HRM in Global Organizations: Brazil vs. Indonesia Challenges

This report provides a detailed comparison of the human resource management (HRM) challenges faced by companies in Brazil and Indonesia, considering their growing importance as MINT economies. The report begins with an introduction to BRIC and MINT countries, setting the context for the subsequent analysis. It then delves into the specific HRM challenges encountered in each country, including cultural differences, skills gaps, and issues related to employee retention and satisfaction. The report highlights challenges such as the lack of skilled graduates and the Sungkan culture in Indonesia, and substance abuse and compensation issues in Brazil. The report also explores ways to resolve these challenges, such as managing a diverse workforce and increasing employee productivity through technology. The report concludes by summarizing the key findings and recommendations for improving HRM practices in these global contexts, offering valuable insights for organizations operating internationally. The report emphasizes the importance of understanding cultural nuances and adapting HRM strategies to suit the unique contexts of each country.

Running Head: MANAGING PEOPLE IN GLOBAL ORGANIZATION 0
Managing People in Global
Organization
(Student Name)

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Table of Contents
Introduction......................................................................................................................................2
Comparison between Indonesia and Brazil.....................................................................................2
Challenges faced by Human Resource Management......................................................................4
Challenges faced by Indonesian Companies' Human Resource Management..................................4
Challenges faced by Brazilian Companies' Human Resource Management......................................5
Way to resolve these challenges......................................................................................................6
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Introductions
Global growth has sustained to become softer this year. Passive investment in budding market
and emergent economies is dampening probable growth scenario (Farndale et al., 2017). For the
given assignment a detailed note on comparing and contrasting the challenges faced by Brazilian
and Indonesian companies’ human Resource management and provide recommendations to
address the same, keeping BRIC and MINT countries’ growing global importance in mind.
Before getting deep down in the topic it would be better to mention briefly about what BRIC and
MINT countries are. BRIC is an abbreviated form of economies of four major countries named
as Brazil, Russia, India and China and likewise, MINT is for the economies of Mexico,
Indonesia, Nigeria and Turkey (Scherer, de Koning and Tukker, 2019). BRIC is considered as a
group of budding marketplace economies that have cherished a stable and powerful growth for
years where as MINT is that group of economies that has perceptibly less significant economies.
In the BRIC’s way to development, China has played an exceptional role in the group, not only in
terms of its size but moreover for the reason that it has worldwide monetary reach and aspirations
(Asongu and Odhiambo, 2018). But when we look at the recent graphs, MINT countries are
acing economically. The purpose of doing this study is to get insights about the contrasting
global growth. In the further discussion, focus will be on discussing holistically about the
challenges faced by the two major countries Brazil and Indonesia which are having a great
impact on their economic status and what can be done to cut down or fight back to them with a
justified explanation for each recommendation made in order to maintain or improve upon the
standards (Kokotović and Kurečić, 2017). Human Resource Management at international level
can be summarized as a set of proceedings intended to manage executive human resources at
international level to attain its goals and accomplish cutthroat benefits over national and global
level competitors. It comprises of characteristic Human Resource Management functions such as
recruitment ( involves staffing) , selection (picking up the desirable from the recruited
candidates), , performance appraisal , development and training and release which is done at
global plane and supplementary activities such as administration of global skills , emigrant
management and a lot more (Borges, Bernardi and Petrin, 2019). Managing human resources
comes with far above the ground rate of challenges which aren’t most trouble-free to triumph
over. There are numerous of challenges/complexities that are to be studied in the diversified field

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of HRM and are discussed in details which affect the financial success or the success of
organization in general. Also some of the common ways to resolve such issues from both the
countries are discussed further in details.
Comparison between Indonesia and Brazil
In the recent studies made, it was noticed that the MINT’s are causing all the excitement amid
worldwide policy watchers reason behind is that the MINT economies have positive
demographics for minimum (upcoming) 20 years, and their proposed economic predictions are
interesting. The reason behind this success can also be found in the human resource management
strategies.
Cultural differences also played a big role in forming strategy for HRM and they were divided
into two parts:
In-Group Collectivism: Recruitment and selection are the two major processes which get
affected by. Places ranked low in-group collectivism, achievements of an individual are seen to
represent significant selection criterion where as in societies, which are ranked high on the same,
the focus is on the recruiting procedure which is majorly dependent on skills related to team
rather than skills of an individual (Bondarouk, Schilling and Ruël, 2016).
Uncertainty Avoidance: This type of cultural difference affects reimbursement. Societies ranked
with high indecision avoidance, employees tend to avoid risks while in societies ranked with low
on this, recruits welcome risks related to work and high rates of income unpredictability through
performance-based pay (Situmorang and Japutra, 2019).
Human Resource Management also comes with high rate of challenges which aren’t most easy to
overcome. There are n numbers of challenges/complexities that can be studied in the diversified
field of HRM; some of the common challenges are discussed below:
One challenge is the complexity of organizing training for emigrant managers. This is considered
as challenge because of the changes occurring in the international arena and also because trainers
belonging to the home-country are not well updated with reference to the changes that are
occurring in the host-country, training for emigrant managers is often insufficient.

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An additional challenge is the promise of the transnational company to train emigrants.
Numerous Multi-National Companies do not view emigrant training as efficient.
The third challenge is the commitment of the emigrant. Many emigrants are not attracted towards
learning the language, customs/traditions and the general public of the host-country.
Finally, the deficiency of time and assets is moreover seen as a challenge. A lot of companies fall
short to offer training for emigrants for the cause that they say that training requires occasions
and capital that they cannot meet the expense of (Hidayah and Zarkasyi, 2017).
Challenges faced by Human Resource Management
Challenges faced by Indonesian Companies’ Human Resource Management
Abundant opportunities for investors, business enterprise capitalists, and new alumnae from
worldwide universities are been offered by Indonesia’s digital explosion. With increased
opportunities and increased time, the challenges to Human Resource management in Indonesia
also increased. On the other hand, the market of Indonesia is not adequately grown-up to accept
unpredictability in HR practices, which can be clubbed and can be visible by the use of HR
software within MNCs.
Professionals of HR in Indonesia, in their regular operational, encounter some key challenges.
they are:
Deficiency of brilliant skilled graduates
Alumnae from the universities of Indonesia lack quality education majorly because of low
consistency in medium and policies of their education system. The exceptionally skilled students
from good universities are employed by fabled corporations through college placements before
completion of graduation.
At beginning of the concluding year of scholar graduation, labeling doings and employing
operations start by the topmost companies to employ the crest talent and hence, to work for the
top management these skilled lot of brand new alumnae are preferred (ERWIN, ABUBAKAR
and MUDA, 2018).

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Shortage of constancy in management of middle-level
Constancy in the careers and jobs are desired by the Mid-level executives. Stability for
employees and better services to embrace on to their professions and assistances are offered by
Blue chip companies. Loans for housing purpose, auto mobile loans, medical grants and
sustenance for relatives of employee and so on are some of the benefits offered (Machmud and
Sidharta, 2016).
Sungkan Culture
Sungkan culture is still followed at work by many Indonesian companies which basically
includes or talks about the unintended communiqué and activities executed by executives,
because of due esteem for further individuals. However, in start-ups, they do not trust in this
particular philosophy and are exposed to dismissal low performers.
Elevated levels of collectivism
A communal representation where associates of an assembly are further worried about shielding
safeties of their group, more than own personage benefits is defined as Collectivism. Family get-
togethers or similar recurrent social activities also crash efficiency at exertion and degrades
prospects of development. The commercial and investment environment in Indonesia face
challenges owed to trade liberalization (Joseph et al., 2016).
Challenges faced by Brazilian Companies’ Human Resource Management
The paths of internationalization where early movers have already been are now been adopted by
the Multinationals from up-and-coming countries such as Brazil. Since these companies belong
to countries with different historical backgrounds and specificities they have to develop new
techniques to deal with their own challenges. After studying the results of several cases of
Brazilian MNCs it was noticed that these companies had to deal with their previous financial
turmoil, deficiency of skilled labor force in order to work globally and also throws light on the
major call for the development of Human Resource Management competencies to function
worldwide.
Issues of Brazilian employee being similar to the ones in the United States

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Alcohol abuse and drug dependency was reported as a noteworthy issue for several of the
companies which affected the performance of the employee on the job and also resulted in low
interpersonal bonds.
Another challenge encountered was employee retention that appeared to keep approaching and
was particularly upsetting to persons in charge of selection process.
Harassment issues were also amongst the challenges that were reported by the employees
working in the Multinational companies. Harassment was faced in different ways being verbal,
physical, sexual and so on (Teixeira et al., 2016).
Money became the primary cause of employee job dissatisfaction
It has been recorded that money might not be the source of job satisfaction for every employee
but is definitely the cause of dissatisfaction for every employee. According to Frederick
Herzberg’s two factor theory. This quickly became apparent when companies of Brazil were
looked at. While identifying issues of employment, compensation was approximately always at
the top of the list. It has been indicated that employees often thrash about to the broader picture
of their total compensation package and were almost exclusively focused on salary as this results
in all over job satisfaction of them. Low salary packages resulted in low job satisfaction affecting
the raising of company (Jabbour, 2015).
Employee Assistance Programs were not common
Though the advantage parcels which were meant to be presented to the employees of Brazilian
companies are seen as similar to those of in the U.S. they had solitary conspicuous exemption
which was that not even a single company in Brazil had an Employee Assistance Program (EAP)
and adding to this, numerous were not well-known with this type of service. While a lot of them
were without a doubt eligible to handle fragile member of staff issues, it was lucid that the scope
of their accountability and some degree of number of staff often made their jobs overpowering.
An array of problems faced by the counterparts in the United States, Human Resources
professionals in Brazil face similar kind of challenges. Challenges related to substance abuse,
compensation and retention were prevalent (Budhwar et al., 2017)

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Way to resolve these challenges
Managing a Diverse workforce
In the past, much of the workforce that was employed on a daily basis was White men. However
it then happened that companies must employ a more diverse workforce for many reasons. First,
many businesses have found that hiring diversely means you get a lot of talented individuals with
many different viewpoints who can only help your company get better through the wealth of
their experiences. Second, Hiring diversely allows companies to relate more closely to the world
outside the walls of the business (Prause and Mujtaba, 2015).
Increase Employee Productivity through Technology
HR Managers get occupied with the little details instead of focusing on the big ones. How to
increase employee productivity is one of the major issues in HR so that they can get more done
in less time, and really maximize their time at work. However, often incompetent or out-of-date
practices account for much wasted time on the job. There are ways to make working more
efficient.
First, Think about switching to a cloud-based phone system which allow calls to be routed to the
people in one’s business best equipped to handle those calls and results in less wasted time, as
well as a more well-organized team overall.
Second, consider reforming your existing platforms in order to reform the amount of time spent
by employees on being without a job. In addition, some of the HR tasks can be completed in a
self-service model on one platform that allows human resources to change beneficiaries,
addresses, as well as check the number of days they still have to take off during the year. The
more streamlined company can get, the more time it will have to tackle other things.
Retaining your best talent should be top priority
Recruiting good talent used to be the only priority in earlier days but now in modern times it is
utmost important to retain the good talent employee. Special Focus should be made on retaining
those employees who are on high demands by the field because of the exceptional organizational

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and technical skills possessed by them. Employees like these are priceless possessions for any
company (Voegtlin and Greenwood, 2016).
Ensuring better employee productivity to maximise your profits
Business works on the core principle of maximizing takings and minimizing asking
price. According to this principle more the output level, more winning business will be. In such
cases keeping an eye on the high productivity of employees become companies’ priority. Getting
unsatisfactory results might be a possibility many a times. In such case, resaons should be looked
for to know whether it is inefficiency of employees or there is a problem in the managerial part
of the company.
In case of inefficient employees it is important to provide training sessions in order to upgrade
the efficiency. One of the best things that could be done by HRM is to run on-job as well as off-
job trainings for workforce.
Working with the Globalization– “the new normal”
The world we exist in is a perfect example of globalization. In fact phenomenon like mergers,
acquisitions, collaborations, takeovers have become extremely common. Where
internationalization of firms is a sign of success, it is also a challenge with globalization, as one
has to pact with quite a lot of related challenges incorporating the languages, job culture,
supervision approach, customs and practice.
Leadership Development and Succession Planning
A critical strategic initiative of recent times is leadership development which is amongst the
prime challenges for human resource management. To choose the best and develop future leaders
of the organization and to offer the necessary arrangement, processes and equipments has
become an important role of HR professionals.
Many such initiatives can easily be incorporated productively with the use of n number of
systematic approaches through modified assessments which can be used both in the online and

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offline ways in order to evaluate employees performance for the betterment (Nolan and Garavan,
2016).
Conclusion
It is summarizing what all have been discussed and learnt. Both the BRIC and MINT economies
were studied in brief, their past records and the blooming of MINT is upcoming years. It was
also noticed that how Cultural differences played a big role in forming strategy for HRM and
they were divided into two parts they are In-Group Collectivism and Uncertainty Avoidance.
Managing according to cultural difference also gave rise to covert challenges for employees
belonging to different cultural background altogether.
Summing up on the challenges faced by both the countries’ HRM the majors are the complexity
of organizing training for emigrant managers, the promise of the transnational company to train
emigrants, the commitment of the emigrant and the deficiency of time and assets.
These challenges can be overcome by taking few steps towards improvised planning like
Managing diverse workplace is a boon as discussed earlier, having a diversified workplace helps
in maintain touch with the world outside the walled area of office. Increase Employee
Productivity through Technology, Attracting and Retaining Top Talent includes thinking about
where the company should advertise job vacancies. Retaining good employees means that you
need to offer specially to those employees who are in high demand because of professional and
technical skills.

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