Role of HRM Strategies and Culture in International Subsidiaries: A Case Study of Carrefour

Human Resource
Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASKS.............................................................................................................................................3
A. Value creation through HRM strategies.................................................................................3
B. Impact of culture on HRM practices.......................................................................................4
C. Employment model and levers used for creating value..........................................................5
D. Personnel management Vs HRM policies..............................................................................6
E. Significance of culture and HRM practices in international subsidiary..................................7
F. Changing international laws from international to local business...........................................8
G. Effective HRM practices within literature..............................................................................9
H. Recommendations...................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Human resource management refers to the management practice which emphasises on
development, retention and selection of necessary work force for completing the organisational
goals (Delery and Roumpi, 2017). Technologies and changing perspectives has made it possible
for the organisations to operate globally in the changing business dynamics. For dealing with the
diverse business environment it is necessary that companies must develop a work force which is
capable to meet the gaps between local and international business environment. The cultural
differences between various countries demands for suitable planning of HRM strategies so that
organisation can build a work force capable of understanding the diversity in consumer
behaviour and business environment.
In this report Carrefour is selected as case study organisation which is a France based retail
corporation. This European Union based organisation has successfully delivered its services in
European culture or countries. However, it has also made a remarkable performance in China,
largest Asian country. Organisation has been successfully in mitigating the cultural differences
between Europe and Asia. The report will investigate the role of human resource strategies for
creating values and gaining success. It will also analyse the role played by culture within human
resource management (HRM) practices. Further the study will discuss employment model and
best strategies for improving HRM outcomes.
TASKS
A. Value creation through HRM strategies
HRM plays a vital role in providing competitive positioning to the organisation. An
organisation cannot gain success without support from the talented workforce. Thus company is
able to attract and retain talented employees only due to qualitative recruitment and other HR
policies. The HRM strategies such as motivation, flexibility, compensation and rewards and
training programs are helpful in exploring the full potential and talent of the recruited employees
(Greer, 2021). An innovative team makes it possible for the organisation to identify the business
needs and to apply appropriate solutions for it. This is possible only when HR department
ensures that organisation has all necessary tangible as well as intangible resources for
accomplishing business goals.
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The lack of corporate and professional culture can lead to failure of operations and
companies may not succeed in international market, particularly when entering through
partnership, joint ventures or other strategic options. It is the responsibility of the HR department
to develop both hard and soft skills in staff members so that a productive work culture can be
developed. Development of such efficient work culture is key to gain success in foreign market.
The customer portfolio of every retailer is very diverse and thus if Carrefour does not have HR
policies which encourages diversity and equality then organisation may fail to even meet the
expectations and needs of customers.
Thus it can be said that the value creation in terms of productivity, brand perception,
customer and employee retention and competitive advantage is possible only because of
effectiveness of HRM policies and practices (Bailey and et.al., 2018). For retailers like Carrefour
brand perception and value is developed mainly by the way in which staff members
communicate with the customers. Thus for such organisations it becomes more important to
build a HR team which can provide a satisfactory response to customers. Brand value is
enhanced by only means of efficient HR policy so that not only employees but also the working
environment and policies can be improved to deliver desired value.
B. Impact of culture on HRM practices
The HRM policies of Carrefour are greatly influenced by the national and regional culture
of Indonesia. Indonesian culture gives more preference to balance between personal and
professional life (Country comparison, 2021). They used to have more empathy and formal
communication. The same is also reflected within work culture of Carrefour. Organisation
incorporates a highly professional code of conduct and communication hierarchy which meets
the regional culture of the Indonesia. However, the policies such as leave management and
grievance resolution also includes the glimpse of National Indonesian culture which gives value
to productivity and professionalism.
The HR policies seek to be flexible yet in alignment with the national work policies. For
instance, the Carrefour is bound to follow all national regulations related to occupational safety,
wages and work culture. Along with the communication aspect the regional culture of Indonesia
also has impact upon resourcing and talent management strategies. For instance, some regions of
Indonesia used to have more openness and flexibility than the others. For such areas organisation
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