7HR007: International Human Resources- Contemporary Issues.

7HR007: International Human
Resources-Contemporary Issues

TABLE OF CONTENTS
1. Differences in perspectives and approach between International Human Resources and
Domestic Human Resources............................................................................................................3
2. Recruitment and selection of employees in developing countries ..............................................6
3. “Remote multi-cultural” working with employees in multinational organisations ....................9
4. Reflection on how the module content will inform and assist in own future management role12
References......................................................................................................................................17

1. Differences in perspectives and approach between International Human
Resources and Domestic Human Resources
Introduction
There are international human resources and domestic human resources are two different
aspects to an organisation, and there are international human resource management is completely
different from the domestic human resources. (Desbordes, Aymar and Hautbois, 2019). In this
situation, upper management of each multinational company has always required to firs
understand cultural values of that country which it has chosen for hiring employees or human
resources (Gaižauskienė and Tunčikienė, 2019). On the other side, domestic human resources are
those people to a country which runs only in the national boundaries (Toh and Thangavelu,
2016). Top-level management of a business cannot face very higher challenges while hiring
people under the domestic boundaries (Munn, 2016). This is the main difference between
international human resources and domestic human resources that, international human resource
management is more complicated than domestic human resources (Andersen, 2019).
Ethnocentric Approach
It is a kind of staffing approach which is used by international human resource
management (Pablé, 2019). This approach is used for staff management in which all the main
key managerial positions of subsidiary are filled by employees/expatriates from home country. it
can also be said that main staffing decisions are taken at main headquarters and same home
standards are applied on all markets (Conrad and Meyer-Ohle, 2019). Top most positions of
managers are taken by managers from home country. one of the main advantages of this
approach is that it helps human resource management to manage organizational culture is
adopted easily by all the subsidiaries (Feurer, Bauback and Woodside, 2016). It directly helps
HRM to remove all the barriers including communication barrier between headquarter branch
and other subsidiaries.
Not only this, international human resource management can easily manage coordination
between all the activities of company and subsidiaries in a proper and effective manner. But this
approach is not suitable to be used by HRM for management of clashes between cross cultural
variation employees. This approach is used by companies if they want to fill a higher position

vacant position in foreign country then in such case, they relocate one of their existing
employees from parent country to foreign country office (Petroska-Beshka and Kenig, 2018).
Polycentric Approach
It is another staffing approach which is used by HRM for recruitment and staffing of
employees (Dorsch and Flachsland, 2017). This approach focuses upon staffing top managerial
positions are filled by employees of host country. one of the main advantages of this approach is
that it helps the managers in understanding local people and market in a much better and
appropriate manner. coordination between business environment both internal and external can
be managed in a proper and effective manner (Shackelford and et. al., 2017). Coordination
between international and domestic HRM can be managed in an appropriate manner. The main
purpose of this approach is to reduce cost of foreign operations gradually.
Even if an organization has initially adopted ethnocentric approach they can eventually
switch over to Polycentric approach (Gritsenko, 2017). The main and primary purpose of using
this approach is to understand local market condition of foreign nation, thinking and mentality of
people etc. Most of the top management organizations uses this approach for recruiting
executives for management of branches in different countries in an appropriate manner (Sarker,
2020). Using this approach natives or local of host country are selected or recruited for
management of main business operations in host country.
Geocentric Approach
This approach helps HRM in managing and running business effectively irrespective of
nationality. It helps in providing a scope of HR managers to hire world best, talented and skilled
employees (Purucker, 2018). As it allows HR managers to hire talented employees, it helps the
organization in competing in this competitive market in proper and effective manner. This
approach is used by organizations for recruiting most suitable and talented employees for
positions available in host country irrespective of nationalities of employees (Ziggah and et. al.,
2017). This approach is used by HR managers of organizations that operate globally as such
organizations need to adopt integrated business strategies for operating smoothly. This approach
not only help in smooth functioning of business operations globally but also helps in maintaining
positive brand image as well (Schmidt, 2016).
For using internal sources of recruitment in an appropriate manner it is important for
global organizations to develop an effective recruitment strategy using Geocentric approach so

that all of their main business operations globally. Using this approach companies can hire best
available managers for business irrespective of their country of origin (Svehla and Rothacher,
2016). This not only helps in effective operation management but it also helps in reducing
operating barriers in most of the countries.
Convergence Divergence
There are convergence and divergence two different systems of human resource
management, and many of businesses considers them as theories of HRM as well, and that’s why
the HR management of each busines have to consider these systems (Alkaabi, Alkaabi and
Vyver, 2017). Basically, the convergence system within the human resource management can be
referred as the global theory that is found for the purpose of managing human resources or
employees at the international level (Caruso, 2018). It promotes better communication values
between employees of a country and employer of another country (Wells, 2017). On the other
side, divergence is another major theory of human resource management that emphasises the
requirements to adopt various management approaches bases on goals and other circumstances
of an organisation (Yogi, 2017). Basically, this theory also can contribute in the management of
human resources at international and domestic level.
Two most common perspectives which can be utilised by employers for improving employee
relationship are Unitarian and pluralist perspective.
Unitarian perspective: According to this perspective each organisation must have common goals
which can help to develop greater level of consensus between employees and organisation. Thus
there is need of better of communication and discipline for overcoming conflicts of interest is
must for building successful corporate culture (Petroska-Beshka and Kenig, 2018). This
perspective also states that since team members and organisation have mutual understanding and
cooperation third parties are considered as irrelevant. When organisations give preference to
Unitarian perspective then strong sense of cooperation is required and loyalty of staff members
towards organisation plays crucial role. However, the poor communication within organisational
culture can act as key limitation of this approach (Dorsch and Flachsland, 2017). The conflicts
and restricted communication can act as barrier to high performance and improved employee
relations. The support from management helps staff members to accomplish their tasks with
more efficiency.

Pluralist perspective: This perspective emphasis on different interests of various stakeholders
associated with the organisation. Since conflicts are inevitable this perspective helps company to
utilise them for optimum benefit. Pluralist approach focus on the fact that different groups may
have conflicts due to different interests and thus there must be good decision making regarding
collective bargaining and compromising (Malhotra, Sahadev and Sharom, 2020). As compare to
Unitarian perspective a greater priority and consideration is given to negotiation and conflict
resolution within organisation. As a result, management always give preference to negotiations
or agreement which benefits both company and employees (Kooij and Boon, 2018). This also
restrict or limit control or authority of the powerful positions. Though in situations when
negotiations are not possible and managers are required to resolve and control the situations then
primary power remains in the hands of managers. This can be one of the reason for increased
dissatisfaction among staff members.
Conclusion
It can be concluded that the international human sources management (IHRM) practices
are important to those ventures and businesses which currently works at the international level.
For example; there is UK based retail organisation Tesco currently serves in many countries to it
need to conduct the practices of IHRM for hiring employees or human resources in other
countries as well expecting the United Kingdom. On the other side, domestics human resources
or employees are mainly important as well as essential to those people who are currently
working in a single country’s boundaries. For example; currently Prufrock coffee café business
of London is able to afford only those people as employees who belong to the United Kingdom,
because this a small coffee café business which currently runs only in its national boundaries.
However, there are international or domestic employees has their own roles and importance to
different businesses in the market place.
EPRG Framework: Differences between domestic and international human resources can be
understood with this framework. It shows different ways of making use of HR such as:
Ethnocentric: When companies think about expanding business in other countries and abroad
then different companies use different styles. In this approach of EPRG, companies do not focus
on research abroad as they focus on market research in the headquarters in the local country. For
not putting extra efforts on marketing, they seek for same characteristics in abroad as like the
local market.