Managing International Business and HR

The assignment delves into the complexities of managing international businesses and human resources in a globalized world. It examines how various management theories, such as Maslow's Hierarchy of Needs and Adam's Equity Theory, are applied to motivate employees from diverse backgrounds. The discussion also highlights performance management strategies for setting targets and measuring employee output in international contexts.

9/22/2017
Student Name
Challenges in international Business – Damac and Human Resource Managing

Contents
Introduction.................................................................................................................................................2
Human Resource and Business Management Theories...............................................................................2
Human Resource Theories.......................................................................................................................2
Maslow’s Need Hierarchy Theory.......................................................................................................3
Adam’s Equity Theory........................................................................................................................4
Management Theories.............................................................................................................................5
Henri Fayol Theory– employees/ employer efficiency functionality...................................................5
Frederick Taylor Theory– Pay per Piece.............................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

Introduction
Globalization has seen businesses expanding their operations across the world and especially to
emerging markets. This is because emerging market consumers are experiencing newly gained
wealth and want to spend this money on international brands. International brands in emerging
nations are used and status symbols which help distinguish each individual’s income and stature
in society (Steger, 2017). This has meant major brands from Europe, the USA and Australia are
now focusing their attention towards expanding to emerging international markets. Another
major factor linked to this sudden interest towards investing and expanding operations in
emerging markets is their ability to deliver competitive manufacturing terms and facilities
(Cavusgil, Ghauri, & Akcal, 2012, p. 224). This allows globally recognized brands to
manufacture their products at affordable costs so as to remain competitive on the global market.
But international business expansion also means the business encounter major challenges which
must be addressed to ensure the business implement the right strategies and theories to increase
their success rate (Kvint, 2010). The report shall discuss some important interactions business
theories Damac Properties has implemented in interactions business expansion plan which has
helped the business a high rate of success.
Human Resource and Business Management Theories
Damac Properties is heavily dependent on skilled professionals and engineers in its building and
construction operations. This makes it important for Damac Properties to put in place effective
human resource and business management theories which will ensure the highest rate of
efficiency and success while working with skilled professionals from the international market
(Bratton & Gold, 2012). It is critical to combine both human resource and business management
theories so as to address all stakeholders’ needs thus ensuring the businesses sustainable future.
Human Resource Theories
Damac Properties is heavily dependent on skilled professionals to manage their building
construction projects. Despite the business investing millions on state of the art equipment and
technology, human resource is still a major requirement and the business outsources skilled

labour from emerging international markets (McGuire & Jorgensen, 2010). To ensure the
company employees are happy and performing an optimum the business has adopted important
human resource theories which address human resource needs from an international perspective
thus ensuring smooth operations growth and high performance.
Maslow’s Need Hierarchy Theory
Damac Properties has utilized the Maslow’s Need Hierarchy theory to manage its multicultural
manpower. Maslow’s Theory accurately predicts human resource behaviour based on need. Each
individual applying to work at the organization will be evaluated to determine their current status
and need before being ranked on the Maslow triangle of needs. Each applicant is evaluated to
determine their current status from a universal and international perfective allowing the business
to rank each at an appropriate position. This also allows the business to protect the individual’s
progress and growth based on international guideline of managing human resource. According to
the Maslow’s Need Hierarchy theory, individuals will focus on satisfying their physiology,
safety, Love and belonging, esteem and finally their self-actualization. This applied for all people
making it a universal guide which must be used while managing skilled professionals from
international market (McGuire K. J., 2012).
(Hierarchy)

According to the Maslow’s Need Hierarchy theory, each skilled professional considered for
employment at an organization will fall under one of the above categories. This makes it
important to determine their current status from a universal and international perspective. This
would assist the human resource department and management determine the individual’s state of
focus and help predict how they are likely to react under employment. The Damac Properties HR
department also uses this data to determine an individual’s capability to perform as part of an
international team of skilled professional. This is due to Damac teams involving member from
different countries and cultures requiring the work force to follow universal guideline of
management (Maslow, 2013). The general rule related to the Maslow’s Need Hierarchy theory is
that skilled professionals who demonstrate a lower level of self-awareness are also likely to be
hired at lower posts and their proportion rate also depends heavily on the level. Higher level
employees are likely to receive faster proportion due to them already having overcome their
physiological and safety insecurities. As per international human resource management studies,
lower ranked employees will usually be distracted by their insecurities and likely to focus on
development and growth after in securities have been overcome.
Adam’s Equity Theory
Another important human resource management theory utilized by Damac Properties is Adam’s
Equity Theory. This theory focuses on demonstrating how human resource efforts on work or
performance is directly associated with the reward for work. Due to being dependant on an
internationally diverse workforce most of the skilled professionals are focusing on high income.
This makes high rewards an important factor influencing the international workforce (Miner,
2015). The prospects of gaining high reward are likely to boost performance among
internationally outsourced skilled but this requires to be carefully managed to ensure employee
focus and attention is not lost due to over-rewarding them.
(AET, 2017)
With this in mind the management, team leads and human resource department monitor and
reports on each of the company’s international outsourced employees individually. The results

are also published among the team for all members to review each other’s performance so as to
avoid favours and finger pointing during the time of reward distribution. Besides the rewards,
Damac Properties also emphasizes on the use of Adam’s Equity Theory and publicly publishing
results as it helps streamline each member’s performance (Miner1, 2007). Lower performing
team member can also seek performance tips and guidance from higher performing team
members which allows the team to strike an equilibrium related to performance.
Management Theories
Damac Properties has also had to put in place important business management theories which
ensure the business operations are undertaken in a professional’s manner so as for their effect to
reflect on the human resource. Both aspects of the business coincide making it important for
HRM and business management theories to be linked thus ensuring all stakeholders benefit
(Witzel & Warner, 2013). Some important international business management theories utilized
by Damac Properties have been discussed below:
Henri Fayol Theory– employees/ employer efficiency functionality
According to Henri Fayol’s Theory employees are likely to perform efficiently of the
management or business leadership also performs its roles efficiently. This has been an aspect
that Damac Properties has always emphasized on as this helps demonstrate to the employees that
the company is practically functioning. This is achieved through Efficient and timely
communication, immediate response to situations and practical implementation of processes
(Peaucelle, 2015). This means the management, leaders, and supervisors must be able to handle
the operations via supering operations and work strictly and managing the workforce. At the
same time, it is critical for them to interact and understand employee needs and requirements
especially when dealing with a culturally diverse workforce. In many situations employees
simply does understand the process they are required to follow due to communications gaps.
This makes practical interventions critical towards intervening and managing international labour
forces. It’s critical to ensure this is limited to setting an example and the responsibility should
return to the employee or responsible person who must be able to perform the work efficiently.
This is an important theory which Damac Properties focuses on training is senior staff on since
the business is heavily dependent on hiring skilled professionals from across the globe and from
different cultural backgrounds. This means the staffs is constantly facing communication

limitations which some attempt to exploit to deliver a low performance. In order for Damac
Properties to harness the highest performance from its entire staff the business must make sure
the senior managers master the skill of offering guidance but also retain their workforce’s ability
to perform. Many staff tends to take advantage of communication gaps to slow performance even
when they understand the process which makes it important for the senior to intervene and act
when processes are not being undertaken in the correct manner (Taylor, 2016). This could take
shape of simply raising one's voice or making the decision to fire and individuals who may be
underperforming despite being provided with a healthy working environment. Setting an
example and retaining control of staff is a critical requirement Damac Properties utilizes which
has been directly adopted from Henri Fayol’s Theory
Frederick Taylor Theory– Pay per Piece
To maintain employee performance and ensure employees are performed as per the
organisation's expectations the business has also identified important employee work output
quantities which need to be achieved by the employees on a daily basis (Sapru, 2013). Despite
the staff being permanent employees of the organization the business has identified important
work performance thresholds each staff member must achieve while performing their duties on a
daily basis. A mortar and brick later must achieve 10%+/- the set amount of bricks and motor
laid on a daily basis. Steelworkers also have their own measuring criteria and every bag of
cement has its own measurement criteria. This is very important as it ensures the business staff
has to achieve a set amount of work based on international guidelines. In addition to this, Damac
Properties also has a policy which rewards employees for performing above the set target which
are based on international statistics. The levels must be based on international averages due to
Damac depending heavily on internationally acquired skilled professionals. This results in them
being able to secure higher incentives which are beneficial for the organization and it maximizes
employee performance while on the job.
Damac Properties being an international construction company does not have all measurable
products which staff can be pin-pointed but ensuring all staff is functioning effectively and at the
right pace generally automatically pressurizes all staff on perform efficiently.
Setting a measurable quantities each staff member must achieve based on intentional guidelines
will set uniform quantified each employee must achieve based on international statistics. It also

means the management must dedicate their efforts towards field operations and collection of data
which can be analysed to determine the standards performance output which can be utilized by
the organisation for each staff member (PEI, 2009). This rule that must be applied to all staff
members despite their gender, age or cultural background so as to ensure business smooth
operations and functionality.
Conclusion
Businesses from across the globe have been forced to consider expanding their operations abroad
and also hiring employees from international markets. This has resulted in complicating
management of the international businesses and human resource management which is also
seeing companies hire personnel from interventional markets. To harness the highest output the
organizations have also had to infuse both human resource and business management theories
which address the international business operation and diverse workforce. This has meant that
the business has had to set specific targets for all its staff members to achieve which has, in turn,
allowed the business to measure and gauge each stake holder’s performance and how the
performance can be improved over time to improve efficiency, output, and profitability.

References
AET. (2017). Adam Equity theory. Retrieved Sept 22, 2017, from http://hrmpractice.com/wp-
content/uploads/2016/01/adams-equity-theory.png
Bratton, J., & Gold, J. (2012). Human Resource Management: Theory and Practice. Palgrave
Macmillan.
Cavusgil, S. T., Ghauri, P. N., & Akcal, A. A. (2012). Doing Business in Emerging Markets.
SAGE.
Hierarchy, M. N. (n.d.). Maslows Need Hierarchy. Retrieved Sept 22, 2017, from 2017:
http://hrmpractice.com/wp-content/uploads/2015/08/Maslows_Hierarchy_of_Needs.jpg
Kvint, V. (2010). The Global Emerging Market: Strategic Management and Economics. New
York: Routledge.
Maslow, A. H. (2013). A Theory of Human Motivation. Simon and Schuster.
McGuire, D., & Jorgensen, K. M. (2010). Human Resource Development: Theory and Practice.
London: SAGE.
McGuire, K. J. (2012). Maslow's hierarchy of needs. An introduction. GRIN Verlag.
Miner, J. B. (2015). Organizational Behavior 4: From Theory to Practice. Routledge.
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Peaucelle, J. (2015). Henri Fayol, the Manager. Routledge.
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Steger, M. B. (2017). Globalization: A Very Short Introduction. Oxford: Oxford University
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Taylor, F. B. (2016). The Principles of Scientific Management. Cosimo Classics.
Witzel, M., & Warner, M. (2013). The Oxford Handbook of Management Theorists. OUP
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