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BUS851 International Human Resource Management For Standardization

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  • Course Code: BUS851
  • University: Macquarie University
  • Country: Australia

Questions:

1. With reference to relevant IHRM theoretical and research material, critically analyse ways in which IHRM is shaped by institutional and cultural/societal factors. How can firms balance the need for global integration of HR strategies, policies and practices with the pressures to adapt to host country requirements?

2. Discuss the following statement: Working in a global landscape, multinational organisations are faced with challenges that are related to human resource management. Identify and evaluate a selection of these challenges. Suggest ways in which multinationals can work to address or deal with these challenges.
 

Answer:

Introduction 

International Human Resource Management (IHRM) is a set of management activities which always concerns with recruitment, the process of training along with development, the performance of the workers, give an appraisal, and mostly the communication with the labour and maintain good relations with them (Budhwar., 2017). The primary need for a particular type of HRM is to be determined by the need for the adaptation or standardization. Managing human resources in world aspect is more complicated than in a domestic set up due to the enormous differences between headquarters and the subsidiaries. This report will be focusing on those challenging factors that are faced by the multinational companies HR department. This report will be highlighting the major issues of the workforce such as the culture and communication, labour law conflict, talent gap and so on. On the other hand, this report will be discussing the recommendations to solve the issues (Deresky, 2017). The primary motive of this report is to explain the statement working in a global landscape; multinational organizations are faced with challenges that are related to human resource management.

 

Discussion:- 

Major Issues of Global Workforce:-

Culture and Communication: -

 While going to take someone from a particular environment into another, there must be the changes can be seen in their culture and communication. This issue is basically the diversifying effect of an individual from their workforce. The different organization has different viewpoints, along with different customs (Farndale et al., 2017). This cultural and communication issue in the global workplace is a multifaceted phenomenon which can be seen among the members of the organization. Nowadays this diversity of the workforce become a significant issue in IHRM, as it has some  legal , moral as well as the business implications for the organization.

Labour Law Conflict: -

The political issue is another major issue that is affected in IHRM, by its legal and regulatory environment. One of the major issue that can be pointed out by giving an example:  “Employment at Will” statement in the US has stated that the company may terminate an employee at any time without giving any cause or reason.  This concept does not exist in India and other countries (Gomes et al., 2015). The major issues of political environment attached to the extension of external regulations, different types of labour legislation, the nature of work contracts, different case law and so on. Some of the factors of political issues are never changing. It is the responsibility of the HR to anticipate those changes along with to implement such laws that are beneficial for the organization.

Talent management or skills gap: 

The most challenging issue of the global market is the finding of talents for the high profile jobs. Talent management in IHRM is a strategy which is applied by the HR manager of the company to help and to promoting the business (Haak-Saheem et al., 2017). There are some strategies or principles for the talent management which help the company to expand their business in global market. Such principles of the global talent management by the HR are: arrangement with the strategies, internal stability, mixing of culture in work force, the participation in management, non-profitable job training for the employee.

 

Conflict in growth of interest:-

 The successful markets across the borders are critical while going to talk about the business (Itani et al., 2015). Conflict in global level can be observed by the people when employees staying outside from their country. In the national level the work forces are depending upon the particular states, but when the business are in international level , the employees must be having their own interest which may conflict with the companies achieving targets. The HR manager plays the most crucial role to implement those strategies which are the most significant for the global business. 

HR Managerial Challenges in MNC’S:- 

 Changes in management: -

The organizations are running their business in the world market. So, one problem can be faced by many organizations (Kunisch et al., 2019). The HR management of the organization will be managing the changes into that organization as well as they will be performing the role of how to make people acquainted with those changes. The organization could take a few steps so suddenly for the enhancement of their business. They could determine the sudden changes in their business policies. If there are any changes that occur during the time, then the HR will be informing such sudden changes to all the employees accordingly.

 

 Work Culture: - 

In an organization, a proper work culture should be maintained. With the procurement and corporations taking place, it has become the most important for the HR Manager to develop the work culture. A successful organization cannot be completed with proper work culture. Different countries have their different work cultures. For example, the manager of the U.S is more concerned about getting their task done, whereas, in Hong Kong, the managers are focused on maintaining the harmonious environment instead of getting their work done. Apart from this, there are few findings which affect the HR policies. For example, in Mexico, the employees expect from their manager to keep distance rather than to be closer. In the USA this method is not applicable as the managers and workers

Ethics and Values: - 

In every organization, the ethics along with the moral values are very essential part for the business. The existence of the global organization face a challenge regarding the issue of ethics along with the values. The contradiction regarding this issue is depending upon the particular culture as well as beliefs. The organization cannot apply their own ethics or values everywhere. It is the responsibility of the HR manager to provide the training to the employees to make them aware about the corruption methods, the handling of situation while any problematic situation arise. The HR manager also can implement the performance levels to give support towards the reduction of all the corruptions.

 Managing Slow destruction Rate: - 

Additional competition correspondingly adds to the gradual reduction. The function of the HR manager is to play a crucial role to manage low attrition and introduce good retention strategies for the development of the company. If there is any political or legal changes arise regarding the low-attrition rate, then almost all the HR managers will be affected by the regulatory environment. The HR manager is always responsible for looking after that low-attrition rate.

 Balancing work and personal life: - 

In every organization, mostly in the global landscape, a proper balance should be maintained between the workforce and the personal life of the employees. This is the most important responsibility of the HR manager to create a balance between the work life and personal life by providing the flexible work hours, paternity leaves and vocations are some of the options hand.

 

Work Pressure and Conflict: -

In a business organization, there are numerous reasons why conflict arises, such as generation gap, lack of leadership, lack of empowerment along with  extensive working hours, stress to achieving the targets, as well as high competition level and so on which enhance the  burden level into that organization. The responsibility of an HR manager is to have proper response towards those conflicts before it goes to harm someone's life.

 Restructuring of the Organization:-

Every organizations are getting flatter and more straightforward with the procurement of new advanced technology. It is the most crucial role of an HR manager to restructure and reorganize the framework of the organization, as the trend is changing day by day. A successful organization needs to have proper planning of programmatic changes, support services and so on which are essential for reaching towards its goal. It is the responsibility of the HR manager to restructure the organization by adding a new position, eliminating the existing position, restructuring the work assignment along with modifying all the reports for the present employees.

 Globalization: -

Globalization in IHRM is a process of interaction across the world in order to enhance the economy globally (Mittal and Singh 2019). Businesses are going worldwide day by day due to the enhancement of the diversity. The most challenging task of the HR manager is to manage those individuals who are working in an international level with the variety of religion, cultural, moral background and so on. Globalization also have emotional impact the work cultural environment for the employees.

Consultative Approach: 

It is essential to have a constructive approach to an organization while going to run their business in the world market. By enhancing continuous dialogues into the work field, freely interact with the employees, giving a chance for making the decision are very important for fulfilling a consultative approach (Nguyen et al., 2019). The HR manager are responsible for assisting such actions to get a participation for the employee and democratic cultures. 

Recommendations for Solving HR Issues for Global Workforce:-

Workplace Diversity: - 

Workplace diversity of an organization is the pride of the organization to have a diversive workforce which is based on the charecteristics as well as the experiences of the individuals (Nguyen et al 2018). Few features of the workforce diversity are: race, culture, sexual category, age, capability and so on. There are in member of ways through which people respond to diversity. The workforce diversity has two different effects, positive and negative effects. By mixing the different cultural of talents, backgrounds, along with the lifestyles, a successful business organization can come up with a flying colour more productively. The department of HR is responsible for managing all the aspects as well as they could make a training program for the advancement of that organization.  

Planning a Mentoring Program: -

The planning programme is another factor to solve the HR issues from the global aspect. One of the most effective way to handle workplace diversity issues is to commence a mentoring Program through the diversity (Nguyen et al., 2018). This mentoring program motivates every manager to coach the employee and give the feedback to the employees from different group or sections. This process could easily solve the issues regarding HR for global workforces.

Organizing Talents Strategically:-

 Now a days every company appreciate the benefits of different workplace. Every company are expanding their business in global landscape. For the global business market, it is mandatory to work in diverse places along with the diverse talents. For the IHRM policy, many strategic opportunities has been made for organizing the talent. For the last few years those strategic opportunities has enhanced the challenges which deals with the shortage of talents, surpluses of the talent, locating along with the relocating of talents and so on. The HR manager is responsible for the changes of the strategies relevant to the talent management.  

Training for the Development:- 

For the benefit of the business in the global market, a training and professional development programme are mandatory for every organization (Parboteeah and Cullen 2017). The training programme should be conducted by the HR manager of that organization. It encompasses in-house seminars and meeting designed to give employees according to the knowledge and skill which are the most important part of the business in the global landscape (Shah et al., 2017).

Control policies and Measuring the Results:- 

HR Manager manages the day to day organizational calculations along with all the assessment of that organization. They are responsible for managing the issues like salary, welfares, work atmosphere, running organization and promotional prospects to evaluate the progress for the future. The HR manager always look into the situation of all the controlled policies and they have to measure the result along with maintain the report up to date.

Motivational Approaches: - 

Employees motivation is the most important factor of an organization. Workplace motivation refers to the impression that permits management to meet the targets or goals. After getting motivated, the employee could enhance the productive level of that company as well as could allow the company to fulfil or to achieve the goals (Stokes et al., 2016).

Gain or increment sharing process: - 

The Curricula of gain sharing are defined as incentive policies which comprise of the workforces in joint effort to develop organizational enactment and the concept which is bring about the incremental economic gains which are distributed among all the employees along with the company. The HR manager of a company will be sharing the gains according to their increment.  

Conclusion  

From the above discussion, it can be concluded that IHRM has some challenges which are facing by the HR managers of the organization. All the issues and challenges like the workforce diversity, leadership development, effectiveness of the organizational workforces, globalization and so on which can be managed by the HR manager where they have adopted HR practices which encourages the proper recruitment along with the selection policy, job division, empowerment, promoting diversity at workplaces, training and development of the employees, supporting diversity in the workplace, proper assigning of the duties and responsibilities, managing knowledge along with the enthusiastic motivation. The primary motive of this study is to analyze the challenging factors. The function of the HR manager must be similar to the requirements of the changing organization. Every effective organizations have become suppler, buoyant, fast to change instructions, and focused on the customers. The HR skilled professionals need to learn how to handle every situation in successful manner through forecasting, forming, shaping, leading as well as monitoring the international human resource management.

 

References: 

Budhwar, P., Tung, R.L., Varma, A. and Do, H., 2017. Developments in human resource management in MNCs from BRICS nations: A review and future research agenda. Journal of International Management, 23(2), pp.111-123. 

Deresky, H., 2017. International management: Managing across borders and cultures. Pearson Education India. pp.139-150.

Farndale, E., Raghuram, S., Gully, S., Liu, X., Phillips, J.M. and Vidovi?, M., 2017. A vision of international HRM research. The International Journal of Human Resource Management, 28(12), pp.1625-1639.

Gomes, E., Sahadev, S., Glaister, A.J. and Demirbag, M., 2015. A comparison of international HRM practices by Indian and European MNEs: evidence from Africa. The International Journal of Human Resource Management, 26(21), pp.2676-2700.

Haak-Saheem, W., Festing, M. and Darwish, T.K., 2017. International human resource management in the Arab Gulf States–an institutional perspective. The International Journal of Human Resource Management, 28(18), pp.2684-2712.

Itani, S., Järlström, M. and Piekkari, R., 2015. The meaning of language skills for career mobility in the new career landscape. Journal of world business, 50(2), pp.368-378.

Kunisch, S., Menz, M. and Birkinshaw, J., 2019. Spatially dispersed corporate headquarters: A historical analysis of their prevalence, antecedents, and consequences. International Business Review, 28(1), pp.148-161.

Mittal, E. and Singh, H., 2019. India as a Nation for Expats: Adjustment Issues and Challenges. research journal of social sciences, 10(1). pp.120-127.

Nguyen, D.T.N., Teo, S.T. and Ho, M., 2018. Development of human resource management in Vietnam: A semantic analysis. Asia Pacific Journal of Management, 35(1), pp.241-284.

Parboteeah, K.P. and Cullen, J.B., 2017. International Business: Perspectives from developed and emerging markets. Routledge, pp.2-7.

Shah, D., Russell, B. and Wilkinson, A., 2017. Opportunity and opportunism: The expatriation practices of Indian information technology multinational corporations. Journal of International Management, 23(2), pp.139-150.

Stokes, P., Liu, Y., Smith, S., Leidner, S., Moore, N. and Rowland, C., 2016. Managing talent across advanced and emerging economies: HR issues and challenges in a Sino-German strategic collaboration. The International Journal of Human Resource Management, 27(20), pp.2310-2338.

Tongxu, B., 2018. Training and development of international staff: ???????????? ??????????? ?? ??????????? ??????????: 38.04. 02-??????????. pp.129-135.

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