International HRM Challenges: Singapore-Indonesia Case Study Analysis

This report delves into the challenges faced by International Human Resource Management (IHRM) when a company transitions from Singapore to Indonesia, highlighting the complexities arising from differing work cultures. It identifies key issues such as managing cultural shifts, employing n...Read More

MANAGING EMPLOYEE
RELATIONS IN GLOBAL
CONTEXT

1
Contents
INTRODUCTION.....................................................................................................................................2
Area in which IHRM faces problems and recommendations.............................................................2
Conclusion.............................................................................................................................................5
REFERENCES..........................................................................................................................................6

2
INTRODUCTION
In the modern day business environment there are many kinds of challenges are faced
by the HRM. These challenges increase in case of multinational firms as they need to adapt
the working culture of the two nations (International HRM Considerations, 2018). It is
essential that firm manages its most valuable resources i.e. human resource in a better way so
that their efficiency does not come down. Singapore and Malaysia are two distinct countries
having different working culture. In Indonesia collectivism has been highly encouraged while
Singapore is more individualistic. This report highlights the challenges that are faced by
HRM when eu yan sang moves from Singapore to Indonesia. It also showcases the steps that
are taken by the IHRM for dealing and managing staffs that they employee in Indonesia.
Area in which IHRM faces problems and recommendations
There are many kinds of challenges that come in front of IHRM in an organisation. A
firm needs to face all these so as to continue their business appropriately while they shift
from one country to another having a very different kind of working culture.
 Managing cultural shift: A company always has a working culture at their workplace
and most of the time it is derived by the culture that is prevalent in the country
(Cascio, 2012). Moving from Singapore to Indonesia there was a serious problem.
Singapore has a culture where employees were working in individual manner while in
Indonesia employees are suggested to work in a group.
Recommendation: Simulation training can be beneficial for the employees as it will
help them in adopting collectivism working culture as well as it will help them in
adjusting to the workload given to each worker.
 Employing new kind of employees: The staffs that will be recruited in Indonesia are
habituated to work in a group while the eu yan sang has been following individualistic
work culture hence firm needs to train their old staffs also (International HRM
Considerations, 2018).
Recommendation: An efficient graduate plan needs to be made by the manager so
that company can easily employee new kinds of talents that are present in indonesia.
 Workload distribution: Since in Indonesia people are trained to be work in collective
manner hence they generally distribute their workload. On the other hand employee

3
from Singapore is capable of working with more workload. This may create
dissatisfaction in many of the employees and IHRM has to manage it properly
(Challenges for human resource management and global business strategy, 2018).
Recommendation: It is better to employee experienced professionals from Indonesia
for the purpose of training. This helps them in giving clear idea regarding the ways in
which work has been done.
 Conflicts: Since there will be employees from two distinct working culture hence
there may be the chances that conflict may arise (Jackson, 2002). For example
employee from Singapore have the habit of working more independently and when
they will work in Indonesia their might be the chances that employee will feel that he
is being interrupted more often. Managing such kinds of conflicts can be difficult for
HR.
Recommendation: Have a mixed workforce which will ensure that workers from
Singapore will understand the ways in which work is done in Indonesia. It will reduce
the number of conflicts inside the workplace.
 Retention of employees: Since company is moving from one nation to another it
becomes difficult for IHRM to retain employees as both the countries have different
working culture. Most of the time employees remain unsatisfied with the ways firm is
operating (Cascio, 2012). Rewards and compensation plays a very vital role in this
regard and it must be distributed according to the nation culture.
Recommendation: In the start it is beneficial for the firm to pay high to the staffs.
This will help them in recruiting talented employees as well as retaining them for
longer duration.
 Staying with the law: It is difficult for IHRM to comply with the labour and
employment laws present in the new nation as adapting them is not an easy task
(Albrecht, 2000). There are many kinds of Laws that are completely different between
the two nations hence eu yan sang has to manage both of them in a proper way.
Recommendation: It is better to have thorough knowledge regarding the rules and
regulation related to labour and employment within the country. It helps them to
design the organisational structure in the similar manner so that while operating there
must not be any such legal concerns.

4
 Managing CSR responsibilities: Indonesia is facing unemployment concerns more
than Singapore hence managing CSR responsibilities can be a difficult task. Any
failure in managing CSR can negatively affect the image of the firm (Jackson, 2002).
Recommendation: There must be effective CSR strategies which helps company in
managing their CSR responsibilities.
 Training of employees: Employees in the moved nation have different kind of training
need as per the requirement of the firm; IHRM faces difficulty in training them due to
language barriers and understanding differences (Cascio, 2012).
Recommendation: A planned training program needs to be made so that it is up to
the level that is required by the firm and every employee gets benefits of it.
 Wining war for talent: Since the firm is new inside the nation hence it becomes
difficult for them to hire best talents from the nation as most of the employees do not
want to get attached with the new firm (Albrecht, 2000). This reduces the chances for
the eu yan sang to have extremely talented workers from the nation.
Recommendation: Rewards and compensation needs to properly given to the
workers as per the norms inside the nation. It helps company to achieve higher
employee satisfaction which is necessary for the growth of the eu yan sang.
 Making employees attached with the firm: It is one of the biggest challenges for
IHRM to align new workers with the values and strategies of the firm (Festing,
Budhwar, Cascio, Dowling & Scullion, 2013). Role of IHRM becomes highly
important in this regard that they motivate workers to work with the firm goals and
objectives so as to achieve them smoothly.
Recommendation: Employee engagement programs can help firm in making closer
connection with the employees which will help them in aligning workers with the
values and strategies of the firm.
 Low quality employees in Indonesia: Major part of the Indonesian employees is
having low quality skills and knowledge which can be harmful for the productivity of
eu yan sang. There have question raised on the issues of their loyalty in the past which
is again major threat for the firm (Sparrow, 2009).
Recommendation: Company need to provide heavy training to the staff members so
that they also get up to the level that is required by the firm.
 Lack of leadership generation ability: One of the demerits of collectivism is that it
reduces the chances of someone performing extraordinary as all the employees

5
somehow get dependent on each other (Wilkinson, Wood & Demirbag, 2014) .This is
an issue for IHRM as this may lead to the reduction of chances of extraordinary work.
Recommendation: This can be resolved by providing an atmosphere where
employees can put their views on a several works.
Conclusion
From the above based report it can be concluded that there are many kind of
challenges that IHRM faces while it shifts from one nation to another that too when they have
completely distinct work culture. It is essential for IHRM to manage this so as to make sure
that smoothness in the work process gets maintained. Training is one of the most effective
measures in resolving all these issues.

6
REFERENCES
Cascio, W. F. (2012). Methodological issues in international HR management research. The
International Journal of Human Resource Management, 23(12), 2532-2545.
Challenges for human resource management and global business strategy, 2018. [Online].
Available at: http://futurehrtrends.eiu.com/report-2015/challenges-for-human-
resource-management-and-global-business-strategy/ .[Accessed on: 17th January
2018].
Festing, M., Budhwar, P. S., Cascio, W., Dowling, P. J., & Scullion, H. (2013). Current
issues in International HRM: Alternative forms of assignments, careers and talent
management in a global context. German Journal of Human Resource
Management, 27(3), 161-166.
International HRM Considerations, 2018. [Online]. Available at:
http://open.lib.umn.edu/humanresourcemanagement/chapter/14-3-international-hrm-
considerations/.[Accessed on: 17th January 2018].
Albrecht, M. H. (Ed.). (2000). International HRM: managing diversity in the workplace.
Wiley-Blackwell.
Jackson, T. (2002). International HRM: A cross-cultural approach. Sage.
Sparrow, P. A. U. L. (2009). Integrating people, process and context issues in the field of
IHRM. HANDBOOK OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT,
1.
Wilkinson, A., Wood, G., & Demirbag, M. (2014). Guest editors’ introduction: People
management and emerging market multinationals. Human Resource Management, 53(6),
835-849.