International HRM: Recruitment, Training, Pay & Performance

International HRM

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Recruitment and selection ..........................................................................................................6
Training and development...........................................................................................................7
Pay and compensation.................................................................................................................8
Performance management ..........................................................................................................9
IHRM Trends and Future Challenges.......................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The report will be consisted of the external factors effecting the MNEs in managing an
international workforce, in dynamically changing environment. The factors are discussed such as
legal and political factor, that are changing country to country and creating different challenges
for the MNE's. The factors such as economic factors that are responsible for the countries to take
the advantages from the economically developing countries are discussed. In the cultural factors
the culture of the country is being discussed and how it is effecting the workforce of the country.
MAIN BODY
The management of human resources is very difficult when it is done in the different
culture, economics and legal systems but if the management is done in appropriate manner the
management pays off. The obstacles of human resource management is the difference in the
organisational and workforce values. Some challenges faced by the international HRM are:
Legal And Political Factors
The legal as well as the political factors varies with the countries. The firms like Marks
and Spencers are habitual for the political and legal stability. Some countries can changes the
presidents, governors, secretors as well as the representatives of the country but the legal systems
of the country are not altered by any of them (Bateman, 2019). The organizations like marks and
Spencers can be depended on the working and the functioning of the legal systems. In some
countries the government have the authority to change the parties. In many countries the political
and the legal systems are in the dictatorship, and they chose the powers to be used by certain
personal to buy the goods and the services from the foreign countries. In some countries there are
only one part rule and in some countries there various parties that rule the country.
The legal systems bring many problems to the business present over the seas they have to
deal with many factors while functioning at different countries, they have to follow the legal
rules and regulation of the certain countries. The norms in the countries are different as
compared to the ones in which marks and Spencers is founded. The organisation has to be
prepared for the any kind of changes in the countries they are serving their services. The
strategies are made according to the rules and the company have to decide when to ignore the
rules and when to consider the rules due to some political factors. The regulations that are
imposed on each country are different for the HR by detail as well as characteristics.

In many countries it is very difficult for the HR to impose any decision due to the
presence of laws of labour unions along with the laws of employment. Due to laws it is
becoming hard for the HR to decrease the number of employees in the company even if it is
becoming hard for the company to serve the former employees with the high salaries. This kind
of situations put the companies in lose. There are employment laws like employment
discrimination as well as harassment laws in some countries while in some countries the
discrimination of employment is an accepted due to political and ethical differences.
These factors are responsible for making the HRs decision-making practices very hard for the
business and the employees working in different countries. The HR need to consider different
laws and different political and ethical aspects before planning to start the organization in any
country.
Economic Factors
Economic systems of countries various differently. In some countries the modified
version of the communism is still working, after the known failure of the system. The
government is trying to involve in with more mixed models the to reduce the unemployment ad
lay-offs that are bloating many workers. The countries that are in their developing stages are
trying to make foreign investment so as create employments for the upcoming population. The
countries find these developing countries as the advantage for them as the countries work at very
cheaper rate as compared to the developed countries (Ali, 2017). The advantage of the countries
are also dependent on the value of the currency. In some situations, due to social instability the
foreign exchange of goods and services are completely banned. The cost of living in some
countries is expensive than others, this also impact the employees of the organization.
Cultural Factors
The culture of the organization is the beliefs, values, rules, regulations and principles that
an organization followed by the employees of the organization and the organisation itself. The
culture differ from different organization and likewise the culture of the countries change
accordingly. The culture of different countries can be understood by the conflicts based on the
religion and the ethical issues (Čepel, 2019). The working of different employees from different
groups and beliefs as well as the religion might get difficult in some countries and create ethical
differences.