Issues and Solutions in Global HRM

Running Head: GLOBAL HUMAN RESOURCE MANAGEMENT 1
GLOBAL HUMAN RESOURCE MANAGEMENT
Name
Tutor
Institution
Date of Submission

GLOBAL HUMAN RESOURCE MANAGEMENT 2
Table of Contents
1.0 Introduction..............................................................................................................................3
2.0 Issues facing Deloitte Australia and its subsidiaries.............................................................3
2.1 Cross-cultural management of employees.............................................................................3
2.2 Communication barrier..........................................................................................................4
2.3 Poor leadership and performance management of employees..............................................5
2.4 Lack of flexible, comprehensive, and integrated policies.....................................................6
3.0 How HRM should deal with the above issues.......................................................................6
3.1 Normative (socio-cultural) influences...................................................................................7
3.2 Socio-economic influences....................................................................................................8
3.3 Institutional influences...........................................................................................................8
4.0 How to ensure the issues above are not repeated..................................................................9
4.1 Criteria for successful international transfer..........................................................................9
4.2 Labor and equal opportunities laws.....................................................................................10
5.0 Conclusion..............................................................................................................................10
6.0 Recommendations..................................................................................................................11
7.0 Implementation plan.............................................................................................................11
8.0 References...............................................................................................................................13

GLOBAL HUMAN RESOURCE MANAGEMENT 3
1.0 Introduction
Deloitte, is a multinational company offering professional services worldwide. It offers
management consultation, auditing, financial advisory, tax, legal, and enterprise risk services.
Deloitte Australia, is situated in Australia where it offers several services to the Australian
people with other subsidiaries in Vietnam, Singapore, and China. Deloitte Australia is facing
several issues that need to be addressed for it to remain competitive. First, due to the cultural
diversity of employees, the company is faced with the problem of culture inclusion and
engagement (Riemer, Scifleet, & Reddig, 2012). There is a need to bridge the communication
gap between people of different cultural backgrounds. Leadership of the company also in not
effective and the performance management of employees is under-evaluated. Similarly, there is
no flexible, comprehensive, and integrated policies allowing new ideas from the stakeholders and
shareholders regarding product and service delivery. The company, therefore, should redesign its
organization and human resource structure so that it can compete with its rivals and meet global
demands (Riemer & Tavakoli, 2013). Implementation of inclusion and diversity policies and
cross-cultural training of employees’ will lead to co-existence and efficient service delivery. This
paper discusses the issues affecting Deloitte company in Australia, China, Singapore, and
Vietnam, how HRM should tackle the issues, and recommendation of an implementation plan
from an international HRM consultant perspective.
2.0 Issues facing Deloitte Australia and its subsidiaries
2.1 Cross-cultural management of employees
Globalization has enhanced spread of organizations and employees behold borders.
Despite the fact that globalization maximizes the talent pool, it creates several challenges as well.
The values, beliefs, norms, and way of thinking vary from one culture to another. As such, a

GLOBAL HUMAN RESOURCE MANAGEMENT 4
workforce made up of individuals from different cultures will experience communication barrier
and divisions among the group (Thomas & Peterson, 2017). This is the situation being
experienced at Deloitte. If these differences are not well managed they will lower the
effectiveness of the employees, their performance, turnover, and eventually will affect the
overall performance of the company. Employees from different cultural background have
different aspirational values and their practices differ significantly (Bird & Mendenhall, 2016).
Employees from different culture also have different etiquette. So, how they address their
seniors differ significantly. For instance, Americans commonly address people using their first
name while Asian countries like China, Singapore, and South Korea prefer to use titles like Sir,
Mr., Mrs., or Miss (Beugelsdijk, Kostova, & Roth, 2017). These difference may bring
misunderstandings and wrangles within an organization if not well understood. As such, Deloitte
has been having challenges of inclusion and engagement of employees of all employees from
different cultures.
2.2 Communication barrier
Deloitte faces the problem of communication barrier since it includes a diverse workforce
of different cultural backgrounds. For an organization to be successful in its operations, the
communication between the employees should be effective. Failure to which passage of
information will be affected thereby leading to communication breakdown (Binder, 2016).
Employees from low-context cultures such as Australia, US, Canada, and United Kingdom tend
to communicate clearly. On the other hand, high-context countries like Japan, Vietnam, China,
and Singapore, communication is implicit and tend to use non-verbal cues. Therefore, failure to
understand your colleague will result in poor passage of the message and consequently the
overall performance of company will decline (Ma, Menzies, & Zutshi, 2019). The upwards