Human resource management is situated at the interface between the personal system of the employees and the social system of the company. It is one of the most essential resources of an organization and plays a critical role to promote the competitiveness for it (Stella and Smith, 2003) ). And Human resource is a term which many organizations describe the ‘traditionally combination of administrative personnel functions with performance management, employee relations and resource planning’ (http://en.wikipedia. org/wiki/Human_resources).
In present business scenario, there are different HR issues which normally have to face by the multinational companies, that are creating immense influence on its management, operation, expandation. Established in 1973, by Adam Ferguson Hume & Co started its activities as an IT consultancy firm. By analyzing the assignment in brief, the following issues can be stated as human resource issues and dilemmas raised by the company’s decision to build its international presence.
Since its beginning, Adam Ferguson, now 64, underscored the Human Resource strategy that ‘consultants should deliver results-not just report- to their clients’. Now this company has much developed and looking for turning the company in internationalization. In this purpose they succeed to establish their presence in three countries of one is outside of Europe. They provide services by giving advice in different issues of business strategy on supply chain integration, alliances, mergers, acquisitions, and change management. In this purpose, good numbers of consultants are working for Hume and Co.
To establish a stable state in management, based on grade, the company allocated its human resources (consultants) into two distinctive types. Consultant advisor and senior consultants. While analysing the case study of Hume ; Co, a number of HR issues has been identified. According to age, we can identify that the veterans consultants, who are former senior manager, aged over 50 plus, and younger consultants, majority of them are women, aged between 27 to 40, with little managerial experience are working for this company.
Labour turnover is similarly high among younger women consultants. They resigned from the company in their early 30, reasoning family and childcare decision. Though it was later discover by the company that these women consulted joined in other companies, who are Hume ; Co competitor. Outsourcing of knowledge is high as because these women consultants know how and core components of the company that are transferred to competitor companies through them. Staffing issue in another vital HR issues as Hume ; Co. is approaching for internationalisation.
In International Human Resource Management (IHRM) literature, there are four terms that describe multinational companies to approach managing and staffing their auxiliary. These are ethnocentric, polycentric, geocentric and regioncentric (Dowling and Welch, 2004). This company is taking regioncentric attitude which normally based on geographic strategy and structure of the multination company (MNC). Staffs here are normally recruited in region base where the company has its presence. There is no practice of expatiate.
Company’s headquarter which is situated in London, UK, have been found with employees from the same culture and region. Official either in high or middle level have been recruited within the foreign management position of the region they opened their offices, though there is some exception. Manger, responsible for organising business activities in India, had worked for Hume & Co in London before he is sent to India. We can find only one exception where a British national is in charge of the France office, though he is selected after the French manager left the job regarding disagreement about his role..
Besides this exception, there is no strict practice of exchanging people among other branches of the company. Lack of training is another hr issue in Hume and Co. The newly appointed consultant does not get any opportunity in increasing their skill ness; the company does not strictly follow the procedure of organising training session for the consultants, neither any exchanging of people between subsidiaries. Formal and informal mentoring arrangement is an essential way that will facilitate new recruited to cope with the challenges in any company like Hume and Com.
New people in the company are depriving of receiving mentoring services normally means backed-up regarding their own personal or professional development (www. city. londonmet. ac. uk). In the mentoring service, the mentor will help the mentee to know the about the dress code, rules and procedure, and other essential information that the mentee needs to know to cope with the new organization culture(Graham and Bennet, 1998) Lack of training, unsatisfied bonus procedure is increasing the retention rate especially among the young women consultant.