netrashetty
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<h2>Human Resource Management of Abercrombie & Fitch</h2>
Abercrombie & Fitch (A&F) (NYSE: ANF) is an American retailer, currently headed by chairman and CEO Michael S. Jeffries. A&F focuses on casual wear for consumers ages of 18 through 22.[2] With over 300 locations in the United States, the brand has embarked on international expansion throughout various world markets.[7] The company also operates three off-shoot brands: abercrombie (childrenswear), Hollister Co., and Gilly Hicks. The company also operated a post-grad brand, Ruehl No.925, that was shuttered in early 2010.
Human resource management (HRM) is known and accepted in the broadest sense of the term, as a form of management that includes “all management decisions and actions that affect the nature of the relationship between the organization and the employees – its human resources” (Beer et al., 1984, p. 1). It is defined as the process of coordinating an organization’s human resources, or employees, to meet organizational goals. As can be observed based on the definition, the tasks of those belonging in HRM can be complex as it involves all issues that encompasses employee and firm relationship. Believing that the most important asset of a business is the people in order to achieve sustained business success is the core philosophy of human resource management (HRM). Realizing this leads to a strategic management of people within the organization. Its philosophy is based on the simple belief that human resources are the most important asset in achieving and sustaining business success. This realization became the driving force behind the creation of human resource management resulting in organizations taking a strategic approach to the management of their people.
In the current age of global economy, worldwide interdependence of resources, markets and business competition thrives (Schermerhorn, 2001). The onset of globalisation has prompted businesses and its leaders to think and act globally to be able to gain competitive advantage. There are two opposing views: some view globalisation as an opportunity for limitless growth and prosperity for both developed and developing countries; while others see it as a threat to further the extent of inequality because of increased competition and the dominance of market forces seen in multinational companies (MNCs) (Johnson & Turner, 2003).
The implications of these changes in international business are far-reaching because of the emphasis on interdependence which prompts a discussion of the different collaborative arrangements between MNCs. As national boundaries have increasingly been blurred, it has become imperative that MNCs take advantage of forming collaborative arrangements or cooperative strategies which are believed to be a productive method to promote growth. This trend has affected even companies directly competing with each other as Hitt, Ireland & Hoskisson (2003) has given the example of FedEx and the US Postal Service (USPS) forming an a seven-year alliance which benefits both companies.
One of the areas of business organization that is affected by the internationalization of business is the area of human resource management. Because business has become internationalized, the process and factors that make up the HRM concept have also become global. Thus, out of HRM, a new field has been formed – that is International Human Resource Management or IHRM. The field of IHRM refers to the: “…understanding, researching, applying and revising all human resource activities in their internal and external contexts as they impact the process of managing human resources in enterprises throughout the global environment to enhance the experience of multiple stakeholders, including investors, customers, employees, partners, suppliers, environment and society (Briscoe and Schuler, 2004, p,20).
Briscoe and Schuler (2004) explained that there are many forms of IHRM. These are: the operation of parent-country firms overseas; and the operation of foreign firms in the home country. The first one involves the situation of working as a parent-country HR professional in the main or regional headquarters of the traditional multinational enterprise (MNE). This may involve working as an expatriate HR manager in a foreign subsidiary of an MNE (Briscoe and Schuler, 2004). Typical headquarters IHRM responsibilities include selecting and preparing employees for and transferring them between the various country locations of the firm, determining and administering compensation and benefit packages for these international assignees, and establishing HRM policies and practices for the firm's foreign operations (Briscoe and Schuler, 2004).
On the other hand, the second situation involves the HR manager working at home in the foreign subsidiary of a foreign MNE (Briscoe and Schuler, 2004). The possibilities include: working for a home-country firm that has been purchased by a foreign firm and thus is now a foreign-owned firm; and working with a foreign headquarters (and, often, expatriate managers sent from the foreign - now parent - company) and typically will involve having to integrate into the local operations - the HR manager's home country - a philosophy and organizational culture and practices that are different and/or unfamiliar (Briscoe and Schuler, 2004).
The Need for Cross-Cultural Management
The situations that IHR managers might face involve dealing with different people with different culture. Managing culture is one of the tasks that an international human resource manager has to deal with. Culture is defined as a set of beliefs and values widely shared in a specific society at a particular point in time (McGuire et al, 2002). Furthermore, culture encompasses a set of fundamental values that distinguishes one group from another (Hofstede and Bond, 1988) and these values can act as a strong determinant of managerial ideology that consequently affects both HR practice and performance (Laurent, 1983).
Culture is basically a combination of shared beliefs, social norms, organizational roles and values, emphasizing a cross-cultural socio-economic perspective in industrial and management research (Wang, 1993). One example is that the Eastern style of management is different from that of the West. The Chinese approach is usually based from historical leaders and philosophical figures such as Confucius, Sun Tzu, Mencius and Han Fei (Satow and Wang, 1994), which involves and depends on the connections, on circumstances, on the level of affinity (who you know and what family you come from). Here, there is no consistent legal framework and, even within the regulations that do exist, the exception is the rule rather than the rare occurrence. On the other hand, the management in America is objective and driven by data and rational models. Deployment of statistics and financial modelling is the key in decision-making and strategic planning. These differences alone can create problems. Chinese employees may not function well with the Western management style and vice-versa. Thus, foreign expatriates should obviously be trained, as making themselves familiar with the new culture can help them create the appropriate management style that will make employees in the country perform at their best.
Cultural Dimensions
One of the ways to assess culture is to take heed of its value dimensions. As explained by Hofstede (1980), there are four cultural value dimensions:
Ø Large versus small power distance. Large power distance is the extent to which the members of a society accept that power in institutions and organisations is distributed unequally; while small power distance is the extent to which members of a society or organization accept that power is distributed fairly (Adler, 1997).
Ø Strong versus weak uncertainty avoidance. Strong uncertainty avoidance means the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity, which leads them to support beliefs promising certainty and to maintain institutions protecting conformity; while weak uncertainty avoidance is the degree to which members tend to be relatively tolerant of uncertainty and ambiguity and require considerable autonomy and lower structure (Rodriguez, 1995).
Ø Individualism versus collectivism. Individualism is the preference for a loosely knit social framework in society; collectivism stands for a preference for a tightly knit social framework.
Ø Masculinity versus femininity. Masculinity is the preference for achievement, heroism, assertiveness and material success; while femininity refers to a preference for relationships, modesty, caring for the weak and the quality of life.
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