International HRM Strategies for Absa Bank Mauritius Expansion

This report provides a comprehensive analysis of International Human Resource Management (IHRM) practices within Absa Bank Mauritius, focusing on its expansion into international markets. The report begins with an executive summary and an introduction to Absa Bank, highlighting its HRM practices and organizational culture. It delves into the application of theory to practice, critically reviewing existing HRM practices, including recruitment, training, and employee engagement, and assessing their importance in overcoming business challenges. The report also examines leadership theories, specifically the behavioral and contingency theories, assessing their suitability for Absa Bank's international plans. Key challenges in the international environment are identified, and strategies for attracting and recruiting talented employees are discussed, alongside the integration of cultural differences. Furthermore, the report analyzes best IHRM practices and compares them with those of other organizations in the same industry. The conclusion and recommendations offer insights into how Absa Bank can optimize its IHRM strategies for successful global expansion.

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Executive Summary
International human resource management refers to the activities that are undertaken by global
business for the purpose of managing its human resources at an international level. International
human resource management is important for the purpose of achieving an organizations
objectives and gaols. With the help of international human resource management, organizations
will be able to properly manage the human resources and therefore will be able to carry out its
operations smoothly and effectively in international countries. The company selected for the
purpose of this study is absa bank Mauritius that is based in Africa. The main aim of the paper
was to discuss about the HRM practices that are presently being used by absa bank and make
recommendations for changing the perspectives and the practices that are required for properly
managing the human resources of the company in an international set up. The paper also
discussed about the way the change will affect the international nature of the organization. The
paper will therefore discussed about the present HRM practices, the leadership style that is being
used by the company presently, the challenges that will be faced by the company in the
international market scenario, the strategies that will be sued by the company to attract and
recruit talented employees, the integration of cultural differences and also included the best
IHRM practices.

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Table of Contents
Introduction..........................................................................................................................3
Application of theory into practice......................................................................................4
Review of the existing HRM practices............................................................................4
Critical review of the existing HRM practices............................................................4
....................................................................................................................................6
Review of leadership theories..........................................................................................7
Critical review of any two theories..............................................................................7
Assessment of the suitability of any one of the theories in the organizations
international plans....................................................................................................................8
The behaviors dimensions required in the management of the human resources...........9
The key challenges that will be faced in the international environment.....................9
Strategies for attracting and recruiting talented employees.......................................10
Integrating the cultural differences............................................................................10
The critical review of various influence of behavior in the organization..................11
Analysis of the best IHRM practices.............................................................................12
Comparison with other organizations of the same industry......................................12
Conclusion and recommendations.....................................................................................13
References..........................................................................................................................16
References..........................................................................................................................16

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Introduction
International human resource management refers to the recruitment, management and
utilization of the human resources for an international business that can help the organization in
achieving its objectives. Therefore the international human resource management includes- three
main dimensions that are the employees, the operations of the countries and also the HR
activities. Global staffing refers to the critical issues that are being faced by the multinational
corporations in relation to the employment at host, home and the third countries for filling the
vacancies in the headquarters and for other subsidiaries (Bailey et al. 2018). There are different
recruitment methods that are used by the global businesses. Some of these include- traditional
methods, newer method such as the psychometric tests and other unconventional methods.
Moreover the employees may have to face a number of issues in a global business such as
language barriers, cultural barriers and others ((Banfield, Kay and Royles 2018). The company
selected for the purpose of this study is Absa bank Mauritius. The Absa bank Mauritius is a part
of the Absa group that is based in Africa and is engaged in providing financial services and the
main aim of the company is to become the Country’s pride. It is listed in the stock exchange of
Johannesburg in South Africa (Boon et al. 2018). It is also one of the largest banking and
financial service groups that is present across 12 countries and has approximately 42000
employees. The company believes in providing solution to the local problems whole also adding
value. Therefore the company provides for wealth management, investment and corporate and
retail business products and services to meet the needs of it customers. Moreover it also aims at
creating a positive impact on different countries it is presently operating in. The main purpose of
the company is to bring the possibilities of the customers into reality. Therefore the company

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helps its customers in making their possibilities real and for the purpose of supporting them at
every step. The company believes in being passionate, brave and ready. There are different job
roles within the organization such as the Chief risk officer, the peoples manager, head of digital
transformation, the banking director for domestic and international activities (Bratton and Gold
2017). Moreover there are certain other job roles that are also available in the company such as a
company secretary, treasurer, the director of consumer banking, global market heads, head of
strategy and corporate relations, compliance head and the head of banking business and also the
financing director, managing directors. The main aim of the paper is to discuss about the HRM
practices adopted by the company under study and the challenges that are faced by it during its
international expansion (Lussier and Hendon 2017). The paper will therefore discuss about the
different HRM practices carried out by the company, the different leadership style used in
context of international plans, management of human resources in the context of international
operations, and also the best IHRM practices.
Application of theory into practice
Review of the existing HRM practices
Critical review of the existing HRM practices
HRM practices refer to all those activities and practices that are carried out in an
organization in order to meet its objectives and goals through effective management of its human
resources. Some of these HRM practices therefore include- creation of a healthy, safe and happy
workplace where employees can openly communicate with each other, linking performance of
the employees with their bonuses, making use of performance management systems such as 360
degrees feedback, evaluation system that are fair, fair reward and recognition, knowledge sharing

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and other similar practices (Brewster 2017). These HRM practices helps in motivating the
employees such that they can further contribute to increased organizational performance.
Moreover the HRM practices have become important in the present world because it can help in
providing a competitive advantage to the company. This is so because with the help of a well-
trained team of employees, an organization can easily carry out their operations without any type
of resistance from the employees (Brewster, Mayrhofer and Farndale 2018).
The HRM practices that are followed in absa bank includes
creation of an organizational culture and climate that strengthens the employees of the
organization. The company has a belief that strengths and therefore integrates diverse
perspectives of the workforce for inventing the future. Moreover the company has a transparent
environment that collaborates honest, courageous and powerful energy of the employees and
which further helps in motivating the employees of the organization. Moreover the organization
believes in providing proper opportunities for growth and development for its employees such
that they can achieve their full potential. Moreover the employers value the employees and also
trust them (DeCenzo, Robbins and Verhulst 2016). In order to drive better performance on part
of the employees, they are encouraged to share their ideas and feedbacks with their supervisors
and therefore be able to innovate. Moreover the company understands the importance of training
and development of its employees. Training and development is the process by which the skills,
knowledge and the behaviour of the employees towards their work can be changed and it is the
backbone of the company. Moreover the employees are also prepared for occupying the future
job positions of the organization through proper training and development (Brewster, Mayrhofer
and Farndale 2018). Moreover the organization is also known for its employee engagement
activities through adoption of a collaborative and participative approach. Moreover the company

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believes in recognising and rewarding the efforts of the employees and therefore encourages the
employees to learn and grow within the organization.
The importance of HRM and its practice in the selected organization
HRM practices include- recruitment, direction and management of employees in an
organization. Therefore human resource management includes performance management,
compensation, safety, benefits, and wellness of the employees and also includes motivating the
employees through training and development and other similar activities (Hecklau et al. 2016).
Therefore HRM plays a very important role in managing the human resources and also in
creating an environment and culture where the employees feel motivated. These activities
therefore help an organization in achieving its objectives and goals. Moreover the human
resource management practices include- performance appraisals, creation of an environment and
culture, managing disputes and also include improving the public relations (Guest 2017).
Performance appraisals include- encouraging people to perform their best and also includes
providing them with regular suggestions for improving their overall performance. Moreover the
HRM practices include creation of a supportive environment and culture that can help the
employees in improving their overall performance and therefore achieving the organizational
objectives and goals (Morgeson, Brannick and Levine 2019). Some of the HRM practices carried
out by the absa bank include rewards and recognition, provision of an organizational culture and
climate that supports open communication between the employees and also between the
employers and the employees, regular feedback and training and development activities
(Marchington et al. 2016). Moreover the organization also ensures its employees to learn and
grow within the organization and also provides opportunities related to the same. One of the
major business challenges that is presently being faced by the organization is that of meeting its

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customers’ needs and demands (Nankervis et al. 2016). For the purpose of fulfilling the same,
the organization provides rewards and recognition to its employees that further motivates them
for improving their overall organizational performance and therefore helps the organization in
fulfilling its business demands. Moreover the business environment is dynamic in nature and
therefore it has become necessary for the organization to adapt to all the changes taking place in
its environment. Therefore the organization is able to do the same through regular training and
development of the employees. Through training and development of the employees, they gain
newer skills and knowledge and therefore they become well prepared to adapt to changes.
Another major issues being faced by the company is that the company’s or the group’s image has
currently been affected negatively due to its easy sanctioning of loans and moreover it is also
undergoing restructuring activities and therefore it has become difficult for the company to
attract talented candidates and therefore the company is carrying out employer branding
activities through adoption of a collaborative or a participative approach with its employees
(Voegtlin and Greenwood 2016).
Review of leadership theories
Critical review of any two theories
The two main leadership theories include the behavioral theory of leadership and the
contingency theory of leadership. The behavioural theory discusses about the reactions and
action of the leaders and the followers in a particular situation. The behavioural leadership theory
studies the way the leaders behave in different situations (Olson et al. 2018). One of the most
well-known behavioural theories of leadership has been proposed by Blake and Mouton and that
is called the Grid theory of leadership. The grid theory is a grid with two main axes that is
concern for production and concern for people. Based on these two axes there can be four main

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styles of leadership that is the country club leader, an impoverished leader, a team leader and a
produce or perish leader and also a middle of the road leader. The other leadership theory the
contingency theory. According to the contingency theory, there is no particular leadership style
that is applicable in all situations, rather the leader nerds to act and take decision according to the
situations. Therefore the leadership style should match with the situation that is being faced by
the leader. For this purpose, the leader needs to first identify the situation that is being faced by
him and then decide which leadership style will be best suitable for the same.
Assessment of the suitability of any one of the theories in the organizations international
plans
The leadership styles that will be most appropriate for successful implementation of the
international strategies of the organization include- the contingency leadership style. A
contingent leader is one whose effectiveness is dependent upon their ability to match their
leadership style to a particular situation that is being faced by them. Therefore it is based on the
belief that there is no one particular leadership style that is suitable for all situations and
therefore leaders are required to behave differently according to different situations. A
contingent leader is one who combines different leadership styles for different situations. It is
therefore dependent upon an if and then approach of leadership. Therefore in case an
organization decides to expand its operations internationally, the leader will be required to recruit
employees in the host country and moreover the organization will also want that the culture and
value of the company is maintained properly in the new country also. Therefore the situational
needs will require the leader to form a diversified workforce comprising of people from different
cultures for the purpose of improving the productivity, creativity of the organization and also for
the purpose of improving the organizations reputation and image. Moreover it is the leader who

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will have to employ expatriate employees for higher position in the host country in order to
ensure that the cultural values and beliefs are maintained even in the host country’s organization.
By having a contingent approach towards leadership, the leader can ensure that he will behave
differently when the organization becomes a multinational one. In other words, a contingent
leader can ensure that be will behave differently when the organization becomes a multinational
ones. This will also help in ensuring a supportive work culture. As it is only the leader who can
change organizational culture and climate. Therefore if the contingent leader shows a more
supportive behaviour towards the diverse workforce then the existing employees will also do the
same and a culture of mutual trust and support can be created. Moreover a contingent leader will
take actions contingent upon the situation s that is being faced by the company. Moreover the
leader will decide to outsource employees to meet the employees needs created by the expansion
strategy from the country in which the company is going to expand its operations.
The behaviors dimensions required in the management of the human resources
The key challenges that will be faced in the international environment
Some of the key challenges that will be faced in the international environment includes-
cultural differences between the employees, challenges related to employment relation and
challenges related to the scope of unionization. The culture and the values of human beings are
dependent upon their society or rather to the country to which they belong. This is so because
according to Hofstede different countries have different cultures based on the six dimensions of
culture. These six dimensions includes- power instance, uncertainty avoidance, collectivism vs.
individualism, short term orientation vs. long term orientation, femininity vs. masculinity and
restraint vs. indulgence. Therefore based on these dimension, people behave differently. For
instance, the uncertainty avoidance in UK is lesser which shows that the country does not easily

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adapt itself to change and as a result the employees from that country may not like to change
easily. Moreover there can be issues related to employment relation. This is so because different
employees may have different needs and wants that they if fulfilled by the organization will help
in motivating them. Moreover the employment relations are also dependent upon the fair and
equitable treatment of the employees.
Strategies for attracting and recruiting talented employees
Some of the major strategies that will be adopted by the company to attract its employees
is- employer branding activities, efficient training facilities, lucrative compensation and
rewarding packages. Employer branding refers to the perception of candidates about working in
the company (Sparrow, Brewster and Chung 2016). It is therefore dependent upon the
employee’s experience in the company. Therefore it includes- managing the reputation of the
company in front of its employees, candidates and also other stakeholders in order to create a
good image in front of them. Some of the major techniques of employer branding includes-
creation of a good organizational culture, using story telling techniques and various others.
Efficient training facilities will help in retaining and attracting candidates because it can help in
improving the skills and knowledge of the employees. Organization can also attract talented
candidates by offering them lucrative compensation packages and by rewarding them.
Compensation includes the cash rewards that is paid to the employees in exchange of the
services provided by them. It includes both the monetary and the non-monetary benefits provided
to the employees. It is necessary to reward the efforts of the employees to keep them motivated.
Moreover it is also given to the employees to reinforce their positive work behavior.

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Integrating the cultural differences
An organization is faced with a number of cultural differences when they decide tp
expand their operations to another country. The cultural differences may include the differences
in values, beliefs and practices of the employees. For instance: employees may react differently
to a decision of organizational change because of their cultural backgrounds or because of the
country to which they belong. Moreover due to their values they may behave differently towards
their leaders. For instance some employees may feel that whatever the leaders say is correct and
it will be wrong to oppose that view (Wilton 2016). On the other hand there may be employees
who will oppose the decision or views of the leaders if their opinions do not match with that of
the leaders. In order to overcome these issues, it is necessary to carry out cultural diversity
programs or practices in the company. Moreover training can be given to the employees
regarding the same such that the employees will also avoid any form of discrimination against
other employees. The main aim of the diversity management is to create an environment where
all the employees are values with their similarities and dissimilarities such that they can work to
their full potential and therefore contribute to the achievement of the organizational goals and
objectives.
The critical review of various influence of behavior in the organization
When any company decides to expand its operations it is faced with a number of issues
such as resistance of employees, lack of sufficient resources and others. One of the major reasons
why employees resist any kind of change in the organization is because they have a number of
fears. these includes- fear of uncertainty, fear of future, fear of losing position, fear of not being
able to adjust with employees from a different cultural backgrounds And all these behaviors of
the employees makes it difficult for the organization to implement its strategies. The same issue