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Summary

To trading within nations of one country to another is really complicated for different cultural aspects, economic positions, language and many more. For this reason, it is quite difficult to build IHRM in international concepts. Managers and human resource professionals have to have the knowledge and ability to build up proper model of IHRM in appropriate situate within the nations. Incompatibilities of concept within nations will be obvious in lack of motivation and separation, leading to low productivity and labor conflict. So to understand and overcome these problems, locus of human value should be developed which means the differences in point of view on the value of people in organizations, and the validity of human resource management in different cultures or different nations. There are various models in IHRM, which are developed considering different aspects of different situation and problem. In these models, Supranational Model is one of the most important models in IHRM. The objective of Supranational Model is to search the issue of combination of international business across nations by appearing at the way of different approaches to persuade the management of people throughout the international function. In Western countries, they are developing the Supranational Model very easily and also the adaptive nature of the model is also positive. But in Asian and Middle East countries are unknown about the application and importance of this model. But in the environment of Asian and Middle East countries, it can also be developed in proper manner to utilize it appropriately. In such a condition it is confusing that what should be done in this problem of developing the Supranational Model. Its very unclear about the activities, actions, practices, benefits, uses and mistreatments of Supranational Model in Asian and Middle East countries rather than in Western Countries. A relationship between employees and organizations in these countries are reflected an obligation of loyalty to the aims of the corporate collectivity. These countries should follow much flexible model, like supranational model, to gain the boarder less market.

Introduction

Before introducing IHRM¹, it is essential to know about the general aspects of Human Resource Management. Typically, it considers to the activities undertaken by an organization or a company to utilize its human resources in actual fact, like, human resource planning, staffing, performance management, training and development, compensation and benefits, labor relations and so on.

The industrial revolution mainly began in the mid 18^th century in England and spread its evolution first in Europe, then in America, after that in Asia and then the rest of the world, presented international trade as a unique improvement. But in recent time, the progress in telecommunication and information technology have been considered as a second industrial uprising by many scholars and practitioners, which enlarged the dimensions of trade between nations in all over the world.

Tayeb M., (2005), stated that to trading within nations of one country to another is really complicated for different cultural aspects, economic positions, language and many more. So, international trading and business have to be highly researched. The majority of researches on these organizations are highly paying attention on visible activities like international production and international marketing rather than IHRM. But now it is impossible to avoid IHRM in global business².

It is quite difficult to build IHRM in international concepts. Managers and human resource professionals have to have the knowledge and ability to build up proper model of IHRM in appropriate situate within the nations. But the situation in really picture is much more complicated than said. A manager, who had educated in the Western tradition, has the ability to implement Western human resource practices in different cultures, which may not have the same support as western culture because of having a different concept of people, and a different consider for people in organizations. For this reason, incompatibilities of concept within nations will be obvious in lack of motivation and separation, leading to low productivity and labor conflict. This is the major problem aroused because of the extent of internationalization.

So to understand and overcome these problems, locus of human value should be developed which means the differences in point of view on the value of people in organizations, and the validity of human resource management in different cultures or different nations.

There are various models in IHRM, which are developed considering different aspects of different situation and problem. In these models, Supranational Model is one of the most important models in IHRM.

The objective of Supranational Model is to search the issue of combination of international business across nations by appearing at the way of different approaches to persuade the management of people throughout the international function. In this strategy, managers of IHRM are exploring the ways that organizations have internationalized, often ignoring national and cultural differences, and the implications for the management and improvement of people within the international perspective. Often the ability of the supranational in the economic power is to impose forms of control on a local subsidiary or even a national industry.

In Western countries, they are developing the Supranational Model very easily and also the adaptive nature of the model is also positive. But in Asian and Middle East countries are unknown about the application and importance of this model. But in the environment of Asian and Middle East countries, it can also be developed in proper manner to utilize it appropriately.

In such a condition it is confusing that what should be done in this problem of developing the Supranational Model. Its very unclear about the activities, actions, practices, benefits, uses and mistreatments of Supranational Model in Asian and Middle East countries rather than in Western Countries. For this very reason to do a research on Possibilities of Implementing Supranational Model in Human Resource in Asian and Middle Eastern Countries can developed an idea and clearance of the utilization of this model properly³.

Background

As an exploratory research, the initial research which conducted to clarify and define the nature of the problem, the aim of this research is to examine the development Supranational Model in the field of IHRM not only in Western countries but also in Asian and Middle East countries. In doing this research, it will draw an overall concept of IHRM and its popular models to apply on work across borders⁴.

This research paper will develop to conduct for three major reasons, which are, diagnosing the situation, screening alternatives like concept testing, and at last discovering new ideas.

Specifically, six main issues are observed in this research paper: first, the clear concept of differences in domestic HRM and IHRM; second, the development of various IHRM models; third, comprehensible idea about Supranational Model; fourth, various advantages of Supranational Model in Western countries; fifth, adoption and modification of Supranational Model in Asian and Middle Eastern part of the world to achieve their goals and objectives and lastly sixth, the changes in HR policies of the Asian and Middle Eastern models with adoption of the supranational model⁵.

Methodology

To develop a methodology of an exploratory research is easy to explain but difficult to exploit. For this research paper, secondary data analysis will be used as methods and materials, which will help to make research to go further development. In secondary data analysis, preliminary review of data collected for another purpose to clarify the current issues of the research. It is most economical and quick source of background information. Using secondary data is equally important in applied research also. In this research, information is gathered about the IHRM and its models and application of these models through heavy use of Internet Search Engine and from studying various books, and reports. Outcomes of this information have provided the baseline of completion of research paper.

Illustrations

What is HRM?

To develop clear concept about International Human resource Management, first, we should know that what means by HRM⁶. HRM means the association of personnel management methods used in incorporated way so that performance is improved through strategic involvement covering selection, consideration, remuneration and expansion. Tayeb M., (2005) argued that HRM means to make certain that the employees of an organization are used in a way that the employer acquires the greatest achievable profit from their capabilities and the employees attain material and psychological rewards from their effort⁷.

The Harvard Model of HRM is given below to develop the whole scenario at a glance:

What is IHRM?

After developing the concept of HRM, the idea of IHRM can be generated so easily. The concept of International Human Resource Management is formulated by the evolution of globalization, which means the movement in goods, knowledge, capital, information, people and services across borders assisted and goes faster by transform in economic, financial, social, legal, political, cultural, technological, educational, and workforce conditions that require stable regulation. These conditions are important for IHRM most⁸.

In extend, IHRM is about accepting and concerning all human resource management policies and practices in their external and internal contexts in the progression of managing people and organizations operationally and strategically throughout the world for the benefit of several stakeholders.

In IHRM, more functions have to be performed, including HR functions, like:

• Taxation
• Culture orientation
• Relocation
• Admin services for Expatriate
• Broader perspective
• Greater participation in the personal lives of employees
• Greater threat exposure (expert failure, family problems, terrorism)
• Government regulations
• Local traditions of doing trade
• Code of conduct

Approaches to International HRM

The ground of international HRM has been distinguished by three broad approaches, which are:

• Cross-cultural management approach: Cross-cultural management approach observes human behavior within organizations from an international outlook.
• Comparative HRM: Comparative HRM inquires about to explain, evaluate and examine HRM methods in diverse countries.
• HRM in multinational enterprises (MNEs): HRM in multinational enterprises search the connotations of the progression of internationalization on HRM actions and policies⁹.

Models of International Human Resource Management

Jackson, T., (2002), argued that there are various models used in IHRM to ensure the effectiveness and efficiency of its function and also for proper utilization of these models in appropriate environment considering the concept of border free trade in all over the world¹⁰. These models are listed below:

• The Multicultural Model
• The Supranational Model
• The American Model
• The Dutch Model
• The Japanese Model
• The British Model
• The European Union Model
• The Chinese Model
• The Post-Soviet Model
• The Post-Colonial Model

The Multicultural Model

Jackson, T., (2002), mentioned that the multicultural model is used in cross cultural organization, which mainly suggests the interesting aspects of doing business internationally or in boarder less market in the world. In IHRM, international businesses have to work with people who have different cultural heritages. Cultural differences must be considered when to communicate and to network across nations and across cultures within nations. Although multinational companies are following different models, they also have to accept people within them who have different cultural values and views on people and life. The multicultural model is built for fixing the problems of understanding cultural differences across boarders. To better understand and develop the model, the HR manager should also the clear vision about the wide cultural variation across nations¹¹.

The relationship between diverse culture and multicultural organizational situation, the implications for the management of people in international organizations should be developed according to their cultural values. The implications of cultural values are shown below in Asian countries context:

• Hospitality
• Tradition Followers
• Strong believe in Groups than individual

For the development of cultural values in Asian countries, their values are different than western countries by four dimensions:

• Power distance
• Uncertainty avoidance
• Individualism:
• Masculinity

In management, the issues of cross cultural organization in multicultural model have to implement. Suppose, in Asian countries, people like to be in group, they should be implemented always in group work, so, and then the individualism can not take its effect on their work.

The Supranational Model

Supranational Model is another model to develop when any country has business across the boarder. In this model, the business do not develop the cultural values, as we say in multicultural model, they are trying to develop legal, social, economic and political circumstances within countries. In this model, the organizations explore their business by different point of view and also following by some important strategies, which can influence the people in managing internationally.

So, we can say that, supranational model is more than international b developing cultural and ecological system. Jackson, T., (2002), indicates that this modern system has different level in the level of multinational firms with higher level of integration by the involvement of states, corporations and networks of corporation, states and persons.

A great strategy has been formed on the need to develop new forms of organizations for increased internationalization. In western countries, these issues of the operations have promoted in cross boarder business, investment and strategies.

The key aspects of the strategic management of modern organizations in this model are mainly based on the balance between differentiation and integrations. When a business has lack of flexibility in different locations, they need to be developed integrative activities within the cross boarder organizations. The operating environments become more complex when there have high level of differentiation.

In domestic business, high level of professional specialization is needed to develop. But in strategic organization in cross boarder market, some dimensions have to be focused: the type of additional business in each country; type of international business strategy engaged; and the type of ownership, which also control the level.

Jackson, T.., (2002) define these three dimensions by three forces according to transitional organization, which are:

• Global integration: In integration, the trend which moves from domestic to global tastes by using strategic management of the model of IHRM. For an example, Coca-Cola and McDonalds are the demand for the same consumer in domestic and international market. So, they have the Global integration.
• Local differentiation: The demand of local and national tastes which tend to be followed multinational organizational structures, by the extent of International organization.
• Worldwide innovation: The cost of innovation is great and also cost-effective when research and development is centralized. Sometimes, the research and development functions can not be developed properly for lack of expertise and resources availability in local markets, which may minimize the efficiency of organization¹².

In this model, both outside and inside the organization persuade the strategic issues of international human resource management functions and policies and practices. Some common factors include like the type of business and technologies available, the nature of the competition and the nature and degree of change; and nation characteristics (political, economic and socio-cultural situation and legal necessities). Other important factors include the arrangement of operations, international trend of the headquarters through the other organizations, the viable strategies being used, and the companys practice in managing international operations. All these factors influence the companys attempt to be approachable and adaptable in globally coordinated and controlled.

Functions and policies are aimed by meeting the concerns and goals of the multinational organization including global competitiveness, efficiency, local responsiveness, flexibility, and managerial learning and transfer of information. These functions can be varied from company to company in international context.

Jackson, T.., (2002) argued that implications for managers are different in foreign companies by operating in general HRM practices followed by local practices, with differences among specific practices. Other implications are based on age and size of subsidiary, dependency on local resources, Union level of the region, Local regulations and other pressure by government, International experience and characters of parent organization, flows in parent companies and subsidiary companies etc. are also important for IHR managers to exploit the business globally.

By evaluating various factors which are pressing hard for international integration having local differentiation, it is possible to understand an optimum solution for appropriately managing people in subsidiary operations. It can be achieved by planning the forces and drawing the contributing factors related with parent and subsidiaries. By considering the strategic factors of supranational model, every organization doing international business should keep the balance between integration and differentiation on the aspects of cultural values in different national business. The framework of strategic integration captures aspects, but can not provide much information of people management policies and practices within specific forces. So, these are the main concepts of supranational model in IHRM.

The American Model

Another important model, the competences approach of international human resource management is now extensively used in the Western countries. This model can be used for developing an effective way to ensure the promotion of the organization, by the terms, when people are recruited, developed and rewarded with the operational and strategic objectives of the organization. The competences approach mainly used and cultivated in an American context. For this reason, it is called the American Model. It is developed for an individualistic, competitive, short-term culture with an influential standpoint on the significance of people in organizations.

In America, most people work in service organizations, which are standing highest in the world. Others are working on manufacturing and transportation organization and few are working on agriculture. The workplace of US dramatically changes in domestic and global competition, including work systems innovations, growing productivity, and improve quality. Also, Americans are downsizing by use of casual and part time labor. These new HR practices are implanted in work process design, ownership of employees on organizations stocks, Outsourcing and contingency of employment.

To overcome the difficulties in operating American model, where management practices follows top-down approach. But this approach is an achievement orientation of American managers who wish to persuade and take control of the operational performance.

So, we can see that, responsive process directed towards making changes in the atmosphere of America, which requires variety of inspiration to drive the process, and specific attitudes can be influence the process and outcome of it. It also requires an aptitude to distinguish the changes to understand the process can be achieved, and the ability to apply this understanding of the model in IHRM.

The Dutch Model

In Sixteenth Century, Dutch commercial spread its business in world with a surprise package of Dutch missionary, with surprising work followed hard on its heels, which was totally new at that time.

The major difference in this business is the cultural dimensions with low in uncertainty avoidance, high in independence and also low in power distance. The main concepts of these organizations are high femininity, which was considered unassuming, low-profile organizational culture comparing with other organizations.

Jackson, T., (2002) mentioned that application of Dutch model is making decisions to allocate assignments to any specific person based on potentiality, development needs, and also the needs of the organization. People availability assessed the need of competency. Peoples development and movement over time is analyzed by predict and compare various jobs at different levels, to know the availability of jobs that used in inform recruitment and resourcing decisions¹³.

This approach developed by potential use, promotion guidelines and work analysis by which company can able to focus on the long term and future consequences. But after 19th century, the situation has been developed new look in the world. To develop expatriation in this approach can be a way of fulfilling the strategic requirements of the organization, also developing the career planning process and gathering the requirements of persons in their profession aspiration.

The part of the career planning process is important to both manager and employees, for which they give to an organization:

• Employee loyalty
• Avoiding future shock
• Performance motivation
• Integrating objectives

So, to develop career in international aspects by following the Dutch model is proper way of conducting oneself as an expertise.

The Japanese Model

In Japan, productivity was comparatively high rather than number of employees, because of lack of job satisfaction. It is a determinant of motivation. Motivation is a dynamic solution to increase productivity, organizational effectiveness, and well-being of people of the organization. The way people are motivated is in different way in each organizations, in different parts of the world.

Jackson, T., (2002) said that the objective of the model is to examine the motivation of personnel from the holistic approach of to develop the overall commitment between organization and employees in Japanese companies¹⁴.

Corporate commitment is growing based on four different dimensions, these are:

• Moral involvement
• Calculative involvement
• Compliant involvement
• Alternative involvement

The greater mutual commitment mostly found in Japanese organizations, which mainly focuses on to capture the greater human and social values of socialism and humanism.

For these reasons, Japanese organizations are most successful in collectivist cultures rather than organizations. The employee commitment is not created by their strategies of Japanese; it is the reward or compensation package that the employee receives for doing their job properly.

The incentives which given to employees mainly focus on the peripheral factors of motivation, rather than the internal forces. The manager has more influence when they are motivating their employees, and also making sure that the incentives are matched with their needs.

Cultural differences also change the motivational factors. In Asian countries, most effective and useful motivating factors are:

• Equity
• Group
• Nature of Saving
• Extended family associations
• Highly motivated workforce
• Practice, rank and status
• Try to avoid conflict

But, in western countries, motivational factors are viewed in different ways, like:

• Wealth
• Individualism
• Consumption
• Nuclear and mobile family
• Decline in work ethic and hierarchy
• Lack of formality and personal competence
• Conflict to be managed

So, we can say that, Japanese model is viewed changing according with the motivational factors. By using this model, many organizations are getting benefited because of the importance of attachment of employees are involving both in physically and mentally. Jackson, T., (2002), said that the working conditions are changed for electrical evaluation, thats why; manufacturing people are reduced day by day. For these reasons, managers of IHR who are using this model have had to comply motivational factors with social demand to reduce in working hours by having improved working conditions and increment of productivity¹⁵.

The British Model

In the history, British organizations were first learning organizations in all over the world. The objective of this model is to draw the growth of the theory of the learning organization in Britain. Recently this model is joining with concepts to derive from Japan.

Britain is low on determined the power detachment, likely individualism, based on masculinity, and very low on improbability avoidance. They are short term oriented people. They are treated high on democratic commitment and practical and loyal involvement. But they are adopted the power of learning by doing, which has been really outstanding in the perception of international companies, which they called the action learning.

Jackson, T., (2002), mentioned that the model is not only based on learning ability of British, but also on the concept of participation, empowerment and responsibility of training inactive individual. This model may be difficult in implementing in the situation of higher power distance cultures, higher uncertainty avoidance cultures, and may be redundant in some collectivist cultures where this model with complementary competences within the work group and the developmental approaches are already well entrenched¹⁶.

The European Union Model

In each European country, has developed its own advance to the employment of people with own laws, institutions, trades unions, education and training requirements, and management culture. These approaches operate in different geographical location in the world. So, to remove the overlap of this complicated situation, the unique supranational legislation of the European Community is developing. It is affecting in management development, high performance teams, and innovative organizational formations. These all are requiring for flexibility of the model of European Union Model.

Jackson, T.., (2002) identified that the European management and organization are characterized by some different context, like: increased industrial change; combination of a variety of cultures; a need for different types of management constitutions; the decline of a young labor force by demographic changes and the need for organizations to make it more flexible and people-oriented; a changing of organizational and cultural rules and an interfusion of these rules and cultures are required both organizations and individuals to adapt¹⁷.

In developing the model, European human resource management indicates organizational independence and management autonomy and freedom of action. The European situation contends some other factors like: to operate with limited autonomy; patterns of ownership by trade union involvement and consultative arrangements.

The Chinese Model

The main objective of this model is to investigate the implications of joint ventures for the managing people. The cultural context of China is considered in this model, because of having huge numbers of international joint ventures.

When the joint venture was established, the conflicts between the Chinese employees and foreign expatriates, managers and local Chinese managers, gradually more emerged. In economic growth, there are suggestions that productivity has been a major problem, which may have implications for the attractiveness of China to foreign investors for low labor costs.

Jackson, T., (2002) argued that an important aspect of managing international joint ventures in China is the understanding of differences between expectations of the objectives of the joint venture and practices of people management.

The Post-Soviet Model

The objective of the model is to observe the communication of Western and post-Soviet people management methods and practices. Germany and Britain culture have many similarities, but also they both found difficulties in borderless market. The Soviet command economy, system of state ownership, management planning, controls the enterprise by the Soviet Union and its satellites.

Jackson, T., (2002) said that in this model, HR planning is followed the system of cent

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