BUSM2449 International HRM: Localization and Standardization

This report delves into the critical issues of International Human Resource Management (IHRM), specifically focusing on the ongoing debate between localization and standardization. The report examines how multinational corporations (MNCs) navigate the complexities of adapting HR practices to diverse cultural contexts while maintaining global consistency. It explores factors driving both standardization and localization, emphasizing the need to balance these approaches for effective international operations. The report highlights the importance of understanding cultural differences and the impact of external factors on HR policies. It references empirical studies and provides examples of how Western MNCs address the standardization/localization dilemma, such as in the Arab Nation. The discussion covers the strategic implications of these choices, emphasizing the need for flexibility and adaptation in IHRM to achieve organizational goals and gain a competitive advantage in the global market. The report concludes by underscoring the context-specific nature of HRM and the role of technology in standardization and localization.

1HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author Note

2HUMAN RESOURCE MANAGEMENT
The internationalization is actually the way through which the development of the
involvement of the businesses in the international market are done for the more competitive and
expanding the business out of the domestic territory. The companies should think globally and
have the ability of understanding the cultures which exist in countries when it is planning of
serving International (Chung and Furusawa 2016). The international human resource
management on the other hand is one collection of all the activities which concentrate on the
management of organizational human resources in the context of international for achieving the
desired objectives the goals and gaining the competitive advantage over the market competitors
in the international level. The international Human Resource Management has various activities
related to HRM such as selection, recruitment, development, training, the promotion,
performance, appraisal, rewards and payments in the international level. It is further aimed at
focusing on all of the activities such as the management of scale and the management of the
expatriates in the international level. Significantly, the International human resource
management deals with the issues of HRM which involves the boundaries of countries other than
the home country.
It is well concerned with the connections between the activities of HRM in an
organization along with all of the foreign external factors where the organization work on. The
international human resource management further consists of the comparative HRM studies
(Djan and George 2016). Taken for example, the countries such as Thailand, Japan, Switzerland
design their planning for upgrading skills of staff that are quite different from one another. As far
as IHRM standardization and localization is concerned, the feature of HRM in terms of
internationalizing the companies consists of the strategic levels of analysis multinational
company. The international HRM further consists of two primary organizational levels such as

3HUMAN RESOURCE MANAGEMENT
the multinational company and the foreign subsidiary. Then it further involves the maintenance
of a strong bond between the two levels. Also there has to be a fit between the localization and
the standardization of the multinational companies practices and policies and the host country. In
order to standardize and socialize the new company in the areas as financial reporting operational
reporting there should be proper appointment. The international HRM standardization can further
be visualized in the form of rational management initiative through the multinational enterprises
to transfer in the HRM policies to the international activities
In terms of international Human Resource Management localization and standardization
the issue of maintaining the balance of HRM is most important. The biggest issue the MNCs face
is for maintaining the balance of the factors of HRM such as structure strategy form size for
maturity. The corporate cultures of the company have effective influence on the standardization
because the external factors and the culture of the local environment live impact on the mode of
operation and the localization strategy (Djan and George 2016). Nowadays almost every
multinational corporation engages itself in the agent standardization practice in an efficient
manner. This is not that useful for the whole workplace but it is highly advantageous for the
managers working in the group in cross boundaries. The maintenance of the globalization is
comparatively easy and possible but at the same time the international companies must identify
that while preparing the local adaptations there is high standards sufficient for driving
localization (Ghauri et al. 2016). The localization on the other hand is driven by different
institutional and cultural environment factors that are considered in the local environment. In the
international HRM the national culture is another major factor and cultures that are found it
completely on the personal bonds can value more of the competing balance on the rivers such as
the extensive and the intrinsic.

4HUMAN RESOURCE MANAGEMENT
The empirical studies show that HRM is extremely context specific and it is well
impacted by the macro and the micro variables. Therefore, the polices and the procedures of the
HRM can be properly localized, standardized and integrated when they are transferred by an
MNC company to the subsidiaries in the other countries because of the micro and the macro
variables. The studies have depicted that each of the HRM practices different from others in
terms of the localization and the standardization (Liu et al. 2016). The HRM practices are further
divided to the other elements and the practices. The researchers have found the application of the
technologies being one of the primary factors of the standardization and the HRM localization.

5HUMAN RESOURCE MANAGEMENT
References
Chung, C. and Furusawa, M., 2016. 10 The HRM of Foreign MNCs Operating in
Europe. International Human Resource Management: Contemporary HR Issues in Europe,
p.169.
Djan, J. and George, B., 2016. Standardization or Localization: A Study of Online Learning
Programmes by Tertiary Institutions in Ghana. European Journal of Contemporary
Education, 18(4), pp.430-437.
Ghauri, P., Wang, F., Elg, U. and Rosendo-Ríos, V., 2016. Market driving strategies: Beyond
localization. Journal of Business Research, 69(12), pp.5682-5693.
Liu, S., Perry, P., Moore, C. and Warnaby, G., 2016. The standardization-localization dilemma
of brand communications for luxury fashion retailers' internationalization into China. Journal of
Business Research, 69(1), pp.357-364.