International Human Resource Management

This assignment delves into the complexities of International Human Resource Management (HRM), examining various practices implemented by organizations operating globally. It analyzes how these practices impact organizational commitment, employee performance, and overall success while considering the crucial role of culture in shaping HRM strategies.

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Executive Summary:
The purpose of the report is to highlight the international human resource management for an
organization expanding into new host country. The report for serving the purpose of the same
presents some process proposed to the organization. In the conclusion, the report highlights the
impact of remuneration package in the international HRM system.

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Table of Contents
Introduction:....................................................................................................................................3
Organizational Structural Comparison:...........................................................................................3
Hofstede’s Cultural Dimension:..................................................................................................4
Power Distance:.......................................................................................................................4
Individualism:..........................................................................................................................4
Masculinity:.............................................................................................................................5
Uncertainty Avoidance:...........................................................................................................5
Long Term Orientation:...........................................................................................................5
Staffing Process and Strategies:.......................................................................................................5
Face to Face Interview:...............................................................................................................6
Skills Assessment:........................................................................................................................6
Screening:....................................................................................................................................6
Training and Development Process:................................................................................................7
Impact of the Training:................................................................................................................8
Remuneration Packages Analysis:...................................................................................................8
Conclusion:....................................................................................................................................10
Reference:......................................................................................................................................12

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Introduction:
Australasia is known as the Commonwealth of Australia and is a sovereign country
consisting of mainland of Australian continent, the Tasmania island and other islands. The
Australia is the country that comprises of various national and multinational companies with
proper legislative system and employment system. The fast growing population is responsible for
providing the adequate employees to the multinational companies that has expanded in Australia.
The current scenario and context of the international human resource management presents some
factors that needs to be considered for employment in the multinational companies of any
country (Sparrow, Brewster & Chung, 2016). Similarly, Australia is no different in terms of
human resource management. The chosen Singapore based company for the report needs to
consider rules and regulation in the international Human Resource Management (HRM)
(Brewster et al., 2016). In the present context of international business, the cross cultural
management is also another major factors that must be considered at the highest priority to avoid
any cultural conflicts among the employees of different cultures. On the other hand, the company
needs to ensure the proper implementation of employment policies and training procedures in
order to manage the human resource of the company. The following section presents the detail
report on the international HRM practice in Australia for multinational company.
Organizational Structural Comparison:
Considering the fact of business expansion of the Singapore company to Australia, the
organizational structure of the both the workplace of Singapore and Australia for evaluating the
difference of cultural dimension. In regard to this, Hofstede’s model of cultural dimension is the

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appropriate and effective tool to assess the cultural diversities of the host and home country of
the organization.
Hofstede’s Cultural Dimension:
Cultural dimensions of Hofstede are based on five different factors that determines the
cultural acceptance and practice of the people of different country (Dartey-Baah, 2013). The
following section uses the five factors of cultural dimension in terms of comparing the cultures
of two countries.
Power Distance:
Power distance in Singapore is high which mentions that the country has strong class
system. The society is based on the unequal relationship among people. Therefore, in the host
country the organizational power is centered on the managers and they dominate the employees.
The communication and culture of the organization is formal (Hofstede, 2013). On the other
hand, the power distance is low and the relationship between the people is almost equal and easy.
However, the chosen company has hierarchal structure in the organization but the managers are
always accessible and the communication is both formal and informal as per the necessities.
Individualism:
The country has collective society where the living in groups and valuing the relationship
is important. The people here are family oriented and harmonious. The organizational structure is
based on the collectivism where the opinions groups are mattered than individuals. On the other
hand, the society of Australia is more individualistic and people here values the individual
opinions (Wiewiora et al., 2013). In most of the cases people are not family based. Therefore, in
the workplace the individual decisions are prioritized and valued.

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Masculinity:
Singapore is in the middle in terms of impact of masculinity on the society. The society is
determined by both the feminine and masculine values. Therefore, conflicts regarding the gender
issues are less in the workplace. Considering the dimension of masculinity Australia is little
higher and the masculine values apparently dominates the society. Therefore, in the professional
context there are some gender diversities.
Uncertainty Avoidance:
The country holds strong structure and high power distance index which makes the
uncertainty avoidance score low in Singapore. Whereas, the company in Australia receives high
uncertainty avoidance which indicates the society is ready to accept the change in the culture.
Long Term Orientation:
Singapore strong cultural qualities that preserve the culture and moral values of the
society. In the professional context, the people are also culture oriented. On the other hand, the
cultural qualities and bond is not as stronger as Singapore and values the change in the
contemporary society.
Staffing Process and Strategies:
For sustaining in the new international context of Australia, the company needs to
consider some international human resource employment policies and procedures for successful
and effective staffing process. For the overseas recruitment the organization needs to recruit
people from the host country in terms of maintaining organizational culture accordingly
(Dowling, 2013). The staffing strategies must include proper evaluation of the candidates about
the knowledge of the company and the workplace cultures of the same. On the other hand, the

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firm must pay necessary attention to the key legislation of the host country such as Fair Work
Act 2009 for legal and ethical consideration of employment process (Fair Work Commission,
2013). It must be noted that the chosen firm also needs to ensure that the selected employees
follow the ethical and legal considerations of the organization.
Considering the fact of staffing, selection is another major process after recruitment. The
selection process in fact the most vital part of the staffing as this stage determines the right
choice of the candidates by the management (Dowling, 2013). The company needs to follow
some selection procedures and tools for ensuring the right selection of employee. The most
effective selection tools are:
Face to Face Interview:
Face to face interview is considered to be the most effective and popular HR selection
tools. For the overseas recruitment, face to face interview will help the managers of the company
to have clear understanding of the candidates’ knowledge and skills (Behrend et al., 2012). This
will help the management to choose the right candidate easily.
Skills Assessment:
For certain there is requirement of technological, verbal, numerical, reasoning and
intellectual skills. For ensuring the skills of the candidates the company needs to use the skill
assessment test that will enable the same to evaluate the skills and capabilities of the employees
for certain positions (Hull et al., 2013).
Screening:
Screening is the initial selection tool for any staffing. The screening of the employees
refers to the basic assessment of the candidates in regards to the key employment criteria. This

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tool is a cursory review of the candidates’ application for the certain jobs and indicates towards
the assessment of the candidates upon the basic information of them.
Training and Development Process:
The needs for training and development of the overseas assignees are required for
achieving the long-terms and short-term goals of the organization in international market
(Wilson, 2014). The training and development of the overseas staffs referred to the establishment
of effective communication and maintain cross cultural relation within the workplace as well as
with the home country. There are few training stages that are to be followed by the organization
for effective outcomes out of the same.
The major and most important training is the cross cultural training of the employees
which includes the communicational training, cross cultural knowledge development and
diversity management training (Dongfeng, 2012). This training will help the management as well
as the employees to interact with each other and operate the business activities successfully.
The next important training is the technical training. However, this training is intended
for the employees who are lacking or have no technological knowledge. The technical training of
the employees will strengthen the overseas communication and international business operation.
Strategic and functional training is another important training for the employees to cope
with the organizational culture and structure along with the norms and workflow. This particular
straining will help the employees to adapt the organizational culture and workflow easily.

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Impact of the Training:
In order to enhance the knowledge and efficiency of the overseas employees in their
certain job roles the training procedures are intended towards them. The international assignees
are not accustomed with the organizational culture and the business operation. The strategic and
functional training will develop their knowledge and understanding of the organizational
structure and culture along with the business process (Lamba & Choudhary, 2013). On the other
hand, the cross cultural training of the employees will add advantages to the management of the
firm to manage the workplace diversity without hazards. The training on cross cultural aspect
will enable the employees to establish professional and effective relationship with each other
which will lead the organization to avoid cross cultural issues in the overseas workplace
(Dongfeng, 2012). At the same time, the technical training will develop the technological
competency of the employees and increase their capabilities to handle business in the
international market. It needs to be noted that before the training the employees are only the
chosen candidates with personal and individual skills for performing the job roles. The training
transforms them into employees as well their skills and capabilities into competencies (Wilson,
2014).
Remuneration Packages Analysis:
Remuneration is one of the primary and important factors of international human
resource management that needs to be considered by the company at the highest priority. The
remuneration package refers to the combination all types of expenditures and savings of the
employees as well as the company for the employment as the whole (Thomas & Van der Elst,
2013). The international remuneration packages generally include basic salary, insurance, home
and travel allowance, expatriate allowance, compensation and many others which varies for the

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different companies. For the chosen organization, the remuneration packages need to be concise,
clear and attractive to the overseas employees in order to determine the employment in the new
host country. The different elements of the remuneration packages that the company must
consider are the salary negotiation, Foreign Service premium, cost of living adjustment,
housing allowance, tax assistance, health insurance, retirement and the compensation
(Tornikoski, Suutari & Festing, 2014). The importance of determining the remuneration package
lies in the successful employment and international human resource management in the new host
country workplace. It must be noted that the management of the company needs to remember
and follow the legislation of the host country for making proper and legal remuneration
packages.
Among all the elements of the remuneration package the compensation approach is
important as the company is sending expatriates to the new host country for setting up the
context of business (Boyd, Franco Santos & Shen, 2012). The compensation approach is
intended for the expatriates. The company needs to prepare home-based balance sheet as well as
the host-based balance sheet for easy compensation approach (Nazir, Shah & Zaman, 2014). The
compensation approach of the employees needs to consider the challenges and risks in the host
country before making the balance sheets. This approach also needs to ensure the following of
key legislation and local market trends for attracting the employees. The management of the firm
needs to have a thorough research in the host market for having an idea of the local
compensation strategies. The acquisition and implementation of the local compensation
strategies will help the management to manage the expatriates. The following balance sheet is
the probable calculation of the remuneration package along with the compensation approach.

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Location
allowance Car allowance Expatriate
allowance Utilities Accomodation
0
10
20
30
40
50
60
70
80
90
100
home country
host country
Figure 1: Probable Balance Sheet
Source: created by author
Conclusion:
Therefore, it can be concluded from the above discourse that for expanding into the
international market, the chosen organization must give special attention towards the human
resource management system. According to the report, the company being and Singaporean
company needs to assess the international HRM trends and the Australian employment practice
as it is expanding into the international context of Australia. In order to ensure proper and
successful employment to the overseas expansion the company needs to follow the international
HRM trends and factors. The report discusses the comparison of the two countries in terms of
cultural differences through the use of Hofstede’s cultural dimension model. The report also
presents the staffing procedures with different stages of recruitments and tools of selections. In
addition, the report identifies the need and necessity for different training and development
process of the overseas assignees along with the discussion of the impact of training on the

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employee development. The report concludes with the importance of considering the
remuneration packages and the compensation approach for the employees and the expatriates in
order to determine the sustainability of the firm in the new host country. In addition, the report
also presents a probable balance sheet for the company to understand and prepare remuneration
package with the consideration of compensation approach.

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Reference:
Behrend, T., Toaddy, S., Thompson, L. F., & Sharek, D. J. (2012). The effects of avatar
appearance on interviewer ratings in virtual employment interviews. Computers in
Human Behavior, 28(6), 2128-2133.
Boyd, B. K., Franco Santos, M., & Shen, W. (2012). International developments in executive
compensation. Corporate Governance: An International Review, 20(6), 511-518.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource
management. Kogan Page Publishers.
Dartey-Baah, K. (2013). The cultural approach to the management of the international human
resource: An analysis of Hofstede’s cultural dimensions. International Journal of
Business Administration, 4(2), 39.
Dongfeng, L. I. (2012). Culture shock and its implications for cross-cultural training and culture
teaching. Cross-Cultural Communication, 8(4), 70.
Dowling, P. J. (2013). The Strategic adaptation process in international human resource
management: a case study. Human Resource Planning: Solutions to Key Business Issues
Selected Articles, 14(1), 137.
Fair Work Commission. (2013). Fair Work Act 2009.
Hofstede, G. (2013). Hierarchical power distance in forty countries. Organizations Alike and
Unlike, ed. CJ Lammers and DJ Hickson (London: Routledge and Kegan Paul, 1979),
97-119.

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Hull, L., Arora, S., Symons, N. R., Jalil, R., Darzi, A., Vincent, C., & Sevdalis, N. (2013).
Training faculty in nontechnical skill assessment: national guidelines on program
requirements. Annals of surgery, 258(2), 370-375.
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employees. International Journal of Advancements in Research & Technology, 2(4), 407-
423.
Nazir, T., Shah, S. F. H., & Zaman, K. (2014). Review of literature on expatriate compensation
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Routledge.
Thomas, R. S., & Van der Elst, C. (2013). The international scope of say on pay.
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Wiewiora, A., Trigunarsyah, B., Murphy, G., & Coffey, V. (2013). Organizational culture and
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