International HRM Issues and Cultural Challenges in Global Business Expansion

BMP6003
International HRM

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Cultural issues face by International HRM in Global Business Expansion................................3
International HRM issues faced by UK Companies in Global expansion..................................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International Human Resource Management is a function of managing the human
resources of different countries or geographical regions. It refers to the process of hiring,
selecting and allocating the human resources in international business of the organization. It also
involves training and development of employees in the global organizations. It has almost
similar functions and strategies as of Human resource management such as recruitment of human
resources, their selection and performance appraisal, employment relations and career
opportunities etc. IHRM considers the similar management as of HRM but it includes those
employees as well who are from foreign countries. It also includes arrangement of conveyance
facilities of expatriate employees by the organizations operating globally (Kim, D.O. and Bae,
2017). The following report will cover the impact of cultural issues and HRM issues faced by
international HRM in expanding the business globally. It will also discuss the advantages and
role of international HRM.
TASK
Cultural issues face by International HRM in Global Business Expansion
While expanding the business globally, international HRM face many cultural issues such
as different culture of employees belonging to different countries, language issues and different
employment practices & approaches globally. In the international organizations, some of the
cultural issues at workplace includes cultural behaviour, communicational barriers due to
different languages, implementation of policies and methods of reporting in the organizations
etc. Sometimes, due to different cultural behaviour of employees, there arises a conflict in the
organization that has negative impact on the working environment (Lai, W.H. and Yang, 2017).
It affects the employment relations in the organizations due to which productivity of
international businesses tend to decrease that hinders the international expansion of businesses.
Due to globalisation, the variations in global business norms, differences in values,
customs and religious beliefs are the cultural factors that affect the operational management of
global businesses. For expanding the businesses globally, officials in IHRM are required to have
an insightful understanding of local or domestic business practices to understand the
international business practices. It should consider the crucial cultural factors that impact the
entire business from the management of employees to the location of business and industrial and