International Human Resource Management: Issues and Challenges

The essay analyses the human resource management based issues that are being faced by the HR manager of an organization named BlueScope Steel which is planning to relocate its operations from Port Kembla in Australia so that a subsidiary of the company which is located in Ontario, Canada can be managed in an effective manner. The essay discusses the general HRM issues and differences in cultures of the countries, employee relations issues, and the Hofstede model of country comparison.

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Introduction
The operations of human resources across the boundaries of different countries is
sometimes quite difficult for the organizations. The companies which are planning to extend
their operations worldwide need to face some major issues in the management of human
resources in an effective manner. The differences that are evident in the cultures of two
different countries have an impact on the ways by which employees behave (Amine, 2012).
The aim of the essay is to analyse the human resource management based issues that are
being faced by the HR manager of an organization named BlueScope Steel which is planning
to relocate its operations from Port Kembla in Australia so that a subsidiary of the company
which is located in Ontario, Canada can be managed in an effective manner (Bluescope.com
2018).
General HRM issues and differences in cultures of the countries
The relocation of the operations of an Australian organization named BlueScope Steel
to Canada will be based on many external factors which are able to affect the operations of
the company and the human resource manager. The differences in steel related tariffs
between both the countries and the spending levels of the governments in different sectors
will play an important role in deciding the future of the company in Canada. The federal
government of Canada is led by the Prime Minister of the country who leads different
departments. The steel tariffs that have been decided by the government of USA is able to
affect the ways by which BlueScope Steel aims at gaining profits in an effective manner
(Trump's tariff announcements starts doomsday clock for Australian industry, unless Turnbull
acts now | The Australian Workers' Union - National 2018). The Canadian Visa which is
based on immigration of workforces mainly falls under the Provincial Nominee Programs
which will be affect the work process of HR managers as compared to that in Australia. The

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spouse of HR manager of the company needs to apply for a work visa in order to work in
Canada. The children of HR manager thereby need to apply for study permit in order to study
in a school in Canada. The HR manager will also face many language barriers which can be
mitigated with the time that is spent in the industry (Campolieti, Hebdon & Dachis, 2016).
The religion based differences among the two countries will also play an important
role in deciding the culture that is to be followed within the organization. The decision that
has been taken by the US Government to exempt Australia from US steel tariffs has proved to
be a major positive point for the management of Blue Scope Steel. The tax rates in Australia
are higher as compared to that in USA and Canada. These differences are the most important
factors which are able to affect the prices of products that will be manufactured by the
company in its production plant in Canada (Campolieti, Hebdon & Dachis, 2016). For
example, the HR manager will thereby pay less taxes based on his income as compared to
that paid in Australia. The rate of tax increase is also quite less in Canada. The workforce of
the organization consists of people who are immigrants in Australia. The HR manager
thereby needs to organise the documents that are required by them in order to gain permission
to work in Canada.
The Hofstede model of country comparison can be used by the organization in order
to analyse the differences that are evident between cultures of the two countries. The power
distance score of Canada is higher as compared to that of Australia which means that the
hierarchical levels in the organizations of Canada are more. On the other hand, the
individualist score of Australia is higher than that of Canada. This depicts that the society of
Australia is more concerned about the well-being of themselves as compared to that of the
others. The Australian society is more masculine as compared to that of Canada with a score
of 61 in this dimension (Choudry & Thomas, 2013).

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The level of uncertainty avoidance is also slightly higher in case of Australia as
compared to that of the Canadian society. The score that has been received in long-term
orientation of the country is however higher in case of the Canadian society which shows
that they are more capable of planning for a long term than the Australians. The score in the
last dimension of indulgence is higher for Australia which means that the Australians are
slightly more capable of controlling their desires as compared to the Canadian people. The
managers thereby need to analyse these factors before they start supervising the employees in
their new area of operations (Kelly & Underhill, 1997).
Employee relations issues - The labour based laws that have been implemented in
Canada are different from that of Australia. The working hours of the employees are
different, which is considered to be longer in Canada as compared to Australia. The labour
based unions are much more active in Canada which helps them to easily fight for their
rights. This is not quite possible in operations of different organizations in Australia. The
labour laws in Canada are less rigid as compared to that of Australia. The human resource
manager needs to be aware of the ways by which he can manage the employees who follow a
different work culture as compared to his home country. The cultural differences need to be
considered by the HR manager so that he is able to effectively take part in different
operations in the new area of operations (Immigration, 2018).
The higher levels of hierarchy which are present in the organizations of Canada needs
to be followed by the human resource manager. The system of work will also change in the
process and the manager will need to take care of the old as well as the new or local
employees. The major responsibility of the manager is to take care of the diverse group of
employees and their needs. The maintenance of diversity levels in the organization is
important so that the organization is able to operate in the country in an effective manner
(Pm.gov.au 2018).

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Conclusion
The essay can be concluded by stating that the human resource manager of BlueScope
Steel needs to analyse the cultural differences between the two countries in order to decide
the operating style. The managers have a huge responsibility to increase the levels of
interaction among different employees in the new area of operations. The changes that can
take place in the international operations based policies of the company also needs to be
analysed by the manager in an effective manner. The proper analysis of different laws and
regulations can also play an important part in starting the operations of BlueScope Steel in
the country.

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References
Amine, S (2012), “’Low-skilled’ work in Canada”, Economic and Labour Relations Review,
vol. 23, no. 4, pp. 91-100.
Bluescope.com. (2018). BlueScope welcomes US steel exemption - BlueScope Corporate.
[online] Available at:
https://www.bluescope.com/about-us/bluescope-news/2018/05/bluescope-welcomes-
us-steel-exemption/?filter=&page=1&year [Accessed 7 Aug. 2018].
Campolieti, M, Hebdon, R & Dachis, B (2016), ‘Collective bargaining in the Canadian public
sector, 1978-2008: The consequences of restraint and structural change’, British
Journal of Industrial Relations, vol. 54, no. 1, pp. 192–213.
Choudry, A & Thomas, M (2013), ‘Labour struggles for workplace justice: migrant and
immigrant worker organizing in Canada’, Journal of Industrial Relations, vol. 55, no.
2, pp. 212-226.
Immigration, R. (2018). Government - Canada.ca. Retrieved from
https://www.canada.ca/en/immigration-refugees-citizenship/services/new-
immigrants/learn-about-canada/governement.html
Kelly, D & Underhill, E (1997), ‘Australian steel: A corporatist transformation?’, in J Kitay
& RD Lansbury (eds), Changing employment relations in Australia, Oxford
University Press, Melbourne, CQUniversity Course Resources Online (HRMT20025).
Pm.gov.au. (2018). Australia welcomes US steel exemption | Prime Minister of Australia.
[online] Available at: https://www.pm.gov.au/media/australia-welcomes-us-steel-
exemption [Accessed 7 Aug. 2018].

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Trump's tariff announcements starts doomsday clock for Australian industry, unless Turnbull
acts now | The Australian Workers' Union - National. (2018). Retrieved from
https://www.awu.net.au/news/trumps-tariff-announcements-starts-doomsday-clock-
australian-industry-unless-turnbull-acts-now