Human resource direction ( HRM ) is known and accepted in the broadest sense of the term, as a signifier of direction that includes “ all direction determinations and actions that affect the nature of the relationship between the administration and the employees – its human resources ” ( Beer et al. , 1984, p. 1 ) . As can be observed based on the definition, the undertakings of those belonging in HRM can be complex as it involves all issues that encompasses employee and house relationship. Believing that the most of import plus of a concern is the people in order to accomplish sustained concern success is the nucleus doctrine of human resource direction ( HRM ) , and gaining this leads to a strategic direction of people within the administration.

The effectual direction of human resources is progressively being recognised as a major determiner of success or failure in international concern ( Tung, 1998 ) , in pattern many administrations are still coming to footings with the human resources issues associated with international operations ( Ferner, 1997 ) . In the international sphere, the quality of direction seems to be even more critical than in domestic operations ( Tung, 1998 ) . This is chiefly because the nature of international concern operations involves the complexnesss of operating in different states and using different national classs of workers ( Morgan, 1986 ) . The field of international human resource direction, nevertheless, is merely easy developing as a field of academic survey and has been described by one authorization as being in the babyhood phase ( Laurent, 1986 ) .

Chiefly, the chief end of this paper is to supply insightful inside informations sing the construct of the international human resource direction in relation to a transnational company like Honda. In add-on, this paper will discourse some factors that must be considered when pull offing people in the international environment. This paper will concentrate in three countries: The Organisational Structure in the Context of Globalisation, Global Leadership in a Global Environment and Transferral of Employees Internationally.

Company Profile

Honda is the universe ‘s largest maker of engines, runing from bantam single-cylinder lawn pruners to the mighty V-10 engines of Formula 1 racing. Honda Motor CO. , Ltd. is considered as a limited liability and a joint stock corporation which was incorporated on September 24, 1948 under the Commercial Code of Japan known as Giken Kogyo Kabushiki Kaisha. The company was formed to the houses of an unincorporated concern founded in 1946 by the late Soichiro Honda, to bring forth or fabricate motors for motorized bikes. Honda was unusual in holding already created an industrial theoretical account by the clip it entered the car industry. Twelve old ages after it was founded in 1948, Honda had become the universe ‘s largest bike maker, on the footing of a scheme which focused on merchandise invention and production flexibleness and on the mass production of merchandises which had in consequence opened new market sections. The house ‘s success owed much to the mechanical and commercial imaginativeness of Soichiro Honda himself. His associate, Takeo Fujisawa, who was in charge of the administration and its fundss, had been concerned from the start to happen the resources needed to get the better of the troubles inherent in this net income scheme.

Industrial theoretical accounts which are to be consistent with portion of a scheme of ‘flexibility and invention ‘ must hence give the house the resources to counter these hazards or cut down their impact. By 1967 Honda had become a proper auto maker. It opted for an advanced car niche and exportation in order to make a topographic point for itself among Nipponese manufacturers. It marketed a mini front-wheel-drive auto with a little but powerful air-cooled engine. The theoretical account ‘s commercial success in Japan propelled Honda into 3rd topographic point behind Toyota and Nissan, with an one-year production of 277,000 rider autos in 1970 ( Mair, 1994 ) .

Honda became the universe ‘s largest bike manufacturer twelve old ages after it was founded in 1948. The company entered the car industry during the early sixtiess. It so grew continuously for three decennaries, catching established car manufacturers to rank ten percent in the universe and go one of Nipponese ‘Big Three ‘ alongside Toyota and Nissan. During this period Honda developed an image as a ‘different ‘ company with an idiosyncratic flight led by advanced merchandises. Growth was earnestly challenged in the 1990s. Yet by now Honda had deepened and globalises an industrial theoretical account of ‘flexible mass production ‘ . Consequently, Honda remained profitable during the 1990s Nipponese recession. At the same clip the crisis forced a reconsideration of the merchandise invention scheme ( Freyssenet, 1998 ) . Today, Honda is being regarded as one of the transnational automotive companies runing in different parts of the universe. Honda had been able to perforate the planetary market including states in different parts of Asia, USA and Europe.

Organizational Structures in the Context of Globalisation

The true worth of international HRM is going more widely understood as IHRM steadily interweaves all facets of people direction and development within the company ( Williams, 1995 ) . Harmonizing to Lipiec ( 2001 ) , HRM is defined as the procedure of organizing an administration ‘s human resources, or employees, to run into organizational ends. Human resource professionals deal with such countries as employee enlisting and choice, public presentation rating, compensation and benefits, professional development, safety and wellness, prediction, and labour dealingss. There are many factors in which transnational companies must see, and one of these is about giving accent to the organizational construction imposed in the globalization context. A cardinal issue in carry throughing the ends identified in the planning procedure is structuring the work of the administration ( Zammuto & A ; O’Connor, 1992 ) . Organizational construction is the formal decision-making model by which occupation undertakings are divided, grouped, and coordinated.

The organizational construction of transnational companies is being influenced or affected by the outgrowth of globalization. Globalisation is easier to depict than to specify. This is because, in its present signifier and use, it is a new, complex, dynamic, multidimensional, and worldwide phenomenon, which means different things to different people and different things to the same people across clip and infinite ( Rosenhead, 1996 ) . It evokes strong emotions because it is associated, justly or wrongly, with most of the universe ‘s important challenges and chances ( Kiggundu, 2002 ) . As mentioned, one of the Multinational companies that are being challenged by the construct globalization in footings with organizational construction is Honda. The organizational construction of Honda comprises of board of managers, senior direction, different commissions on finance, and employees. As of March 31, 2003 the company has been able to use 126, 900 full clip employees which includes about 65, 000 local employees employed in international subordinates ( See Appendix 1 ) .

In order to get by with the assorted influences and effects of globalization, the direction of Honda, has been able to better and spread out its administration so as to carry on environmental activities on a planetary graduated table. The direction has improved its organizational construction to accomplish their organizational aims ( A sample of organisational construction of one of the subordinates of Honda is seen in Appendix 2 ) . One of these aims is to be able to prosecute an environmental preservation plans at all stages of Honda ‘s operations and throughout the lifecycle of Honda ‘s merchandises. In add-on, the improved organizational construction is done in order to originate speedy and flexible steps in pull offing their internationally diverse employees.

In this mode, Honda ensures that the director that they will engage surely have the ability to set the human resource policies and patterns to foreign environments. In the competition for planetary endowment, corporations that are loath to see foreign subjects for top direction places will lose out ; the most gifted people merely will non fall in an administration that holds no promise of publicity ( Keeley, 2001 ) . As of March 31, 2003, Honda had 139 Nipponese subordinates and 173 international subordinates ( See Appendix 3 ) . As Honda addition more experience they are able to follow a more planetary attack to the direction of all their operations both domestic and international ( Dowling & A ; Schuler, 1990 ) . Research workers have long acknowledged that there are differing types of organizational constructions that produce differing types of manager-subordinate relationships. Honda attempt to heighten cross-value capablenesss by easing duologue, cantonment Sessionss, or brainstorming seminars held outside the workplace, and even imbibing Sessionss

( Nonaka & A ; Takeuchi, 1995 ) .

Organizational construction had a bigger function in the organizational pattern of the direction of Honda. It has been obviously shown that when the leader had a great strategic program and whose program had been vision and delivered good, the company will hold a greater chance to win. Since, the competition are really high in the market be particularly in the planetary sphere, Honda has been able to see the strategic map of its organizational construction internationally.

Global Leadership in a Global Environment

Due to the outgrowth of globalization and its intense consequence to different companies, many of the concerns are seeking to get by with this state of affairs and be known non merely in the local market place but besides in the international degree. However, runing in the international sphere is non that easy because of different factors to see. When a house decides to spread out its venture to international market, it faces different challenges that need to be given accent ( Klein, Ettenson & A ; Morris, 1998 ) . One of the most of import considerations that should be given adequate attending by the direction of any industry is the direction of the human resources and the finding of the international human resource direction ( IHRM ) pattern that will be implemented through the planetary leading ability. Leadership comprises the aptitude and ability to animate and act upon the thought, attitudes, and behaviour of other people ( Adler, 1991 ; Bass, 1985 ; Bass and Stogdill, 1989 ; Bennis and Nanus, 1985 ; Kotter, 1988 ) . Leadership is a procedure of societal influence in which one individual is able to enlist the assistance and support of other persons in the accomplishment of a common undertaking ( Chemers, 1997 ) .

The accomplishment of corporate success can merely be accomplished by people who have broader cognition in leading ( Cascio, 1995 ) . In an international market place where borderless administration is rapidly going the norm, the leaders of Honda has been able to recognize that employees have an progressively of import function in the cultivation of the company achievements. The degree of employee engagement in companies has expanded in general and in internationally-oriented corporation, progressive manages must recognize that merely through effectual direction of people can organisations survive ( Bartlett & A ; Ghoshal, 1989 ) . The construct of international human resources refers to the procedure procuring, apportioning and efficaciously utilising human resources in an international corporation. The leaders managing IHRM is said to be important in the attainment and achievement of companies in the planetary scene. IHRM seemingly draws the line between a company ‘s endurance and annihilation ( Sims, 2002 ) .

In line with the planetary leading of Honda, the company has been able to use a system that would give balance to their imposed international human resource direction. One of the leading ability that Honda, inherited from Soichiro Honda, is his airy ability. The airy leading ability of the leaders of Honda encompasses their ability to extinguish direction beds to go seeable within the administration and being active, early participants for future undertakings and operations. The leaders of the company have been able to be straight involved in every operation and go a powerful function theoretical account to their subsidiaries ( Nevis, DiBella & A ; Gould, 1995 ) . In add-on, the company had been able to use the permissive ( delegative ) or the so called laissez-faire manner. In this mode the employees of the company in the international degree are permitted to be involved in the determination devising procedure. In this mode, the direction implements minimum control or use on their employees both local and international. However, the direction is still accountable for the concluding determination to be made. Herein, the sentiment and thoughts of the Honda employees are being valued by the leader and each employees and staff encompasses different undertakings set by the leader.

Transferral of Employees Internationally

Another factor to see when pull offing international human resources is the construct of reassigning human resources to international operations. Part of the construct of transportation of employees to international administration is the enlisting context. Enrolling in the international sphere is taken a batch more earnestly and given a batch more idea than it used to be. Deriving competent employees at all degrees of the administration is more than a affair of preparation. It stems from alterations in enlisting and choice doctrine ( Ashkenas et al, 1995 ) . Enrolling the most competent employees for each and every administration is uninterrupted challenge for the human resource direction, specifically in the international sphere ( Henderson, 1996 ) .

Faced with the job of carry oning enrolling attempt to make full critical place in any degree of administration, the international HRM pattern must make an Employee Recruiting Policy to place the critical activities in the enlisting procedure and supervise its consequences. In instance of Honda Motor, the international human resource direction of the company has been able to be after an IHRM Recruiting Program clearly province the mission and aim of the enlisting procedure to be done. Specifically, the intent of such policy is to offer a standard and standard step for enrolling human resources that will be work in the international degree. The enlisting imposed by the international HRM besides includes a process so that the enlisting procedure for the international subordinates of Honda should be accurate and right. In this mode, the international HRM of Honda besides ensures that they are updated when it comes to occupation place, if a new place is required or if a transferred/reassigned or complete workers or employees would necessitate a replacing.

In add-on, the move of Honda to reassign employees to international subordinates aims to proclaim their administration civilization even in the planetary sphere. Honda Motor has do it certain that they ever follow the international labor policies. In this mode, before an employee is given an chance to work in the international degree, the company provides all the necessary preparations, in order to guarantee that the transferred human resource or employees will be able to supply the necessary duties allotted efficaciously and expeditiously. Another of import factor to see when reassigning an employee to an international subordinate is the orientation of the direction system of the host state in order for the transferred employee to set with the present state of affairs of the international organisation. In the instance of Honda, the company has been able to supply a comprehensive orientation to employees who will be transferred sing the civilization, attitudes values and other human factors that can be encountered to such international subordinate.

It is besides every bit of import to observe that since, Honda, belongs to a company which manufactures quality and advanced autos, sharing of knowing and efficient employee or directors is one of their manner. These transferred employees, are responsible to join forces with other employees in such international subordinate ( Gallie, 1998 ) . The creative activity of work squads with corporate duty for the direction of a group of machines or a specific section of the work procedure was based on a managerial enterprise.


In any concern endeavor, employees are considered as the most critical assets. In order for these companies maximise their assets, the direction should hold the ability to efficaciously pull strings employees ‘ working status ( Ulrich, 1998 ) . Herein, the employees must be allowed to be involved in the determination doing procedure to farther heighten the organizational construction ( Delaney & A ; Huselid, 1996 ) . Furthermore, the construction of undertakings among the employees strengthens the organizational public presentation ( Wilson, 1989 ) . As jobs of regional and cultural diverseness politically led administrative issues impede the operation of the administration, it is really indispensable understand the employees ( Schneider, 1983 ) . The sweetening, edifice, enthusiasm, motive and development of the employees of any administration depend mostly on the leading, authorization and vision of the administration ( Rainey & A ; Steinbauer, 1999 ) .

The direction of Honda has been able to use the general HRM patterns of Japan with their international subordinates like the United States. Hanada ( 1989 ) described five stages in the development of international human resource direction through which Nipponese houses such as Honda base on balls as it become progressively involved in planetary activities. In phase one of Honda ‘s international activities, the plans are limited to export of its merchandise for illustration in Philippines, Taiwan and USA and its International HRM map is chiefly dressed ore in an export section. With the impulse of the company to be known in the planetary context, Honda has been able to set up foreign assembly or operations like in USA, UK and other portion of Asia.

Herein, the addition human resources of Honda, is normally handled by making an abroad operations section. The constitution of an abroad human resource section characterises the construction of the house which is well modified to reflect the increasing interaction between Honda ‘s domestic and foreign operations. In add-on, there are besides times when Honda, felt to hold greater control of their international operation. Herein, the International HRM of Honda, maps chiefly in different countries and pattern of HRM. In this mode, the company gives accent to the differences of their employees so as to hold a harmonious human resource relationship. There are besides times in which the company had been able to make the globalization phases that the direction of Honda, attempts to thoroughly internationalize its human resource direction and there is no differentiation between foreign and Nipponese employees with the international division.

All in all it is really important that an international administration should do a manner in seting their direction manners and attacks to adhere with the differences and similarities of the employees, specifically those in the international environment so that IHRM may catalyst the motive among diverse person. It is besides of import to observe that international human resource direction should hold the ability to use the rules and constructs of emotional intelligence and give accent to the importance of self-awareness in covering with different sorts of people, winning their trust and to guarantee that the people ‘s values and the administrations objective will cross to a common end and that is to integrate good employment relationship.


In pull offing people, the international human resource direction, Honda Motor Corporation and other Multinational Corporations should be able to hold the ability to believe more consistently and strategically in managing one of the most valuable factors within the administration, i.e. its human resources. Herein, IHRM pattern should be able to develop a successful organizational civilization and a stable administration by agencies of effectual direction of the people. In add-on, communicating is a really of import factor to utilize in order to hold a harmonious and smooth relationship between the direction squad and the employees in the international degree.

In add-on, the direction should seek to incorporate its ain direction system with the direction system of the host states, in which MNC are runing. The chief end of this integrating is to allow the employees within the international operation feel that their civilization, values and traditions are non being discriminated by the direction. In this instance, if Honda would go on to implement a strategic international human resource direction, it will be able to manage and pull off their human resources in each international operation successfully.


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Appendix 1

Entire Number of Employees of Honda Motor Co. Ltd

As of March 31, 2003
















Appendix 2

Organizational Structure of Honda ( Based in Pakistan )

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