International HRM: Factors Affecting Staffing Choices of MNEs and Ways to Manage International Workforce - Desklib

This report on International HRM by Desklib discusses the factors affecting staffing choices of MNEs and ways to manage international workforce. It covers internal and external factors like government regulations, work arrangements, and employee health and well-being. The report also suggests measures like virtual collaboration, in-patriation, and focus on employee well-being to manage international workforce effectively. The report is based on Marks and Spencer, a British multinational retailer operating in the retail industry.

International HRM
1

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
2

INTRODUCTION
Human Resource Management is defined as a strategic approach which is efficient and
effective to manage individuals within an organisation or a company. Main aim behind human
resource management is to gain competitive advantage while maximizing performance of
employees in a systematic manner (Binder and Blankenberg, 2021). Human Resource
Management is an essential aspect for any organisation operating its function in any industrial
sector, as it ensures smooth operations of company. This aspect is related to management of
organisational workforce in an effective way. International human resource management is a
process in which activities related to procuring and allocating and effective utilisation of human
resource in multinational organisation is done at international level. Main aim behind
international human resource management is to fulfil organisational objectives and accomplish
more competitive advantages over rivals at international scale. International human resource
management assures organisations to manage diverse employee satisfaction and well-being in
the workforce. With help of this organisation can manage human resource activities without
regarding to geographic boundaries and can utilise employee’s talent and performance in
fulfilling international business objectives.
Present report is conducted on Marks and Spencer which is operating its business
operations and retail industrial sector and was founded in the year 1884. This company offers it
services worldwide while having headquartered in London, England, United Kingdom. M&S is a
British multinational retailer and offer clothing, food products and home products around the
world industry. In this report formative discussion has been conducted on the manner in which
internal and external factors affects the staffing choice MNEs. Along with this, report include
discussion on certain challenges that organisation spacing and the measures to manage their
international work forces.
MAIN BODY
External and internal factors may affect the staffing choices of MNEs
Human Resource Management in inclusive of strategic practices that are recruitment,
hiring, deployment, staffing and management of workforce within an organisation. Staffing is
one of the most effective and essential process that an HR undertake in the process of human
3

resource management in which they engage in the procedure of hiring eligible candidates within
an organisation for a specific position. Staffing is an operation in which human resource manager
recruit employees by evaluating their knowledge and skill and then offer them specific job roles
accordingly. In simple terms Staffing is defined as a process of finding the right individual with
appropriate experience and qualification and recruit them to fulfil organisation job position needs
(Djurkovic, 2021). It has been identified that there are a number of external and internal factors
that may affect the staffing choice of organisations operating their functioning as a MNEs. In this
it is essential for a successful human resource manager to undertake advantage of strategy to
fulfil organisation goals and mission. In context with Marks and Spencer which is operating its
business operation worldwide, external and internal factors like government regulation, use of
technology etc can affect organisation staffing needs. It has been evaluated that, changes in work
arrangements such as work from home due to the outbreak of covid-19, increased focus upon
employee health and well-being are some of the internal and external factors that may impact the
staffing choice of Marks and Spencer. In depth analysis of these factors is being conducted
below:
External factors
Restrictions on movement of staff across international borders for short, medium, long-term
opportunities
This external factor has a significant affect upon the staffing choices of MNEs as due to
the outbreak of covid-19 government-imposed lockdown and restricted movement of individuals
on local, national and international basis for short-, medium- and long-term opportunities. It has
been evaluated that due the outbreak of covid-19 there were travel plans in almost all the
countries. Furthermore, it has been underlined that due to the stricter measures imposed by
government actions to restrict international movement affect staffing needs of companies
operating as MNEs in number of ways. In terms with Marks and Spencer it has been evaluated
that restriction of movement of staff across international borders lead staffing operation of
company in terms offering and recruiting individuals as in order to select appropriate and
talented employees (Yang, and Lee, 2021). Marks and Spencer’s staffing process include face to
face interview and other strategies. However, restriction on movements of individual across
international borders affect staffing need of Marks and Spencer in which they are required to hire
and place individuals on specific job role. Furthermore, it has been evaluated that mobility
4

barrier also affected individuals or staff across international borders for short medium- and long-
term opportunities in which companies like M&S faced difficulties to hire skilled and
knowledgeable candidates systematically due to the restrictions on movements.
Changes in working arrangements
Due to the outbreak of covid-19 there is an accelerating trend in terms of remote working,
as due to the outbreak of this pandemic government across nations-imposed lockdown and
restricted individual to stay at their places (Hu and Kee, 2021). All the organisations in almost all
industrial segment were forced to stop their business operations that destructed labour market
globally. It has been elevated that due to this external factor short term consequences were seen
in terms of millions of people lost their job and organisations rapidly implemented strategies as
to make employees work from home as offices were closed. Furthermore, it has been identified
that, this virus is still prevailing and keeps on emerging at constant basis. This makes
government to impose guidelines in which organisations are supposed to work with limited
number of employees at organisation work place premises. This indicates that work from home
is the future of work after covid-19. However, there is a long-term influence of this external
factors on the staffing need of organisations like Marks and Spencer’s and other organisations in
retail industrial sector that impact upon organisation productivity and innovation. In order to
assure maximum productivity from employees those who are working from home organisation is
required to go through a transformation. It has been evaluated that leading organisation like work
Marks and Spencer faced difficulties in monitoring performance of workers those who are
performing their roles and responsibilities from home (Soomro and Ahmed, 2021). Alone with
this, it has been evaluated that due to this external factor there is increase in cost of company in
which they are required to provide suitable equipment such as mobile phones, laptops and other
form of IT equipment to employees. The outbreak of covid-19 pandemic lead to significant
changes and work arrangement in which company who are performing as MNEs are subjected to
take use of different methods in order to collaborate individuals in order to fulfil organisation
objectives. This external factor leads Marks and Spencer to collaborate with employees who are
working remotely. In this company is facing challenges in terms of centralising content in one
place as they face number of issues as employees from different geographical areas does not
have excess of proper way of connecting. Due to this challenge, there is significant impact upon
5

Marks and Spencer overall productivity, as it lead towards delay in accomplishing project at
certain deadline.
Internal
Increased focus on employee health and well-being, by employers
Due to the outbreak of coronavirus the entire world is pushed towards the era of
increased in health importance especially for companies, who are subjected to ensure employee
health and wellbeing. This aspect is becoming highly crucial which makes the workplace
dynamic exchanged in a dramatic manner. Companies in all industrial sectors for example Marks
and Spencer which is operating its functioning in retail industry were forced to operate remotely
in which work from home become prominent culture. This culture lead Marks and Spencer to
focus upon employee health and well-being in order to enhance their productivity. Number of
companies in retail industrial sectors such as Tesco and Sainsbury which are the leading
competitor of M&S started implementing wellness programs in order to address the importance
of employee health in order to make them feel valued and appreciated (Malik, Pereira and
Budhwar, 2021). It has been evaluated that increased focus on employee health and wellbeing by
employer is an internal factor that may affect the staffing choice of Marks and Spencer which is
operating as an international organisation, as in this company is required to take extra measures
to make employees feel safer and healthy. Furthermore, it has been evaluated that this internal
factor effect Marks and Spencer staffing need, as in this they are required to attract candidates by
offering them safer and healthier place. Along with this has been underlined that' especially in
the time of work from home there is significant increase in burden and extra pressure on
employees at they get distracted with the number of elements. In this staffing need of Marks and
Spencer get affected in terms of helping employees in order to balance their work life by
introducing different type of employee well-being initiatives such as mental and physical well-
being sessions, flexible work hours and other ways, in order to attract highly talented employees
and retain them to utilise their talent as to gain more competitive edge comparatively to other
rivals.
Thus, according to the above-mentioned analysis, it has been identified that staffing is an
important and essential process of human resource management within an organisation specific
for those who are operating their roles on international platform. There are different types of
internal and external factors such as impact of legislation changes and work arrangements due to
6

the factors like covid-19 significant, increase in emphasize upon employee health and well-being
and more. These factors impact upon organisation HRM strategy to hire qualified and
knowledgeable candidates as per the job requirement (Rees and Smith, 2021). In this it is
essential for Marks and Spencer HR manager to have proper and efficient understanding of these
factors along with their impact on staffing need of company in order to frame strategies
accordingly. This will allow them to overcome the challenges or adverse impact of these factors
on company staffing needs. This will effectively help Marks and Spencer to operate the business
of functioning with skilled workforce on international platform irrespective of the factors in an
effective manner.
Ways to manage international workforce
There are different types of external and internal factors that are affecting staffing need of
organisation. This is not only affecting organisation ability to hire talented candidate but also
affecting company capability to manage international workforce in a well-defined and effective
way. It has been evaluated that factor like changes in working arrangement, restriction on
movement of staff and increase in emphasize upon employee health and well-being by
employers are some of the factors which is leading organisation to make changes in this staffing
ways. However, there are some certain measures to which Marks and Spencer can effectively
manage international workforce in a systematic manner. With the help of these measures
company can efficiently perform their business operation in retail industrial sector and can gain
more competitive than other rivals in industry.
Virtual collaboration and Global teams:
Restriction on movements of staff across international borders affecting business
operations and staffing needs of organisation. In this organisation can effectively overcome this
challenge with the help of virtual collaboration, international project and global team. In context
with Marks and Spencer company by taking advantage of implementing new base and
configuration for remote team working can take advantage of communication and information
technology on widespread basis. With the advancements in technological aspects company adopt
effective measures in which they can emphasise upon digital transformation of labour
technology, cloud computing and other form effective measure. Company can take advantage of
virtual collaboration and global team in which they can collaborate with employees from
different geographical location. It has been identified that this pandemic has forced workers in
7

many areas to perform remote work. In this virtual collaboration and global team will
significantly help organisation to work together from different location on a common project
while utilising communication and information technology effectively. Collaboration and global
team will facilitate Marks and Spencer to fulfil objectives and aim of their international project
in an effective manner. It is one of the most effective strategy through which company can
overcome the external factor which is related to restriction on movement of staff across
international borders. Collaboration allow company to encourage staff to gain short, medium and
long term opportunities in an effective manner.
In-patriation:
According to this strategy Marks and Spencer can dramatically take competitive
advantage with the help of in-patriate manager or leader, as these executives play central role in
organisational evaluation from an international to multinational perspective. Because of travel
restriction it is essential for company to emphasize upon health and wellbeing of employees
while decentralizing them. In this in-patriate leader with the help of taking advantage of multiple
strategic perspective to manage employees in an effective manner. Marks and Spencer in retail
industrial sector by taking advantage of this strategy can build a framework while taking
utilisation of in-patriate leader and manager through which they can successfully manage several
hundred of employee on different or graphical location in an effective manner. In this company
can select a host country manager or leader through which they can effectively manage global
talent or workforce with efficient strategy.
Focus on employee health and well-being:
It is one of the most important and essential strategy through which organisation can
overcome the challenges of staffing in an effective manner. Coronavirus is increasing physical
and mental health consequences for workforce, as due to the lockdown employees are subjected
to work from home which increases stress and additional pressure. In order to improve well-
being stamina of workforce it is essential for leading organisation like Marks and Spencer to
protect employees and their well-being, as working remotely lead them to face mental stress,
physical challenges and number of other aspects which affects their productivity and
performance (Zhang and Edgar, 2021). In this with the help of different type of mental health
wellness programs and other form of strategies Marks and Spencer can address the workers’
health and wellness needs. Employee wellbeing can be improved through creating a comfortable
8

work environment and by introducing concept of mindfulness for the employees. Through
realizing the importance of work life balance and also company take initiative in terms of
supporting social outreach programs and also by encouraging staff to cycle to work. For making
the environment more relaxing, it is important that company can set up some strategies for
improvement of health of employees. With the help of managing employee’s mental health
Marks and Spencer can preserve business interest and can protect health and wellbeing of their
workers. It has been identified that Marks and Spencer competitors like Tesco and Sainsbury are
already taking use of different type of wellness programs in order to attract employees. Marks
and Spencer can also take initiative in terms of creating and encouraging for flexible
employment where better work-life balance leads towards the more positive outlook, energy and
enthusiasm for achieving their goals. In context with M&S by taking advantage of effective
planning to protect wellbeing and health of workers and supporting employees during this time
period company can enhance the staffing effectiveness. This will allow company to retain
employees while enhancing their loyalty and commitment towards organisational objectives.
With the help of taking advantage of this strategy M&S can overcome the challenges by
attracting suitable candidate, as while supporting workforce by managing their health and
wellbeing in this period organisation can retain experienced employees for longer period of time
and can accomplish business objectives in effective manner.
Thus, according to the above-mentioned analysis it has been identified that with the help of
taking advantage of certain measures like global team, virtual collaboration and In-patriation
Marks and Spencer can manage their work force on international platform in an effective
manner. All these ways allow company to make modification or alteration in their staffing needs
as per the current factors prevailing in external and external internal environment. It has been
underlined that this effectively allow business organisation to gain more competitiveness while
emphasizing upon employee through which they can hire talented candidates while managing
them on international platforms on efficient manner.
CONCLUSION
According to the above-mentioned report it has been concluded that human resource
management is an essential aspect for any organisation irrespective of its size, scope and
9

industry. Human resource management aim to strengthen workforce within an organisation in
order to enhance their performance in a strategic manner to meet organisational aims and
objectives. This report states that international human resource management is an important
aspect for MNEs as with the help of this management of global human resource can be done in a
responsible manner while managing their skills and expertise, while assuring diverse employee
satisfaction as well as well-being. According to this report it has been identified that there are a
number of challenges that organisation operating its business on international scale may face.
These challenges include changes in work arrangement in terms of work from home due to the
outbreak of covid-19, restriction of movement of staff across international borders, increased
focus on employee health and wellbeing. In order to systematically manage and overcome these
challenges it is essential for future global leaders or human resource manager to emphasize upon
all these aspects and understand the challenges in order to overcome them in effective manner.
From this report it has been stated that these challenges can be effectively overcome with the
help of virtual collaboration, developing strategies to increase emphasise upon employee health
and well-being and more. With the help of focusing upon these strategies organisation
performing as MNEs can overcome these challenges and can manage international work forces
in effective manner.
10

REFERENCES
Books and Journals
Binder, M. and Blankenberg, A.K., 2021. Self-employment and subjective well-
being. Zimmermann, KF (ed., 2021), Handbook of Labor, Human Resources and
Population Economics, Dordrecht: Springer.
Djurkovic, N., 2021. Workplace bullying in precarious employment. Special Topics and
Particular Occupations, Professions and Sectors, pp.587-613.
Hu, M.K. and Kee, D.M.H., 2021. Strategic Measures and Tactical Interventions for COVID-19
Impact Relief on SMEs. In Handbook of Research on Strategies and Interventions to
Mitigate COVID-19 Impact on SMEs (pp. 522-541). IGI Global.
Kapoor, V., Yadav, J., Bajpai, L. and Srivastava, S., 2021. Perceived stress and psychological
well-being of working mothers during COVID-19: a mediated moderated roles of
teleworking and resilience. Employee Relations: The International Journal.
Malik, A., Pereira, V. and Budhwar, P., 2021. HRM in the global information technology (IT)
industry: Towards multivergent configurations in strategic business
partnerships. Human Resource Management Review, 31(3), p.100743.
Rees, G. and Smith, P. eds., 2021. Strategic human resource management: An international
perspective. Sage.
Soomro, N. and Ahmed, A., 2021. HRM Through the Lens of an Academic Policy Maker: An
Interview with Professor Dr Aamir Firoz Shamsi. South Asian Journal of Human
Resources Management, p.23220937211020908.
Yang, E.K. and Lee, J.H., 2021. Classifying virtual reality-based collaboration environments:
practical insights for application in fashion design. International Journal of Fashion
Design, Technology and Education, pp.1-11.
Zaharie, M., 2021. Challenges, trust and performance in virtual teams: examining the role of
openness to experience and preference for virtual teams. Team Performance
Management: An International Journal.
Zhang, J.A. and Edgar, F., 2021. HRM systems, employee proactivity and capability in the SME
context. The International Journal of Human Resource Management, pp.1-26.
11