Table of Contents INTRODUCTION..........................................................................................................................3 LO 1.................................................................................................................................................3 Critically appraise the impact of culture on managerial decision making in relation to human resource management.............................................................................................................3 LO 2.................................................................................................................................................8 Evaluatethemanagementofpeopleasabusinessresourceintegraltointernational organisational strategies.........................................................................................................8 CONCLUSION................................................................................................................................9 REFRENCES.................................................................................................................................10 2
INTRODUCTION International HRM is determined as a process that include acquisition, allocation and utilization of human resources at a global business in order to attain the stated objectives. International HRM is interaction of main three dimensions i.e. activities of human resources, typesofstaffandnationsofbusinessoperation(Aryanto,FontanaandAfiff,2015). Organisational selected for this assignment is BMP International which is a manufacturing company as well as they also supplies metal products at the marketplace. They mainly offer electronic, communication, automotive, printing and metal products at the United State and China (BMP International Inc,2020). The main aim of conducting this assignment is to develop understanding of international human resources management of BMP International. Topics included in report are impact of nation culture on managerial decision making as well as it will also include evaluation of management of people in respect of business resource. Along with this, it will also include importance of international human resources practices and it also determined issues related to management of human resources in global context. LO 1 Critically appraise the impact of culture on managerial decision making in relation to human resource management National culture is considered as set of belief, norms, customers and values which are shared by population of specific nation. This is also determined as specific characteristics like ethnic, religion, language, colour, racial identity, tradition, culture and many more. For an organisation it is essential to conduct analysis of nation culture before expanding their business at the different marketplace. This is so because through that an organisation can effective develop decision and action plan which directly help them in gaining numbers of advantages at the new and potential marketplace. In respect of BMP International they want to expand their business operations and functions i.e. of call centre at the Japanese market so it is essential for them to conduct analysis of nation culture. It is so because by it they able to understand nation culture and demand or requirement of Japanese customers as then accordingly they can develop effective decision. Moreover culture of a nation also directly or indirectly impact on managerial decision making in both positive and negative aspects. Similarly in respect of BMP International, their management also need to evaluate nation culture properly because it impact on managerial 3
decision making in respect of human resource management, below some impact of nation culture are given:- Employee productivity:It is considered as metric which calculation is based on the amount of output of a specific project by comparing it with amount of time taken in whole process. In respect of BMP International, nation culture will impact on managerial decision making in respect of employees productivity in both positive and negative manner (Brewster and et. al., 2016). For example if respective company understand and determine nation culture properly or positively, then they can develop strategies through which employees can feel motivated. This will so because they able to perform best that directly enhance their work quality as well as it also increase their productivity. On the other hand, if BMP International will not evaluate nation culture effectively then they not able to develop proper strategies which impact on their decision making process. That will directly impact on the performance of the employees. Communication:At a company it is necessary for a management to conduct proper communication as that will help them in sharing information within as well as outside the company effectively. For BMP International, it is essential for them to conduct proper evaluation of particular nation communication style because it may impact positively as well as negatively on decision making of management. For example if respective company adopt effective communication strategies according to culture of nation then they gain numbers of benefits which impact decision making positively such as it help in team building, enhance growth, aid in adopting innovation, enhance productivity and so on (Gallardo-Gallardo and et. al., 2015). On the other hand, if BMP International will not adopt proper communication strategies according to Japanese culture then it may lead to conflict situations which affect managerial decision making negatively as well as it also impact on satisfaction level of customers. Goodwill:It is considered as intangible assets of a company which directly or indirectly help company in increasing their sales and productivity at the potential marketplace. In respect of BNP Internation, nation culture impact on the goodwill of company because that will impact on managerial decision making in both positive and negative aspects. For example if respective company maintain positive, motivative and effective working culture according to the Japanese culture and believe then employees able to conduct 4
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their work properly as well as it also improving customers experience. This will directly lead to the increase in goodwill at the marketplace because company is following nation culture properly. On the other hand, if respective company will not understand nation culture effectively then it will impact on working culture because employees not able to conduct work properly as well as it also affect customer's satisfaction level These are main aspect through which it can be evaluate that how culture may impact on managerial decision making of BMP International in respect of human resource management. Along with this there are several advantages which can be again by BMP International by implementing international HRM at their workplace while expanding their call centre at the Japanese market. Some of the advantages along with international HRM practices are given below:- International Staffing:According to this HRM practices when a company conducting their business operations at the international level they need to hire staff according to that so that they perform task properly (International human resource management,2020). In respect of BMP International, in order to conduct their business operations and function of manufacturing as well as supply, company management need to hire new staff according to location because that will help them in understanding location market and requirement more properly. Moreover it will also aid in developing more appropriate decision. Performance management in internation project:In respect of BMP International, for them it is essential to conduct this practice and in respective HRM practice they need to consideredseveralfactors(Reicheandet.al.,2016). Thatincludescompensation packages, head quarter's supports, task assigned to expatriate, cultural adjustment and environment. Through this respective company able to get numbers of benefits at the time of decision making, appraisal as well as it will also help them in taking decision of appraisal. It is essential for a company to conduct their work effectively so that they can minimise impact of culture in the managerial decision making in respect of human resource management. In respect of BMP International they are going to expand their business of call centre at the Japanese market and for them this is necessary consider positive and negative aspects of all factors connected to expanding business. This is so because through it management able to take 5
proper as well as relevant decision which help them in attaining several advantages at their workplace.Moreover there are several models which can be used by a company in order to understand nation culture, in respect of BMP International for understanding Japan Culture they may adopt Hofstede's cultural dimensions model, which is explained below:- Hofstede's cultural dimensions model: This model is developed by Geert Hofstede and it is considered as framework for the cross cultural communication. It generally shows the impact of society's culture on the value of members as well as it also show how values are related to the behaviour of individual. There are major five aspects of respective cultural model which help BMP International in understanding Japanese market and requirement of audiences, explanation of all these dimensions are given below:- Power distance index:It is considered as that extent to that less powerful members of institutionsas well as organisation in a country expect and accept that power is distributed in unequal manner. There are several low power distance country such as United State and Canada whereas some have high distance like Japan as well as Singapore. This show BMP International can effective operate their business at the Japanese marketplace. Individualism Vs Collectivism:Individualism is determined as culture that ties among the individuals are considered as loose. Country which follow individualism factor are United State, Great Britain and Australia. On the other hand collectivism is determined as culture in which people conduct work with collaboration as well as they exchange unquestioning loyalty. For example Hong Kong, Singapore and Mexico. In respect of BMP International the must select those countries to expand where there is collectivism in nature. Masculinity Vs Femininity:Masculinity is considered as cultures at which social gender roles are totally and clearly distinct, such as Japan, Italy and Austria. On the other hand femininityarethoseculturewhichsocialgenderroleareoverlaplikeNorway, Netherlands and Sweden. In respect of BMP International they must adopt both nation culture masculinity and femininity because through that they can develop positive working culture. 6
Uncertainty avoidance index:It is considered extent at which members of culture feel threatened due to uncertain as well as unknown situations. Low uncertainty avoidance index country are Singapore, Jamaica and Denmark whereas high uncertainty avoidance nation are Japan, Portugal and Greece. In respect of BMP International it is essential for companies to develop culture where all members are ready to uncertain situations. Long term orientation Vs Short term orientation:It is also known as Confucian dynamism which denote time orientation of a nation culture. This will include long term as well as short term orientation as their two main poles. Nation which follow long term orientation are China and Japan whereas short term orientation are United State as well as Canada. In respect of BMP international it is essential for them to develop both long term as well as short term orientation because through that they can conduct business operations properly in Japanese marketplace. Pros and Corns of Hofstede's cultural dimensions model There are numbers of pros and Corns through which BMP Internation can develop effective decision according to the culture of Japanese market. This will also help them in conducting work properly according to the culture of nation, below some pros and corns of respective model are given below:- Pros Hofstede's culture model help BMP International in conducting their day to day activities in Japan market by understanding their culture. This will also help respective company in expanding their business operations as well as functions related to call centre at international level without facing any types of cultural hindrances. Through this cultural dimension model BMP International able to attract more and more customers because they able to develop strategies according to the culture aspects of Japan marketplace. Corns Due to implementation Hofstede's culture model BMP International may face numerous criticism which may impact on their business operations and functions at the potential market of Japan. 7
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Through this model BMP International not able to pay more attention on the communities which impact on the business at the local or domestic level at the Japan marketplace. These are main pros and corns of Hofstede's culture model which are essential to be considered by BMP International while expand their business of call centre at the Japan marketplace in order to grow business and profitability level. LO 2 Evaluate the management of people as a business resource integral to international organisational strategies People/employees within an organisation are considered to be the most valuable resource as they help it in delivering value services to the customers and achieving overall goals and objectives effectively (Guest, 2017). Employees should be treated in a fair as well as appropriate manner to ensure the success of an organisation. In order to manage people effectively, an organisationshouldhaveacompleteunderstandingofjobdesignswithinthecompany, rewarding systems etc. Employees are the people working within an organisation who get various tasks done. They have knowledge about how the various methods and tools that are used within the company. Employees are called one of the greatest resources of an organisation as they are the ones who have direct contact with the customers and as a result have a much more better understanding of their requirements as well as demands. BMP International is an organisation that manufactures and supplies different products that are made from metal. It supplies iron parts, casting products, sheet metals and other products. The company considers people who work for it as most valuable and thus offers them various opportunities to enhance their existing skills and develop new ones. The people help BMP International in developing strategies that are effective and assist in achieving goals and objectives (Jamali, El Dirani and Harwood, 2015). Employees who are satisfied and engaged to their jobs, are more likely to contribute to the success of the organisation significantly. If people will be managed effectively in the organisation, there will be less conflicts and the employees will feel more motivated. Also, the company will be able to utilise their talents effectively. BMP International trusts its employees and also considers their suggestions as well as feedbacks while formulating strategies. Although customers are an important aspect of an organisation to be successful but the major role is played by the people who work for it. Thus, 8
they should be managed by the firm effectively, right and qualified candidates should be hired who help the company in fighting competition in the market and gain a competitive edge over others. Aims and objectives that are set by the company should be measurable and easy to understand that the employees do not drift away while working as well as there is no confusion aboutanything.Thepeoplemanagementdepartmentensuresthathealthyrelationshipis maintainedamongemployer.Differentrewards,benefitsandincentivesareprovidedto encourage them to put in their best efforts to generate effective output. CONCLUSION By analysing above discussed point it can be summarise or conclude that there now every company is operating its business at the international level and for that it is essential for them to adopt international human resource practices. But international HRM practices get impact through nation culture in both negative as well as positive manner, that can be determined through some factors like communication, employees productivity and goodwill. Along with this, while conducting business internationally firm need to adopt numbers of internation HRM practicessuchasinternationalstaffing,predeparturetrainingforinternationalprojects. Moreover it will also include other practices like performance management in internation project and compensation managers in international project. Along with this there are various issues which are faced by a company in the management of human resources at the global level and that are related to recruitment, communication and so on. Moreover, by analysing situations of BMP International there are some recommendation for them which help them in conducting their business in effective manner. This will include respective company must considered national culture of Japan because that will help in developing proper decision according to culture, nation and customers requirement. In addition to this, it is also essential for respective company to develop training and development strategies so that they effectively perform in the Japanese market. 9
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