This document provides an overview of international human resource management, including theories and models on expatriate success. It also analyzes the expatriate success rates of Apple and Samsung and discusses the managerial implications for organizations with poor expatriate success rates.
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International Human Resource Management
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International Human Resource Management1 Introduction Human resource management is set of organisational activities that aimed at effectively directing and managing the human resources (Labour/ workers). Managing and directing the human resource management helps to achieve the objective of the organisation. The functions of HRM staff would be recruitment, selection, training, and development, performance appraisal, managing promotion and many others. The activities of human resource management at the international level are called international human resource management. IHRM includes the typical HRM functions such as recruitment, selections, training and development, performance appraisal and many others additional activities. The activities of IHRM are required in the multinational companies (MNC) in order to manage the employees of the organisation (Saleeth, 2010). In Multinational companies, people come from different background and country for the common purpose. Different countries have different culture due to which there are many issues arise that is face by the employees of the organisation. It is essential to maintain the HR practices at the international level so that the activities will manage effectively. The practices maintain the three types of employees and these are home country employees, host country employees and the third country employees. In this paper, the discussion is made on the topic of “international human resource management”. This paper is classified in three parts as per the effective structure with the different important terms such as national culture, organisational culture, cross culture and many others. In the first phase of paper, the theories and models on expatriates success. After that the discussion is made on the HR practices of two organisations such as Apple and Samsung. At the end of the phase of paper, recommendation will be discussed for the organisation with the poor expatriates. Overview of organisation
International Human Resource Management2 Apple Inc. is an American multinational technology company that develops and design the consumer electronics, computer software, online services and many others. It is one of the biggest technologies companies such as Amazon, Google and Facebook. It operates in many countries across the world. Samsung is a South Korean multinational conglomerate that operates in electronics goods and service. It is the largest information technology company that operates in consumer electronics maker and chipmaker which is measured in terms of revenue. It operates in many areas across the world. Part A – Prominent Theories and Models on expatriates’ success Multinational companies need to manage their issues related to geography in the context of implementation, controlling or transferring knowledge. There are many assignments taken by the expatriates who work at the international level. The expatriate requires the support of people and from the host country employees in order to reduce the issues for them and helps to achieve the goals, and objective. It is essential for multinational companies to facilitate the expatriate interaction and achieve the good relationship between them. The expatriate’s success can be achieved by the multinational company when it maintains the relationship with them so that it can achieve its objective. There are many theories and models applied by the organisations in order to maintain the issues related to geography dispersed. Motivation departs The multinational company has to focuses on the stress level and motivation level of the employees in order to achieve the success in the terms of expatriate’s. This theory of motivation helps to support the employees so that the challenges face by them is reduces. The expatriate’s faces the national culture challenges as it works from the other country beyond
International Human Resource Management3 the home country. In this theory, the main focus is given on the “cross culture contexts” as there are large numbers of challenges faces by them. The bulk of expatriate’s theories and research; the reducing stress helps to achieve the success in the expatriate’s. Reducing the stress helps to reduce the threat of global assignment and enhance expatriate’s well-being and also makes them happy. Motivate theory explore the role of expatriate’s motivation moderating mechanism that explains the terms how and when cross cultural motivation promotes expatriate’s effectiveness. Trait activation theory This theory is mainly focuses on the personality traits of expatriate’s. This theory is also applicable on the motivational attributes and their resulting expression in order to develop the balance between the cross-cultural motivation and the work adjustment. This theory examine the contextual influences on expatriate’s outcomes such as the foreign subsidiary cultural distances, foreign subsidiary support. Foreign subsidiary cultural defines the extent of cultural of host country and the culture of home country is similar for expatriates. Foreign subsidiary support defines the extent in which subsidiaries helps expatriates in adapting to the global assignments and provides them career and financial support (Anzam, 2018). International experience The marital status is also other consideration to achieve the expatriate’s success. The organisation has to maintain the balance between the work adjustment and job performance of expatriates. It is observed that the employees face the work-family conflict, prior experience, and assignment tenure in order to adjust in the work. Controlled expatriates local languages
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International Human Resource Management4 The local languages skills of experts are also appointed for them so that they cannot face any kind of challenges regarding the cultural differences. It is founded that the local language skills is predicted the expatriates adjustment and enhance the performance by reducing the gap between the culture of host country and the culture of home country. Impact of international HR practices on foreign assignment of expatriates Enhance performances International HR practices have a positive impact on the foreign assignment as they reduce the challenges for expatriates. It is observed that the cross-culture issues face by the expatriates affects their performance that directly relies on the foreign assignment. Appropriate HR Practices helps the company to provide the local culture to expatriates so that they can provide the facility to them (Noe, Hollenbeck, Gerhart, and Wright, 2017). Enhancement in the success rate of expatriates It has been seen that improving the HR Practices develops the positive environment for the organisation. The success rate of expatriates is also improved with the improvement of the activities related to human resource management. The quality of foreign assignment is also improved with the success rate of expatriates as they are responsible to do those foreign assignments(Brewster, Vernon, Sparrow, and Houldsworth, 2016). Reduces negative role International HR practices of the multinational companies helps to reduce the negativity from the workplace. It is observed that the good amount of compensation helps the organisation to reduce the challenges so that the expatriates can easily survive in the host country. The rate of retention to do the work is also improved.
International Human Resource Management5 Factors of international HR practices have significant effects on foreign assignment of expatriates National Culture Improving the international human resource management practices helps to reduce the challenges of culture issues. Understanding the national culture and develops the HR policies is also a HR practices that helps to reduce the challenges of cross-culture. Treating the people equally develops the positive environment of the organisation. It is a motivation technique of HR practices because giving the equal values and understanding the culture of expatriates encourage them to perform the activities of the assignment with the full efforts(Brewster, Chung, and Sparrow, 2016). Organisational structure Effective HR Practices always developed friendly atmosphere at the workplace. The international HR Practices helps the expatriates to understand the organisation culture so that they can put their full efforts in fulfilling the foreign assignment. The relation between employers and the expatriates will get strong with the effective HR practices due to which they can easily share the complaints, issues and the appreciation. These activities also improve the performances of expatriates in doing assignments (Bratton, and Gold, 2017). Cultural values Effective IHRM includes the activity of understanding the expatriates so that they cannot face any issues related to cross culture. The biggest issues of the expatriates during the foreign assignment are to understand the culture of host country. It is difficult for them to adjust in the host country by adopting the culture of home country. Understanding the cultural values
International Human Resource Management6 helps to eliminate the possibility of Conflict issues at the workplace during completion of foreign assignment (Collings, Wood, and Szamosi, 2018). Part B – Analysing the expatriates’ success rates of two organisations Success rate The rate of Samsung is revaluated with the existing employees of the company. It is the largest consumer products company in the technology. The organisation has large number of employees who works with the company beyond their home country. The approx. 70 percent of employees are Koreans went India during the expansion of business. Apple provides the large number of opportunities to expatriates to work on their foreign assignments. The company established its business from USA to Australia due to which the large numbers of employees are sending by the employers in the host country. The employees of the organisation perform their work with the effective manner due to which it achieves the success in host country. But the company is in worst situation while the number of expatriates is high. The expatriate face the culture challenges because it is difficult for him to understand the culture of host country as the employees come from different country to do the work (Srivastava, 2017). HR Practices of Organisations Apple Inc. and Samsung Personnel Evaluation system Personnel Evaluation system is designed by the Samsung in order to assess the performance of an employee. The fair evaluation of the company also encourages the employees to improve the performance for their careers. Samsung measures the employee performance once in a year in order to provide the feedback so that they get motivated.
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International Human Resource Management7 Performance Evaluation practices of Apple includes the receiving a semi-annual review. The manager of the organisation adopts the method of determining the strength and weaknesses of an individual. The main focus of the company is measuring the performance of everyone so that they can handle the problems of expatriates in order to improve their performances (Essay Town, 2017). Health and Safety Training Apple Inc. is committed to protecting the environment, health, safety of their employees. The company adopts the health and safety management practices during conserving and enhancing the resources for future generation. The company adopts the technologically innovative tools for the health and safety practices of employees (Apple, 2018). Samsung trained the employees for the use of chemical substances in order to provide them safety. Instructions on emergency kit usage such as first aid including CPR practices and practices chemical neutralisation. It specially adopts the safety training for new expatriates so that they feel safe and secure. Comparison As per the above analysis, it has been seen that the Samsung provides the training to expatriates at the international level in order to provide them security and safety. But in Apple, it adopts the new innovative tools to protect the expatriate. It can be said that the health, safety and training practices of Samsung is more appropriate for expatriates in terms of safety. The other international HR practice of Samsung is personnel evaluation focuses on the motivation of expatriates as per the theory of expatriates’ success. The international HR practice of Apple is focuses on the problems of expatriates which affects their performance
International Human Resource Management8 and try to solve them in order to improve the performance(Brewster, Mayrhofer, and Farndale, 2018). Effects of International HR Practices on Foreign assignment of expatriates Training- As discussed above, the expatriates faces the issues of national culture due to work in the other countries. In the case of Samsung, it has been seen that the expatriates face the language barriers while the Korean people went outside the South Korea. As the company provides the training to their expatriates in order to protect them but it is difficult for expatriates to understand their language. A language barrier is the main issue which affects the foreign assignment because it is difficult to them to work on the assignment as per the instruction(van der Laken, van Engen, van Veldhoven, and Paauwe, 2016). Personnel evaluation- As discussed, the fair evaluation is encouraged by the expatriates in terms of success. It is observed that the method of Apple of evaluation of strength and weakness is arises the issues. The fair evaluation is essential in order to improve the performance of expatriates for effective result of foreign assignment. It is observed that the expatriates of the company face the issue of biasness, and gender equality that affects their performances(Albrecht, et. al, 2015). Part C – Managerial implication for the organisation with a poorer expatriates’ success rate As per the above discussion, it is observed that the international HR practices of both the companies are appropriated but as the coin have two aspects as same the HR practices of the companies have two aspects. In the simple words, it can be said that the HR practices of the
International Human Resource Management9 companies has some gap due to which they face the issues in expanding the business. The negative result of assignment states the position of failure in the assignment. The poor practices of human resource management develop the issues for the expatriates in terms of survival(Soltis, Brass, and Lepak, 2018). It has been seen that the expatriates of Apple have many facilities to do the work but it is observed that they face the cultural issues. As per the above discussion, it is observed that the employees of USA sent Australia by employers so that they can handle all the assignment of Australia. As the company hire the large number of employees from Australia due to which employees of Australia faces the cultural issues. The company does not take care of every employee by analysing their problems as the large number of employees hire by it. The chance of increasing the conflicts among the people is increases due to which the foreign assignment of the company is affected. It is recommended that the organisation has to hire the expert trainers to train every expatriate. Trainers are the best source to overcome the issues of cultural challenges and the others. Using the local languages of the expatriates always makes them comfortable due to which the motivation level of expatriates is increases. As per the organisation structure, the company has to develop the friendly environment so that the expatriates take participation in different activities. The friendly environment helps expatriates to perform the services in an appropriate manner with the positive mind-set. It is observed that Samsung faces the issue of cultural differences due to shifting the large number of employees in the host country from home country. The balance is not properly maintained by the company due to which the cultural gap issues are arises. It is required to improve its recruitment and selection practices in the host country. It has to hire the
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International Human Resource Management10 employees of host country in order to maintain the balance at the workplace (Chen, Kirkman, Kim, and Farh, 2018). Conclusion From the above analysis, it is recommended that the international human resource management is essential for the organisation in order to attain the objectives and goals. In this report, Apple and Samsung are the companies taken into consideration to analyse the international human resource management practices. As per the theories of expatriate’s success, the motivational techniques have to be adopted by the companies to develop the balance between the work adjustment and job performances. The international HR practices of the companies has been analysed which states that the company have the appropriate practices due to which the foreign assignment achieve the moderate level of success. As per the comparison, Samsung is more appropriate in training practices and Apple is more appropriate in personnel evaluation practices. At the end, it is recommended that the Apple has to hire the trainer who is expertise in every languages and encouraging the employees.
International Human Resource Management11 References Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee engagement, human resource management practices and competitive advantage: An integrated approach.Journal of Organizational Effectiveness: People and Performance,2(1), pp.7-35. Anzam. (2018)Applying Identity Theories in Expatriate Management Studies: A Demonstration of the Role of Ethnic Identity Confirmation. [online] Available from: https://www.anzam.org/wp-content/uploads/2018/02/392_ANZAM-2012-442.pdf Apple. (2018)Environmental Health and Safety Policy Statement.[online] Available from: http://images.apple.com/environment/reports/docs/EHS_policy2013.pdf [Accessed 29/4/12], Bratton, J. and Gold, J., 2017.Human resource management: theory and practice. Palgrave. Brewster, C., Chung, C. and Sparrow, P., 2016.Globalizing human resource management. Routledge. Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018.Handbook of research on comparative human resource management. Edward Elgar Publishing. Brewster, C., Vernon, G., Sparrow, P. and Houldsworth, E., 2016.International human resource management. Kogan Page Publishers. Cascio, W.F., 2015.Managing human resources. McGraw-Hill. Chen, G., Kirkman, B., Kim, K., and Farh, C. (2018)When Does Cross-Cultural Motivation Enhanceexpatriate Effectiveness? A Multilevelinvestigation Of The Moderating Roles Ofsubsidiary Support And Cultural Distance. 53(5) pp. 1110-1130. Collings, D.G., Wood, G.T. and Szamosi, L.T., 2018. Human resource management: A critical approach. InHuman Resource Management(pp. 1-23). Routledge.
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