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CHALLENGES OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT
TO PERFORMANCE IN ORGANIZATIONS
A CASE STUDY OF KAMPALA INTERNATIONAL
UNIVERSITY
BY
LEGUMA KISAKENI MSHANA
BIB/17005/71/DF
A RESEARCH REPORT SUBMITED TO THE FACULTY OF BUSINESS AND
MANAGEMENT IN A PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE A WARD OF BACHELORS DEGREE IN INTERNATIONAL
BUSINESS ADMINISTRATION OF KAMPALA
INTERNATIONAL UNIVERSITY
MAY, 2010
DECLARATIONS
Leguma declare that this research report is my original work and has never been
presented for an award of any degree in any university or any other institution of higher
learning. I further declare that all materials cited in this paper which are not my own have
been fully acknowledged.
Signamre -~~-~<:?-.. · ....... .. ..... . Date ~.9. -~ ./fl.~. / ~-~J . '? .. . LEGUMA KlSAKE 1 MSHANA
BIB/ 17005/71 /DF
II
APPROVAL
This Research Repot1 has been done under my guidance and supervision as a University
Supervisor.
~q;~. S. . ~ 1gnature ... .. ................................... .
BALIRUNO JOHN THE BAPTIST
SUPERVISOR
Ill
>l-/o{ f6{v Date ................................ ..
DEDICATION
To my beloved parents Mr & Mrs Dr. Kisakeni Mshana and my best friends Christopher
Maduhu, Jackie Liseki and Magoma Magothi.
IV
AKNOWLEDGEMENTS
I am greatly indebted to a number of people who helped me in various ways and enable
th is booklet to see the light of the day.
Fi rst of all I wou ld like to thank God for giving me an enduring heart and wisdom.
Secondly, I would not have gone this far if it were not fo r my supervisor John Baptist
Baliruno, who was patient with me. He gave me adequate instructions during the study
but also went an extra mile to offer valuable suggestions, comments and positive
critic ism, which expedited the production of this work. I greatly appreciate.
Thirdly, I wou ld like to thank my father Dr. Kisakeni Mshana, my mother Minaeli H.
Tendwa, my best fri end Jackie Liseki , my brother Tumaini K. Mshana and ma sisters
Jenipher and Neema K. Mshana for their support financially, morally and the prayers and
sacrifices they have made to make me what I am today.
Similarly, I send my pleasant thankfulness to all my friends for their spirit of solidarity.
v
DEFINITION OF TERMS
Definition of Human Resource Management.
··H R- Management refers to all activities involved in determining an organizations human
resources need as we ll as acquiring, training and compensating people to fill those
needs". (Shaw, 1993)
Definition of performance:
··Pcrrormance is a central tenet of performance management which means an
accompl ishment of something or working effectiveness within an organization,
performance is realized as three levels namely organization, process and individual and
the interrelationships among these levels serve as the vantage points, of an organization".
(I nternet- www.wikipedia.com)
Definition of International Human Resource Management:
International Human resource management is defined as being concemed with the human
resource problems of multinational firms in foreign subsidiaries that mean expatriate
management (Boxa ll , 1995).
VI
LIST OF TABLES
Table 4.1(a) Opinions on difficulties in lecturing students from different countries
in Kampala International University.
Table 4.2(a) Opinions on effects of language in transferr-ing knowledge to students
Table -L3(a) Showing opinions how religion can affect performance
Table 4.4(a) Opinions on factors inspiring employees to work in Kampala International
University
Table .t.4(b) Comparison of compensation plans at KIU
VII
Figure: 4.l(b)
Figure 4.2(b)
Figure 4.3(b)
Figure 4.4(b)
Figure 4.4(c)
LIST OF FIGURES
Graphical representation on the opinions difficul ties in lecturing
students from different countries in Kampala International
University.
Pie chart representing effects of language transferring knowledge
to students.
Pie chart showing opinions on how religion difference among
student can affect performance.
Chart representing opinions on factors inspiring employees to
work in Kampala International University.
Comparison of compensation plans at KIU.
Vlll
IHRM
HRI\Il -
HR
MNCs
l<I U
U.S
HQ -
LIST OF ABREVISIONS
International Human Resource Management.
Human Resource Management.
Human Resource.
Multinational Corporations
Kampala International University
United State
Head quarter
IX
TABLE OF CONTENTS
Declarations .. .. ............. .. ........ ... ....................................................... .................................... ii
Appro\·al ........ ..... ...... ............................. ......... : ...................... ............................................ iii
Dedication .... .. ... .......................... .. ....................... .. ............................................................. iv
Aknowledgen1ents .... ........ ........... .. ................................................................................. ..... v
De tinition of terms .... ....... ... ....... .... ............. .. ... ....................................... .... ...... ..... ............ vi
List of tables ..... ........ ...................... .. ................................................................................. vii
List of Figures .................................................................................................................. viii
L l ~ t or AbrevlSlOns ............................................................................................................. ix
Table o f' Contcnts ........ .. ....................................................................... ............. .. .... .. .......... x
Abstract. .. .... .... ................ .. .. ... ................ .............. .. .............. .. ..... .. ............. .... ................... xiii
("!! APTER ONE .. ... .. ........ ... ..... .... ............................ .... ............. ............. .. ......... .. .. .. .... .... .. .. I
l .lJ lntroducllon ....... .................................... .. .......... .... ............................. ........................... !
I .I Background of the Study ......................... .. .................................................................... !
1.2 Statement ofth e Problem ... ... .. .... .................................................................. .. .............. 2
1.3. Purpose of the Study ................... ... .. .. ......... .. ................................................... ....... .... .. 2
1.4. Objecti ves of the Study ...................... .. ........................................................................ 3
1.5. Research Questions ... .......... .. ............... .. .. ...... .. ............. .. .......... .. ..... .. ........ .. ........... .. ... 3
I .b. ~cope ot' the Study ................................... .. ................................................................... 3
1.6. 1. Subject Scope .. ..... .. ..... .... ........ .... .. ... ... ...................................................................... 3
1.7. Significance of the Study ........................................................ .. .................................... 3
1 . ~ The Conceptual Framework ......................................................................................... .4
CII APTE R TWO: LITERATURE REV IEW ..................................................................... 5
~. { 1 . lnt roduct1 un .. .. .... .. .. .... ...... ....... .. ... .... ....... ... .. ....... ......... ........ ..... ...... ....... ... ... ... .... ...... ... 5
2.1 DelinltlOll oftern1s .... .......... .... ....... .. ..................................................... .. ................ .. .... 5
2. 1.1. Definition of Human Resource Management.. .......................................................... 5
2.1.2 Definiti on of performance ........................................................... .. ............................. 5
2. ! .3 . Definition of International Human Resource Management ....... .. ............................. 5
2.2 . How Internationa l human resource management poses a challenge to performance ... 6
X
2.3. How can language affect performance oflnternational human resource management?
... ...... ....... ........... .......................... .................................................... .... .... ....... .. ................... 6
2.-l. Ho" Religion affect performance oflnternational human resource management... .... 7
2.5. How Compensation plan contribute to performance .................................................... 8
2.5 .I. Compensation of Expatriate Managers ..................................................................... 8
2.6 Conclusion ...................................... .................................................................... ........... 9
CHAPTER THREE:_METHODOLOGY ............................... .. ............................... .. ........ !O
3.0 Introduction ......... .................... ... ................................................................................. 10
_) . l Rc::.cdl ch Dc::.ign .. ............................................................. ..... ............ .... .......... ............ I 0
3.2 Study Population .............. ... ........................................................................................ 10
3.3 San1ple Size ................................................................................................................. 10
3.-l San1pling Technique .. .................................................................................................. 11
3.5 Dara Collection Methods ......... ............ .... .......... ........................................................... 11
.\ .5 !Internet based data .. .. ... ........ .. ............................................ .. ...... ..... ...... ..... ....... ......... ll
.\ .5 .2 Documentary based data ................ .. .... ..... ..... ...................................... .. ................... II
3.5.3 Questionnaire ............. .. ........... ... ............................................................................... 11
3.5.4. lntervie\v .................................................................................................................. 11
3.5 .5. Obscrvation .... ...... ..... .. ................................................ ....... ..... ............. ... ................. 12
3.5.6. Focused group discussion (FGD) ............................................................................ 12
3. 7 Data Processing and Analysis .......................... ................................... .... .................... 12
CHAPTER FOUR: FINDINGS ........................................................................................ 13
-l.O Introduction .................... .. ................. .. ....... ........... ...................................................... 13
-l . l I o li nd out how language can affect performance of International Human Resource .
.......................... ......................... ..... ................................................................................... 13
-U The Effect of Religion to Performance in Organizations ............................................ 15
-l 3 The E!Tects of Compensation Plan on Performance ofinternational Human
Re::.ource . .. ..... ...... ..... .................................... .. ............................... ... ...... ..................... .. .... 17
CHAPTE R FIVE:_SUM MARY, CONCLUSION AND RECOMMENDATIONS ......... 20
5.0 Introduction ............................................................... .................................................. 20
5.1 Summary of the Findings .... .. ...................................................................................... 20
5.2 Conclusion ................ ................ ................ .. ......... ........................... ........ .. ............... .... 21
XI
• -=-- =- -
5.3 Recon1n1endations ....... .......... ... ..... .. .. ..... ... ... ... .... .... .... ....... .. .................................. ..... 2 1
5.4 Areas of further Study ............ .............. ..................... .. .............. ..... .......... ... ................ 23
REFERENCES .... .... ........... ....... ........ .. ..... ............. .... .... ... ...... ........ .. ............. ... ...... .. ..... ... . 24
•\PPENDI CES .. ... .... .. .. ...... .. ... .... ... .... .... ........ ..... ... ..... .. .. .... ....... .. .... ..... .... .. ...... ... .............. 25
APP EN DI X A: Time Frame ... ... .... .. ...... ............ ..... ......... ............... ....... ..... .... ......... ....... ... 25
.APPENDIX B:_Budget .. ........ ....... ........... ... .... ... ........ ..... ...... ......... ......... ... .... .... ..... ..... ...... 26
APPE DIX C:_Research Questionnaire for Kampala International University ........ .... ... 27
APPEN DIX D:_Research Questionnare for Students ................ ...... ..... .... ...... .. ..... ........... . 29
X II
ABSTRACT
Th~ study was carried out at Kampala International University (K. l. U) along Ggabba
Road- Kansanga, Uganda. The study focused on challenges of International Human
Resource to Performance of employees in an organization. The study objectives were as
follows;
1. To find out how language can affect performance oflnternational
Human Resource.
11. T u ftiid uut huv\ religion ~an affect performan\.:e of lntemational human resource.
111. To find out how compensation plan can affect performance of International
human resource
The study adopted a descriptive research design basing on qualitative data from
secondary sources such as textbooks, magazines, journals, reports and the internet, the
:.tUU) targeted Kampala international university; these may include administrators,
lecturers and students ofKampala international university
After data co llection the researcher organized and edited the avai lable information, and
then data were checked for adequacy and accuracy to reduce errors. Manual and
Microsoft Word Computer Package methods were used to process the data.
Study di scovered that 80(80%) respondents were of the opinions that they face
dirtlculties in lecturing students from different countries where as 20(20%) respondents
asserted that they don't face languages difficulties in lecturing students from different
countries. And the research find out that I 0( I 0%) respondents observed that there
rdigiou:. Liifterences among students and employees while 90(90%) discovered that
religion differences don ' t have effect to students and employees. Finally 10(10%) sa id
that compensation plans is good at the university.
Companies and HR personnel must embrace multicu lturalism and diversity. In order to
ac hieve staff cohesion it is important to understand religious concerns and be wi lling to
compromise in order to reach agreements that leave both parties happy.
\ l.m:tgl' nwnt -;hould Improve on the compensation packages as to motivate employees to
' ' ork hard and encourage other qualified people to JOII1 the institution
X Ill
CHAPTER ONE
1.0 Introduction
I h1:, chapter Jncluded background to the srudy, statement of the problem, purpose of the
swdy, study objectives, the research questions, scope significance of the study and
conceptual frame work.
1.1 Background of the Study
Managing diversity is considered one of the mam challenges for Human Resource
Management on modern organizations. The framework was developed to suggest that the
design and implementation of human Resource Management activities should be
intluenced by strategic choices on the management of diversity which are themselves
shaped by environmental factors. The Human Resource management activities lead to
!'our t) pe:, or outcomes (effective, cognitive, symbolic and communicative) that affect
111cl i v iclua I. group and organizational performance.
In recent ) ears there has been an increased interest in identifying those organizational and
environ mental factors that relate to the development of human resource (HR) practices in
an organization. The control perspective (Cohen and Pfeffer, 1986; Edwards, 1979)
\\ h 1ch suggests that as the size and heterogeneity of organization increase, Human
resource prac tices are needed to control the forces of organizational conflict and
disintegration. (Balkin, 1988) and Dimick and Murray (1978) suggest that economic
forces determine Human resource practices. Only reasonably wealthy fim1s can afford
many of the sophisticated Human resource practices that are available.
Political forces such as umons, profess ional associations and government have been
suggested as impor1ant determinants of Human resource practices (Cohen & Pfeffer,
1986; Dimaggio & Powell , 1983). Grievance procedures and seniority based pay systems
arc often highly favored by union organizations, while advanced employee li ving
techn ique:. anu complex performance - based incentive wage systems may be advocated
by Human resource professional associations seeking to incorporate the latest Human
resource technology" into their organizations. What might be referred to as an
institutional or imitation approach may also be in operation. Tolbert & Zucker (1983) and
Zu~kl.':r ( 1987) suggest that organizations adopt Human resource practices which they see
being used by other organizations not necessarily because the practices are effective or
appropriate for their organization, but because they want to appear legitimate and up-to
date. In multinational forms, cultural factors may play an important role in determining
H R practices. Studies have shown that multinational organizations may carry home
cou ntJ') Human resource practices to those countries/locations abroad where they have
operation~ (Lillrent, 1986).
The monument of human resource in multinational corporations (MNCs) is more
complex than in domestic organizations, largely because MNCs operate across national
boundaries involving different societal contexts (Scul lion et al, 2007; Sparrow, 2007) and
develop their human resource management (HRM) practices in response to the needs of
such context (Edwards, Colling & Ferner, 2007; Gooderham et al, 1998; Innes & Morris,
1995: Jain , e! al 1998: Kostova & Roth, 2002). Because the nuances of Institutional
environments are different across host countries, the institutional structure of a particular
country affects Human resource management practices of the Multinational corporations
that operate there. As a result, Multinational corporations are always under pressure to
develop effective Human resource management Practices fo r their subsidiaries.
1.2 Statement of the Problem
Training is very crucial to any organization so as to improve performance. The general
performance of Kampala international university is not fi rst-class. The core setbacks are
employee's lack cross-cultural training. Since it admit students from different countries
with diffe rent backgrounds, language, and religion. Hence communication barrier arises,
which lead to poor performance to students and the organ izational in general. Also poor
compensation plan is one of the setback, where by highly qualified fac ilitators are leaving
the institution. That's why the researcher was decided to have study on this organization
ro know the causes of these entire problems and to find out the possible solutions to them.
1.3. Purpose of the Study
The study sought to estab lish the International human resource management Challenges
to perfo rmance of employees especially Human Resource Managers in the International
lield.
2
1.4. Objectives of the Study
1. To find our how language can affect performance of International
Human Resource.
11. To tind out how religion can affect performance of International human resource.
111. To find out how compensation plan can affect performance of International
human resource.
1.5. Research Questions
1. What 1s the effect of language to performance in organizations?
11 . What 1s the effect of religion to performance in organizations?
111. What is the effect of poor compensation plan to an organization?
1.6. Scope of the Study
1.6.1. Subject Scope
The study focuses on the International human resource challenges to performance 111
organ1Lations.
1.7. Significance of the Study
a) Th~ study wi ll add to the existing Knowledge on language to performance 111
organizations.
b) The study wi ll add to the existing knowledge on religion to performance on
organi; ations.
c) The study will be of great importance to Human resource practices to subsidiaries
especially on compensation plan.
d) The study will benefit academicians since it will form a platform onto which future
res~arch ai med at understanding the International human resource challenges to
performance in organizations.
c) The study wi ll help the principle researcher to achieve the partial requirement for the
fulfil lment of award of a bachelor of international business administration of
Kampala International Uni versity (KIU).
3
I
I
I
1.8 The Conceptual Framework
The conceptual frame work of this study accommodate variables that link International
human challenges and performance in organizations.
Fig ure 1 .1 Conceptual frame works
I I HRM challenges
• Language
• Religion
• Poor compensation plan
Organization Improved performance
• Employee re-training • Good employees relationship
• Development of • Good company image
employees • Increased customers and profit
• Bench marking • Good IHRM policies
• Research procedures
Sout·ce: Researcher 20 I U
In the conceptual frame work above, International human resource management
challenges such as language, religion and compensation plan leads organizations into
great problems and loses which calls for an organization to carry out cross-cultural
tra1n ing. de\ clopment of employees, bench marking and intensive research on the
challenges.
After the organization has can·ied out the above, the performance in the organization will
be improved on the perspecti ve of company/organization image, policies and procedures,
employee 's relationship, increase customers and profit to the organization.
4
and
CHAPTER TWO
LITERATURE REVIEW
2.0. Introduction
This chapter presented the literature revrews of the study of the challenges of
I ntemational Human Resource Management to performance in organizations. Various
works by other scholars in the field concerning the topic was reviewed and acknowledged
through quotation.
2.1 Definition of terms
2.1.1. Definition of Human Resource Management
"HR- Management refers to all activities involved 111 determining an organizations
human resources need as well as acquiring, training and compensating people to fi ll those
needs ... tSha\\, 1993)
2.1.2 Definition of performance
"Performance is a central tenet of performance management which means an
accomplishment of something or working effectiveness within an organization,
performance i::. realized as three levels namely organization, process and individual and
the interrelationships among these levels serve as the vantage points, of an organization".
( Internet- www.wikipedia.com)
2. 1.3. Definition of International Human Resource Management
"International Human resource management is defined as being concerned with the
human resource problems of multinational firms in foreign subsidiaries that mean
expatriate management" . (Boxall, I 995). P.Morgan defines international human resource
management (I H RM) as the interplay among three dimensions- Human Resource
ani rude, types of employees and lastly the country of operation. Broadly defined IHRM is
thl' process of procuring, allocating, and effectively utilizing human resources in a
multinational corporation. If the MNC is simply exporting its products, with only a few
smal l offices in foreign locations, then the task of the international HR manager is
relatively simple. However, in global firms human resource managers must achieve two
somewhat conflicting strategic objectives. First, they must integrate human resource
5
policies and practices across a number of subsidiaries in different countries so that overall
corporate objectives can be achieved. At the same time, the approach to HRM must be
su!'fic icntly tl ex ible to allow for significant differences in the type of HR policies and
practices that are most effective in different business and cultural settings.
2.2. How International human resource management poses a challenge to
pe.-formance.
'"The increasing intensification in industry, commerce and trade, creating increased
competition which in turn is producing a more volati le and uncertain world, has risen the
interest in intanat ional Human Resource management". (Schuler eta!, 1993).
''The development in the world of competition has to be understood not only between
companies, but also nations and regions, which have their own ideologies and social -
political systems. Many events are taking place worldwide and these affect the context of
human resource for example there has been a huge and continuing growth on the world's
population which has intensified the problems of poverty for many poor nations.
Consequently many politica l and business policy makers are being forced to recognize
and consider these issues when fo rmulating polices". (Schuler eta!, 1993).
'" Human Resource practitioner should take into consideration moves made by external
consti tuencies including foreign government, political and legal rules and regulations,
language and religious groups since they affect a number of other issues relating to
employee compensation, health, safety, welfare, repatriation policies and performance
appraisa l". (VS P Rao, 2005)
2.3. How can language affect performance of International human resource
management?
"As companies internationalize and expand their operations into more countries,
language questions inevitably come to the fore, as a response to operating in many
l:1nguages and coordinating a multinational workforce, companies may adopt a common
language for internal communication. However the challenges associated with such
language standardization and the broader Human Resource considerations have received
limited scholarly attention in the extent literature. Therefore the implications of language
issues fo r a range of international human resource activities include, staff election,
6
training and development and International assignments". (Internet-
www.wikianswer.com). To operate in Global environment, Human resource Department
must engage in number of activities that would not be necessary in domestic environ i.e.
rntcrnational taxation issues, international re location and orientation, administrative
::.cr' icc::. or e:-.patriates , host government rela trons and language translation services etc.
Host government relations represent a phenomenal activity for International human
resource management particularly in th ird world nations where work permits and other
i mpor1ant certificates are easy to acquire with comparison to developed nations.
2.4. How Religion affect performance of International human resource
management.
"Al though there exists no universal agreement on what constitutes religion or a religion
there arc ~ome common threads that run through the differing opinions. There are three
essential elements that are necessary to meet the definition for religion: l) a belief in a
Supreme Being, 2) worship of that Supreme Being and 3) a group or following of people
who observe a set of beliefs, values, customs and practices set down by and through the
Supreme Being". (in ternet- www.wikianswer.com)
11 1 response to legrslation and the desire to create better Cohes ion among staff, employers
and human resource personnel need to understand the religions make up of their staff,
gain insight into the religious doctrine and appreciate the requirements of each religion.
This will then equ ip them to analyze their Human resource Policies and practices which
may discriminate against or negati vely impact their employees.
I I uman RL:source Personnel has to be aware that Muslims must pray fi ve times a day; this
is done facing Mecca in Saudi Arabia and performing a seri es of recitations on tandem
with bowing and prostration. Prayers time differ or vary according to the time of the year
as they are calculated on the movement of the sin. Muslim men must also attend the
Friday praye r at a mosque. Also for Sabbath, the Jewish holy day, starts at sunset on
friday and continues til l sunset on Saturday. During this period practicing Jews will do
nothi ng that may be seen as work. Human resource personnel may see this example
rmpact on '' orking hours, lunch/break ti me, worki ng time flexibility, faci lities and
bereavement pol icies.
7
Therefore creating awareness and understanding of the different religions in the
workplace is essential as combating discrimination and harassment. This can be done
through receiv ing advice and training from cross cultural consultancies. Such
consultancies not only educate staff or different religions but can analyze current Human
resource practices and procedures ensuring they do not cause problems for staff. In
addition they advise on ways of overcoming challenges introduced through religion on
the workplace such as on team bui lding and maximizing staff retention.
2.5. How Compensation plan contribute to performance
Howe,·er diffe rent countries have different norms for employee compensation. Managers
should consider carefully the motivational use of incentives and rewards on foreign
countries. For Americans, while non financial incentives such as prestige, independence
and influence may be motivators, monthly is likely to be the living force other cultures
are more likely to emphasize respects fami ly, job securi ty, a stratify ing personal life,
social acceptance, advancement or power. Since there are many alternatives to money,
the rule is to match the reward with the value of culture. For example on individualistic
cultures, such as U.S pay plans often focus on individual performance and achievement.
However in collectively oriented cultures such as Japan and Taiwan, pay plans focus
more on internal equi ty and personal needs. Some major external factors such as the type
of go' ernmenr, the state of economy, political stability, cultural and ethical issues,
1ndusmal relation and labor laws, unionism, working culture, food, taxation, health and
s:1fcty issues. amusement etc. of a nation is also an impotiant concern for International
human resource management. The workforce in developed nations is facilitated with
more laurels and comforts than in developing and third world nations. It also poses
cha llenge before IRHM. Global Human resource Manager must develop Human
resource systems that are not only acceptable to the host country but also compatible with
company-wide systems being developed by his or her HQ-based counterpart.
2.5.1. Compensation of Expatriate Managers
Compensation plans for expatriate mangers must be competi tive, cost effective,
motivating, fa ir and easy to understand, consistent with international financia l
manag~mcnt, easy to administer and simple to communicate. T o be effective, an
international compensation program for Americans must; I) provide an incentive to leave
8
the united states, 2) allow for maintaining an American standard of living, 3) facilitate
reentry onto the U. States, 4) provide for the education of children, 5) allow for
maintaining relationships with family, friends and business associates .
.-\ccording ro; (Bohlander, et a!. , 2001) Expatriate compensation programs used by over
l)U percent or united state - based international organizations result on the balance sheet
approach, a system designed to equalize the purchasing power of employees at
comparable positions living overseas and in the home country and to provide incentives
to offset qualitative differences between assignment locations.
2.6 Conclusion
The srudy explains the challenges of international human resource management that are
likely to affect performance of human resource practices in organizations. Kampala
International University it is likely to be affected because it has extended its operation in
Tanzania, Kenya and in futu re Southern Sudan. Therefore the study looked on the factors
that a1:e likely to affect Kampala International University in its extension across borders.
9
3.0 Introduction
CHAPTER THREE
METHODOLOGY
Thts chapter presented methodology related to the impact of the International human
resource challenges to perforn1ance on organizations. It presented the research design,
srudy population, sample size, sampling technique, data collection methods and data
processing and analysis.
3.1 Research Design
The swdy adopted a descriptive research design basing on qualitative data from
secondary sources such as textbooks, magazines, journals, reports and the internet. The
t\?~earcher also used cross section design which includes observations, face to face
in terviews and questionnaires.
3.2 Study Population
The researcher targeted and study diffe rent classes of people who can easily be studied
and monitored to get accurate figures or information. Therefore the study targeted
Kampala international university; these may include administrators, lecturers and
student;:, of Kampala international university. The study also targeted employees who
work within the University especially those who work in human resource department.
rhe researcher decided to study and focus on those particular groups of people to
minimize on the cost and time that would have been incurred in studying the whole
population figures and also to be more accurate in findings, descriptive and obtaining
\·alid information about Kampala international university.
3.3 Sample Size
The researcher attended to a total of I 00 people who included admin istrators, Human
resource department, lecturers, students and other people from around. The researcher
se lected the identified sample size in order to reduce on the cost and resources plus the
time which would have been spent on studying the whole population.
10
3.4 Sampling Technique
In this method the researcher se lected a sample unit of the population depending on the
resources ava ilab le since a larger sample needs to be weighed against the cost in terms of
money and the time involved, the size of the sample depended on the different
characteristics of people involved in the population, the greater the differences, the bigger
the sample. Therefore the best sampling techniques to the researcher was the one called
cluster sampling which consists of; first se lecting random natural groups of units called
clusters from the universe, and then some of the units within each cluster are chosen to
make up the sample. In Kampala international university the researcher divided the
sample using convenience sampling where the researcher selects a sample units with
respondents who appear more convenient to him or to the management of the
organiLation where he carried out the research.
3.5 Data Collection Methods
3.5.1 Internet based data
The researcher collected data from the internet based documents and reports through
internet surfing and down loading from different websites.
3.5.2 Documentary based data
The rc~earcher also conducted library reading and researched to collect data from texts
books, journals, reports and other relevant documents.
3.5.3 Questionnaire
This was designed in line with the topic, objectives and hypothesis. They included both
open and closed-ended questions. This instrument was selected because it is efficient and
con' cnicnt in a '' ay that the respondent was given time to consult the documents before
an ·wering the questions which would otherwise be hard for the respondent to write if the
researcher is present.
3.5.4. Interview
Interview method was used in collection of primary data through oral questionnaire
where the investigator (researcher) gathered data through face to face verbal interaction
II
tn form or questions with the respondents. Thus the researcher used interview method
because or it is flexibi li ty, control of environment, question order, completeness and time
control
3.5.5. Observation.
The researcher physically visited the location of the study. This makes it possible for the
researcher to observe various aspects crucial as sources of information. Where only items
of interest in relation to the study goals was considered, observation checklist was
appl ied. Observation design was important as it offers crucial data that cannot be
ach ieved through other tools, as he or she gets to be on scene him or herself.
3.5.6. Focused group discussion (FGD).
As far as the study was concerned, focused group discussion was used as a method of
data co llection. The researcher discussed issues pertaining to International human
resource challenges to performance in organizations with specific group of people as
elaborated in the population and sampling procedures. The researcher discussed issues
through using interview guide questions.
Croup members were chosen with regard to the validity of their data and the researcher
used the following formula so as to know whether the questions are val id or not:
CVI= n
N
Definitions, where CVI =content validity index
n = total number of relevant question
N =total number of questions
3.7 Data Processing and Analysis
According to the study of the impact of International human resource challenges to
performance in organ izations, after data co llection the researcher organized and edited it
to ensure that only relevant data was considered in compiling the report. The data was
checked lor adequacy and accuracy to reduce errors. Manual and Microsoft Word
Computer Package methods was used to process the data. The presentation of findings
was interpreted basing on the views of the previous scholars and the researchers
understanding of concepts under this study and the findings was presented in the repoti.
12
-t.O Introduction
CHAPTER FOUR
FINDINGS
Thts chapter presents research findings related to the international human resource
challenges to performance in organizations. These data were sought in regard to the study
objectives which include; to find out how language can affect performance of
International Human Resource, how religion can affect performance of International
human resource, and finding out how compensation plan can affect performance of
lm~rnational human resource as well as developing strategies to address the problem.
4.1 To find out how language can affect performance of International Human
Resource.
Th~ first objective of the study was to determine the effect oflanguage on performance of
International Human Resource. The findings were based on the research questions from
the specific objectives of the study, "What is the effect of language to performance in
organiza tions?"
To achieve thi s objective respondents were bas ically asked to clearly put forward whether
language affect perfom1ance of international human resource the fo llowing questions
re lated to language were imposed to them, Do you face any difficulties in lecturing
students from different countries?. Is language affecting you in transferring knowledge to
students?
evertheless, the responses to the objectives were neatly portrayed in the subscriptions
below:
Table 4.1 (a) opmtons on difficulties tn lecturing students from different countries tn
Kampala International University
Do you face any difficult ies 111 lecturing students from Yes No Total
difrerent countries?
Frequency( f) 80 20 100
P.:n.:t!ntag<;! (%) 80% 20% 100%
Sourc~ : Response from KIU lecturers.
13
Figure: 4.1(b)
Graphical representation on the opinions difficulties in lecturing students from different
countries at Kampala International University
Source: KIU Lecturers
Result from the table 4.1(a) and the graph 4.1(b) above discovered that 80(80%)
respondents were of the opinions that they face difficulties in lecturing students from
different countries where as 20(20%) respondents asserted that they don't face languages
difficulties in lecturing students from different countries.
The majority of respondents witnessed that different students are coming from different
countries with different backgrounds and different languages for instance majority are
coming from Swahili, French and few from English and other ethnics such as soma lee
and Ethiopian hence this lead to difficulties in lecturing as well as speaking fluent
English in classes and in other academic programs.
Minority respondent 20(20%) said that most of the time they don't face language
problems because students tried their level best to use English when in class and during
other academic programs even if it is broken and hence is the only mean of effective
communications in the institute.
14
Table 4.1(a) Opinions on effects oflanguage in transferring knowledge to students
Is language affecting you in transferring knowledge to Yes No Total
students?
Frequency( f) 25 75 100
Percentage (%) 25% 75% 100%
Source: Response from KIU lecturer.
Figure 4.2(b) pie chart representing effects of language transferring knowledge to
students.
Is language affecting you in transferring knowledge to ~1udents?
• Yes No
Source: KIU lectuers
As shown above in table 4.2(a) and figure 4.2(b) pie chart, 25(25%) respondents were of
the view that language affects the way of transferring knowledge while 75(75%)
respondents reported that language is not a barrier in transferring knowledge to students
Significant number of respondents for instance 75% didn't support that language is the
barrier in transferring knowledge simply because KlU is an international university so
whoever think of joining the institution he is aware that the means of communication is
English language beside among of the qualifications of joining KIU one has to have
stated English in the previous level of education.
4.2 The Effect of Religion to Performance in Organizations
To find out how religion can affect performance of International human resource.
15
4.2 (a) table showing opinions how religion can affect perfonnance
Is there any effect on the religion differences among students Yes No Total
and employees?
Frequency( f) 10 90 100
Percentage(%) 10% 90% 100%
Source: Response from students and employees of.KIU
Figure 4.3(b) Pie chart showing opinions on how religion differences among
students can affect performance.
Source: Students and Employees of.KIU
As shown above in table 4.3(a) and figure 4.3(b) pie chart, 10(10%) respondents said
there is no religious differences among students and employees while 90(90%)
discovered that religion differences don' t have effect to students and employees.
90(90%) said there is no direct discrimination where a person(s) is treated less favorably
or not equally to others due to their religious adherence for example a Muslims may
require leave for Eid ul-Fitr at the end of the fasting month ofRamadan or at Eid ul-Adha
at the end of the Hajj (pilgrimage). Shia Muslims may request leave for Ashura, a day of
mourning for a martyred Muslim leader. Muslim worker and students , prays five times a
day, attends the Friday prayers and fasts in Ramadan and perform all activities in campus
mosque hence it create balance among workers were they have freedom to worships and
accomplish tasks and assignments . There is no victimization where there is no person
discriminated against due to their involvement in an act of religious and there is no
16
harassment where no person is ill-treated, intimidated, degraded, humiliated or offended
because of their religious affili ation and Christian also they have opportunities to pray in
campus main hall and other located rooms.
I 0( I 0%) observed that religion have effects on employee and students were by there are
res tri ctions on foods such as pork that you cannot find it in university canteens. Religious
observance can introduce a few problems in relation to social interaction. Although not so
I..'Oil1 lllonl) practi ced by the younger generation of Muslims, rules suggest women and
men should not openly mix. This is especially true when two members of the opposite
sex are left alone. For example, Muslim men and women may feel very uncomfortable
working alone with a colleague of the opposite sex. Sabbath, the Jewish holy day, starts
at sunset on Friday and continues till sunset on Saturday. During this period practicing
Jews will do nothing that may be seen as work.
HR personnel may see these examples impact on working hours, lunch/break times,
work ing time fl ex ibi lity, facilities and bereavement policies.
4.3 The Effects of Compensation Plan on Performance of International Human Resource.
The third objective of the sntdy was to ascertain the effect of compensation plan on
pe rlo rmance of International Human Resource. The findings were based on the research
questions from the speci fic objecti ves of the study, "What is the effect of compensation
plan to performance in organizations?"
To achieve this objective respondent were humbly requested to clearly put forward
What is the effect of poor compensation plan to an organization? As well as how is
l..'umpensat ion plan in KI U compared to other institutions?
The results were portrayed as fo llows:
Table 4.3(a) opinions on factors inspiring employees to work in Kampala
International University
I .-\ s <111 l:!mplo) ee what inspi red you to work >, c: c: 00 .g
\\ ith KI U Ill spite of other organizations Ill C<l Q) c:
"' "'0 c.. "'0 >, 00 ~ "'0 .....
0 E 0 :.... C<l Q) -C<l c: C<l ! Kampala? 0 0 E 0 0 0
..... ..c: :9 0 0 ~ C<l 0 u ·- u "'
Frequency( f) 45 25 10 20 100
1 Percentage(%) 45% 25% 10% 20% 100%
Source: Response from KIU emloyees
17
Figure 4.3(b ): Chart representing opinions on factors inspiring employees to work
in Kampala International University
120
100
80
60
40
20
0
45
Good Good company working
image condition
Source: KIU Employees
100
20
saraly others total
The results in table 4.4(a) and figure 4.4(b) above, clearly indicated that, 45(45%)
respondents strongly agreed good company image is the factor inspiring employees,
1 0(1 0%) with the opinions that salary is the factor that inspiring employees to work in
Kampala International University, 25(25%) respondents were of the view that good
working condition is the way of inspiring employees at K.I.U and 20(20%) identified
other factors.
Large number of respondents 45(45%) supported that good company image is the factor
inspiring employees to work in Kampala International University,
According to the survey results, 20 %( or 20), identified other factors that are most
attractive to these employees are those that save them time and money. Specifically, the
three non-traditional benefits most desired by employees are: supportive organization
structure, such as state-of-the-art material and equipment. Broad-based stock options that
provide recognition of employees efforts toward the overall success of the company.
Flexible work arrangements, enabling employees to have more control over where, when
and how they do their work. Other factors that are strongly desired in many organization
such as K.I.U include long-term care insurance, fitness facilities, discounts for major
purchases, and social activities the combination of this influences people to work with
this organization.
18
Table 4.3(b) comparison of compensation plans at KIU
How is compensation plan in KIU compared to other Fair Poor Good Total
institutions?
Frequency( f) 65 25 10 100
Percentage (%) 65% 25% 10% 100%
Source: Response from KIU Employees
Figure 4.4(c) comparison of compensation plans at KIU
Good
Poor
Fair
L_ . ..l .1. I
0 10 20 30 40 50 60 70
Fair Poor ±_ Good
~ 65% 25% 10%
65 25 10
Source: KIU Employees
The results from research, 65(65%) discovered that K.I.U has a fair compensation that
Most organizations in this tough labor market want to be an employer of choice. In spite
of recent economic trends, businesses are still hungry for talent that will drive their
business success, supporting work/life balance, helping employees to manage both
personal and professional commitments, can help to create a favorable impression of the
organization. Also majority of lecturers are part-time workers and what KIU pays is
equivalent to what they are doing.
25(25%) argued that KIU has poor compensation plans due to the fact that there is poor
administration systems hence they are not able to obtain what required from the
organization compared to what they are contributing hence poor compensation plan has
contributed to high labour tum over also There increased complaints from employees that
they spend even three month without payments.
1 0(1 0%) said that compensation plans is good at the university the reasons behind this
was they are satisfied with the services and also supportive environment of KIU, hence
they don't see badness ofthe compensation plans.
19
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
The chapter mainly concentrated on summary, conclusions and recommendations related
to the challenges of international human resource management to employee performance
in Kampala international university main campus, Kampala- Uganda. Drawn specifically
from the findings and analysis made after conducting the study.
5.1 Summary of the Findings
The summary of the findings on the challenges of international Human resource to
employee performance were presented in accordance with the research objectives as
elaborated below:
The first objective of the study was to detetmine the effect of language on performance of
international human resource in Kampala international university, the study revealed that
SO respondents which is equal to 80% were of judgment that they face difficulties in
lecturing sntdents from different countries and only 20% respondents said they don't face
an) difficulties in lecturing students from different countries.
However the study adopted a descriptive research design basing on qualitative data from
secondary sources such as textbooks, magazines, journals, reports and the internet. The
researcher also intends to use cross section design which includes ·observations, face to
face interviews and questionnaires.
The study also targeted employees who work within the University especially those who
work in human resource department.
The second objective of this study was to find out how religion affect performance of
international human resource to employee performance in Kampala International
University and the study reveal out that, I 0(1 0%) respondent agreed that rel igion can
affect perfom1ance of international human resource in KIU while 90 respondents said
there i::. no effect of religious difference among them because everyone has right to
worship wi thout restrictions
20
The third objective was to find out how compensation plan affect performance of
international human resource in Kampala International University hence the study found
out 65(65%) revealed that K.I.U has a fair compensation that Most organizations in this
tough labor market were and 25(25%) argued that KIU has poor compensation plans due
to the fact that there is poor administration systems. 1 0(1 0%) said that compensation
plans is good at the university the reasons behind this was they are satisfied with the
se rvices and payments.
5.2 Conclusion.
The cone! us ion of this study was presented in accordance with the research questions.
In the first question of do you face any difficulties in lecturing students from different
countries? And the study di scovered that 80(80%) respondents were of the opinions that
they face difficulties in lecturing students from different countries where as 20(20%)
respondents asse rted that they don ' t face languages difficulties in lecturing students from
d i lferent countries.
The second questions was Is there any effect on the religion differences among students
and employees? And the research find out that 1 0( 1 0%) respondents said there is no
religious differences among students and employees while 90(90%) discovered that
rei igion differences don ' t have effect to students and employees.
The third question was how is compensation plan in KIU compared to other institutions?
Where 65(6Y''o) revealed that K.I.U has a fair compensation, 25(25%) argued that KIU
has poor compensation plans and I 0( 10%) said that compensation plans is good at the
university.
The fourth question state that, Is language affecting you in transferring knowledge to
students? The result were , 25(25%) respondents were of the view that language affects
the way ot' transferring knowledge while 75(75%) respondents reported that language is
not a barri er in transferring knowledge to students.
5.3 Recommendations
The truth is that if you serve a global workforce, you must take great care to consider the
professional and social norms of each region to ensure that you provide truly valuable
benefi ts that give your organization a competitive edge.
21
Creating awareness and understand ing of the different religions and languages in the
workplace is essential in combating di scrimination and harassment. This can be done
through receiving advice and training from cross cultural consultancies. Such
consultancies not only educate staff on di ffe rent religions but can analyses current HR
prac tices and procedures ensuring they do not cause problems for staff. In addition they
advise on ways of overcoming challenges introduced through religion in the workplace
such as in ream building and maximizing staff retention.
OfTering va luable programs is only one piece of an effective work/life balance program.
You also must ensure that employees can easi ly find informa tion to help them balance
their personal and professional commitments
Compromising - companies and HR personnel must embrace multiculturalism and
dive rsity. l.n order to achieve staff cohesion it is important to understand religious
concerns and be wi lling to compromise in order to reach agreements that leave both
part ies happy. ff a worker's religious commitments clash with an employer's mles or
timetable there is usually room for dialogue and accommodation.
Having boundaries- although it is important to see to employees religious requirements
and accommodate them it is also equally important that HR personnel and employers
bear in mind rhat the company must come first. HR departments and employers must
have firm boundaries as to what is acceptab le from their perspective and what is
potentially damaging to the business. The law does allow some room for companies to
insist on certain procedures and criteria to be enforced where no reasonable alternatives
exist, even if it does discriminate in one form or another against a religion(s).
According to fi nd ing revealed on the study management should improve on the
compensation packages as to motivate employees to work hard and encourage other
quali fied people to join the institution, hence reducing high labor turnover.
22
5.4 Areas of further Study
Despite of all efforts made by researcher he still brings other areas required for further
study as fol lows:
Effects of repatriations on multinational companies
The effect of home based pay systems in international companies
Training and organizational performance
Career coaching and organizational performance
23
REFERENCES
I . Dressler,(June 2000), Human Resources Management, 7th Edition, Prentice Hall,
India.
2. Gankar S. V. and Mamoria C. B. , Personnel Management- Text and cases, 2 I 51
edition, Himalaya Publishing House.
3. http//www.wik ipedia.com
4. htrp//www.wikianswer.com
5. Linda Freell and Linda Hiri, (2000), Business a changing world, 3rd edition, Me
Graw-Hill.
6. Fisher Schoenfeldt Shaw,( I 993), Human Resource Management. 2 nd edition,
Houthon Mafflin Company.
7. Bohlander George. Scott Snell. Arthur Sherman, (2001), Managing Human
Resources, 12 111 South Western College Publishing, a division of
Thomson Learn ing.
~. Vance. C and Paik, Y (2006), Managing a Global Wor!iforce: Challenges and
Opportunities in International Human Resource Management, M. E.
Sharp Publishing.
9. Stahl, G. K. , Bjorkman, I. and Cebula, R. (2006). Handbook. of Research in
International Human Resource Management. Edward Elgar Publ ishing.
I 0. CreS\\ elL J.W. ( 1994). Research design. Qualitative and quantitative
approaches. Thousand Oaks, California: Sage.
24
-
APPENDICES
APPENDIX A: TIME FRAME
I ACTIVITIES TIME
I I. Interviewing and questionnaire I week
2. Observation I week
3. Collection of questionnaires 1 week
4. Writing of data and interpretation 2 weeks
5. Compiling data 1 week I 1 6. Typing and printing 3 weeks
7. Consultation of final report and submiss ion of report 4 weeks ~
25
APPENDIX B
BUDGET
ACTIVITIES Cost ( Ug shs)
I. Air time 30,000
I 2. Research instruments 50,000 - --
3. Typing and printing 80,000 - ---4. Research in the internet 30,000
5. Photo copying 30,000
6. Other expenses 30,000 I
Total 250,000
26
APPENDIXC
RESEARCH QUESTIONNAIRE FOR KAMPALA INTERNATIONAL UNIVERSITY
Employees
The questionnai re below is designed for KIU employees; please you are humbly
requested to fill this questionnaire as honestly as possible. Your assistance will be highly
appreciated and the questionnaire is purely for academic purpose where by any
information given will be kept confidential.
I. As an employee when did you join KIU?
Ju::.t ju1ned
Some months back
2 years back
5 years back
2. As an employee what inspired you to work with KIU in spite of other organizations in
Kampala?
Salary
Good working conditions
Good company image
Others (specify)
3. Do you have competitors? If yes, how will you manage to out compete them?
Good fac ilities
Quality Education
AflorJable fees
Good customer relations
4. How many students in your class do have and are you sati sfied with that number?
45-70
I 00- 150
200-250
300 and above
5. What challenges do you face during lecturing?
Dress ing code
Religion differences
27
Language
Others (Specify)
6. Do you face any difficulties in lecturing students from different countries?
Yes
No
7. Is language affecting you in transferring knowledge to students?
Yes
0
('). l f yes, how?
Increase performance
Decrease performance
Others (Spec ify)
9. Is there any effect on the religion differences among students and employees?
Yes
l\o
If yes. How ... ............... . ................................................................... .
I 0. How is compensation plan in KIU compared to other institutions?
Fair
Poor
Good
What advice do you have for the management of KIU?
28
APPENDIX D
RESEARCH QUESTIONNARE FOR STUDENTS
The questionnaire below is designed for students ofKIU, you are humbly requested to
tick the most appropriate answer and also give your views.
I. Do you primarily consider that KIU is your best choice among others?
Yes
No
From the answer mentioned in ( l) above please tell us why.
3. Hovv do you get information about KIU?
Television
Radio
Friends
News papers
Others (specify)
-L Apart from Academic what other benefits do you enjoy from KIU as a customer?
5. Do you face any challenges as lecturers facilitate in class?
Yes
No
If yes, what are the challenges .................................... .. ....... ...................... ..
6. What do you think are the reasons of high qualified and skilled faci litators are living
KI U'? . ..... . .. ............................................................ . ················ · ······ · ······
7 . What ath·icc wi ll you give to the management ofKIU?
29
INTERVIEW GUIDE FOR THE MANAGEMENT OF KIU
When did you join KIU as an employee?
Why did ) ou decide to work for KIU?
What challenges do you face when carrying out your duties?
How language, religion and compensation plan affect the organization?
How do you re late the above chal lenges to the performance of the organization?
30
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