International HRM Practice: A Case Study of Microsoft in India and Sri Lanka

MICROSOFT
INTERNATIONAL HRM PRACTICE

Table of Contents
INTRODUCTION........................................................................................................................2
TASK 1...................................................................................................................................... 3
A IDENTIFY AND DISCUSS THE COMPLEXITIES INVOLVED IN ENTERING A GLOBAL MARKET
............................................................................................................................................. 3
B PROPOSES ONE POSSIBLE INTERNATIONAL DEVELOPMENTAL STRATEGY THAT
MICROSOFT MIGHT ADOPTS IN INDIA AND SRI LANKA. EVALUATE THE BENEFITS &
LIMITATIONS OF PROPOSED STRATEGY AND DISCUSS HOW THE HR FUNCTIONS COULD BE
AFFECTED BY IMPLEMENTING IT WITHIN PROPOSAL...........................................................5
TASK 2...................................................................................................................................... 7
EVALUATE SRI LANKA USING IDEAS FROM HOFSTEDE'S MODEL OF CULTURAL
DIMENSIONS OR OTHER SOURCES TO PREPARE A SHORT REPORT ON SRI LANKA FOR
FUTURE EXPATRIATES.......................................................................................................... 7
B HIGHLIGHTS THE ISSUES OF ‘CULTURAL SHOCK’ TO DISCUSS WHAT MEASURES SHOULD
BE TAKEN TO PREPARE AND MOTIVATE AN EXPATRIATE EMPLOYEE FOR A NEW OVERSEAS
ASSIGNMENT. SUPPORT THE DISCUSSION BY EVALUATING DIFFERENT TYPES OF REWARD
& COMPENSATION PRACTICES THAT COULD BE OFFERED TO MOTIVATE AN EXPATRIATE
FOR A NEW OVERSEAS ASSIGNMENT...................................................................................9
CONCLUSION AND RECOMMENDATIONS..............................................................................11
BIBLIOGRAPHY........................................................................................................................12
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INTRODUCTION
To cope up with the increasing and mounting phase of globalisation, the businesses are in
need to adopt respective business processes in a context to developing globalisation
process. To facilitate a successful business, the organizations are dependent on the human
resources and managing them is a function based on the expansion and integration of
responsibilities for holding a great position in the international market (Brewster, et. al.
2016). The international human resource management describes that the approach ‘one-
size-fits-all’ is not useful anymore to manage the workforce in the international business
market. IHRM stands for international human resource management and it is a concept
described as organizations using a set of actions and methodologies for managing the
human resource at an international level (Sparrow, et. al. 2016).
This analysis is based on the multinational company Microsoft. The company was founded in
the year 1975 and it is known as the leading software solutions, devices and services across
the globe. It is an American company and has subsidiaries in more than 100 countries
(Microsoft, 2018). Microsoft was the first company to focus on the international market
together with domestic market and this was the main concept which made the company
grow globally (Shaw, 2014). The development in the hardware of the computers made it
easily accessible for the companies and even families too since the year 1995 and as
Microsoft was already number 1 in the development of user-friendly operating systems; it
grew the opportunities for the company to develop globally. The Microsoft operating
system Windows '95 was the major product designed by the company which opened the
door of a mass market for Microsoft. This made the company focus on the global market of
operating systems for personal computers (Shaw, 2014).
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TASK 1
A IDENTIFY AND DISCUSS THE COMPLEXITIES INVOLVED IN ENTERING A
GLOBAL MARKET
Making the business globalised describes approaching new customers to enhance the profit
margin but to grow potentially, there are some risks and challenges a company face while
establishing an overseas area. To hire talented, skilled and trustworthy employees is the
biggest challenges a company face when developing internationally (Hitt, 2016). There are
many factors to be considered by the companies when expanding globally.
The most important factor and complexity for the companies is the company’s structure at
an international level along with the team locations (News, 2017). It is the biggest challenge
for the companies to follow the international company structure and hiring experts from
local market will be helpful as they are more knowledgeable regarding the target market of
the company. Finalising the structure makes the company focus on the legal issues and
regulations of the international country of the target market. Understanding the rules and
regulations of the international market is a very complex feature to gain a comprehensive
understanding of the target market (News, 2017). As the rules, regulations and taxation
policies of a country differ from another, focusing on the tax implications and trading laws
makes the company to business success in the international market. Adopting the
regulations and employment policies that are different from the USA has made Microsoft
achieve great global expansion (Bartlett and Beamish, 2018).
Managing the accounting functions of the multinational organizations is one of the most
complexes and challenging part as adopting the most appropriate accounting strategy is
helpful for the organizations to enhance the profit revenue. Adopting the best and global
pricing technique to position the brand value in the market is a challenging part as it can
also cause the company to face loss sometimes (News, 2017). Considering the competitive
strategy and still gaining a good profit share is a complex strategy.
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