International Human Resource Management Challenges and Future Implications

This report highlights the challenges faced by Wal-Mart in international human resource management such as cultural changes, training and development, legal compliance and regulation changes. It also discusses the future implications of these challenges and provides recommendations for improvement.

HRM
International Human Resource Management
Student’s name
9/15/2019

International Human Resource Management 1
Executive Summary
This particular report mainly highlights about the international challenges, which are by
companies. Similarly, Wal-Mart one of the well-known Australian companies who also faced
certain challenges such as cultural changes, training and development aspects, legal compliance
and regulation changes, which somehow has majorly affected the business outcomes at large.
Similarly, this report also talk about its future implication of these they have a major impact over
the companies’ productivity and the total outcome as success. Moreover, Wal-Mart has adopted
technological changes, adopted creative and innovative techniques, having knowledge about
labor laws of different countries to improve its performance and success in longer perspectives.
Future recommendations are also given in which, company needs to improve its training aspect
for retaining employees, learning the diversity aspects, cultural aspects and lastly, to foster
success company needs to adopts technological changes, innovation and creativity in its working
criteria to generate longer success.

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Contents
Introduction......................................................................................................................................3
Company Overview.........................................................................................................................3
Contemporary issues and challenges Affecting international human resource management..........4
Future implication on international human resource practices........................................................5
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
Human resource management mainly highlights about the various organizational
activities that mainly aimed at managing and directing the human resource so that the
organizational goals and objectives can be fulfilled. Other than this, the main aspects which
human resource comprises of recruitment, selection, training and development, appraisals and
lastly, managing promotions (Luthans, & Doh, 2012).
In term of international human resource management, it mainly defines about the
activities and managing the organizational human resource at international level so that
organization set objectives can be fulfilled and should achieve competitive advantage over their
competitors. All function, which HRM carries, similarly, IHRM also carries but other than this,
certain additional activities such as global skills management and expatriate management are
included (Deresky, 2017).
Company Overview
When we talk about Wal-Mart, it is one of the largest retailers in United States and
further the company handles it further operations through super centre and discount stores.
Moreover, their operations are also taken into China, United Kingdom, Japan and lastly Brazil.
When we consider its strongest point, it has an effective distribution system along with the
effective inventory management system.
It is seen that when a business expand itself into the global market, they hire employees
from the diverse groups and cultural backgrounds and accordingly company needs to adapt the
new labor laws and tax liabilities. Similarly, Wal-Mart has also faced various and numerous
challenges in relation to the international human resource management. Challenges mainly
highlights about the globalization factor, cultural aspect, training and development aspect.
Lastly, recruitment factor, which majorly affect the international human resource management.

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Contemporary issues and challenges Affecting international human
resource management
When we talk about the Wal-Mart, it is one of the leading companies, which has
expanded its operations in international grounds. Similarly, when a business expands into a
global market, company do hire from the international source so, the major issues which are
faced by the company is compliance with the international laws, this is all because, these laws
makes the situation even more complex and sometimes difficult to operate in the newer market
for the company. Similarly, when Wal-Mart diversified its business globally, they also faced the
compliance issue, which made their business at initial complex to carry their operations. Hence,
it can be maintained when a company keep themselves well informed with all the legal
requirements for the business operations, which further helps them in, alleviate some of complex
operation and reduces the chances of landing in legal issues (Schuler, Jackson, 2014).
Other than this, while going international many companies also faces an issue of
globalization over human resource aspect in includes current as well as newer employees who
are considered by company for its newer operations. Globalization mainly highlights about the
laws, culture and the norms that are to be considered when company is designing its HR
regulations. Other than this, this also includes market competition, lack of skilled workers,
changing technologies and changing careers. In this, newer employees’ takes time to settle in,
newer technology factors also majorly influences the productivity at large (Sparrow, Brewster, &
Chung, 2016).
Another factor, which mainly affects the International human resource management,
mainly highlights about the cultural differences. As it is very hard for the organization to
understand and maintains the cultural diversity aspect. As it is always seen that working with the
people who are from different locations or from different cultural backgrounds means the
company needs to develop the new ideas, newer ways communication along with the they will
also face challenge in relation to the unfamiliar social practices. Similarly, Wal-Mart also faced
when they entered into the china, United Kingdom and many other countries faced the similar
cultural issues. As every companies has its own cultural norms, which mainly includes
communication differences, status differences, reward and recognition and gender roles (Cascio,
& Boudreau, 2016).

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Moreover, another factor which is affected or taken as challenges, which majorly affect
the international human resource management, is training and development aspect, As training
programs mainly encompass the in-house seminar and meetings which are designed and given to
employees on the job knowledge of skills which are important for doing business globally.
Similarly, when Wal-Mart has expanded its business in an global market they have also faced
issues regarding training and development of employees who are from the diverse fields and
countries. Hence, it was seen that people from the different culture and countries responded
differently to the same aspects. So for that, company should have to generate the cross trainings
to the employees and leads to the betterment of the future conditions (Brewster, et al, 2016).
Future implication on international human resource practices
When we talk about the future implications, the challenges that the company faces while
going global mainly highlights about the cultural changes,, globalization, training and
development challenges which mainly affects the future of the company badly. As due to these
reasons company in future on international aspect will not be able to grow, retain and reward
talented candidates because there will be lack of effective training and development and due to
this employees will be able to perform effectively and due to this, the company performance will
be degraded than before (Stahl, et al, 2012).
Other than this, an ineffective culture will be unable to establish healthy and cooperative
corporate culture. Moreover, it will majorly affect the productivity of the company for a longer
run. If there will be insufficient culture knowledge the company will not be able to perform
better on an international ground and thus, it will affects the productivity along with the
employees relations with the company.
Other than this, the company with such challenges will not be able to attract the top
talents to the organization and thus, again it is badly harm the productivity and success of the
organization in long run. Because it is seen that for every organization, when it moves over
international way, they need to recruit the best talents so that the organization can perform at its
best on an international ground, so for that organization needs to develop proper training and
development aspect so that they perform (Shaffer, et al, 2012).

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Company moving on to newer country will surely face the cultural change for that, if the
company will not adopts their technological change. Then, they will not be able to perform
better, work will be carried out effectively and without flexible working environment, none of
the organization will not be able win over the international level and will definitely affects the
international human resource management negatively.
Compensation aspect will also be affected because if the company wants to work more
productively then company should start offering more rewards and packages for attracting more
of fresh and newer talents. If not, then again the company has to bare a major loss in terms of
productivity as well as overall performance for the longer run. Other than this, every country has
its own compensation aspect on which the employees are having their salaries, and if the
company will not be able to provide that much salary to those employees, then they will be able
to performance better for future in that particular company (Noe, et al, 2017).
Other than this, if the company will not be able to give the best training and development
aspects to their employees then they will not be able to perform best and due to this, such factor
will affects the career advancement opportunities for employees for future, furthermore, it is also
affects the companies productivity at large (Briscoe, Tarique, & Schuler, 2012).
Recommendations
Company in this concern needs to improve its training and development aspect so as to
retain and target the best talent in the organization. Other than this, the company should focus on
the employee retention strategies including fostering and appealing to company culture, engaging
employees by offering incentives and recognitions leads to the betterment for the employees as
well as organization in the international aspect for longer period (Schuler, Jackson, & Tarique,
2011).
Other than this, the company needs to adopts the various cultural awareness programs to
an organization so that employees can recognize the benefits of diversity like adoption of better
ideas, innovation and wider candidate reach. Moreover, it is equally important for the
organization to adopts and organize the team in building exercises and give various opportunities

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for employees from the diverse culture so that to accomplish the companies aspect along with the
employees perspectives also (Schuler, Jackson, & Tarique, 2011).
Other than this, the best way to overcome these challenges, it is really important to
generate proper training to the employees with the clear career progression path. As such aspect
helps the employees on gaining assurance, job security and along with this, company also
understand them value them and sees leadership potential in them so that it benefits both the
employees in their performance aspect and company in its productivity aspect.
In terms of future, company needs to foster innovation, improve its working aspects and
also needs to work with the changing diversity aspect, they needs to keep in knowledge about the
various factors of the different countries and also upgrade the levels of employees with the better
equipped for the future employees through technological aspect, training and development
aspect. As by providing soft skills and hard skills to employees, this will helps in overcoming the
fear of change and through this, they will feel more secure and capable to embrace change
(Schuler, Jackson, & Tarique, 2011).
Other than this, if a company is working on international grounds, every companies HR
duties is to keep knowledge about the laws and regulation of the local, state or weather
international. As different labor laws and other regulations in the countries from hiring practices
wage payment to workplace safety is to be considered as this aspect helps the company to make
employee retain for the longer period and will also help employees from the bigger losses which
may arises if the company has no knowledge about laws of that particular country.
Lastly, for the betterment of the company international human resource professional
needs to support the international business operation through making team for the diverse group
all together. This all can be done when company starts with conducting team building
workshops, promoting acceptance of cultural diversity and along with this, also motivating
employees to achieve organizational goals and along with this, helping company to build the
strong teams. Foe all this, the company needs to adopts creativity and innovative techniques and
along with this, they also needs to generate awareness about how teams can function effectively
across borders to maintain company profitability in long run.

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Conclusion
From the above report, we can conclude that Wal- mart is one of the famous companies
with its best human resources practices. However, when we do talk about the international
human resource management factors they too have faced certain challenges such as cultural
change, training and development change, legal compliance and regulation changes, which
somehow has majorly affected the business outcomes at large. Similarly, when we do talk about
its future implication of these they have a major impact over the companies’ productivity and the
total outcome as success. As if the company is going international every countries has its own
laws, regulations, technology aspects, employees knowledge skills, training and development
aspect which highly affects the companies outcome and its productivity at large.
Therefore, for the betterment of the companies’ outcome certain recommendations are
made such as adoption of various technologies for upgradition of knowledge and productivity.
Other than this, company should have knowledge about the other countries labor laws and
regulations for better operations in terms of salary to employees. Moreover, company should also
adopts various techniques of training and development so as to retain employees for the longer
period and such aspect will also help company to improve its productivity for longer period.

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References
Brewster, C., Vernon, G., Sparrow, P., & Houldsworth, E. (2016). International human resource
management. Kogan Page Publishers.
Briscoe, D., Tarique, I., & Schuler, R. (2012). International human resource management:
Policies and practices for multinational enterprises. Routledge.
Cascio, W. F., & Boudreau, J. W. (2016). The search for global competence: From international
HR to talent management. Journal of World Business, 51(1), 103-114.
Deresky, H. (2017). International management: Managing across borders and cultures. Pearson
Education India.
Luthans, F., & Doh, J. P. (2012). International management: Culture, strategy, and behavior.
New York: McGraw-Hill.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Schuler, R. S., Jackson, S. E., & Tarique, I. (2011). Global talent management and global talent
challenges: Strategic opportunities for IHRM. Journal of World Business, 46(4), 506-516.
Schuler, R., & E. Jackson, S. (2014). Human resource management and organizational
effectiveness: yesterday and today. Journal of Organizational Effectiveness: People and
Performance, 1(1), 35-55.
Shaffer, M. A., Kraimer, M. L., Chen, Y. P., & Bolino, M. C. (2012). Choices, challenges, and
career consequences of global work experiences: A review and future agenda. Journal of
Management, 38(4), 1282-1327.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management.
Routledge.

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Stahl, G., Björkman, I., Farndale, E., Morris, S. S., Paauwe, J., Stiles, P., ... & Wright, P. (2012).
Six principles of effective global talent management. Sloan Management Review, 53(2),
25-42.