Analysis of International HRM Policies and Practices Impact

This report delves into the intricacies of International Human Resource Management (IHRM), examining its policies and practices within a global context. It explores the differences between domestic HRM and IHRM, emphasizing the challenges of standardizing policies across diverse governmental regulations and cultural landscapes. The report analyzes various HRM policies, including health and safety, minimum wage, reward, equal opportunity, and compensation, and their significance in international operations. It also provides a critical evaluation of multinational companies like Avon, General Electric, and Coca-Cola, highlighting their IHRM approaches and the impact of globalization. The report concludes with recommendations for companies to develop unique and localized HRM policies while integrating multinational legislations and promoting regional diversification. It underscores the importance of adapting to local contexts while maintaining global objectives.

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Table of Contents
1. Introduction:................................................................................................................................2
2. Human Resource Management:...................................................................................................2
3. International HRM:......................................................................................................................2
4. HRM policies:..............................................................................................................................3
5. Critical evaluation of the multinational companies:....................................................................5
6. Conclusions:................................................................................................................................6
7. Recommendations:......................................................................................................................6
Reference list:..................................................................................................................................8
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1. Introduction:
The paper delivers the human resource policies and its impact on the company performance and
growth prospect. The study more focuses on the HRM policies and practices in the cross border
region to identify the most potential HRM policies and practices based on the nature of the
business and the preferences of the target region. In this context, Gomes et al. (2015) stated that
implementation of potential and suitable HRM policy ensures the desired level of workforce
performance and delivery of the expected outcomes through consistency and efficiency. Key
purpose of developing the study is to recommends the international companies on selection and
implementation of relevant HRM policies across the companies in different region to produce the
business oriented outcomes. The study furthermore, has incorporated some examples of global
industries to spot most suitable and relevant international HRM policy to apply the same
throughout the business in global platform.
2. Human Resource Management:
Human resource management is the section of a business that operates on the staff management
strategies and leading the organisational workforce towards business objectives and compliance
of the organisational policies. Therefore, human resource management coordinates the skills and
knowledge of the employees to incorporate the same in the operation for producing expected
outcomes (Gomes et al. 2015). However, Chung et al. (2014) opposed that human resource
management entails influencing workforce for technical and operational involvement integrating
the policies and practices with key goals. Thus, quality output and expected business production
also depends on the voluntary involvement and willingness of taking responsibilities rather than
being driven through instructions. The human resource management incorporates motivation,
rewards, instruction follow, communication, performance evaluation and interest of employees.
3. International HRM:
The international HRM is little different from the HRM as mentioned above in terms of HRM
standardisation and policy implementation. In the opinion of Caligiuri (2014), international
human resource management insists the company to procure, motivate and utilise the skills and
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knowledge of potential individuals in both domestic and international plant of the company.
Therefore, HRM at global context enlighten creating employment opportunities in local to
improve the state of the economies in global. Therefore, maintenance of the International Human
Resource Management is a big challenge for the company to maintain the workforce at both the
corporate section and the foreign or subsidiary firm operating in other territories. In that aspect,
difference in the government policies on human resource at different countries would create a
great obstacle in implementing a standard HRM policy and practice across the firm. Thus, under
the International Human Resource Management, the company needs to work on diversified
HRM policies according to the government rules and legal framework.
Based on the above discussion, it is clear that the global brands are highly focused on the IHRM
rather implementing the domestic HRM policies and procedures as it covers a broader area of
workforce management. Another reason for the development and execution of international
HRM is as follows:
1. Globalisation has influenced the mobilisation of the resources across the international region
rapidly to generate the flow of fund for better exchange rate.
2. The IHRM leads to an effective management of organisational staffs through integration of
local policies and regulations with traditional and typical HRM strategies of the host country.
3. Global operation of the HRM also leads to protect the company from underperformance due to
presence of alternative way of generating income through consistent performance and operation.
4. IHRM creates the network of a company across the global region that in turn shifts the
traditional or hierarchical organisational structure to a network organisation to conduct a better
and improved communication mechanism and shared value strategy.
4. HRM policies:
The HRM policies reveal the set of rules on the Human Resource Management on which the
workforce management and control is dependent. The policies assist the management of an
organisation to offer the benefits to the employees based on the national legislations and
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capability of the staffs. Following are some HRM policies that the company need to follow in
both domestic and international region.
Health and safety policy:
This is one of the necessary policies and government act that every organisation in the
international region needs to follow assuring healthy environment for the employees. The policy
also discloses that the workplace is free from occupational hazards and other physical and
psychological obstacles. In this regards, Cooke (2014) commented that assured workplace health
improve the commitment of the organisational staffs through development of proper
coordination and teamwork within and outside the particular task group. In the UK, the health
and safety policy is comparatively sound than the other territories. On the other hand, the policy
also entails the sustainability of the existing workforce and thus, production volume with assured
quality.
Minimum wage policy:
Minimum wage policy or act refers to the minimum amount to be disbursed to the employees
against the contribution of the same in allocated roles and responsibilities. Therefore, objective
of longer sustainability in the concerned industry influences the companies to offer the minimum
daily wage to the employee based on the responsibilities and capability of the staffs. In context
of this act, Weber et al. (2013) stated that the key purpose of this policy in an organisation is to
provide the money that would help the staffs in fulfilling the exact need of the staffs in the
livelihood. Thus, the amount of minimum wage varies over the countries and industries
operating in the same region.
Reward policy:
Reward deals with the return to the employees against the performance and dedication in the
allocated responsibilities. In most of the countries, the reward policy incorporates the financial
and non-financial benefits improving livelihood of the staffs or a part of the expectations.
Therefore, the types of rewards are also dependent on the current roles and responsibilities along
with the level of operation the staffs is working under. In the words of Dickmann et al. (2016),
rewards policy aims to motivate the staffs for better performance and improved production
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volume to attain higher profitability in future. On the contrary, reward policy often creates
additional cost in terms of pay packages, tour packages and incentives absorbing a significant
amount of profitability in future.
Equal opportunity:
Equal opportunity is another crucial policy to avoid the workplace hazard due to gender diversity
and account of physical disability. In this context, this policy in the emerging market or the
developing region is often breached due to lack of proper awareness and knowledge on the
impact of the inequality on company performance. In the opinion of Weber et al. (2013), equal
opportunity act is highly sound in economically developed countries like UK, US, Australia and
Germany where the capability and performance is measured with the same parameter
irrespective of the gender and other disabilities of the staffs.
Compensation policy:
Compensation is all about return to the staffs against the contribution to the company goals and
objectives. Therefore, the policy depends on the government rules and regulatory framework to
disburse justified compensation for the contribution of the employees in the company operation.
The compensation involves the retirement plan, delivery of injury compensation and
compensation against volunteer retirement from the current responsibilities. Therefore, based on
the government and accounting principle of the international accounting standard, the
compensations are disbursed on the basis of provident fund, tax laws and other monetary benefits
to the staffs.
5. Critical evaluation of the multinational companies:
Most of the global brands from different industries are shifting from the domestic HRM to the
International Human Resource Management to access the benefits of the same and disburse
better amenities to the staffs while involving the staffs in its profit and revenue generation goals.
Some of the companies having the plan to take the IHRM approach are Avon, General Electric,
Wipro, CocaCola, Honda and Toyota. In case of Avon, IHRM in the company has enforced the
management of the business in introducing the internet as an effective communication channel to
develop an improved and integrated communications system in generating sales and revenue. In
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this context, Dickmann et al. (2016) stated that use of online channels as communication media
has allowed the company workforce to share the knowledge and other internal information to
make appropriate and sound decision on the business operations. As IHRM increases the area of
operation across the globe, it also creates the opportunity to its existing staffs to work under
cultural diversity and staffs from distinct regional and traditional values. On the other hand,
implementation of IHRM in the global brands also creates the obstacle of resistance and thus, the
organisational conflict from diversified ethical and cultural values. Therefore, under the shade of
effective IHRM, companies have faced severe difficulties in terms of compliance of local and
national HRM policies aligning to the key goals and objectives of the organisations. In this
context, Weber et al. (2013) cited that maintenance of the cultural diversity within the company
would increase legal cost at global regions. Avon has also introduced the training within the
organisation at its domestic and foreign entities to attempt standardising the operational platform
for a unique and justified way of operating the business. Moreover, the regular leadership
program has also been an essential part of the IHRM program to develop efficient leadership
within the global operational platform. Moreover, from the statistics, it is also transparent that
the popular global brands as mentioned above are highly focused on the equal opportunities and
thus, introducing sufficient number of female candidates in the management and other
responsible business activities. In the words of Dickmann et al. (2016), the approach of women
empowerment and involvement in decision making leads to fulfil the needs of the female
customers automatically complying with the equal opportunity policy of the national
government.
6. Conclusions:
From the above discussion, it could be inferred that International Human Resource Management
is a broader area of implementing the Human resource policies at both the national and global
context. Thus, under the IHRM the global organisations would access the scope of operating
under cultural diversity and thus, improved business outcomes through shared value and flow of
information among the staffs. However, the same would also develop difficulties as the needs of
different counties according to economic state of the same. However, in presence of the benefits
of the company as well as the individuals working in the company, most of the large scale
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companies have attempted incorporating IHRM in its business operation to enlarge its
operational area and the scope of generating revenue for a longer financial sustainability.
7. Recommendations:
Unique HRM policies:
The global companies would follow its own HRM policy across the globe throughout its
operation in different regions. In that case, the global brand would consider the business goals
and objectives to develop suitable and most relevant HRM policies to be implemented at its all
sections and operational segments. However, such policy would need to incorporate the national
legislations and legal framework to look after proper compliance of its HRM practices. Hence,
such integration would further attain acceptance of the company practices to its authority to gain
further benefits from the same.
Combination of multinational legislations:
Unlike the above way of HRM practices, the international HRM practices would also combine
the cultural; diversity within its existing policies and practices to make the rules adoptable for the
staffs from different cultural background. Therefore, in the era of resource mobilisation, the
staffs would be transferred and recruited based on needs and capability to equally look after the
operation throughout the organisation.
Localisation and regional diversification:
Concentrating on the opinion of Jim Pinto, “Go Global, Think Local”, multinational
organisations would localise its policies and practices to gain active cooperation and legal
benefits from the local government and other commercial authorities. Therefore, through
localising the HRM policies based on the national culture and legal framework, the business
entities would be better run with distinct HRM policies at its foreign divisions. However, in that
case, the host countries needs to employ sectional authority in its each division to conduct better
coordination and compliance of HRM policies and practices, aligned to the key goals and
objectives.
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Reference list:
Caligiuri, P., (2014). Many moving parts: Factors influencing the effectiveness of HRM practices
designed to improve knowledge transfer within MNCs. Journal of International Business
Studies, 45(1), pp.63-72.
Chung, C., Sparrow, P. and Bozkurt, Ö., (2014). South Korean MNEs’ international HRM
approach: Hybridization of global standards and local practices. Journal of World
Business, 49(4), pp.549-559.
Cooke, F.L., (2014). Chinese multinational firms in Asia and Africa: Relationships with
institutional actors and patterns of HRM practices. Human Resource Management, 53(6),
pp.877-896.
Dickmann, M., Brewster, C. and Sparrow, P. eds., (2016). International Human Resource
Management: Contemporary HR Issues in Europe. Routledge.
Gomes, E., Sahadev, S., Glaister, A.J. and Demirbag, M., (2015). A comparison of international
HRM practices by Indian and European MNEs: evidence from Africa. The International Journal
of Human Resource Management, 26(21), pp.2676-2700.
Weber, W., Festing, M. and Dowling, P.J. eds., (2013). Management and International Review:
Cross-Cultural and Comparative International Human Resource Management. Springer Science
& Business Media.
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