Strategies and Challenges in International HRM

This report discusses the strategies and approaches that a newly internationalizing organization can take to prepare and train a group of employees to work in overseas locations on projects lasting a year or more. It also explores the challenges employees face while working abroad and how management and HR practices assist in coping with these challenges.

Strategic HRM

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
a) Strategies and approaches a newly internationalizing organization can take to prepare and
train group of employees to work for it in overseas locations on project lasting a year or more
................................................................................................................................................3
2) Discuss challenges employees face while working abroad & how management, HR
practices assists in coping with such challenges....................................................................4
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
Strategic HRM is related to HR which is coordinated as well as consistent with overall
business objectives for improving performance of business in effective manner. In addition to
this, SHRM focuses on the actions which differentiate the business from there competitors.
Moreover, SHRM is simply connection within Company’s HR as well as its objective, goals and
strategies. This report is based on IKEA which is part of retail industry founded in 1943 as well
as its founder was Ingvar Kamprad. They are serving at worldwide level and headquartered at
Delft, Netherlands. Respective report will going to discuss strategies and approaches newly in
internationalizing organization can take to prepare and train group of employees working in
overseas location. Furthermore, challenges which employees face also while working abroad will
discuss as well as HR practices which assist them in coping with such challenges also.
MAIN BODY
a) Strategies and approaches a newly internationalizing organization can take to prepare and train
group of employees to work for it in overseas locations on project lasting a year or more
Human resource management is the function related with management of distinct HR
activities of business firm without considering top global boundaries. Moreover, HRM is related
with procedure of procurement, allocation and then effectual use of available HR for expanding
international business. In addition to this, IKEA expanding at international level basis and have
several commitments to their customers’ needs and they have to operate in competitive
environment. In relation of same they need some particular strategies for training staff and
providing them right guidance so they will be able to deal with challenges which take place at
international level in effective manner.
Moreover, one of the major problems which arise while operating business across border is
cross cultural difference. It is breaking down that when culture are not trailed by organization
then it might prompts business disappointment in that specific nation. For this, it is huge for the
organization to offer preparing to its workers and utilize viable methodologies so as to go
universally and train representatives in a compelling way. The methodologies are given beneath
in setting to picked association:
Cultural simulation training – This preparation help representatives to manage the different
circumstances in a legitimate way. In this kind of preparing, a pretend is given to workers of

various circumstance just as practices related with the social of other nation in which an element
will work its capacities. The workers gave social principles in setting to independence, power,
social issues and community that will create contrast with in the activities of the association. It is
confirming that giving such cycle preparing is powerful inside the host nation, for example, in
England if there should be an occurrence of Verdant Leisure. Additionally, association train the
staff individuals to mindful of culture stun and its conceivable impedance inside the workplace.
Documentary training - It is a type of homeroom discovering that accentuation on
preparing of representatives about culture contrast which will look in the wake of going to
abroad. It incorporates human communications that includes sex relations, welcome, jargon,
language, etc. Furthermore, association frequently give proficient coaches so as to give
representatives workshop, recordings and talks related with social contrasts.
From the above conversation, it is investigated that all the above preparing is significant
for IKEA to provide for its representatives so they can work abroad in a powerful and
appropriate way. The organization for the most part offers Caravan and self-housing
administrations in market that gain achievement on the off chance that it is given in an
appropriate way. The way of life of nations is extraordinary so it is noteworthy for organization
to give social recreation preparing and language preparing to its representatives so they can
manage clients in a legitimate way and furthermore cause them to comprehend about its
administrations viably. It additionally helps with keeping up connection with client and create
passionate association with them also. This kinds of preparing help IKEA to work its capacities
at a global level in an appropriate way.
2) Discuss challenges employees face while working abroad & how management, HR practices
assists in coping with such challenges
There are many challenges that are faced because of expansion across international
markets by organsiations. Some of these challenges have to be understood by employers to cope
with all difficulties that arise because of internationalization in new markets (Baena, 2019).
IKEA is a furniture brand that is willing to expand across many new markets that consist of
countries of south America as a Swedish furniture giant so that they are able to reach to 3 million
potential customers in coming period of time. Some of these challenges that are anticipated
specially in case of project like particular marketing campaigns that is lasting for a time period of

less than a year there requirement to anticipate such future challenges on part of employees so
that whole workforce can be prepared to minimize the negative impact of such future challenges.
Linguistic diversity:
There is a barrier related to languages as in Europe there are 230 languages that are used
and in Africa there are 2000 languages spoken with variations in dialect this is leading to
different types of connotations (Linehan, 2019). This employees of IKEA might face difficulty in
taking customer queries, calls.
Cultural differences:
Cultural difference is another major issues that can be faced by employees in IKEA when
they are part of a completely new market segment. It leads to difficulties in making cross cultural
communication and developing insights of cultural norms (Fahim, 2018). To overcome this
Challenge management of IKEA has to focus on tailoring to accommodate the customs to
enhance the training mechanisms.
Time zone differences:
It is also a issues that can be faced by employees while they are willing to expand in new
areas. Such as in IKEA there are difficulties related to difference in timings so there is a sudden
witch in timings that might lead to employees requiring certain specific time to cope up with the
timings of new locations that is targeted by IKEA.
Building capacity:
While a appropriation is expanded overseas there is always difficulty relate to integration
with the values and culture of such other countries. Each county has their own special culture
that is compete different. So it takes time for employees to adjust with such changing
environment both internal and external in term of political, social, technological or legal changes
(DeCenzo, Robbins and Verhulst,, 2016). For sustainability there is need of enhancement of
employee capacity by organizations.
Communication difficulty:
Good communication is the most important aspect of a effective international business
strategy. But when a business organization is internationalizing it is really difficult to deal with
the communicating across cultures (Sonnenstuhl and Trice, 2018). Many times employees in
IKEA posses language knowledge but way a customer can be influenced is really a difficult task
for employees if they are not able to learn this technique of effective communication.

Regional based customization:
Curriculum that is designed for a specific country may not work in another. There is
requirement of high customization techniques to deal with the specific nature of customers in
IKEA while this brand is willing toe expand in new location of south America there has to be
focus of their employees on increasing the specialization that based on location and prevailing
culture. Employees will find difficulty in understand the customers perspective, their values,
beliefs according to which marketing strategies have to be formed. If customers will not receive
right customization then it is going to negatively impact productivity of both IKEA and its
competent employees.
Compliance risk:
The legal market and regulatory laws are different in every country. There is requirement
in part of employees that they have to focus on ensuring high compliance to ensure that they are
properly following all such legal framework. Many times if employees are not able to properly
ensure proper compliance to these legal laws than there can be issues on part of organization as
there can be legal penalties, fines because of non compliance.
Above discussed are some of the challenges that can be faced by employees in IKEA
there is a need by the HR department to form certain strategies to deal with the challenges faced
by employees in global expansion:
Embrace diversity:
Human resource department of IKEA can use a strategy promoting a inclusive approach
to diversity in both community and workplace, the organization must focus on a philosophy of
embracing culture in their organization of promoting individuals from diverse backgrounds, caste
and culture (Amazue and Onyishi, 2016).
Promote open communication:
For managing employees in a new location HR managers in IKEA can strategically focus
on use of a open communication strategy. For employees who are not fluent in multiple
languages there can be use of training approaches to enhance the skills in different languages that
is essentially required according to their new location.
Fostering strong relationships among workforce:

Team building is a aspect that has to be focused for building of meaningful relationship
among employees. It will help in enhancement of employee engagement towards performing
their job roes & responsibilities in a more better way. In IKEA, after internationalization there
can be emphasis on building of positive relationships among workforce so that employees can
assist each other to deal with hardships that they are facing because of new place, language
barriers etc.
Adopting of perks and bonuses:
HR management of IKEA can focus towards adopting specific policies for perks and
bonuses that can motivate their workforce to overcome all the hardships that they are facing and
contribute up to their maximum competence. For this there can be use of paid vacations, paid
sick holidays, transportation stipends, ticket to local events, practicing transparency all these
efforts are going top reflect in ways employees taking efforts to maximize their level of
contribution.
Above mentioned are some of the strategies in which Human resource department of
IKEA can focus towards managing their workforce while they are planning their
internationalization plans.
CONCLUSION
After going through overall discussion it has been summarised that, it is important for an
business firm to implement Strategic Human Resource management practices because it will
provide assistance in managing work within appropriate manner. In addition to this, when
business get settle at international level there are numerous issues which an business firm face in
this HR division of company implement several strategies to overcome with such issues.

REFERENCE
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Bailey, C., and et. al., 2018. Strategic human resource management. Oxford University Press.
Brewster, C., 2017. The integration of human resource management and corporate
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Chowhan, J., Pries, F. and Mann, S., 2017. Persistent innovation and the role of human resource
management practices, work organization, and strategy. Journal of Management &
Organization, 23(3), pp.456-471.
Kaufman, B. E., 2019. Managing the human factor: The early years of human resource
management in American industry. Cornell University Press.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human resource
management. Journal of cleaner production, 208, pp.806-815.
McClean, E. and Collins, C. J., 2019. Expanding the concept of fit in strategic human resource
management: An examination of the relationship between human resource practices and
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Ridder, H. G. and Baluch, A. M. C., 2017. Strategic human resource management. The
Nonprofit Human Resource Management Handbook: From Theory to Practice. https://doi.
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Baena, C.E., 2019. The policy process in a petro-state: An analysis of PDVSA's (Petróleos de
Venezuela SA's) internationalisation strategy. Routledge.
Linehan, M., 2019. Senior female international managers. Routledge.
Fahim, M.G.A., 2018. Strategic human resource management and public employee
retention. Review of Economics and Political Science.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
Sonnenstuhl, W.J. and Trice, H.M., 2018. Strategies for employee assistance programs: The
crucial balance. Cornell University Press.
Amazue, L.O. and Onyishi, I.E., 2016. Stress coping strategies, perceived organizational support
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Online
3 Tips for Managing a Cross-Cultural Workforce, 2020 [online], Available
through<https://www.entrepreneur.com/article/288796>