Impact of Culture on Managerial Decision Making in International HRM

This report critically appraises the impact of culture on managerial decision making in relation to international human resource management. It also evaluates the management of people as a business resource integral to international organizational strategies.

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.........................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
\

INTRODUCTION
International human resource management is known as the resemblance of functional or
strategic that is done by the management. The various activities that are involved in the
international human resource management includes recruitment, selection, compensation, career
management, industrial relations, etc. This is associated with the managing of strategic planning
of the company and profits of the company (Armstrong, and Taylor, 2020). For any company
which is starting to operate business in international market it has to hire people and adopt
culture followed in that country. This is helpful for managing the business operations and
activities effectively in more than one country. The following report provides information about
the impact of cultural problems that are faced by the organisation.
Critically appraise the impact of culture on managerial decision making in relation to
international human resource management
When running an international business, it is important to hire new employees that are
capable of achieving the organisational goals. In context of the present report UK company is
trying to locate call centre in Japan. For doing this they require a good HRM that will manage
different activities such as recruitment training appraisal selection etc. there is requirement of
proper management of all the employees working in local as well as international company so
that there is no failure of the company’s success. this enables the involvement of international
HRM that includes managing individuals working in UK as well as Japan. The role of
international HRM within UK company is listed below
 International HRM has to ensure development of managerial skills, technical abilities and
organisational knowledge of employees as well as management
 Developing of plans and strategies in order to have better handling of global operations
 Employees and individuals working in the company are provided compensation,
performance and career path of employees
 Manage and organise cross cultural sessions and counselling as well as language training
program.
 Develop competitive and better HR strategies in the global competitive scenario

There are various problems for the UK company while establishing a call centre in Japan. One of
the problem is to hire new employees that have proper knowledge about the economy as well as
knowledge about the working of the all the activities and tasks related to the international
operations of call centres (Bratton, and Gold, 2017). There are three type of major operations
like Procuration, allocation and utilisation. It is important for the UK companies that they must
know how to operate all the activities and tasks that are involved in international business
activities. The different HRM activities involved while managing the international activities
include planning of new business operations, hiring of new employees, remuneration, training
and development, industrial relations and performance management. It is concluded that
international HRM is managed effectively in operating activities.
International staffing
There are various problems while managing business operations at international level.
These include the main problem of hiring new employees. In context of UK employees, it is
important to manage the international staff effectively so that all the business activities and tasks
are properly done (Cascio, 2015). When the UK organisations are opening call centre in Japan,
they have to manage their work and provide good incentives and compensations to employees of
UK who are going there and visiting the Japan call centre. It is essential that the UK company
employees are skilled and talented and they can provide knowledge to Japan workers about how
work is done. The main thing which is to be considered while hiring new employees is that they
are having good English speaking skills and they are having knowledge of good words of
English. Also, it is analysed that there is need of providing good and positive work culture to
employees and workers for making them involved within the company. The new employees have
to adopt the culture that is followed in that country. Within the new call centre, it is seen that
new employees are hired and these are associated with having good knowledge about how
process works and what are the ways of reaching potential clients and customers. Expats have to
analyse what are the ways of preparing the local employees and international employees work
together. It is very important for managing employees who are coming from different cultures
and backgrounds. This provides an opportunity for the new individuals to enter the new call
centre and get jobs (Chelladurai, and Kerwin, 2018). The new people who are hired for working
in call centre must know how to involve in work culture of the company and achieve
organisational targets. Environment of the company affects performance of employees a lot.

Cultural challenge
The Hofstede model of culture is followed within call centre for knowing what are the
elements that create cultural problems at workplace. Some of these are described below –
Power Distance Index – As per this element, it is concluded that there are some
individuals in the company who are given more power. In some cases, power is distributed in
equal manner. When the power index is higher, the culture adopted in the workplace is equal
distribution of power. On the other hand, if the power index is low, culture is accepting
inequality and bureaucracy. This is providing rank and authority
Individualism versus collectivism – According to this factor, there are two categories in
which society has divided people. These include individualism and collectivism. It is concluded
that there is need for managing groups in effective manner. Also, there is requirement of
attaining of personal goals and objectives. On the other hand, Collectivism shows that this is
important to ensure that goal attainment is very important.
Masculinity versus Femininity - As per this factor, there are two elements i.e.
masculinity and femininity. As per the factor, Masculinity it is having distinct gender roles,
concentrated on material achievement and assertive. Femininity is referring to the major factor
that there is some work that can be done through soft skills only.
Uncertainty Avoidance Index (UAI) - It is associated with the management of the call
centre to know what are the factors upto which there is an extent of uncertainty which is to be
tolerated (DeCenzo, Robbins, and Verhulst, 2016). When the uncertainty index are high, the
chances of tolerance of ambiguity are low as well as lower is the risk taking. When the
uncertainty avoidance index is low, it is concluded that the risk tolerance level is high.
Long-term Orientation versus Short-term Normative Orientation (LTO) – The long
term orientation depends upon the future. This is including only short term success. These can be
associated with present future and this is included in the providing of success which is short
term.
Indulgence versus Restraint (IND)- This is considered as extent and tendency for a
society for fulfilling the desires. This dimension is associated with how societies are able to
control the impulse and desires.

Japanese problem with UK approach UK problems with Japanese approach
 In context of Japanese, there is problem
which there is lack of concentration and
attention to all the details required in
meetings.
 These people do not consider any
obsessive discussions.
 There are no proper plans for the
meetings and people are not prepared
for providing positive results for the
meetings.
 All people must attend the meeting and
they should know what are they have to
say in these meetings.
 These people are known for making
quick decisions and manage work as
per the information whether it is
insufficient.
 These people do not know how to take
decisions and they are not able to make
quick decisions.
 They give priority to private life over
working life
 These are obsessed for their work
Evaluate the management of people as a business resource integral to international organisational
strategies
The organising and management of all employees working in the company is important because
it is helpful in managing different business operations. There are some problems faced by
companies while operating business in other countries (Sparrow, Brewster, and Chung, 2016).
The main thing required while doing business in two countries is that they have to take proper
care of all employees and workers of the company. Within the call centre of Japan, it is
concluded that there is need of managing the performance of leaders and managers as well as
workers for doing various business activities and tasks. The main problem faced by UK in
opening Japan call centre is that they have to develop strategies that will help in managing
employees of the company. The main asset of any organisation are the workers of that company.

For a UK company that is going to open call centre in Japan, it is essential to develop
competitive strategies. These will help in managing employees working in more than one
country. It is need of the new call centre to have strong and effective leaders who can manage
business activities and operations. Some of the ideas are there which help in managing
international activities. Some of them are discussed below -
There must be no use of local or national while working – It is important for the
management of new call centre to provide a positive environment to employees. This is helpful
in managing and organising all the work in perfect manner. If there is scenario of local or
national or international while working, then there are chances of conflicts and fights. This is a
problem as it will diminish the performance of employees. For a new call centre, it is very
important to provide employees a positive work culture where all employees are treated well.
This helps in managing work and activities of business process. If the managers are form
different culture, they must be provided respect within the company. All the managers and
employees must be connected to each other and then they are allowed to work together
effectively.
Trace the lifeline – The life spam of any company is dependent on the way it is doing
business. It is essential for every organisation to be effective and success within market. This is
done by attaining goals and objectives in specified time frame. It is essential for any organisation
to be effective by managing all the employees in an effective manner. The various skills that are
analysed while managing successful organisation are technical, functional as well as soft skills.
Different people from various skills and abilities are put together in the call centre for making it
successful. When there is need for successful call centre, it is needed that the management is
finding out solutions to manage business operations. There are various business experts and
Specialists of human resource field that are engaged in working of call centre. This is helpful in
managing them properly. In context of the call centres in Japan, there is need for managing the
activities in effective manner. The main thing on which UK companies have to focus are
analysing the needs and demands of the clients and customers. Employees are trained in such a
way that they are able to meet the demands and needs of the customers. There is development of
skill team within Japan call centre for evaluating role descriptions within every 4-5 months. This
enables to keep pace in market and providing information to the executives regarding their
performance and work.

Develop a global database for knowing talent of employees – The HR policy is
developed within the company for providing equal rights to employees and workers. If any
company is multinational then it is having more posts across the globe. The main thing is that
employees hired in these companies have to be more enthusiastic and hard working. The UK
companies who are thinking of opening call centre in Japan have to create career in effective
manner so that there is compilation of worldwide HR databases. This enables in hiring of new
employees that provides in managing the business operations. There are executives and seniors
hired in the new call centre for managing strategies that enable to prepare database in which
there is information regarding all the employees working in the company.
Construct a mobility pyramid - The managers of call centre have to prepare the work
culture so that the employees are feeling good and their ability to attain organisational goals is
successful. The new place and location where call centre is to be opened is evaluated effectively.
This provides ability for the company managers to handle business operations effectively. There
are various type of culture followed within Japan workplace. It is important for the company to
provide training and sessions that will help to make employees hard working and efficient.
Identify the leadership capital – It is very important for the call centre human resource
management to develop a database that will contain information about managerial skills. This is
done by motivating and encouraging people for describing information and managing talented
and skilled employees working in the company. It is essential for the call centre to provide
effective and good environment for the employees to work in. this provides help in managing
different activities.
Continuous recruitment – When new call centre is going to open in Japan, the UK
companies have to hire new employees who can work in Japan. In call centres, the retention of
employees is very less so it is important for the human resource department of call centre to hire
people on continuous basis (Stewart, and Brown, 2019). This is helpful in managing the
business activities properly. Regular recruitment is very important for the companies like call
centres that will help in managing work properly.
Advertise the posts internally – It is essential for the companies that work overseas to run
the global labor market in proper manner. It is very important to keep track of all employees and
workers effectively so that the human resource department knows which employee is more
beneficial for the company and who is not. The call centre’s posts and vacancies for job are

effectively advertised by the human resource department fir hiring new employees. All the
talented and skilled employees are hired in the call centre who can achieve the organisational
goals in less time.
CONCLUSION
From the above discussion it is concluded that it is important that managing two
businesses in different countries, there is need of managing international human resource. New
HR strategies and plans are developed for making employees to get involved and engaged in all
the activities of business. When UK companies will open in Japan, there is need of hiring
talented and skilled employees who will be able to do work effectively. It is essential for the
employees and workers to be provided positive environment at workplace.

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2020.Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2017.Human resource management: theory and practice. Palgrave.
Cascio, W.F., 2015.Managing human resources. New York: McGraw-Hill.
Chelladurai, P. and Kerwin, S., 2018.Human resource management in sport and recreation.
Human Kinetics.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016.Fundamentals of human resource
management. John Wiley & Sons.
Huselid, M. A. and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
López-Nicolás, C. and Meroño-Cerdán, Á. L., 2011. Strategic knowledge management,
innovation and performance. International journal of information management. 31(6). pp.502-
509.
Marchington and et. al., 2016. Human resource management at work. Kogan Page Publishers.
Messersmith, J. G. and et. al., 2011. Unlocking the black box: exploring the link between high-
performance work systems and performance. Journal of Applied Psychology. 96(6). pp.1105.
Sparrow, P., Brewster, C. and Chung, C., 2016.Globalizing human resource management.
Routledge.
Stewart, G.L. and Brown, K.G., 2019.Human resource management. John Wiley & Sons.