International HRM Report 2022

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International HRM 1
INTERNATIONAL HRM: CASE OF APPKNOX
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International HRM 2
Contents
1. Introduction..........................................................................................................3
2. Job design and structure of the overseas subsidiary.............................................6
3. Analysis of the staffing process for the overseas assignment..............................7
4. Analysis of the training & development process of the international assignees..8
5. Analysis of the remuneration package of the international assignees..................9
6. Conclusion..........................................................................................................10
References....................................................................................................................11
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International HRM 3
Introduction
The market environment of today’s world comprises of developed, developing, and
under-developed countries. One such is the USA market that accounts for about 20 percent of
economic production and is much higher than the rest of the countries of the world. In
particular, the US has the sixth-largest per capita GDP (PPP) as per the IMF report of 2019.
The US economy has a strongly integrated and technically mature service industry,
responsible for around 80% of its production. Service-oriented businesses control the USA
market in sectors including technology, banking, hospitals, and the retail industry (World
Economic Forum, 2018). Significant US businesses still represent the country globally, with
more than one-fifth of the Fortune Top 500 firms originating from the USA.
Appknox is a Singaporean software development company that is looking forward to
having a new development in the USA office for mobile software. Appknox is the country’s
most strong security plug-and-play application that lets developers, security analysts, and
businesses to create a secure mobile network utilizing a device and manual functioning to
overcome the techniques of hackers (Appknox, 2020). Keeping this in view, the country
appears to be one of the most significant areas of interest for Appknox in the context of the
International HRM.
International HRM is the method of obtaining, assigning, and utilizing human capital
to accomplish the specified goals of a multinational company. Due to the emerging global
presence of the firms, International HRM works on the interaction of human capital,
including the three dimensions-HR operations, employee classification, and countries where
the company is operating (Kang & Shen, 2017). Hence, a cultural comparison of both
countries is as follows.
Elements Singapore USA Remarks
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International HRM 4
Climate Tropical Continenta
l
Whereas Singapore has a tropical climate with
just two seasons throughout the year, owing to its
large latitudinal range extending from freezing
Alaska to the tropical Hawaiian islands, the US
experiences almost all sorts of climatic conditions.
Culture Eastern and
Western
Western
culture
Both countries have a western culture, but the
Eastern influence is more in Singapore than in the
USA
Language Malay,
Tamil
English,
and
Mandarin
Chinese
English English is fluently spoken in the USA while in
Singapore, multiple languages are used to
communicate even at the official level
Custom Diverse
customs
and
traditions
Diverse
customs
and
traditions
usually
originated
from the
west
Both countries have diverse customs and
traditions, but the customs in the USA are much
more influenced by the West whereas
Singaporean traditions have their roots within
from the country
Working
style
Highly
competitive
and
An
organized
and
The two countries have an organized and complex
working style, but the main element is that in the
USA, the working style is western in terms of
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International HRM 5
organized supportive
approach
individuality whereas, in Singapore, the working
style is a combination of the Asian and the
Western-style.
History Founded in
1965
Founded in
1776
Both countries had won the war of independence from
British colonialism (Galovan et al. 2010)
Some other characteristics of the two countries have been studied by Galovan et al.
(2010) as follows,
Characteristics Singapore USA Remarks
Diets Usually three
meals a day with
a combination of
Asian and
Western dishes
Standard American
Diet or the Western
Pattern Diet
In the USA, a more
western style of diet
plan is followed
while in Singapore,
both Asian and
Western-style is
followed
Family background Confucian
background
Western background Both countries have
family background
diversity
Religion Buddhism Christianity Religious diversity is
found to be in both
countries
Sports and Leisure
activities
The popularity of
football and
basketball
Football and golf Both countries show
massive interest in
sports activities
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International HRM 6
Job design and structure of the overseas subsidiary
For the companies to operate in International HRM operations, it is essential to make
sure that the job is explicitly designed according to the region. In this regard, the Hofstede
national cultural dimensions can be used to develop an appropriate job design.
In Singapore, the power distance is high, and employees tend to perform according to
the instructions of their employers. On the other hand, in the USA, there is less power
distance, even in the corporate environment (Clearly Cultural, 2020). In Singapore,
collectivism is prevailing, meaning people tend to work in groups while in the USA, it is the
individualism that is dominantly viewed. As far as masculinity and femininity in the USA
and Singapore are concerned, the masculinity element is evident in the USA (Hofstede
Insights, 2020). This means that the USA culture is more towards achievement and success
while in Singapore, people tend to encourage soft aspects such as building consensus and
sympathy for others.
Regarding uncertainty avoidance, Singapore scores less, and it is because the country
is known to be a Fine Country where people are charged heavily for everything. On the other
hand, the willingness and acceptance of innovation are high in the USA (Chen & Chen,
2016). Americans tend to value short-term performances while Singaporeans depict long-
term orientation. This means that the country makes sustainable efforts to regard the long-
term orientation. As far as the indulgence and restraint factors of the culture in Singapore is
concerned, the country shows almost a balance in these two elements (Hofstede Insights,
2020). Contrary to this, the USA is known to be an indulgent society.
Keeping the above comparison in view, the job design for the overseas subsidiary
plan is prepared. The team of employees would be expected to perform in a decentralized
manner. This is because in the USA, the power distance is less, and the employees can work
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International HRM 7
without having each guidance from their boss (Clearly Cultural, 2020). For this purpose, the
duties of the ten members of the team would be to separately work on the development of the
subsidiary program and report to the Head office. This will encourage them to work
independently and enhance their analytical and managing skills. For this purpose, the
manager must be having problem-solving abilities, command on technology, and must have
the ability to work independently without always relying on the support of other managers
(Tahir, 2019). Furthermore, the manager must be having a short-term orientation towards the
plan so that his excellent decision-making abilities can be tested in a limited time.
Another important task of the managers would be to bring innovation in the program
and make it different than the ones operating in Singapore. The managers will have to
understand the Western market conditions to implement the program. One core responsibility
of the overseas managers would be to reflect on the possible risks, and timely monitor them.
The managers will have to report to the HQ than to depend on each other for confirmation of
their respective tasks.
Analysis of the staffing process for the overseas assignment
In order to fulfill the job specifications as mentioned above, the staffing of the team
would depend on multiple factors. In this regard, the company will examine the ability of the
employees that are task-oriented and have the desire to achieve the goal. This is because
Americans show masculinity more than soft aspects of society. Managers that live to work
would be preferred and become a part of the team.
For the staffing process, the managers will be selected from within the company.
First, the screening of the managers will be done; then, a telephonic interview would be done
and, eventually, a written test. The recruitment process will be based on assessment centers in
which a written test, an interview, and then real-time problem scenarios would be presented
to the candidates to understand their level of practicality (Hamid et al. 2017). The managers
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International HRM 8
will be analyzed on their level of individuality. This would depict whether or not; they are
capable of working without forming groups and have an ability to work without depending on
others.
Additionally, the managers will be examined to know are they suitable to compete
with the continental climate of the USA that is quite different from Singapore. This is
because the health of the team members is also essential for the company, and any unfit
employee may not be made the part of the team (Elshanti, 2017). Also, the managers that
have command of the English language would be preferred and have a willingness to accept
the taste diversity in the USA.
Analysis of the training and development process of the international assignees
The training and development of the employees are one of the challenging tasks,
especially in the International HRM context. It is because the employees have to be trained to
work according to the working conditions of multiple regions (Buller & McEvoy, 2012). In
the present context, the team members will be trained for the program.
The employees would be trained weekly for the program, and bi-monthly
development sessions would be conducted while they work in the USA. The behavioral
training, time-management, and cross-cultural training sessions would be conducted in this
period. The cross-cultural training would be conducted twice a week while all other training
sessions scheduled for once a week. The duration of the training programs will range between
2-3 hours.
The on-the-job training would take place twice in one month. This training will be
held through Skype to analyze the success-driven approach of the employees. This training
may be scheduled as a formal meeting with the senior management at the HQ
(Gopalakrishnan, 2012). The off-the-job training will be a bit informal, allowing the
employees to share their experiences in the USA market environment.
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International HRM 9
However, before the employees finally fly to the USA, the team will be trained for at
least one month to understand the culture and working style of the Americans. The company
will allow them to have informal sessions with the nutritionists who can provide them better
diet plans, counseling with the psychologist to overcome homesickness, and also a formal
session with a tour agency guide who would share traveling details with the employees
(Tahir, 2019). This will allow the team members to get familiar with the must-visit sites of
the USA as they spend time in the country.
Analysis of the remuneration package of the international assignees
For an international assignment, the employees must be compensated in monetary
terms, and one such is to make sure that the company provides them a complete traveling
package with other benefits. This helps to retain the employees, especially when they are
working in a different working environment (Parveen et al. 2017). For this purpose, the
company would bear the traveling cost of the team, including the airfare and cab services
upon reaching the USA. The company would facilitate employees at a reasonable flat for the
have to work at least a year in the USA; therefore, accommodating in any hotel might not
work. The company would also provide the team with a food allowance and accommodation
allowance once they complete their one month job.
In addition to this, the company will also provide its team with a transportation
facility that will include company maintained van and two drivers. The company would also
provide medical insurance to the team so that they may not worry about their checkup while
staying in the USA. The company would also include a bi-annual increment for the team
members so that they keep on getting motivation in monetary terms. The remuneration
package will also include a one-time sponsored trip to the European countries so that the
employees can utilize their annual leaves after the completion of the task. Based on this, the
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International HRM 10
company will be using a balance sheet approach to balance the debits and credits of the
company during the expatriate’s compensation in the USA.
Conclusion
The analysis of the whole scenario and market conditions of the USA and the plan of
Appknox briefs that the company has to align the staffing process, training, and development,
and the remuneration packages, according to the USA environment. The company can better
utilize the manager within the company because investing in outsourcing may not be a good
idea. It is because the company will then be engaged in dual strategies, including first training
the outsourced employees and then managing the new team. Using an assessment center for
the recruitment strategy while a balance sheet approach to make the overall expenditures
within the budget may prove to be cost-effective for the company. Hence, the strategies used
by Appknox may be considered beneficial for the team in the USA.
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International HRM 11
References
Appknox. (2020, April 07). About Us. https://www.appknox.com/company
Buller, P. F., & McEvoy, G. M. (2012). Strategy, human resource management and
performance: Sharpening line of sight. Human resource management review, 22(1), 43-56.
Chen, Z., & Chen, H. (2016). Research on Diversified Paths of Regional Agglomerative
Allocation of Innovative Human Resources: A Case Study of Suzhou in Jiangsu Province. Int
J Econ Manag Sci, 5(371), 2.
Clearly Cultural. (2020, April 07) Geert Hofstede’s Cultural Dimensions.
http://clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/
Elshanti, M. (2017). Transformational leadership style and organizational learning: The
mediate effect of organizational culture. International Business and Management, 15(2), 1-
14.
Galovan, A. M., Fackrell, T., Buswell, L., Jones, B. L., Hill, E. J., & Carroll, S. J. (2010). The
work–family interface in the United States and Singapore: Conflict across cultures. Journal
of Family Psychology, 24(5), 646.
Gopalakrishnan, G. A. N. A. K. R. I. S. H. N. A. N. (2012). Issues that influences the
effectiveness and efficiency of human resource management in and
organization. International Journal of Economics and Management Sciences, 1(6), 65-70.
Hamid, M., Maheen, S., Cheem, A., & Yaseen, R. (2017). Impact of human resource
management on organizational performance. Journal of Accounting & Marketing, 6(01), 1-7.
Hofstede Insights. (2020, April 07). Country Comparison. https://www.hofstede-
insights.com/country-comparison/singapore,the-usa/
Kang, H., & Shen, J. (2017). International Recruitment and Selection Policies and Practices.
In International Human Resource Management in South Korean Multinational
Enterprises (pp. 51-84). Springer, Singapore.
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International HRM 12
Melhem, I. B. (2016). Impact of the Human Resources on the Risk Management and the
Company Performance. International Journal of Economics & Management Sciences, 5(2),
1-5.
Parveen, M., Maimani, K., & Kassim, N. M. (2017). Quality of Work Life: The Determinants
of Job Satisfaction and Job Retention among RNs AND OHPs. International Journal for
Quality Research, 11(1).
Tahir, R., & Egleston, D. (2019). Expatriation management process. Journal of Workplace
Learning.
World Economic Forum. (2020, April 07). The Global Competitiveness Report.
http://reports.weforum.org/global-competitiveness-report-2018/country-economy-profiles/
#economy=SGP
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