Analysis of ArcelorMittal's IHRM: Case Study Report

This report provides a strategic analysis of International Human Resource Management (IHRM) with a detailed case study on ArcelorMittal. The report begins with an introduction to IHRM and its importance in employee management, motivation, and organizational growth. The main body includes a summary of ArcelorMittal's case, highlighting its challenges as the world's second-largest steel producer, including an aging workforce and global presence. The analysis uses SWOT and PESTLE frameworks to evaluate ArcelorMittal's strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, legal, and environmental factors. The report offers recommendations for improving employee performance, retention, safety, and legal compliance. The conclusion summarizes the challenges and the role of IHRM in maintaining a strong position in the global market, supported by the company's central support and budget. References to relevant books and journals are included.

International Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
A- Summary of team's case.........................................................................................................3
B-Critically analysis including recommendations.......................................................................3
CONCLUSION- 50.........................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Human resource management is the functional department of an organization that
strengthens the employee department and makes strategies related to employee management,
employee motivation and growth objectives of employees. The current report strategically
analyses the international human resource management and a detailed case study on
ArcelorMittal's HR. management department.
MAIN BODY
A- Summary of team's case.
ArcelorMittal is the world's second largest steel producing company serving in over sixty
countries. Headed by only 500 senior managers nearing retirement, employee structure and
management has become a challenge for this new company. It actively makes use of its global
presence and benefits from the centre of scale in acquisition (Myroshnychenko and et.al., 2019).
The board of members may be making strategies to improve employee relations and search skill-
full talents to make this young organization's employee structure stable at various locations
around the world. The organisation strongly focuses on sustainable development objectives and
improving employee retention policies.
B-Critically analysis including recommendations.
For purpose of conducting analysis in the context of ArcelorMittal SWOT and PESTLE
analysis concept may apply, that help to achieve organization aim and objectives.
Short terms objectives-
 Improve employee performance- The human resource function is responsible
for recruiting, developing and inspiring future leaders. It may conduct programs
of regular feedbacks, coaching, training, promotion and transfer policies to
encourage them to bring the best out of them.
 Retention of employees- It may reward the employees based on their
performance and merit. The company focuses on providing maximum facilities
and prevent unlawful discrimination to improve employee retention. It may
advance transparent HR. practices and persuade effective input to improve these
processes.
Long term objectives-

 Prioritize safety concerns- Safety has been the top priority for the company. The
HR. management function is provided the responsibility to ensure a safe and
healthy environment for the employees (Pimonenko and et.al., 2020). They may
eliminate any activities and circumstances that affect the worker's health safety
and productivity by being watchful.
 Lawful policy making- The organisation respects employee rights and freedom
to promote employee participation and employee satisfaction in the
industry(Randev and Jha, 2019). ArcelorMittal may take care of the employee
laws of multiple countries they practice and establish superior relationship with
the employees, stakeholder, local administrators and agreements.
SWOT analysis-
Strengths- It has a global presence and adequate budget in the central finance of the
industrial group hence it makes rigorous approach in recruiting employees and provide budget
for managing resources, development and rewarding employees. The HR. management may
create a positive reputation and environment in which the industry's employees are motivated to
carry forward the industries initiatives and corporate goals.
Weaknesses- While it is still a new industry, it is facing strong competition from its
alternates. Employee shortage and bad employee retention results may be the concern for the
board members. The organisational structure may be headed by hiring experienced professionals
from around the world and diversify the system.
Opportunities- ArcelorMittal has a strong central function and enough financial
resources and global reach to plug in and use these advantages in their favour by making strong
strategies of employee management. The HR. department may improve its performance by
recruiting skill full talents and advertising recruitment benefits to attract maximum job seekers. It
may conduct employee motivation activities and rewards such as incentives, bonuses and
promotions to improve employee retention.
Threats- Achieving these goals is not a smooth task for the IHRM of ArcelorMittal
because of the diversity in the workplace of international industries. Having a diverse business
may be innovative and attract wider range of talents but sometimes it backfires as a result of
unfavourable work conditions and unavailability of local employees(Luyckx and Janssens,
2020).

PESTLE analysis-
Political factors- Due to its presence in different countries, ArcelorMittal gets exposed to
different political environment and factors that may be favourable or unfavourable
sometimes(González Begega and et.al., 2018). It may analyse the the factors such as political
stability, importance of steel and iron in the country's economy, level of corruption, legal
framework, contract conditions etc. to counter the risks regarding the political system.
Economical factors- Factors such as inflation rate, taxes, foreign exchange rate,
economic condition of the country, income criteria, competition in the market and growth rate of
the country highly influence the decision- making of the industry (De Paula, 2018). The human
resource management may consider areas such as unemployment rate, labour cost, education
level, skill level, job mindset of people before moving forward to ensure consistent growth rate
of the industry in the particular country.
Social factors- Culture and society's style of doing things directly influence the culture of
the organisation. The company may design their strategies considering sustainability, and
showing their commitment towards social values. The HR. may ensure all the workers follow the
company' social and sustainable ethics.
Technological factors- Technology is completely evolving various businesses around
the world. The HR. function may recruit high level skilled professionals to advance their
technical department and make their marketing, and sales function more effective. Better
coordination with technology may help ArcelorMittal to keep up with their competitors and
achieve their business goals.
Legal factors- In some countries, the legal structures are not hard enough to defend the
organisation's property rights and copyrights (Vicente, Picon and Barco, 2020). It may carefully
understand the legal factors such as employment law, consumer protection laws, discrimination
laws, income laws and work hour rules to protect them from any legal troubles.
Environmental factors- Different places have different environmental rules. Especially
steel and iron firms are prone to exploit these norms. The management may consider the factors
such as the attitude of their employees towards this factor(Tost and et.al., 2018). . It may inspire
them to consider renewable energy, waste management, recycling, climate change and pollution
etc.

CONCLUSION
It can be concluded from the above report that, the steel giant is facing many challenges
to achieve a smooth run especially in its employee structure. The strong central support and
budget is an advantage along with the dedicated and strategic efforts of the International human
resource management in maintaining a respectable place in the global market.

REFERENCES
Books and journals
De Paula, G.M., 2018. ArcelorMittal's new investments. Steel Times International. 42(8). pp.16-
17.
González Begega, S. and et.al., 2018. Contested industrial democracy discourses in transnational
companies. The case of the ArcelorMittal European Social Dialogue Group. Transfer:
European Review of Labour and Research. 24(4). pp.451-465.
Luyckx, J. and Janssens, M., 2020. Ideology and (de) legitimation: The Belgian public debate on
corporate restructuring during the Great Recession. Organization. 27(1). pp.110-139.
Myroshnychenko, I. and et.al., 2019. The approach to managing corporate social and
environmental responsibility in manufacturing. TEM Journal. 8(3). p.740.
Pimonenko, T. and et.al., 2020. Green brand of companies and greenwashing under sustainable
development goals. Sustainability.12(4). p.1679.
Randev, K.K. and Jha, J.K., 2019. Sustainable human resource management: A literature-based
introduction. NHRD Network Journal, 12(3). pp.241-252.
Tost, M. and et.al., 2018. The state of environmental sustainability considerations in
mining. Journal of cleaner production. 182. pp.969-977.
Vicente, A., Picon, A. and Barco, E., 2020. New method for estimating the economic penalties of
ferrous scraps in the steelmaking industry due to material degradation during its storage
in scrap yards. Ironmaking & Steelmaking. 47(5). pp.473-481.

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