Strategies and Practices of International Human Resource Management

This report covers the strategies and practices of International Human Resource Management (IHRM) and how they help companies attract local talent. It discusses the importance of HRM, theories of leadership, and challenges in the international environment. The report also provides strategies to recruit local talent and integrate cultural differences for internationalization plans.

INTERNATIONAL
HUMAN RESOURCE
MANAGEMENT

EXECUTIVE SUMMARY
In this report it has been covered about the strategies and practices of HRM and how
that strategies helps the company to attract local people. Apart from this they need to work on
hiring the right people and train them so that they can be prepared for the expansion and enter
into international markets. This will make it easy for the employees of the company to work
according to their culture and gain recognition for the company. The report highlights issues
such as HRM practices, theories of leadership and influence in behaviour of management

Table of Contents
INTRODUCTION.......................................................................................................................4
Application of theory into practice..............................................................................................4
A Review of existing HRM practices.................................................................................4
B) Review of leadership theories.......................................................................................6
C Behavioral Dimensions...................................................................................................8
2) Strategies to attract and recruit local talent....................................................................8
3) Integrating cultural differences that leads to internationalisation plans and the
organisational plans............................................................................................................9
4) Various influences on behaviour in organizations and the interface with management10
D best practices in IHRM.................................................................................................11
4 Conclusion and recommendations..........................................................................................11
B) How this change will impact on the international nature of your organisation. .........13
CONCLUSION..........................................................................................................................14
REFERENCES..........................................................................................................................15

INTRODUCTION
Human resource management is a strategic approach to the effective management of
people in a company or organization such that they help their business gain competitive
advantage. It is designed to maximize employee performance in service of an employer's
strategic objectives. In this report, the taken organization is Coles Supermarkets Australia Pvt.
Ltd, trading as Coles, is an Australian supermarket, retail and consumer services chain,
headquartered in Melbourne as part of the Coles Group. The company was founded in 1914
in Collingwood by George Coles, Coles operates more than 800 supermarkets throughout
Australia, including several now re-branded BI-LO Supermarkets. Coles has over 100,000
employees and, together with rival Woolworths, accounts for more than 80 per cent of the
Australian market. This report covers issues such as practices of HRM, importance of HRM
and its practices, theories of leadership and suitability of the leadership style in the company,
challenges in international environment. Strategies to attract and recruit local people. Apart
from this study also covers integrating differences of culture that helps the company to get the
plans for internationalization, influences on behavior in organizations and the interface with
management. International HRM practices of their competitor and recommendations for
change practices and how it will impact the international nature of the business.
Application of theory into practice
A Review of existing HRM practices
1) HRM Practices
Providing Security to Employees-
This aspect is considered as one of the most important practices of HRM. Coles
supermarket looks after the employees of the company because they believes no one can
predict what is going to happen next and security is considered as an essential factor by the
employees of the company. They feel that if their family is looked after by the company then
they can trust them and work up to their potential so that even they can be beneficial for the
company. If Coles Supermarkets does not provide their employees with these factors then they
won't be able to retain them for long time (Wintersberger, 2017). If the security of employees
is threatened then this will ripple the company.
Selective Hiring-

HR of Coles Supermarkets hires those employees who they believe are eligible for job
so that they can work according to the working pattern of the company and deal with the
clients so that they can earn more in the market. Apart from this, it helps them to increase the
value of their business. HR of Coles supermarkets hires employees by these selection
methods-
Face to face interview
HR of Coles supermarkets take interviews from people face to face so that they can hire best
candidates from all the candidates who have applied for the job. HR of the company assess
and evaluates the candidates according to the requirements of the company. (Poór and et.al.,
2018).
Panel Interview-
with the help of this method company is able to take biased and unfair decisions. A
group of people is present in this method so that they can one can ask the questions about
work and others can observe his abilities and potential. (Budhwar and Mellahi, 2016).
2) Importance of HRM and its practices
Overall recruitment and training of employees-
HR of the company joins with the managers so that they can look after the aspects of
leadership and provide the employees with training, managing teamwork, assisting each other
at complex tasks so that they can complete it without errors in given time. They have designed
a systematic process for recruiting the employees of the company and monitor them in an
effective manner (Farndale and et. al., 2017). HR of the company is concerned with this
aspect and this makes them responsible if any candidates hire is below the criteria set by the
company as they can affect the performance of the company.
Monitors the culture of the company-
Different companies have different culture. Maintaining the relationship with
employees is considered as an important aspect but many people believe that HR of the
company is the one who controls and owns the culture of the business. HR of the company has
one role in this and that is to maintain the productivity and creativity in culture (Podnar,
Kohont and Jancˇicˇ, 2017). If the culture of the company is not creative then employees
working in the company won't be able to bring innovative ideas.
Process of overall talent management-

HR overlooks all the aspects which are related to talent management such as managing
the performance of employees, planning successively, guiding them to their career paths and
development of management. They team up with managers of the company so that they can
formulate the right strategies and work on bringing ideas which are new and practices which
are effective.
Compensation Plan-
The HR department of Coles Supermarket is the one who works on forming up the
policies and rules which are related to the pay check of the employees. This way they evaluate
the level of salaries for the company. They also keep managers of the company updated about
the range of salary in the company.
Implement the strategy of HR in the company-
HR analyse the current goals of the company and merge them with future goals so that
they can align the path between both and make a perfect way for the company to reach them.
If Cole Supermarkets is changing the mission, vision and objectives then, HR is the one who
designs the whole process of it (Mockaitis, Zander and De Cieri, 2016).
B) Review of leadership theories
1) Theories of Leadership
Contingency Theory-
Contingency theory helps businesses to take their business onto the next level and
propose the leader of the company to take variables which consists of action. This theory helps
them to undertake all the variables which has influence over the situation. In order to make the
leadership of the business effective they need to maintain the balance between behavior of the
people in the company and needs of the market. This theory works on different variables and it
changes the style of leadership according to the situation they are facing because this theory
states that there is no one style of leadership which can be applicable to every situation. This is
the reason why they change according to the situation. Many of the leaders have right set of
qualities but what matters is that if they can evaluate the forces of environment. Basically this
theory is a combination of many different variables (Fan and et. al., 2016).
Behavioral Theories-
This theory focuses on the actions and behaviour patterns which are specific instead of
their characteristics and traits. It is believed that in order to make the leadership of the

company effective, many skills are needed to be learned. Some people need skills which are
primary such as human, conceptual and technical. Technical skills includes knowledge of the
sector that the company is dealing into and techniques according to that. Human skills
includes ability to deal and engage in a conversation with others. Conceptual skills helps the
leader to think new ways and measures which can help the company to perform their
operations in smooth manner (Myloni, 2017).
2) Suitability of leadership theory
Contingency theory of leadership is the suitable theory of leadership for the company as it
allows the leaders of the company to change from one style of leadership to another according
to the demand of the situation.
Provides solutions in complex or specific situations-
This theory helps the managers of the company to take over the problems of
individuals so that they can take the problems of individuals. This is because managers of the
company focus on the theory of contingency instead of focusing on the area of obtaining the
result. It is because that can help them the reasons that caused the problem. For instance if the
employees of company are suffering from fatigue which is decreasing the productivity and
company relying on motivating theory is not boosting their morale. But with the help of
contingency theory was because they had ventilation issues in their office (Pokharel, 2016).
Macro view of the company
This theory also help companies such as Cole Supermarkets to take decision for the
whole company. Actions and decisions that the managers of the company takes reflects and
leaves an impact on the factors such as culture, orientation of profit, providing safety to their
employees, positioning of the company and attitude of employees. For instance if the
department of research and development is not able to look for new things which is limiting
the growth of the company. Managers of the company will look for the cause of problem that
why are they not able to find anything viable. If they spread this problem in the market then
the employees in the company will get demotivated and they won't be able to find anything in
return (Đorđević, 2016).
Increases Managerial Discretion-
The theory of contingency allows the managers of the company to offer a wide range
of methods to solve a problem as it change the style of leadership according to the situation.

This helps them to change their perception of making decisions. Managers of the company
needs to interpret the policies of the company on a regular basis. Owners of the company gives
managers freedom to take decisions on their own so that they do not need their approval on
everything. It will also help to increase the confidence and making their judgement right.
C Behavioral Dimensions
1) Key challenges in international environment
Recruiting from other countries-
In order to expand the business on an international level, they need to look for those
people which can help the company to fight the competition. For that, company has to train
some of their employees who can compete on a global level so that they can collaborate with
new people and look after the new people who are recruited globally. Company faces
difficulty in finding people who wants to relocate for the job.
Cultural diversity and issues of HR on a global level-
It is necessary for the managers of Cole Supermarkets to maintain the differences of
culture so that they can engage in conversation with people from different backgrounds and
understand their ideology. HR of the company needs to understand and adapt new and
favourable style of working which are familiar into the country. For instance if company hires
an employee from Australia his thought process and way of working will be different because
of difference in culture. Instead of avoiding and ignoring them they need to understand their
experience and if it is suitable then HR department of the company can formulate new
strategies (Cooke and Kim, 2017).
Compliance and international HRM issues-
In order to expand business operations into new market, HR of the company needs to
adapt new laws and regulations of that country. Apart from that, employees which are non
residents and working in the company will be provided with the visa which will be under the
notice of federal government. This will create issues for the HR of the company as the laws for
filing visa is not easy.
2) Strategies to attract and recruit local talent
Flexibility-
If the company provides their employees with a flexible structure which gives them
time for their personal life such as their family, friends etc. then employees will be a part of

the company for a long period of time Cole Supermarkets need to balance their work so that
employees don't suffer from fatigue. Company needs to include benefits such as facility of
work from home, weekly offs and something which keeps them entertained so that they don't
get bored from work (Morley and Heraty, 2019).
Offer Perks-
Every candidate wants to be a part of such a company which is operating on a large
scale not only because of the high amount of pay check or respect they earn instead if that they
get many other benefits such as policies for health insurance, allowances and bonuses,
holidays as it will help the companies such as Cole Supermarkets to attract more eligible
people to be a part of their business. Apart from this, they need to maintain the infrastructure
and ambiance of the office well enough so that they can work with positivity and maintain the
flow of energy.
Employee referral program-
This method will help the company to find the candidates with the help of their own
employees. They just need to keep them satisfied so that they can be brand ambassadors of the
company. To find new people companies need to give rewards and benefits to their employees
so that they can find new employees. This will help the company to get recognized talent and
help to save cost as it is an internal method of recruitment (Zheng, 2017).
3) Integrating cultural differences that leads to internationalisation plans and the
organisational plans
Hiring of local Employees-
Companies such as Coles Supermarket is working on expansion and trying to enter
into new markets and that will require them those people who can work according to the
culture of the country so that they can work according to the way and pattern that their
prospective clients prefers. This will allow them to gain acceptance into new market and from
that they will be able to achieve growth in that market and gain recognition among people.
Timely conduct Meetings-
Coles Supermarkets need to conduct regular meetings with the employees of those
country so that they can bond them with the employees of their native country. This will help
them to coordinate with each other so that they can manage the work in both the countries and
keep a check that if or not they are able to meet the goals and objectives in both the countries

and if not, work on finding out the gaps between them so that effective measures can be taken
in order to reduce the impact of those gaps and improve the performance (Rissanen, 2019).
Ethics and Motivation-
HR manager of the company needs to motivate their employees as they are working for
a different market and they may not get success easily which is why they need to be assisted
properly so that they can meet the differences of culture and work by putting their efforts so
that they can meet the objectives while remaining satisfied with the job. HR also needs to
follow the ethics they do not need to be bias with the employees as in some companies they
forget old employees and only appreciate new employees which makes the old employees
unsatisfied and they lose their morale.
4) Various influences on behaviour in organizations and the interface with management
Model by Hofstede helps the company to figure out the difference between cultural factors and
cultural dimensions so that they can figure out the impact of these factors on the business.
Individualism vs Collectivism-
This dimension helps the company to consider and understand that which of the
societies can be integrated into groups and whether or not they can depend on the group due to
difference of cultures in people. Individualism focuses on attaining the goals by working in
isolation whereas collectivism states that people irrespective of differences in culture achieves
the goal by working as a team.
There are many factors which affects the company to form up a team due to
differences in culture such as these-
Race and Culture-
Race and culture of people who are from different backgrounds affects many people in
the company. Many of them do not accept their background or religion as they believe that
they are stealing the opportunity of their people. They feel that they are invading their space
and that their level does not match for the people of the country because they feel superior
over them. This increases the level of conflicts in the company which decreases the
productivity of the business. Coles supermarkets need to keep these things in mind and HR of
the company has to take strict actions against these measures as it affects the reputation of the
company (Collings, Wood and Szamosi, 2018).
Perception-

Employees of the company needs to maintain the relationship with each other so that
they accept the thought process, style of working of employees which is necessary in order to
increase the efficiency and effectiveness of work. In order to maintain the level of
effectiveness employees of the company need to work as a team instead of working in
isolation.
D best practices in IHRM
1) International HRM practices of Costco
Compensation Management-
This aspect helps the company to maintain the budget and balance the needs of the
companies which helps them to compensate for employees and retain them for a long period
of time. Analysts of compensation and managers helps to maintain the descriptions of the job,
level of compensation for those people who work as part time and full time so that there is no
confusion in pay check among both the category of employees. Apart from this company
needs to communicate with their employees and check with them that if or not they have any
issue regarding the subject of communication. HR needs to evaluate the cost of compensating
employees.
Performance Management-
Costco uses practices of HRM which helps the managers and employees of the
company to improve their performance. This aspect includes setting the goals of the company,
monitoring and evaluating performance of every employees. HR of Cotsco appreciates their
employees for their work by appraising or rewarding them on the basis of their achievements.
Cotsco has professional to manage the performance of employees who also use tools of
appraisal and review of performance of employees (An Effectiveness of Human Resource
Management Practices on Employee Retention in Institute of Higher learning: -A Regression
Analysis, 2012).
Strategic practices of human resource management
Cotsco plan their goals and objectives and with that they align the path of their
departments with the goals of the company. This way company achieves growth in market. It
involves many areas such as prediction of compensation and how it will leave an impact on
the company (Brewster, Mayrhofer and Farndale, 2018).

4 Conclusion and recommendations
A) Recommendation
The change management practices and perspectives are considered to be important in
the human resource management. In Coles super market, Human resource management will be
changing overall business policies and procedures because they can implement innovative idea
and strategy for organizational growth. In Coles super market, Human resource provide the
detailed activities and practices which identifies gap between current procedures and practices.
Human resource has changed the practices to redesign the procedures with the help of
team and individual within organization. In order to achieve their organizational short-term
and long terms goals in global marketplace. in this way, it is considered as recommendations,
which help for Coles super market to change management practices and perspectives.
In Coles supermarket, HRM need to recommend for changing the HRM practices such as
compensation, performance management, Job description, recruitment and selection, award
and recognition etc. These are common HRM practices which primarily implement within
organization which help for expanding business from domestic level to international
marketplace.
 It has recommended to change the compensation practices which provide optimum
flexibility in working hours, reward and recognition on the basis of performance. In
order to support employee and achieve the significant mission, vision of Coles super
market in the global marketplace.
For expansion Coles business into international market, the compensation
policy change and link with the individual’s competencies, other team where how they
give contribution to success of business. Through compensation process, it can
measure the contribution of team, managers, individuals and other contributors. In this
way, it can satisfy the multinational set up of Coles firm in the international
marketplace. (Sparrow and Cooper, 2017).

 HRM has been developed the revise performance evaluation process, which is
beneficial for both employers and employee. In this way, staff members within Cole
firm to receive the feedback on the basis of performance whether it’s positive or
negative. Job descriptions are main part of performance evaluation process. If in case
manager do not have a proper job specification for particular position.
At that time, it is difficult for staff member to understand expectation of job
duties. In this way, it has recommended to human resource manager within Coles
supermarket firm for designing performance evaluation form and identifying their
overall performance of each employee on regular basis. In order to increase the
demand in the international market and beneficial for business expansion.
 It is important to update the proper job description in proper manner. It may include
the employee performance, hiring, management and orientation. Each position within
Coles need to be important that will handle business activities. It also reviews the
description on annual basis and make sure that current duties performed by staff
members. Therefore, it helps for employee to their own duties, roles and
responsibilities.
In Coles super market firm, Human resource management has organized an effective hiring
process but it needs to recommend for providing training to the managers before interview
process. So that they can select the suitable candidates for particular position. It is necessary
for Human resource manager to understand the behavior, nature, skill, experience of
candidates (Andalib, Darun and Azizan, 2019). In this way, manager can achieve their
business goals and build the multinational set up in other countries.
B) How this change will impact on the international nature of your organisation.
Attract top talent-
Compensation will help the company to get the best financial position in the market.
Coles Supermarkets need to analyse the packages that their competitors in the market are
offering so that they can make changes in their structure accordingly and this will help them to
gain employees who are talented and matches up the requirement criteria for the company.
This will also help the company to focus on other areas and reduce the cost they spent in
recruitment and selection (Alfes and et.al., 2020).
Increased level of productivity and profitability-

Employees those who are productive are satisfied by the company. It is related to
compensation and when they feels valued with their position in the company they become
more loyal to the company. This will help the company to reduce the rate of employee
turnover and improve the rate of employee retention.
Boost Loyalty of employees-
Companies such as Coles Supermarkets need to ensure that their employees are getting
paid the same as their competitors. They need to maintain the balance between the rate of the
market and rate of what they are expecting from the company so that they can be satisfied. The
reason behind the level of retention that the company maintains needs is because of the
compensation that the employees provide to their employees (Ahmed and Akram, 2016).
Changes such as compensation, performance management, Job description, recruitment and
selection, award and recognition etc. These changes will be difficult for the company as they
will have to form new policies according to the laws of international market.
CONCLUSION
From the above studies, it has been concluded that Coles supermarkets needs to work
on their policies of pay check so and make the necessary changes after adapting new laws and
regulations according to the people of the country. They need to recruit local people so that
they can understand how to deal with new market and gain acceptance among people. This
will also require a lot of employees to go under training and learn their languages and the style
of working there so that they can engage in conversation with people there and make more
clients. It will be beneficial for the company as they can trust and rely on their old employees
rather than depending on new employees. Coles Supermarkets need to use effective practices
of HRM so that they can recruit talented people and retain them for a long period of time.
They need to work on those factors so that they can improve and manage the performance of
employees. In order to expand and expand into international market these factors needs to be
assessed and implemented. In order to successfully achieve growth in international market
company needs to look after the practices of IHRM so that they can successfully implement it
in their culture.

REFERENCES
Books and Journal
Ahmed, F. and Akram, S., 2016. International Human Resource Management: Policies and
Practices for Multinational Enterprises. South Asian Journal of Management. 23(2).
p.154.
Alfes, K and et.al., 2020. The International Journal of Human Resource Management. The
International Journal of Human Resource Management, 2020.
Andalib, T.W., Darun, M.R. and Azizan, N.A., 2019. East Asian trends of human resource
management: theories and practices. International Journal of Human Resources
Development and Management. 19(2). pp.135-149.
Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018. Handbook of research on
comparative human resource management. Edward Elgar Publishing.
Budhwar, P.S. and Mellahi, K. eds., 2016. Handbook of human resource management in the
Middle East. Edward Elgar Publishing.
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.
Cooke, F.L. and Kim, S. eds., 2017. Routledge Handbook of Human Resource Management in
Asia. Routledge.
Đorđević, B., 2016. Impact of national culture on international human resource management.
Economic Themes. 54(2). pp.281-300.
Fan, D and et.al., 2016. The paths of managing international human resources of emerging
market multinationals: Reconciling strategic goal and control means. Human Resource
Management Review. 26(4). pp.298-310.
Farndale, E and et.al., 2017. A vision of international HRM research. The International
Journal of Human Resource Management. 28(12). pp.1625-1639.
Mockaitis, A.I., Zander, L. and De Cieri, H., 2016. Special issue of International Journal of
Human Resource Management: The benefits of global teams for international
organizations: HR implications: Extended submission deadline: 12 February 2016.

Morley, M.J. and Heraty, N., 2019. The Anatomy of an International Research Collaboration:
Building Cumulative Comparative Knowledge in Human Resource Management.
Myloni, B., 2017. 12 Transferability of Human Resource Management Across Borders. The
Changing Patterns of Human Resource Management.
Podnar, K., Kohont, A. and Jancˇicˇ, Z., 2017. Employee development in the international
arena: internal marketing and human resource management perspectives. Strategic
International Marketing: An Advanced Perspective. 153.
Pokharel, B., 2016. Triumph over failure of expatriate in an international assignments from the
international human resource management perspective. International Journal of
Business and Management. 11(5). p.310.
Poór, J and et.al., 2018. Knowledge management in human resource management: Foreign-
owned subsidiaries’ practices in four CEE countries. Journal of International Studies
Vol. 11(3).
Rissanen, J., 2019. Globalizing human resource management successfully: case Hunkemöller
International BV.
Sparrow, P. and Cooper, C.L. eds., 2017. A Research Agenda for Human Resource
Management. Edward Elgar Publishing.
Wintersberger, D. ed., 2017. International Human Resource Management: A Case Study
Approach. Kogan Page Publishers.
Zheng, C., 2017. Globalization and international human resource management.
Online
_An_Effectiveness_of_Human_Resource_Management_Practices_on_Employee_Retention_in
_Institute_of_Higher_learning_-A_Regression_Analysis, 2012. [Online] available through
<www.researchgate.net/publication/267725979>