(PDF) Contemporary International Human Resource Management

Contemporary
International Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Literature Review:...........................................................................................................................2
Recommendation to multinational organization in relation to the phenomena of expatriate
failure......................................................................................................................................6
Findings: .........................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International human resource management is described as set of those activities aimed in
handling companies’ precious human assets at global level in order to attain firm's set standards.
By doing so competitive advantages against rivalry at national and global level is gained which
is a positive sign for the administration. In order to manage human assets at international level it
is very important to scan the global market scenario (Ahmad, 2015). With the tremendous raise
in globalization, international human resource management plays a significant role in
accomplishing enterprise objectives. International human resource management involves typical
HRM functions such as, selection, recruitment, training, performance appraisal, and development
of employees, expatriate management, skill management etc. are performed effectively and
efficiently. This report is based on Hilton for this a case study approach is developed. Firm deals
in hotel and resorts across the globe. The founder of the administration is Conrad Hilton and
came into existence in the year 31st May 1919. This successfully firm is located in McLean UK.
There are fifteen brand of Hilton across various market segments. This assignment covers
recommendations on multinational organization in context to expatriate failure. Along with this
recruitment and selection is also highlighted as well.
Background of the company (Hilton):
On 31st March 1919 Hilton came into existence in the UK market. This leading successful
company was founded by Conrad Hilton and is situated in Tysons Corner, Virginia, United
States (About Hiltion, 2018). It deals in hotels and resort across the boundaries of the nation and
are successfully serving best and quality services to the potential customers. 5,757 are the areas
or locations where Hilton is operating its business. Along with this it has spread its business
activities in 101 countries which is a huge success to the enterprise in the competitive market
place. In the cut throat competitive world this multinational hotel is sponsor of United States
Olympics Team. By this act directly or indirectly the goodwill of the hotel raised along with
market value (Baum, 2015).
The sales team provides a distinguished and unique selling platform for the portfolio of
brands. This particular business provides services in 42 languages to around 25000 potential
customers from their office located across the globe. In the year 2004 Hilt-ion's Revenue
Management Consolidated Centre was designed to accomplish profitability and market ratio in
the competitive world. Hilton came up with innovative ResMax solution which build a unrivaled
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competitive advantages for owner and operators. The direct reservation calls of hotel is
transferred to the trained ResMax sales specialists in order to look after the scenario.
Literature Review:
According to Edwin B. Flippo, recruitment can be defined as investigating prospective
nominee which holds all necessary skills, knowledge, education and experience required for the
vacant post in the enterprise (Edwin. B Flippo, 2018). This act plays important role in business
administration. Hilton Group invest huge amount of funds for the recruitment activities. As well
as online recruitment is also performed with the phase of time. There are two types of
recruitment such as, internal and external recruitment carried out in the organization (Bratton and
Gold, 2017).
Illustration 1: Types of recruitment
§
Source: Types of recruitment, 2016
Internal recruitment: Hilton recruit capable and ambitious workers within the
organization (Types of recuritment, 2018). By doing best staff is hired for the vacant post as well
as saves time and cost. This particular recruitment is done on the basis of promotion,
performance of employees and transfer in Hilton working premises. Here, administration is
benefited by selecting skilled workers through internal recruitment process as it requires less
paper work and less efforts will be needed to explain the job role, rules, regulations, policies and
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culture. By doing so firms set objectives are achieved in the set time duration as compare to other
competitors.
Importance:
 Firm's precious time and cost is saved to a large extent.
 Enterprise does not require more paper work formalities, selected participant background
verification and legal documents as all this are already with the company in which the
chosen candidate is working.
External recruitment: Multinational organization select skilled and creative employees
from outside the organization. By doing so uniqueness enters the working premises of the
company as well as directly or indirectly upgrades the productivity level. Hilton welcome fresh
nominee from outside for their vacancy so that innovative idea can be generated and rigidness is
eliminated (Brewster and Farndale, 2018).
Importance:
 Companies overall workforce performance is raised to attain set standards.
 Employees are motivated to perform better in order to grab the next opportunity.
Online recruitment: This a modern concept which is widely adopted by the organization
in their recruitment procedure. This modern method has made the task of recruitment bit easy
and simpler in nature. By adopting this Hilton Group is able to easily streamline distinguished
processes involved and best result is achieved. This a modern concept which is widely adopted
by the organization in order to hire right candidate at the right place at the right point of time. In
the modern era small and multinational every kind of business is adopting this recruitment
approach to meet up their requirement in the neck to neck competitive market place.
Importance:
 In the organization for the vacant post there is huge number of applicants applying to get
the job. Directly or indirectly large number of applicant are applying through online for
the vacant post.
 Huge poll of applicant with qualified skills and knowledge are applying for the post
through online (Chelladurai and Kerwin, 2018). This helps the organization to recruit best
candidate for the vacant post.
 This aspect directly saves time and provide quality results.
 Reduces the paper work and simplify work accordingly.
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 Online recruitment is flexible in nature
 Organization can access easily
 Online recruitment expedites the hiring process respectively.
The disadvantages of online recruitment are:
 Online recruitment costs can spiral accordingly.
 Many time participants mention data are wrongly interpreted which waste the
organization time.
 More competition is prevailing in the marketplace.
 There are chances of attracting fraudulent applicants
According to M. Ataur Rahman, selection is described as out of the shortlisted
prospective participants the most desired and appropriate is chosen for the vacancy. This plays a
vital role in the placing right and skilful candidate for the post vacant. This particular act uplifts
the productivity and profitability ratio in the cut throat competitive world (M. Ataur Rahman,
2018). Selecting wrong participant in the working premises leads to decrease in overall
performance as well as emerging needs and wants of the customers are not meet on time.
However, the growth and success of the Hilton depends upon the type of recruitment and
selection procedure carried out in their working premises. But for effective results necessary
modifications are done so as to gain productive results (Collings and Morley,2007).
Therefore, Hilton group is well known for their fair interview process as well as carry out
non-discrimination method of selection in their working premises. For recruitment of the vacant
post they advertise in the outer field and later on provide effective training session to the
employees after selection.
Phenomenon of expatriate failure:
Expatriate failure is characterised to posting which ends prematurely or considered
ineffective by top level management. In simple terms, it means premature return. Selecting
suitable candidates is crucial and strategic but a challenging issues for multinational companies.
It comprises numerous themes such as low performance, adjustment problems together with
premature repatriation. In context to hotel industry, management authorities sent their workforce
or expatriates overseas in order to maintain organisational standards, transfer technology,
manages culture as well as fill skills gaps in worldwide properties. The management of Hilton
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should pay attention towards new trends so to reduce failures which can affect its financial
position together with organisational state as whole. The recruitment and selection team faces
certain challenges while expatriation of one culture interacts with staff members outside the
boundaries of home country (Collins, 2016). Reasons associated with expatriate failures at Hilton
involves low cross culture adjustments, poor expatriate selection, increased responsibilities
together with stress. For instance, In the initial phases of expatriation, employees of Hilton have
to make adjustments with new culture. During such phase, employees are positive as well as
excited to discover new culture but as time passes, they move towards next phases and realises
that there are deep differences in cultures from their home country and reaches to culture shock
which is one of the reason that causes premature return of emigrant. In addition, when workforce
of Hilton are promoted to new localities their responsibilities changes as per new job. They try to
deal with the new culture, work environment addition to the challenges. There are circumstances
when such employees try to manage working with local staff and staff teams which increases
stress together with physical exhaustion that results in exhaustion failures. Furthermore,
expatriates are motivated to attain success addition to they are excited to gain international
experiences. Due to this, they perform activities for long hours during early phases of their
postings in order to attain success. They adapts overwhelming cultural differences together with
expanded responsibilities (DeCenzo and Verhulst, 2016). Such combination related with physical
exhaustion from overwork, elevated stress level becomes problem for new expatriate of Hilton
and as a result it reduces their effectiveness to work in another countries and leads towards
failures of expatriations.
Management authorities of Hilton makes provision to reduces rates of expatriate failures
through improving their selection procedures in which they focus to select the candidate not on
technical skills rather than emphasis of cross cultural fluency. Some of the costs that are
associated with such failure involves certain costs such as training and development, airfares,
salaries, association relocation expenses together with replacing failed manager with another
expatriate. The top managers of the organisation due to expatriation failure have to face
consequences like poor labor relations, market share loss and damaged relationships with foreign
stakeholders (Lu and Chien, 2015). At the same time to manage such failures, executives of
Hilton are designing jobs that enhances role clarity, provides opportunities to learn different
languages, proper organisational assistance system in host country and minimising role conflicts
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associated with candidate selection. To minimise the risks or avoiding expatriate failures, it is
very important for administrators of Hilton to design proper as well as suitable strategies to
manage international human resources together with implementing the procedures in proper
format (Dowling and Engle, 2017). By using effective procedures together with policies, the
entity can manage human resources in effective addition to efficient manner.
Recommendation to multinational organization in relation to the phenomena of expatriate failure.
The raise in globalization has opened the door of human assets in order to move from
host or native nation to other country where the company is operating. Along with this leading
firm are expanding their business in other distinguished nation and are training their staff
members on continuous basis so that they can easily and smoothly adopt the business operation
activities. Hilton Group is operating in 101 countries across the globe which is a positive sign for
the firm. Various issues are faced by the organization in context to the phenomena of expatriate
failure which are explained as follows:
Issues related to phenomena of expatriate failure are:
` Domestic difficulties: Employees are bound with their families specially with their
children and spouse (Guest, 2017). It is very difficult to adjust the family by leaving them behind
in the host nation. It creates mental pressure on them due to which productivity decreases. This
leads to downfall in performance which is a negative sign for the company. The expatriate failure
comprises of low performance, adjustment problems and premature return. This act affects the
business functions at a large scale and failure take place.
Failure to plan things effectively: Hilton Group planning methods are weak in nature
due to which effective outcomes are not achieved. Lack of planning affect the objectives
achievement and satisfactory level of customers. This aspects raises the expatriate failure in
large numbers. Un-scheduled plan decreases the organization's market value due to which market
share decreases at a rapid scale.
Disconnection from the home country: Employees productivity can be raised when
love and belongingness is provided to them. Staying away from host country make them
emotionally unstable due to which adjustment problem arises. This directly raises the failure
level and set objectives are not meet on time.
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Lack of local support: Moving from host company to other nation is big challenge. In
order to adjust in the new environment local support should be there from the host nation to the
selected employee. Lack of local support decreases the moral value and demotivate the workers
to perform better. It raises the failure number at a large scale (Hutchings, 2003). Lack of local
support assignment can immediately go in a wrong direction. Timely supporting them encourage
them to perform their priority level task.
Recommendations to over the issues of expatriate failure:
 By carrying out recruitment and training sessions effectively in Hiltion capable, skilled
and ambitious staff members can be hired. This will directly lead to uplift the
productivity and profitability ratio as compare to rivalry.
 By providing complete support from the host nation the employees of Hiltion moving to
other nation can perform effectively and will be able to provide productive outcomes.
 The ratio of expatriate failure can be decreased by providing Hilton Group staff members
weffective training sessions in order to cope up with unfamiliar environment (Khilji and
Schuler,2015).
 Hilton Group need to frame strong and flexible strategies to over the domestic difficulties
faced the selected staff members.
 In Hiltion Group technical competence is the mandatory measures of the potential
expatriates success and failure. Selected participants should possess higher technical
competences as compare to local nominee so that chances of failure can be reduced.
 Communication barrier need to be overcome by Hilton Group so as to increase the
success rate of expatriate. By improvement in this aspect the results will be positive in
nature and chances of expatriate failure eliminates at a large scale. This boost up their
efficiency at the work environment.
 By providing awareness about cross culture phenomena, pre departure training for
selected participants in Hilton Group will help them to easily adjust in the foreign
country. The will be more keen interested to work hard day and night to achieve the
desired goals and objectives (Kohonen, 2005).
 To reduce the level of expatriate failure, Hilton need top frame plan things effectively.
This is because the needs and demand of the customers changes overnight which can be a
huge loss to the company. Hilton hire experts to deal with the issues of expatriate failure.
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In many cases the contract gets dismissed in the middle because the expected return is not
achieved in the market
 Native nation plays a significant role in boosting the workers to adjust with the
circumstances. Host country need to provide complete support in every aspect such as,
domestic, social and professional level to the workers of Hilton so that best output can be
achieved. Staff members are encouraged to raise the overall workforce so that expatriate
failure ratio can be reduced
 Hilton Group at the time of project should provide expatriates compensation to their
selected nominee moving to other nation. Organization should provide appropriate
compensation package and incentives to the workers working or moving in other nation
in order to boost them up to relocate.:
Recommendation suggested to overcome the expatriate failure helps them to raise their success
rate in the global market. Organization by working on this recommendation will definitely
succeed and best outcomes can be achieved. The suggestion are provided by scanning the weak
area of expatriate failure in the open market place. Hilton Group by working on this
recommendations will help them to attain success for longer time period (Kühlmann and
Hutchings, 2009).
Findings:
From the above discussion it has been calculated that many firm spend huge amount of
funds on the employees and send to other nation in order to attain best results. But Hilton Group
select their employees with fairness and test the candidate in all area in order to reduce
expatriate failure. Firm provide proper training to the participants which is the best practices to
achieve quality results. Hilton adopt this practices of providing sufficient training sessions to the
employees to directly decrease the ratio of failure in the global market.
CONCLUSION
From the above it can be summarized that recruitment and selection plays a vital role in
the placing right nominee at a right place. Organization carry out recruitment and selection
activity in appropriate manner in order to attain best outputs. By this act productivity and
profitability ratio can be raised at a large scale in the global market place. Expatriate failure is
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faced by the company which decreases the market value in the global market. Various
suggestions are recommended by the organization in order to overcome the issues of expatriate.
To flourish in the global market administration frame effective and efficient tactics so as to
achieve the desire results in the global market.
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