Impact of Culture on Managerial Decision Making in International HRM

BMP6003 - International
HRM - Word

Table of Contents
INTRODUCTION...........................................................................................................................3
Critically appraise the impact of culture on managerial decision making in relation to
international human resource management.................................................................................3
Evaluate the management of people as a business resource integral to international
organisational strategies..............................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10
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INTRODUCTION
International human resource management is defined as management that bears strategic
and functional resemblance for the management. The IHRM also has same activities as the HRM
like recruitment, selection, compensation, career management, industrial relations, etc. The
international HRM is related to the business strategy of the company (Gahlawat, and Kundu,
2019). It is essential for an organisation to analyse all the factors that are affecting working of
employees. In context of present research, it is concluded that a IHRM consultant is there who
has to critically evaluate the cultural and HRM issues that UK companies have to consider while
locating a call centre in Japan. This report will discuss about the impact of culture on managerial
decision making with relation to the international HRM (Armstrong, and Taylor, 2020). Also,
there is evaluation of people as a business resource integral to international organisational
strategies.
Critically appraise the impact of culture on managerial decision making in relation to
international human resource management
An international company is defined as one in which there are subsidiaries outside the
country and this relies on business expertise. When UK companies are trying to locate call
centres in Japan, there are various factors that have to be analysed as they affect the functioning
of employees working in the company. International HRM is involved in managing various
functions such as training, recruitment, appraisal, selection, etc. Any company is able to gain
competitive advantage if it is having sufficient number of workers and employees (Basu, 2019).
There are a lot of organisations which conduct business in countries. A proper management of
global employees is important for failure or success of the company. It is a challenge for the UK
companies to train, procure as well as retain employees so that they can achieve success in Japan.
International HRM involves managing of people in UK as well as Japan. The success of call
centres depends upon the skills and quality of human resource and the way how effectively such
resources are utilised and managed at international level (Bratton, and Gold, 2017). The main
roles which IHRM of the UK companies that are opening call centres in Japan are listed below -
 IHRM has to ensure development of managerial skills, technical abilities and
organisational knowledge of employees as well as management
 Develop strategies for better handling of global operations

 It is important to manage and secure the compensation, performance and career path of
employees
 For organising and managing cross cultural sessions and counselling as well as language
training programme
 Develop competitive and better HR strategies in the global competitive scenario
The management of human capital is most challenging task for UK company managers.
The managing of people needs knowledge based economy and knowledge workers that are hired
in the company (Ahmad, Allen, and Raziq, 2019). Internationalism of the companies enhances
the challenges and issues while managing all people working in companies. The three major
international HRM activities includes Procure, allocate and utilise (Cascio, 2015). When UK
companies are starting a call centre they have to cover different activities and tasks of HRM like
planning, hiring of new employees, remuneration, training and development, industrial relations
and performance management.
International staffing
Staffing within the company is a big challenge and it is important to find the right set of
individuals who can work effectively in call centres of Japan. It is essential for the UK
companies to hire effective employees who are able to attain profits and sales. UK companies
have to look for people who have effective communication skills and database knowledge. These
people can easily communicate with clients and solve their queries early (Elkoussa, and
Williams, 2019). In Japan, employees and workers who are hired must have good skills of
English speaking and vocabulary. Also, the hired employees must be able to have good
adaptability to the working culture. The new call centre will include people form different
cultural and religion backgrounds who will come together and work effectively. The decision
related to mix of local employees to expats is also a hard decision to be made (Chelladurai, and
Kerwin, 2018). Cost is a major factor that is considered while searching for international
employee and hiring the right kind of person. The aspects of costs are related to demand,
consideration and selection. It will cost a lot to the UK company in hiring of employees in
Japan. If the individual hired in the call centre is not effective or productive, it will cost a lot to
the company which is be costly for the organisation. UK has to face tax laws as well as
compensation laws while hiring employees in international market (Noopur, and Dhar, 2019).
UK and Japan have to possess tax treaties that ease income tax obligations of expat. These