IHRM and Human Resource Management | Nestle Case

Running Head: MANAGEMENT 0
HUMAN RESOURCE
MANAGEMENT AND IHRM

IHRM 1
Executive Summary
The concept of International human resource management is associated to all the activities,
functions and processes that promote organisation development in the international business
environment with disciple of respective resources and factors. In the global arena,
international HRM facing massive challenges in several aspects like application of relative
approaches across national boundaries, cultural barriers, leadership style in the new markets
and performance management of expatriate employees. In this study report, Nestle is selected
as an organisation with identification of its expansion plans in the international market and
different perspectives and practices in IHRM context.
Therefore, this report will critically assess and examine challenges provoking IHRM
practices of Nestle in relation to its existing HRM practices, leadership styles and theories,
strategies for attracting and recruiting local talent, integration of cultural differences and
organisational plans and so forth. Ultimately, necessary recommendations are being presented
in the report for change of perspective and practices necessary in dealing with human
resources from national to multinational arrangement.

IHRM 2
Table of Contents
Introduction................................................................................................................................3
Use of concept into practice.......................................................................................................4
a) Assessment of current practices in relation with HRM..................................................4
b) Importance of HRM and its practices..........................................................................5
c) Review of theories of leadership – behavioural and contingency...................................5
d) Suitability of leadership context..................................................................................6
e) Vital challenges in the global environment.....................................................................7
f) Approaches to entice and hire native talent....................................................................7
g) Integration of cultural differences and organisation plans..........................................8
h) Numerous influences on behaviour in business firms.................................................8
i) IHRM Best Practices.......................................................................................................9
Conclusion and Recommendations..........................................................................................10
References................................................................................................................................11

IHRM 3
Introduction
The term internationalizing signifies the way of increasing the involvement of business in
global markets so as to be more competitive with achieving greater economy of scale beyond
the native territory (Tan and Mathews, 2015). However, with planning to expand
internationally, it is important to emphasis on collection of activities such as emphasizing on
managing the organisation human resource at the international level so to achieve the
objectives and gain competitive edge over the rivals. Furthermore, Opatha and Arulrajah
(2014) defined international human resource management as composite of various functions
of HRM such as recruitment, selection, development and training, appraisals, rewards and so
forth at international level. This report outlines and strategizes for the multinational nature of
Nestle planning to expand internationally and what are the significant factors that influence
Nestle HR strategies in the international context.
Founded in 1866, Nestle is one of the world largest food and beverage firm and currently
having its presence in more than 187 countries globally. Under its umbrella, Nestle holds
nearly 2000 brands going from international icons with an aim to improving value of life and
backing to better future. The business is enduring the legacy of its originator Henri Nestle
who develop a life-saving infant cereal more than 150 years back. In 2018, the Nestle Group
created sales of nearly 91.44 billion CHF (statista.com, 2019). In the food processing
industry, the company has many distinctive strengths that help the business to be on top of
the industry and they also believe their people as their greatest strength. In 2018, the
company has employed nearly 308,000 people around the world and company inclusive
environment leverages the diverse cultures, skills, knowledge and experience of their people
with respecting and promoting human rights across its activities (nestle.com, 2018). For