictly enforced, promotes a culture demonstrated by a high level of ethical behavior. A weak system can cause a culture of distrust and dishonesty.
Johnson and Johnson Human Resource Management
The main objective of strategic human resource management is to uphold a culture that instigates innovation, improves the business’s performance, and works continuously to attain a competitive advantage.
The department of human resources’ mission is to develop, support, and implement processes and programs that add value to Johnson and Johnson. It is their responsibility to ensure that employees welfare is improved, empowerment, retention and growth, at the same time remaining committed to Johnson and Johnson main business drivers, its shareholders and management. It is important for the Human Resource team to focus on the internal sources of competitive advantage. People are regarded as the most crucial single organization asset. The J&J team of human resource is proactive in its relationship with individuals and its always seeking to improve the performance of the organization in its relationship with them (“About Johnson & Johnson,” 2017). Hr experts accentuate the calculative, quantitative and strategic aspects of managing human resource in an organized way. The department also manages leadership, motivation and communication between people in the company. The Human resources managers within J&J companies’ collaborate with leaders at all levels to provide talent solutions that respond to the strategic business needs.
Johnson and Johnson’s company is a very diverse and relationship-driven organization. Their values, beliefs, and norms are based on the JNJ credo (“About Johnson & Johnson,” 2017). Women and men from every ethnicity are employed equally from around the world. All workers are treated with dignity and respect. Customers and employees are usually requested to take the employees or customer satisfaction survey once per year. Besides been asked whether they are satisfied, they as well as for suggestions on how to improve.
Johnson and Johnson is a system and computer-driven company. computer system is very robust. it makes a conscious effort to stay current with the latest technology.
Recruitment is among the essential functions to ensure the success of a business. The link between management, human relations, and the workforce is imperative and needs the right balance. How an organization approaches staffing depends on its HR structure and its approach to hiring and recruitment. Centralization is a strategy of organizing and management where decision-making powers and control are concentrated in the hands of the top management of the organization. Firing and hiring processes, orientation and training, benefits and pay and overall motivational strategies are among the fields directed by experts in a central HR office. Have one call center in South America and one call center in North America to respond to phone calls from staffs that need to talk to a live person (“About Johnson & Johnson,” 2017).
- About Johnson & Johnson. (2017). Retrieved from Content Lab – U.S. website: https://www.jnj.com/about-jnj
- Arvanitis, S., Seliger, F., & Stucki, T. (2016). The relative importance of human resource management practices for innovation. Economics of Innovation and New Technology, 25(8), 769-800.
- Daniel, C. O. (2018). Effects of marketing strategies on organizational performance. International Journal of Business Marketing and Management, 3(9), 1-9.
- Fattaah, P. M. A., Haak-Saheem, W., Brewster, C., & Darwish, T. K. (2020). International Human Resource Management.
- Johnson, J. a. (n.d.). Caring for the World, One Person at a Time. Retrieved from www.jnj.com/sites/default/files/pdf/JJStrategic_Framework_121206.pdf.
- Lavelle, J. (2018). 13: International Human Resource Management. Human Resource Management, 252.