Contemporary International Human Resource Management

This report explores the concept of Contemporary International Human Resource Management and its implementation in multinational organisations. It focuses on the issue of employment relations practices and why they may be implemented differently in different countries. The case study of Walmart Inc. is used to analyze the application of these practices. The report discusses various employee relation practices implemented by Walmart Inc. and examines why they may be implemented in full in some countries, partially in others, and not at all in others. The report also highlights the justification for selecting Walmart Inc. as the case study.

Contemporary
International Human
Resource Management

Table of Contents
QUESTION......................................................................................................................................1
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Concept of the Employees Relation............................................................................................1
Employees relation practices.......................................................................................................2
The business of Walmart Inc. plans to transfer employment relations practices to its overseas
subsidiaries, why might it find that they are implemented in full in some countries, partially in
others, and not at all in others.....................................................................................................4
FINDINGS.......................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

QUESTION
“When a multinational organisation plans to transfer employment relations practices to its
overseas subsidiaries, why might it find that they are implemented in full in some countries,
partially in others, and not at all in others”.
INTRODUCTION
Human resource management is the approach of managing the employees of an
organisation in order to ensure effective operations and enhance productivity (Ahmad, 2015).
The concept of Contemporary International Human resource management is slight different than
HRM as it involves elements such as employee relations, engagement etc. which are important
for contemporary companies which work in a dynamic environment (Baum, 2015). The main
aim of this project report is to apply academic literatures and frameworks against an issue faced
by a Multinational Enterprise so that knowledge of analysis can be enhanced. In this report the
issue of employee relations practice is addressed that emphasis on why these practices are
implemented by subsidiaries of companies completely in some countries, partially in some and
not at all in others. For this, Walmart Inc. is selected by which report question will be addressed
on the basis of literature research. This literature research will include various themes which will
help in examining the concepts and their application in the company.
Justification of selected Company
Walmart Inc. is the most successful multinational company operating their business in the
retail sector having various discount departmental stores and grocery stores. At the initial level
the company was known as the Walmart stores, Inc. then after a period it was termed as a
Walmart Inc. in the year 2018 (Bhaskaran and Sukumaran, 2007). The reason behind selecting
this multinational organisation is its various overseas subsidiary companies such as Sam's club,
Flip kart, Walmart Canada, Jet.com, Bonobos etc. which operate in almost every part of the
world. Varied operations and diverse workforce makes this organisation appropriate for this
report.
LITERATURE REVIEW
Concept of the Employees Relation
Employees relation is the most essential component for the business as this helps the
business in achieving their goals within the shorter duration of the times by effective utilisation
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of the resources which are available to them. Better employee relation will also enable the
organisation to prevent all those hurdles which may occur while operating the business between
the employers and employees. These written documents provide with the rules, regulations
policies and procedure which are required for addressing the matters which the related to the
employees and all those problems which are arising in the workplace within the business.
Employee relations within the business also impact the business in both positive and negative
manner. In positive aspects the concept of employee relation also enables the business in
retaining their employees within the business for longer duration of time by providing them the
friendly environment through proper employee relation business will also be able to increase
their productivity through their employee's engagement in a most effective manner. Proper
employee relation within the business will also leads to higher motivation and confidence level
of their employees by which they will automatically lead the business towards their increased
revenue (Advantage of good employee relations, 2018). In this the business will focus more on
the adaptation of the Unitarist perspective where they believe more in mutual corporation and on
their working in better coordinated manner. It will also allow the business of Walmart in working
with the harmonious nature and one culture so that the goal of the business can be achieved.
Employees relation practices
Every organisation has set up their own employee relation practices which helps them in
managing the environment of the organisation. Implementation of these practices will also assist
the organisation in handling the complaints, to alter the changes so that the aims and objectives
can be attain within a span of time (Brewster and et.al, 2016). Below mentioned are the
employee’s relation practices implemented by the Walmart Inc.:
Communication: This termed to be the best employee relation practice which have been
adopted by the company like Walmart Inc. as this has lead their business with the proper and
effective decision making process (Cascio, 2015). Proper involvement and open communication
with the employees has given an advantage to solve the problems and issues with many
alternative solutions. Through this employee relation practice the business of Walmart Inc. has
also increase the productivity. With this effective communication the business of Walmart can
also identify about what exactly the problem is and what is the reason behind the causing of
these issues. This will also help the business in retaining their employees within the business for
a longer period of time.
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Hiring and selection process: This employee relation practices is the one in which the
business of Walmart Inc. has focus as this has helped them in hiring the most suitable candidate
who would help them in operating their business successfully with the appropriate utilisation of
the skills and knowledge which is present in the candidate to whom they have hired. Walmart
Inc. has adopted this in their business so that the candidates which they are employing can be
proven productive for the business organisation (Collings, 2014). To select and hire the most
suitable candidate the business has also implemented certain criteria such as assessment test and
interviews so that they can easily judge and identify the candidate having required skills and
knowledge (Employee relation theories, 2018).
Offering benefits and rewards with meeting: This employee relation practice has
raised the profitability of the business of the Walmart as consistent rewards and benefits to the
employees have boost their morale to work for the organisation and towards its goals (Collings,
Wood and Szamosi, 2018). Offering certain benefits like paid holidays, paid for the extra hour
works has built a strong relation between the employers and employees.
Gamify: The business of the Walmart Inc. has adopted the practice of the gamification in
which they allow their employees to take rest by playing some games, mental games so that the
employees feel fresh to work with the organisation (Crane, 2013). Continuous working may
decrease the level of efficiency due to which the organisation may have to suffer from the
decreased amount of the revenues and profits. The concept of this gamification will boost and
will keep the morale of their employees higher for the workplace. Through this the business can
also retain and boost their employee’s confidence level to work for the business so that the
increment in the revenue of the business can be done in the most systematic manner.
Performance appraisal: Walmart Inc. keeps on appraising the performance of their
employee by consistent viewing on the task which the employees have carried out by which the
employees keep on preventing the errors which are occurring at the initial stage of the operating
of the task and reduce the amount of wastage (Dowling, Festing and Engle, 2017). This process
of performance appraisal also encourages the employees to work more for the accomplishment
of objectives. This will also allow the business in maintaining good relations among employees
as in performance appraisal the employees will be appraised on their performance basis where no
biases can be done and fair and actual decision for the employees as well as the organisation can
be formed.
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Performance appraisal is the best practices which is adopted by Walmart in order to boost
their staff members to perform better in intense competitive world. Appraising staff members for
their performance directly or indirectly motivate them to achieve the desire outcomes easily.
Along, with this it helps business associates to retain capable and skill workers to retain for
longer time period which is a positive sign for the business (Performance appraisal, 2018).
Above written are the employee relation practices which the business of Walmart Inc. is
following in order to increase their employee relations with the employers and also to increase
their amount of the profitability.
In current scenario, the business of Walmart Inc. is planning to transfer their
employment relations practices to its overseas subsidiaries to reduce the burden of work in the
business. As many organisations have adopted this concept so that the best of the employees can
be hired through the outsourcing department who would lead the organisation towards the level
of growth and provide them the advantage to compete with the other MNCs. Transferring of the
employment relation will provide the business of the Walmart Inc. With various benefits which
would enhance the productivity and profitability of the enterprise in the most effective manner.
The business of Walmart Inc. plans to transfer employment relations practices to its overseas
subsidiaries, why might it find that they are implemented in full in some countries,
partially in others, and not at all in others
Employee relation practices are engaged by an organisation for the purpose of enhancing the
relations and communications between the employees so that employees can be motivated to
contribute their best potential towards completion of enterprise’s goals (Ehnert and Harry, 2012).
These practices of employee relations are adopted by every organisation by considering both
internal and external environment of the company. These environments include various factors
some of which are controllable but some of them are not in control of company’s management
such as employee’s attitude, behaviour, organisational cultures, beliefs, wages, union etc.
The most known and appreciable employee relation practice of Walmart is its participative
leadership style. Walmart is a company which makes sure that their corporate culture is
effectively engaged, for this they encourage participative leadership in which ideas of all the
employees are considered by the leaders. In this employee relation practice, leader effectively
communicate with their subordinates so that they can sense their importance in the management
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and can contribute effectively. This practice of Walmart is completely practiced by their
subsidiary of Sam’s Club operating in Canada.
Walmart Inc.’s most successful subsidiary is Sam’s Club. This organisation is an American
chain of retail warehouse clubs which operates in multiple countries including Canada. This
organisation has diverse workforce due to which employees of various countries work in this
organisation. To maintain effective relations with all their employees, leaders of this organisation
follows their parent company’s practice of participative leadership (Guest, 2017). By emerging
this technique, employees of Sam’ Club effectively communicate with their leaders and share
their ideas as well as their issues.
Despite of the benefits of Participative leadership (employee relation practice), this practice
is only partially followed by the Walmart Inc.’s another subsidiary named as ASDA in UK.
ASDA is a British supermarket retailer which deals in household essentials. This is one of the
biggest supermarket operating in United Kingdom which follows the situational leadership style
(Herbig and Gulbro, 1998). This leadership style is the mix of both authoritarian and
participative leadership style in which leaders communicate with its employees using both
informal and formal approaches. The reason behind using situational leadership style and not
participative by ASDA leaders of UK is that the ASDA works on large scale in UK and it is
difficult for its leaders to consider all the ideas of their ample employees. For this, leaders of
ASDA, UK uses situational leadership in which they sometimes ask for the ideas of their
subordinates but sometimes they impose the direct orders on their subordinates. This reason of
partially adopting Walmart’s employee relation style is the internal factor of organisation’s scale.
There is also a subsidiary of Walmart which not at all follows the participative leadership
style as an employee relation practice; this organisation is Walmart, China. Walmart, China is a
large scale organisation which is operating in various cities of China since 1996. This
organisation is considered most successful supermarket in such short period to be operating in
China. Instead of practicing the leadership style of participative, Walmart China has engaged
authoritarian leadership style in their management (Horwitz and Budhwar, 2015). The reason due
to which Walmart’s employee relation practice is not followed by its subsidiary Walmart China
is the nation’s culture. In a nation like China, where high population issue is massively
destructive, the culture which people of China follows involves a discipline in which they
believe in clear authority responsibility relationship. To effectively work and attain success,
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Walmart China has associated their culture with the company’s culture. This leadership style
allows leaders of Walmart, China to effectively handle all the affairs of the management without
conflicting with the believes of people of China.
Free communication flow is the another employee relation practice which Walmart
practices in their management (Keating and Thompson, 2004). By using this practice, this
organisation objectifies to enhance employee relations in their company so that employee can get
satisfied and can contribute their best potential against the enhanced productivity aim of the
organisation (Magnier-Watanabe and Senoo, 2010). This practice of free communication flow
allows Walmart’s employees to freely communicate with their colleagues and even their
superiors by which they can communicate their issues which they are facing or can converse
their ideas by which productivity can be enhanced.
This employee relation technique has various advantages such as enhanced confidence and
satisfaction of employees, increased productivity and many others (Marler and Fisher, 2013). In
order to acquire all these benefits, a subsidiary of Walmart completely follows this employee
relation practice; this subsidiary is Sam’s Club, China. This organisation is a growing company
which provides warehousing services to its members in China. The reason behind fully practice
the free communication flow practice is the internal factor of narrow scope. Sam’s Club China is
a growing company which has narrow scope of providing only warehousing retail services to its
members. The scale of operations of this company are also not even huge. Considering narrow
scope and low scale of operations, Sam’s Club China follows free communication flow as this
practice allow management of the company to communicate informally by which they can
quickly communicate without following any proper hierarchy. By this, quick decisions are taken
by this company and employees of this company also gets satisfied when their ideas are
respected (Reiche and et.al., 2016).
Another subsidiary of Walmart is ASDA in India which partially follows the employee
relation practice of free communication flow. ASDA is a UK based supermarket which provides
its products online in India. This organisation usually follows free communication flow but due
to management decisions, restricted communication flow is often followed by this organisation.
The reason behind partial practicing this employee relation technique of free communication
flow is the internal factor of management decisions. ASDA only operates in India through online
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modes and its management decisions are taken by ASDA UK due to which restricted
communication is also practiced by this organisation.
Despite of all the advantages of free communication flow, Walmart Japan is a subsidiary of
Walmart which not at all follows this employee relation practice. Walmart Japan is a large scale
organisation which follows a proper hierarchy of communication in which employees can
communicate with their superiors by following a protocol (Renwick, Redman and Maguire,
2013). The reason due to which Walmart, Japan does not follow free communication flow is the
external factor of nation’s culture. Japan is a relatively restricted country if compared to Western
nations. The communication in Japan often done by gestures and a proper line of authoritarian
communication is followed. In order to effectively associating the operations of the company
with the culture of Japan, a restrictive flow of communication is used in Walmart, Japan.
From above two employee relation practices of participative leadership style and free
communication flow, it is evident that due to internal and external factors, these practices are
followed completely in some countries, partially in some and not at all in others.
FINDINGS
By analysing the reasons due to which employee relation practices are completely followed
by some countries, partially followed by some and not at all by others, it has been found that
same employee relation techniques can be followed in every country as every nation has
different culture and beliefs. When some countries believe in free communication, some has the
culture of restrictive communication. By this, it has been analysed and found that Walmart
should not blindly impose their employee relation technique on their subsidiaries.
CONCLUSION
From the above mentioned report it can be summarized that the role of international
human resource management is vital in the multinational companies as this help them to manage
the operations on the international scale. Along, with this the concept of employee relation and
its practices also has their own importance in the business organisation. Lastly this report has
also covered the various subsidiaries of the Walmart Inc. where the transfer of the employment
relation practices is considered whether it should be done fully, partially or not. So that the
business of Walmart Inc. can successfully sustain their business for the longer duration of the
time.
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REFERENCES
Books and Journal
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Baum, T., 2015. Human resources in tourism: Still waiting for change?–A 2015 reprise. Tourism
Management. 50. pp.204-212.
Bhaskaran, S. and Sukumaran, N. (2007) ‘National culture, business culture and management
practices: consequential relationships?’, Cross Cultural Management: An International
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Brewster, C., Vernon, G., Sparrow, P. and Houldsworth, E., 2016. International human resource
management. Kogan Page Publishers.
Cascio, W.F., 2015.Managing human resources. McGraw-Hill.
Collings, D. G., 2014. Integrating global mobility and global talent management: Exploring the
challenges and strategic opportunities. Journal of World Business. 49(2). pp.253-261.
Collings, D. G., Wood, G. T. and Szamosi, L. T., 2018. Human resource management: A critical
approach. In Human Resource Management (pp. 1-23). Routledge.
Crane, A., 2013. Modern slavery as a management practice: Exploring the conditions and
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Herbig, P. and Gulbro, R. ‘External influences in the cross-cultural negotiation process’,
Industrial Management & Data Systems. 97(4). pp. 158 – 168.
Hofstede, G, (1998) ‘Attitudes, values and organizational culture: Disentangling the concepts‘,
Organization Studies. 19(3). pp. 477 – 493.
Horwitz, F. and Budhwar, P. eds., 2015. Handbook of human resource management in emerging
markets. Edward Elgar Publishing.
Keating, M., and Thompson, K. (2004) ‘International human resource management: overcoming
disciplinary sectarianism’, Employee Relations. 26 (6). pp: 595-612.
Magnier-Watanabe, R. And Senoo, D. (2010) ‘Shaping knowledge management: organization
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Marler, J. H. and Fisher, S. L., 2013. An evidence-based review of e-HRM and strategic human
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Reiche, B.S., Stahl, G.K., Mendenhall, M.E. and Oddou, G.R. Eds., 2016. Readings and cases in
international human resource management. Taylor & Francis.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
ONLINE
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Advantage of good employee relations, 2018. [Online]. Available Through;
<https://bizfluent.com/info-8156091-advantages-good-employee-relations.html>
Performance appraisal. 2018. [Online].Available Through;
<https://www.managementstudyguide.com/ performance-appraisal.htm>
Employee relation theories. 2018. [Online].Available Through;
<https://www.ukessays.com/essays/commerce/the-theoretical-perspectives-on-
employee-relations-commerce-essay.php>
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