Critical HR Practices for Effective International Business Management

This report delves into the three most critical HR practices for international business operations: recruitment and selection, training and development, and compensation and benefits. It emphasizes the significance of attracting and selecting the right talent, providing continuous training to enhance skills, and implementing effective compensation strategies to motivate and retain employees. The report also highlights the key issues surrounding international HR management, such as compliance with labor laws, cultural diversity, and the challenges faced by expatriates. By analyzing these practices and challenges, the report offers valuable insights for businesses seeking to succeed in the global market, using Unilever as a case study to illustrate practical applications.

Three most important HR
practices for an international
business

Table of Content
• Introduction
• Three most important HR practices for an International business
• Key issues surrounding the management of Human Resources
• Conclusion
• References

Introduction
Globalization have enabled the companies to run and manage their business operation
beyond their geographical boundaries. Human resource management is concerned with
acquiring, training, compensating, developing and retaining a workplace in on
organization. International Human Resources management is defined as the set of
activities conducted by HR manager with the aim of managing and retaining the
workforce at international level to achieve organizational objective and gain
competitive edge over other rivalry firm at national and international level.

Three most HR Practices for a International
Business
Recruitment and selection: One of the most significant HR practices for the International
business is attracting and selecting a right candidate with right set of skills that perfectly fits
into a job position. Managing international business is difficult task and it becomes more
intense when it comes to acquiring a right talent for the organization.
While operating in an international market it is imperative for Unilever to have exceptional
workforce who can work with productivity, commitment and add value to the international
business. While selecting a candidate it need to take in account that the person is a perfect fit
for the company, both as a cultural fit and a good performer.

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Pros and Cons of Recruitment and Selection
While making decision on getting a right talent for the international business, Unilever takes
into account several factors that lead them to the success such as skills, competencies,
experience and knowledge that help the company to perform well in international market
and enhance employee engagement. Getting right person with prior job analysis avoids
boredom and conflicts at workplace which contribute in increasing the productivity of
employees. Hiring a right talent that perfectly fits into the position increases employees
satisfaction and motivation, thus there is low employee turn-over rate that build strong brand
image of Unilever

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Training and development: Another significant HR practices for International business of
Unilever is coaching and development. With the intense competition it is essential to sharpen
the skills and competencies of the workforce to be able to work effectively and gain
competitive edge over other through enhancing the performance level of a company. Coaching
and development provided by Unilever to their employees helps them in enhancing the brand
image in overseas market as there are proficient and prodigy workforce in a specific area of
field and aspects.

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Pros and Cons of Training and development
Investments made by Unilever in enhancing the skills and knowledge of a workforce develops a
sense of feeling valued among the workers. Employees with the proper training and learning
programs deliver quality of work as their productivity is enhanced and have learned new skills
and tactics to work with efficiency. By providing necessary coaching and training Unilever
boost the motivation level as they appreciate the efforts made by company to provide
development programs to the employees. Employees become more committed, enthusiastic and
shows positive attitude at workplace.

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Compensation and benefits: Compensation and other benefits are essential in keeping the workforce
motivated, engaged and committed towards the organizational objective. Before hiring for an
international business it is imperative for manager of Unilever is to conduct a research for the market
pay rates for the job position. It is essential for HR managers is to maintain and comply with
nationwide wages and pay policies to meet the basic necessities of the employees.
Good and adequate compensation policy helps Unilever in bringing equality and transparency at
workplace. With the localized compensation strategy, Unilever provide fair and equitable
compensation to meet the living expenses in a particular nation. Well designed and attractive
compensation plans keep the employees motivated and engaged at work in an organization.

Key issues surrounding the management of
Human Resources in a global context
Compliance and International HRM Issues: While Operating in overseas market Unilever face
many challenges with regards to the labour laws and tax liability in order to manage the dynamic
workforce. For example, for operating in European market it is essential to pay extra taxes or to
deploy expatriates in United States needs extensive Visa formalities and documentation. Minimum
wages and labour laws vary nation to nation that may affect the profitability of Unilever in long run.
Cultural diversity: One of the biggest failure for expatriates is the language and cultural barriers of
host country that affect the overall performance level of a business in international market.

Conclusion
From the above mentioned report it is conclude that international human resource
management is concerned with acquiring, managing and allocating the workforce into an
international business for the achievement of organizational goals and enhance the
competitiveness of a company in a foreign market. There are few HRM practices that plays
a significant role in effectively managing the workforce in international market.

References
• Chiedozie, O.L., Victor, A.A. and Sunday, F.T., 2018. Relationship between Staff Human Resource
Management and Academic Performance of Accounting Students in Secondary Schools in Akoko South-
West, Ondo State. Online Submission. 4(8). pp.31-41.
• Ding, D.Ζ., Gloria, G. and Warner, M., 2020. Evolution of organizational governance and human resource
management in China's township and village enterprises. Human resource management in China revisited,
pp.220-236.
• McLachlan, C.J., MacKenzie, R. and Greenwood, I., 2021. Victims, survivors and the emergence of
‘endurers’ as a reflection of shifting goals in the management of redeployment. Human Resource
Management Journal. 31(2). pp.438-453.
• Moore, F. and Brannen, M.Y., 2018. The anthropological comparative method as a means of analysing and
solving pressing issues in comparative HRM. In Handbook of Research on Comparative Human Resource
Management. Edward Elgar Publishing.

References
• Moore, F. and Brannen, M.Y., 2018. The anthropological comparative method as a means of analysing
and solving pressing issues in comparative HRM. In Handbook of Research on Comparative Human
Resource Management. Edward Elgar Publishing
• Ortlieb, R. and Weiss, S., 2020. Job quality of refugees in Austria: Trade-offs between multiple
workplace characteristics. German Journal of Human Resource Management. 34(4). pp.418-442.
• Song, G. and Song, S., 2021. Fostering supply chain integration in omni-channel retailing through
human resource factors: empirical study in China’s market. International Journal of Logistics
Research and Applications. 24(1). pp.1-22.
• Sunday, A.D., and et. al., 2018. Psychological Contract as a Mediator on the Relationship Between
Human Resource Management Practices and Organizational Performance and Organizational
Innovation. Advanced Science Letters. 24(6). pp.3836-3839.