Effective International HRM: Navigating Cultural and Legal Differences

This report provides an overview of the challenges faced in managing human resources in international environments, using Tesco plc as a reference. It highlights the reasons for failure in managing HR in foreign contexts, including compliance issues, the expanding scope of HRM, and cultural diversity. The report also outlines the key factors that differentiate domestic HRM from international HRM, such as the need for more varied HR activities, a broader managerial perspective, changes in employee mix, and higher risk exposure. It concludes that managing human resources internationally is more complex due to cultural differences, social practices, legal variations, and language barriers, emphasizing the importance of tailored HR strategies for effective international management. Desklib provides access to similar solved assignments and study resources for students.

Human
Resources(Task1)

Content
 Introduction
• Background of company
• Reason of failure in managing HR in foreign environment
• Key factors that underpin the differences between domestic and
International HRM
 Conclusion
 References

Human resources play an
important role in the success of
an organisation as they use their
skills and abilities in achieving
company objectives which
makes HRM in a company
important so that they can be
efficiently managed.
Introduction

Background of company
Tesco plc is a multinational
British retailer which deals in
groceries and general
merchandise and is
headquartered in England,
UK.

Reason of failure in managing HR in foreign
environment
Businesses that have international branches face issues regarding
managing human resources due to various reasons:
• Compliance and international HRM issues: Businesses
functioning internationally hire employees belonging to
different nations, cultures, religions etc. and have to adapt new
labour laws which can affect the management of human
resources.

Continued...
• Scope of HRM: With the growing internationalisation of
businesses the scope of HRM has increased and they have to
follow different laws, cultures and norms in managing employees
of same organisation.
• Cultural diversity and global HR issues: Due to cultural diversity
issues regarding communication, social practices, beliefs etc. can
arise making it difficult to manage employees.

Key factors that underpin the differences
between domestic and international HRM
The factors which make both the HRM different are as follows:
• More and varied HR activities: In international branches of
organisation more HR activities are to be performed so that
employees can perform their jobs effectively.
• Need Broader perspective: In IHRM the mangers need to consider
a broader perspective before taking decisions like fixing
international compensation packages, fringe benefits etc.

Continued...
• Emphasis on change in employee mix: This means that in
international branches employees from host country are hired
which changes the employee composition and makes IHRM
difficult than domestic HRM.
• High risk exposure: IHRM is more exposed to risks like lack of
suitable HR practices that meet local requirements, socio-cultural
risk which can affect effective communication etc.

Conclusion
From this presentation it can be said that managing human
resources is more difficult in the international scenario than
domestically as various barriers are to be faced by the mangers
like difference in culture, social practices, laws, language
barriers etc. It is important that different HR strategies are
applied by mangers in international branches so as to effectively
monitor and manage the work internationally.

References
Brewster, C.H.R.I.S., Boselie, P.A.U.L., Leisink, P.E.T.E.R. and
Alfes, K.E.R.S.T.I.N., 2016. Beyond the private sector:
international HRM in the not for profit sectors. In International
Human Resource Management: Contemporary HR Issues in
Europe (pp. 145-168). London: Routledge.
Budhwar, P.S., 2016. International human resource management.
Edward Elgar Publishing Limited.

Thank You