International HRM: Importance, Practices, and Key Issues

This presentation discusses the importance of International HRM, its practices such as recruitment and selection, training and development, and cross-cultural issues. It also highlights the key issues faced by IHRM in a global level and provides strategies to overcome them. The case of Apple Inc. is used as an example to illustrate the application of IHRM.

INTERNATIONAL HRM

Table of content
 Introduction
 Importance of IHRM
 IHRM Practices
 Critical Analysis
 Key issues of IHRM in a global level
 Conclusion

INTRODUCTION
 HRM is referred to the strategic approach which is used to manage people in
organization that helps business to achieve competitive advantage.
 It is specifically planned to enhance employees performance to gain organization's
strategic objectives (Haak-Saheem, Festing, and Darwish, 2017).
 On the other hand international HRM refers as the set of activities for targeting human
resource management at the global level.
 It supports organization to meet their objectives as well creates competitive advantage
over competitors at national and international level.
 To understand IHRM role in international level there is an example of Apple Inc.
company.

Importance of IHRM
 According to Wilton, (2016) international HRM deals with both type management
such as personal management, strategic management and development of key staff
along with diverse cultures, religions and ethical values.
 Ihrm covers large number of fields from internal and external factors i.e. such as
diverse cultures in the local and international level (Horak, 2017).
 International HRM is quite different from normal HRM because they involve with
employees of diverse nationalities and cultural environment.
 Internal human resource management is the set of activities which has aimed to
manage human resource and global level for achieving employers objectives.

Cont.
 IHRM plays essential role within organization such as restructuring their organization
structure, technological changes, recruiting international employees etc.
 There are three major activities i.e. procurement, allocation and utilization.
International HRM perform various functions such as designing, organizing,
implementing, controlling and coordinating within organization.
 Ihrm functions are similar as HRM but major difference IHRM perform their function
at global level while HRM perform their functions based on organization.
 The main objective of ihrm is to generate awareness of cross culture sensitivities
among managers at international level and recruits key staff around geographical
boundaries.

Cont.
 On the basis of other perspectives Moore, and Jennings, (2017) has illustrated in their
published article is that most of the organization adapts IHRM approach because they
support to rise MNCs franchise in multiple countries.
 The main different between HRM and IHRM is that it provides training to employees
through cross cultural communication workshops and seminars to reducing barriers and
enhance team working across the cultures.
 As illustrated by Boella, and Goss-Turner, (2019) various multinational companies
emerges IHRM practices within business to achieve competitive advantage from global
market.

Cont.
 The main goal of the company to design product or service in such a way
that meets global customs objectives.
 IHRM department helps company to restructure organization so that
complexity create out so that competitors can't imitate their structure.
 For example currently Apple Inc. has hierarchical structure along with
divisional structure in which hierarchical structure is used for business
structure.
 while divisional structure is used for the product which is based on
grouping within Apple i.e. iOS and macOS.

Cont.
 Utilization is third activity of human resource which is used to maximize skills and
efficiency of HR and fruitfulness.
 Apple Inc. is famous as technology company which designs, develop and sells
customers electronics, computer software and online services.
 To tackle overall operation within company involves ihrm which supports organization
to promote brand image in international level.

Cont.
 However, some Horak, (2017) has criticized in their research paper is that Ihrm has
some disadvantage as well for example international human resource system requires
high cost to set up management at intentional level.
 It is time-consuming procedure because to set various operations within organization
at international level automatically will take time.
 Even some Reiche and et. al., (2016) has explained demerits of Ihrm through their
published articles.
 According to them ihrm requires high maintenance and top-level resources which they
can use to improve management practices which is major weakness of ihrm.
 Another limitation when ihrm is inefficient to create global strategy that automatically
can weak performance of employees within workplace.

IHRM Practices
 There are various practices of ihrm such as international staffing, training, compensation, cross
cultural issues, performance management etc. comprises to fulfil goal of the business.
 IHRM of Apple Inc, is more innovative nature which is practices three major practices such as:
Recruitment and selection practice
 IT is major practices of ihrm in organization because it helps them to get success in global
market.
 Apple Inc. invests high funds in recruitment and selection procedure so that can find the best
talent who can fit for organizational culture.
 Organization requires such kind employees who gives high efforts and commits activities of
the enterprises.

Cont.
 Ihrm doesn't promise to their employees on career progression but supports them to improve their
skills that automatically develop employees career within workplace.
 Ihrm recruits large number of talent beyond local boundaries so that gets right talent for right job
profile.
 Ihrm always search for new recruitment in different local market as regular sis so that access the
best talent who can help company to meet their objectives.
 To attract the best talent offers high incentives and job security policies by HR that helps
organization to screen out the best talent for vacant position.
 IHRM implements outsource agreement with IBM that also attracts employees to apply for job.

Cont.
Training and development :
 It is second practices of human resource which is used at international level.
 IHR applies unique training approach which gives assurance to employee that they are
equipped with right skills for the job.
 Human resources encourages employee to develop innovative skills while working at
workplace (Lee, Lin, and Huang, 2017).
 Manager uses different approach for assigning roles in diverse teams.
 For example HR assigns several team for particular task so that they perform well.

Cont.
 Organization has goal to make team multitasker so that easy to create sustainability in
global market (Reiche, Harzing, and Tenzer, 2018).
 Apple Inc. is popular as innovative company across the world because it allows
employees to create creativity and think out cultural free.
 Internation human resource invites employees in meeting where encourages them to
brainstorm and come up with new full of innovation.
 Organization doesn't conduct training program but boots them to learn new skills on
their own (Ayentimi, Burgess, and Brown, 2018).
 The main goal of such kind learning is that to receive incredible returns which
contributes by employees for the development of organization.

Cont.
Cross cultural issue
 It is important for organization because it helps company to raise brand image in global market and
achieving competitive advantage over the global competitors.
 HR uses various tactic to know about competitors activities against organizations.
 The biggest competitors are Samsung, HTC and Nokia for Apple Inc. which can give impact on
revenue of company in global market.
 International human resource management encourages employee to create creativity at workplace so
that they can put pressure on competitors and achieves competitive advantage over them (Wood and et.
al., 2018).

Cont.
 Ihrm makes succession plan for organization to achieve competitive advantage at
international level.
 Human resource leads cultural diversity within workplace so that get high level
innovation in their product or services.
 Thus, ihrm plays important role within Apple company and creates sustainable plan
which helps to take competitive advantage at national and international level.

Critical Analysis
Recruitment and selection practice
 Recruitment and selection practice is the important approach that is used by Apple Inc.
 But it has some drawbacks as well such as it is time-consuming approach.
 The selection practice contains three methods i.e. aptitude test, GD and personal interview.
 Aptitude Test is not good for selection process because there are numerous people who have different
skills as compared academic skills (Brewster and et. al., 2016).
Training and development :
 As same training and development has some demerits i.e. it is time-consuming and costly process.
Knowing the competitors in the market:
 To know the competitors is another practice of ihrm which they apply to analyze Apple’s competitors.
 his practice requires high maintenance and deep research which is major drawback of the practice.

Key issues of IHRM in a global level
 As per the view of Brewster and et. al., (2016) There are various issues which is faced
by ihrm such as cross cultural training, communication issues, compliance with laws
and regulation.
 For example cross cultural training is the biggest challenge for IHRM because they
have to manage different cultural employee who have different thoughts, prestige and
each employee wants give priorities to their views.
 Ihrm sometimes have to face conflict among employee while assigning task in team
during training (Đorđević, 2016).

Cont.
 However some Shah and et. al., (2016) has illustrated in their published research paper is that compliance
with law and regulation which is also given a big challenge to international human resource management.
 Manager sometime have to follow employment policies which are different in various places across the
world.
 To assigns task in several employees is also considered in big challenge because most of the employees can
think they treat unfairly at workplace.
 Ihrm faces issues when implements strategy at global level because most of the time employees resist to
follow, in that state ihrm have to take in favour of overall employee to give supports (Lee, Lin and Huang,
2017).

Cont.
 Even they have to prepare employee to perform well at workplace.
 Thus, kind challenges are faced by ihrm while handling in global level.
 However some Bratton, and Gold, (2017) has illustrated through their published
articles is that ihrm can overcome these issues by implementing strategic plan.
 For example to resolve cultural training issues can conduct cultural program that gives
values to each employee and improves understanding among them.
 To resolve communication issue can offer communication classes that can reduce
communication barrier and improves their efficiency level.

CONCLUSION
 It has been concluded significance of international human resource management.
 IHRM practices such as training and development classes, recruitment and selection
strategy has been summarized in report.
 It can be concluded key issues of ihrm practices such as cultural training issue,
communication issue, compliance with rules and regulation, new technology change
and adaption of innovation can be summarized in report.

REFERENCES
 Ayentimi, Burgess, and Brown, 2018. A conceptual framework for international human
resource management research in developing economies. Asia Pacific Journal of Human
Resources. 56(2). pp.216-237.
 Boella, and Goss-Turner, 2019. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
 Bratton, and Gold, 2017. Human resource management: theory and practice. Palgrave.
 Brewster and et. al., 2016. International human resource management. Kogan Page
Publishers.
 Dickmann, Brewster,and Sparrow, 2016. International human resource management:
contemporary HR issues in Europe. Routledge.
 Đorđević, 2016. Impact of national culture on international human resource
management. Economic Themes. 54(2). pp.281-300.