International Human Resources Management

International Human Resources Management
Abstract
The dynamics in modern industry requires firms to invest effective management of the human
resources to attain a competitive advantage over it peers. In this study, the term international
resource management has been used to mean all the activities involved in managing the
employees in an organization. It is concerned with human resource problems faced by
multinational organizations in the subsidiary countries. This paper outlines the differences
between the political, economic and cultural set up of the United States of America and the
republic of Mexico. The term subsidiary has been used in this paper to mean the foreign country
where the new plant is to be located. The parent organization has been used to mean the original
firm that intends to expand its scale of operation into the new country.
The first section deals with an overview of the institutional framework, and its differences
between the United States and Mexico. Secondly, the differences between cultural orientation in
the two states is explained in a tabular format. The third section has a brief insight into
Advantages and disadvantages of working in a plural and diverse managerial group from the
United States and Mexico. The fourth section deals with an in-depth explanation of the role of
expatriates with a focus on recruitment, Multicultural communication and International team
working. The paper is wound up with a brief reflection on the process of working in a
multilateral group during a seminar and what I learned about cross-cultural adaptation in the
classroom.

Introduction
Economic growth of a country is affected by, among other factors, institutional framework and
cultural orientation of the nation. Investors are normally concerned by system of governance of a
country and its cultural beliefs whenever they want to pump money into a project. According to
Cramton, Ockenfels, and Stoft (2017), nations with local policies that give leeway for
international investment and foreign trade tend to attract more investors. The same opinion is
held by Friberg (2017) who suggests that a country should develop positive cultural orientation
to encourage foreign direct investment. These forces influence the quality and level of
investment in a country and dictate the method of production to be adopted by the investors. This
paper opens a discussion on some of the institutional differences between:
The United States of America Mexico
1. The United States of America has developed
and maintained one of the most effective free
markets and governance procedures that
make it a conducive market destination for
many investors.
The nation experiences a lot of government
intervention in the market. There is little
freedom for investors to enter the market and
sell commodities in the region. It enacted an
import substation policy, which required that
most of the industrial commodities being
consumed in the region be produced within the
country.
2. The factors of production are sold in a free
market for the production of private
commodities and services.
There is limitation to the sale and purchase of
factors of production in the country. This is
inked to the disconnect between the local
social structure that could assist the residents
to assimilate, positively react and adjust to the
requirements of modern technologies.
3. The government is concerned with creation
of general equity among the citizens.
There is precisely no convergence of national
policies as far as social; welfare is concerned.
There is no connection between the role of
institutions and social development though this
is a clear measure of economic growth
(Kander, 2015, Dutt et al., 2015)
4. There is general protection of the civil rights
by the government especially in
circumstances where the private sectors may
be inefficient.
There is little confidence on the citizens that
the government will guard their rights to
investment. The government is seen as tax
angry and only concerned with the investors
contribution of the taxes.
5. The state provides public goods such as
public roads, protection of public health,
environmental preservation and provision of
recreational facilities to ensure equity
throughout the nation. All residents of the
country have access to these facilities
without discrimination.
The government has no institutional
framework for ensuring equity among the
statesmen.

6. People from all over the world enjoy fair
treatment from the state. The economic
conditions provided by the free market
transcends across all residents of the state.
Residents are served based on origin. Elements
of discrimination are observed in the nation
and non-members of the nation may not have
all the incentives to invest in the country.
7. The nation enjoys well-established economic
institutions that enable investors to choose
the business to invest in on their own.
Investors enjoy the freedom to invest in the
best technologies based on the preferences
and ability.
Economic policies are designed according to
the problem at hand. Policies formulated are
meant to solve current problems such as
inflation and exchange rate instability.
Cultural differences between the United States of America and Mexico:
According to Acemoglu et al. (2016), one would not precisely say that the residents of Nogales,
Arizona, and Nogales, Sonora share a common origin and culture in as much as they
enjoy the same source of entertainment, food and natural environmental factors.
The simplest explanation to the differences may be attributed to the fact that the
two are separated by a wall making Nogales Arizona to be in the United States of
America. The following are some of the cultural differences between the two
regions:
United states Mexico
The inhabitants have the freedom to enter in to
occupations of their choice and enroll for
schooling freely to acquire their desired skills
for proper investment.
There is little emphasis on education in the
country. This limit the technical skills needed
for the process of production. According to
Addo (2016), business success is much
dependent on the human effort and capital
assigned in the project.
The residents have the political right to
participate in the democratic process of
assigning duties to political leaders and
retaining the powers to replace
underperforming and misbehaving electorates.
The electoral process is full of malpractices
which makes residents discouraged from
participating in the process. The leaders are
normally found involving in malpractices and
citizens may have little impact in deciding the
fate of immoral officers.
It has an inclusive set of institutions that is
targeted to provide all residents with a virtuous
rhythm of innovation and general welfare of
the citizens.
Institutions in the country have not developed
the culture of innovation and are not driven by
the desire to create new commodities in the
market.
The country enjoys even economic growth
with institutions designed to remove income
disparities in welfare and living standards of
the residents. According to Thussu (2018),
harmonization of rewards for factors of
production such as labour, capital and land is
responsible for the standard living conditions
There is uneven economic growth between
states and individuals in Mexico. Several
models have been used to explain the
disparities in economic growth in this country,
with most indicators linking it to capital,
investment patterns and saving culture.

of the residents.
The region has strong social relationships
created by socially constructed economic
tendencies of the citizens. The extent and level
of public participation is relatively high
resulting into reduction in the cost of
production as well as definition for the
incentives to investment.
Interpersonal relationships are not fully
developed in the country resulting into poor
strings and mobility of factors of production.
According to Zhou, and Guillén (2015), to
achieve maximum social returns; a country
must consider integrating technical growth
with social force s affecting investment
decisions. Markets for goods and services in a
country are formed through social interactions.
Institutional frameworks are shaped by the
cultural affiliation of the stakeholders in an
organization.
Advantages and disadvantages of working in a plural and diverse managerial group from the
United States and Mexico
Routine develops over time because people prefer operating from their comfort zones. When
employees feel the sense of safety and security at their jobs, they become more creative and
rational in their ventures hence registering improved performance. This encompasses both
professional and personal lives of investors and employees.
One can create the desired comfort on their own through several ways, such as redesigning the
office layout or adding more accessories to the workplace. However, each employee in any given
institution must admit that they fancy their jobs due to the presence of a co-worker (Ioannou, and
Serafeim, 2017).This is because it is normally easier to peruse our career and goals that we are
passionate about in the presence of mentors and advisers.
Advantages of diversity
Firstly, working in a plural normally inspires people to try new things. A team that focuses on
uniqueness of its composition is more productive than those groups that are complacent and
antireform. Each team member can have the opportunity to fully exploit his potential by focusing
fully on his or her strength. Employees will handle tasks with greater specificity as the managers
will assign them duties with much accuracy (Williams and Vorley, 2015, Alesina and Giuliano,
2015). Diversity makes a team an ideal self-insurance scheme since the strengths and weaknesses
of the members are spread over a wide base. Any project feature gets at least somebody with the
expertise required for its fulfillment.
Secondly, diversity works as a classroom for training employees. It creates teams where
individuals come with different set of skills. Working in plural also ensures that individuals get
an opportunity to specialize in their career. These skills can be passed from one person to another