International Human Resource Management - Doc

International HRM

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION ..........................................................................................................................1
TASK ..............................................................................................................................................1
1 National culture of Canada..................................................................................................1
Management of Canadians Workforce...................................................................................1
National policies.....................................................................................................................2
Culture theory.........................................................................................................................2
Language, age.........................................................................................................................3
Religion, ethnicity, behaviour................................................................................................3
Difference between Canada and Swedish..............................................................................3
2 Reward system.....................................................................................................................4
3 Perlmutter EPRG.................................................................................................................7
CONCLUSION................................................................................................................................9
RECOMMENDATION...................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................12

EXECUTIVE SUMMARY
HRM is an effective process of managing as well as controlling workers activities with
the purpose of attaining set goals and objectives in appropriate time frame. In this, IHRM is also
concerned about issues that arise in business at international level. This report is going to
discussed about international human resource management which is based on Lundin Petroleum,
is famous oil company in Sweden. Along with this, report cover national culture of Canada,
national policies, religion, behaviour ethnicity. Differences between Canada and Swedish is also
cover in this assignment. In addition of this, reward system are important for employees to
improve their performance level. Maslow's Hierarchy of needs, Herzberg theory is also going to
discussed in project to motivate Canadians workers at workplace. Perlmutter EPRG is also an
effective approach which include in this report. All these are help in making a successful
business at market place.

INTRODUCTION
Human resource management can be defined as an activity which help in managing
human resource in organization at international level in order to attain competitive advantage.
Mainly it includes HRM functions such as recruitment, selection, training and development,
performance appraisal at international level. IHRM is concerned with management issues
relating to workforce on international level (Almond, 2011). In this context, the main purpose of
IHRM is to capture competitive advantage by hiring as well as improving skills and productivity
of the workers With which company can easily enhance their performance level at international
market. Current report is based on Lundin Petroleum, is the famous and largest oil company in
Sweden. Mainly, they operate in Norway and presently they provide employment above 500
person in seven various countries. This report discussed about national culture of Canada and
cultural differences. Along with this, reward system are also mentioned in this report which
would be appropriate for a Canadian workforce in context of employment. At last, Perlmutter's
EPRG taxonomy is also mentioned in this report.
TASK
1 National culture of Canada
Canada is a diverse and large country in North America and it is also a second largest
country over the world. Along with this, country also consists of 10 provinces and 3 territories.
The culture of Canada substantiate the humour, musical, political and social elements which are
representative of Canadians and Canada as well. As per country history, its society is highly
influences by European culture. In addition of this, the population also influenced by the
American culture this is because of shared language, migration between two countries. Federal
government of Canada is defines as instigator of multicultural ideology because the public give
social importance of immigration. In addition of this, government of Canada also influenced
various culture with programs, institutions to make better culture. In context of this, Canada
culture and customs are very unique and distinctive (Delbridge, Hauptmeier and Sengupta,
2011). It is a country with dual nationality like French Canada and English Canada.
Management of Canadians Workforce
Canadians people are considered as one of the most hard-working individuals in terms of
performing their task in a systematic manner. As Canadian people are having good knowledge
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and education in which they easily perform their duties within the organization. The
egalitarianism and diversity are required to be emphasized by the managers of Lundin Petroleum
if they wish to manager workforce in the ideal manner (Scullion and Collings, 2011). Hierarchy
in business is not really emphasized and employees are nurtured with undertaking of
participative approach and are persuaded to share their views and concerns relating to business.
Short term planning by a business is not encouraged and change is mostly accepted by the
capable Canadian workforce.
National policies
National policies of Canada is combined three core elements such as infrastructure, tariffs
and population growth. It has been observed that every organisation possess their own legal and
regulatory framework in all the major grounds inclusive of human resources. The framework has
been developed in close consideration to the business practices, religion, culture and geographic
environment. The employment protection law which has been formed by the U.S. Government is
applicable. The recruiters are required to provide a notice of termination along with a valid
reason for employee exiting. The one thing that stands crucial is diversity which has been
emphasized in the country more than ever. Therefore it is crucial for employers to make sure that
biasses on any grounds is not acceptable on this soil. HR can be considered as one of the
regulated professions in the country, therefore need to conform with the government policies and
practices. Collaboration and time-bound activities are cherished and failure to implement both
these aspect is loss of management.
Culture theory
Culture stands vital for an organisation as it influences various sector in a business
environment such as practices and approaches to a task. The multiculturalism in the Canadian
market is strongly emphasized and respected. The culture in country is mainly influenced by the
Roman Catholics as they comprise of determining 38.9%. The culture theory undertaken helps in
understanding dynamics and periphery in the upcoming market. It is essential for a business to
consider these factors so that workforce in the organisation could be rightfully communicated
along with maintaining respect to their culture and ethnicity (Paik, Chow and Vance, 2011).
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Language, age
The official languages spoken in Canada is English, French. Mainly, many more people
are speak English more than French. In addition of this, English takes priority in all type of
language. In Median age (46.92 years), Canada ranked 79th which is 4% more than Sweden and
population aged 0-14, country ranked 112th. Along with this, Canada is ranks in top 5 of world's
best place to grow old (Country vs country: Canada and Sweden compared: People stats, 2018).
In this, Canadians should feel lucky in their golden years because as per United Nations- backed
study. In this, Canada provide pension program to old age people to secure their life in upcoming
time frame.
Religion, ethnicity, behaviour
Religion: Religion is the important factor which help HR manager of organisation in
formulation of working practices as per their needs. Around, 67.3% Population in Canada was
Christians. 23.9% individuals are following no religion of the total population. 3.2% individuals
are Muslims in Canada. So, it is important to consider their religious needs while framing any
working policies.
Ethnicity: It is referred as group of people having similarities in each other on the basis
of language, religion and culture. It was observed that Canadian is the largest ethnic group
required to consider by HR manager of Lund-in Petroleum.
Behaviour: It is referred as the way which is used by some one to act towards others. It is
important for HR manager to frame common ethical conducts which are followed by employees
within the organisation.
Difference between Canada and Swedish
Swedish
 Business culture of Swedish is characterised on the basis of business communication,
etiquette, work-life balance and cost of living. Therefore, for conducting business in this
country, a person needs to formulate a proper plan first. As due to different culture, it will
impact negatively on outcomes of business as well. Ventures of Swedish used to give much employment to citizens only so that level of
standardisation of them can be enhanced.
Canada
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 While culture of Canada is relatively much different. It has much different culture depend
upon region. Business tycoons are needed to understand legislation of this country so that
they can conduct activities in profitable manner.
 As compared to Swedish, ventures of Canada doing their business in competitive manner.
For this process, they used to hire employees of different culture so that innovative ideas
of them can be gained (Janssens and Steyaert, 2012).
2 Reward system
Workers are the important assets for every business organization as they contribute in
enhancing the profitability level of the company. For this firm also provide reward system to its
employees to motivate and encourage employee to fulfil the tasks with their full potential. . The
undertaking of suitable rewards system assures employees perform their task effectively and
also tries to attain set goals and objectives in appropriate time frame. In this context various
theories and rewards system are used by the company to provide suitable working environment
to Canadian workforce. This will may contribute in motivating their workforce so that they can
easily attain success in the latest identified market place (Gomes and et. al., 2015). One of the
main advantage of using rewards system company can easily make their workforce strong and
capable as well. Mainly, reward system is an effective collection of brain structure which is
responsible for including associative learning, incentives salience. There are two types of reward
system, such as – intrinsic and extrinsic reward system. In which, satisfaction once get from their
job is known as intrinsic reward system, such as – pride in one's work, feeling of achievements
and being a part of team. Although, techniques like – job enrichment, job rotation, shorter week
works helps in giving intrinsic rewards to employees and allow them to perform in well being
manner. Apart from this, extrinsic rewards comprises with promotions, money, transfer, fringe
benefits and so on. It comes from outside source specially management.
In context of Canadian workforce, intrinsic reward system is one of the best approach
that helps it to improve performance level and productivity. The approach refer that if an
employee get experiences feelings of achievement or personal growth from a job. It helps in
motivating employees in internally thus they towards to do their job in more efficient and
imperative manner. In addition of this, employees reward and recognition program are important
method for motivating employees and at the same time also change their work habits in order to
attain set targets. One of the main advantage of this is to increased the productivity level by
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measuring workers overall performance of the company by monitoring their activities at the time
of performing their duties. In this context, Maslow's Hierarchy of needs, Herzberg theory are
important which help in increasing motivating workers at workplace. Both are beneficial for
Canadian workforce but one of the most effective theory is Maslow's Hierarchy of needs. This
will help in improving overall performance of Canadian workforce. This can be understood by
Malsow's Hierarchy of needs which consider various level that are important for workers to fulfil
to motivate towards the job responsibilities: Physiological needs: It is important and prime needs of the human for survive in the
world. If these type of requirement are not met then human can not able to function
properly and ultimately fail in surviving in the world (Francis, Parkes and Reddington,
2014). These are first and basic needs of the people who can motivated by fulfilling their
basic needs. Mainly, it includes water, food, clothing, shelter and many more. In context
of Canadians workforce, it is also important for them to fulfilling their basic needs.
Through which they easily get motivated and survive in the world. Safety needs: It is also important which comes after physiological needs. Ones a person's
physiological needs are satisfied safety needs are take place. Mainly, it includes
emotional safety, environmental protection and many more (Festing and et. al., 2013).
Every individual want safety within their life to feel safe. If a person does not feel safe
then they find safe environment to motivate them selves. Mainly, these are important for
people as it relate with job security, financial security, family security and many more.
When people fulfil these type of needs then they wants to fulfil social needs. Therefore it
is suggested to undertaken permanent employment practices so that employees are able to
reap benefits of policies and procedures which is being established by the government.
This factor will definitely encourage employee to perform in an optimum manner. Love and belonging needs: These are also play vital for people to feel fresh. As these are
relate with love, belonging, relationship with another person. This needs is beneficial for
people to share views and ideas with their family and friends, with the help of this, they
feel stress free and fresh as well. For satisfying this needs, people have to satisfy their
basic and safety needs. Every individual live in society in which they having their friend
and groups to make relation with them. By this people feel motivated and stress free as
well.
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 Self- esteem needs: This need is relate with the person ego, status, self respects and many
more. As every people have a need to feel respected. Self esteem are relate with human
desire which is accepted to another people. In this context, individual with low self
esteem needs respect from another person to feel respected and glory. Mainly it is
includes internal esteem which cover self respect, confidence, freedom, achievement and
many more. On the other side, external esteem needs like power, status, admiration,
attention and so on. Both are important for individual to feel reputed (Kahrilas and et. al.,
2015). With the help of this workers are motivated.
 Self actualisation needs: It is higher level of this theory as it refer to the level of desire
through which people wants to attain luxury needs and wants. As people may have the
strong desire to attain self contentment. With the help of this people keep to attaining
continue growing in their life.
Thus, Maslow's Hierarchy of needs theory is one of the effective approach which help
workers to encourage their morale and motivation as well. By applying this, Lundin Petroleum
can easily motivate Canadians workforce and also attaining their satisfaction towards the work
activities. As this one is right to motivate workers towards their job responsibilities (Huselid,
2011). With the help of this, they can easily perform their job activities and attain predetermined
goals and objectives in appropriate time frame. As Canadians workforce are capable and smart in
their work so that they can easily perform their work. Along with this, for attaining their
commitment towards the company workers needs motivation to effectively perform their task.
By this, company can easily retain their workers for longer period of time and at the same time
also increase productivity level of the company at market place.
Herzberg's two factor theory was given by Frederick Herzberg, and according to him
there are some of the factors that provides satisfaction from job whereas some can give
dissatisfaction. This theory is basically divided into two factors i.e. hygiene and motivators factor
moreover it is explained below for better understanding:
Hygiene factors:
This is considered as an effective element that is required by company in order to
maintain motivation at workplace but it doesn't provide long term benefits and satisfaction as
well. Factors that are included in this are considered as extrinsic factors which dissatisfies job
that are performed by employees. Thus, hygiene factors are symbolised as physiological needs
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which an individual need while performing their different activities. Some of the factors that are
included in this are explained below:
Job security: This is the prime factor for which most of the person works thus, it must be
prime duty of Lundin Petroleum, to provide job security so that they can sustain loyalty of
employees for a longer period of time.
Pay: It is consider as one of the factor, because some of the employees before opting for
the job look at pay scale and structure whether it is appropriate or not. Therefore, Lundin
Petroleum, should give equal and competitive wages to employees according to their roles and
responsibilities (Lazarova, Morley and Tyson, 2014).
Motivational factor:
This factor provides positive satisfaction to employees, thus, it is incorporated by
companies in order to get superior performance. Most of the employees find this factor
intrinsically rewarding and mainly symbolises psychological need which is moreover determine
as beneficial for business operations. Motivational factor includes certain factor that are given
below:
Sense of achievement: In terms of employees they must have a sense of achievement so
that they can perform their task in speculated period of time and in a better manner as well. Thus,
it depends upon type of job which an individual is doing so, it is important that a person choose
job which best suits as per their work.
Responsibilities: Taking responsibility is the major concern that an individual should
have because it will provide them sense of doing work in a better manner with great enthusiasm.
3 Perlmutter EPRG
EPRG is an effective framework which help in describing the way business and staff
members as an international management. In this context, perlmutter is evaluate as well as
describe an effective way of determining the alternative management orientations. As it states
that the business and its workers are tend to operate in four aspects are as follows: Ethnocentric: Under this, these type of people and companies are believe the home
country is superior. In this context, when the people and organization look into new
market then they evaluate the similarities with their home country. If there are any offices
in the international market then they are less effective then the head offices in the home
country. These firms are making few changes in the products and they are making few
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efforts towards to carry out research in international market. Along with this,
opportunities of outside the home country are ignored by the companies. Mainly,
Ethnocentric companies do the business outside of the home country which is known by
international companies. Polycentric: These type of companies or managers are see each and every country as an
unique and also evaluate that business are effectively run locally (Hurn, 2014). Mainly,
management of Polycentric refer to head office places are little control on entire activities
of market. Along with this, also tries to use new and innovative ideas form another
markets to attain success. Regiocentric: These type of companies are sees difference and similarities in region and
strategies as well. For example, Norway and Spain both are different in culture, transport
and climate as well (Wilson, 2014).
 Geocentric: These type of companies are global player in which they see the world as a
potential market. In this they recognise the difference and similarities between home
country and international market. As it combines ethnocentric and polycentric views.
This will help in creating a global strategies to responsive to local needs and wants.
From assessment of Perlmutter For different approaches are identified which named as
Ethnocentric, Poly-centric, regiocentric and geocentric. The two approaches which are selected
by the HR manager of Lund-in Petroleum to use in their organisation is Ethnocentric and
Geocentric.
Ethnocentric: It is the approach which includes the act related to judgement of others
culture on the basis of predetermined conceptions which are basically found in their values and
standards. This will helps the organisation to determine the behaviour and attitude of employees
and make better policies to gain their support in organisational activities.
Advantages
 The basic advantage which was attained by Lund-in Petroleum is related to complies with
overall corporate objectives and policies
 This will help in achievement of required level of competence
Disadvantages
 This will restricts the promotional activities of organisation and impacts the turnover of
organisation
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 Application of this approach increase the cost of operations
Geocentric approach: It is most important approach in perspective of international
organisation. This approach is adopted by Lund-in Petroleum which allows HR manager of
organisation to recruit best employees irrespective of their nationality. This will help to hire best
candidates.
Advantages
 This will helps the organisation to develop effective international executive team.
 Support cooperation and resource sharing activities within the organisation
Disadvantages
 Government of nation may use immigration controls to improve employment which
negatively impact the organisation in application of this approach
 High cost is involved in use of this approach because of training and relocation costs.
CONCLUSION
From the above mentioned report, it can be concluded that IHRM is one of the important
aspect which help in managing workforce at international level. In this context, the Maslow's
Hierarchy of needs is more beneficial for the firm to make their workforce motivated. By using
this theory Lundin Petroleum can enhance their productivity level. This will contribute in
establishing positive brand image of the company at market place by encouraging workers
towards its job responsibilities at workplace.
RECOMMENDATION
As per given report, it has been recommended that HRM is important activity for every
business organization to improve overall performance of the company. Thus, company needs to
effectively provide motivation to its workers so that they can easily perform their duties and
attain better results. Along with this, Lundin Petroleum should use effective reward system for
encouraging Canadian workers towards the company goals and objectives. This will contribute
in making positive brand image of the company at market place. Maslow's Hierarchy of needs is
also effective that should be used by the company to motivate their workers to enhance their
performance level.
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REFERENCES
Books and journals
Almond, P., 2011. The sub-national embeddedness of international HRM. Human relations.
64(4). pp.531-551.
Delbridge, R., Hauptmeier, M. and Sengupta, S., 2011. Beyond the enterprise: Broadening the
horizons of International HRM. Human Relations. 64(4). pp.483-505.
Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
Paik, Y., Chow, I. H. S. and Vance, C. M., 2011. Interaction effects of globalization and
institutional forces on international HRM practice: Illuminating the convergence‐
divergence debate. Thunderbird International Business Review. 53(5). pp.647-659.
Janssens, M. and Steyaert, C., 2012. Towards an ethical research agenda for international HRM:
The possibilities of a plural cosmopolitan framework. Journal of Business Ethics.
111(1). pp.61-72.
Gomes, E. and et. al., 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.
Francis, H., Parkes, C. and Reddington, M., 2014. E-HR and international HRM: A critical
perspective on the discursive framing of e-HR. The International Journal of Human
Resource Management. 25(10). pp.1327-1350.
Festing, M. and et. al., 2013. Current issues in International HRM: Alternative forms of
assignments, careers and talent management in a global context. German Journal of
Human Resource Management. 27(3). pp.161-166.
Kahrilas, P. J. and et. al., 2015. The Chicago Classification of esophageal motility disorders, v3.
0. Neurogastroenterology & Motility. 27(2). pp.160-174.
Huselid, M. A., 2011. Celebrating 50 Years: Looking back and looking forward: 50 years of
Human Resource Management. Human Resource Management. 50(3). pp.309-312.
J. Hurn, B., 2014. The challenges facing international HRM in an increasingly globalised
environment. Industrial and commercial training. 46(7). pp.371-378.
Wilson, J. P., 2014. International human resource development: Learning, education and training
for individuals and organisations. Development and Learning in Organizations. 28(2).
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Lazarova, M., Morley, M. and Tyson, S., 2014. Introduction: international comparative studies in
HRM and performance–the Cranet data. In International Human Resource
Management. (pp. 11-19). Routledge.
Online
Country vs country: Canada and Sweden compared: People stats. 2018. [Online]. Available
through:<http://www.nationmaster.com/country-info/compare/Canada/Sweden/People>.
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