Human Resource Management in a Global Economy: An Essay Analysis

This essay provides a comprehensive overview of International Human Resource Management (IHRM) within a global context. It explores the core components of IHRM, including culture, training and development, diversity management, and international performance management. The essay examines how these elements are interconnected and influenced by various HRM theories such as organizational behavior, AMO, and contingency theory. It highlights the importance of cultural competence, diversity management strategies, and effective communication in the workplace. Furthermore, the essay discusses the significance of training and development, performance appraisals, and employee management in fostering a high-performing global workforce. The student's work uses a minimum of 15 contemporary, peer-reviewed journal articles to support the analysis and provides insights into the challenges and opportunities of managing human resources in multinational corporations. The essay also addresses key concepts of organizational behavior and the impact of cultural differences on workplace dynamics, providing strategies for managing cultural diversity and promoting effective teamwork. The essay covers the importance of aligning HR practices with organizational goals and the role of training in enhancing employee performance. It also explains the steps involved in addressing poor performance and the importance of providing opportunities for improvement before any disciplinary action. The essay concludes by emphasizing the importance of IHRM for competitive advantage in the global economy.

Running Head: HRM 0
Human Resource Management
Student Name:
Student University:

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In a global economy, International Human Resource Management (IHRM) consisting
company’s employment practices and work systems embracing collective and individual
aspects of people management. It is not limited with any ideology or style while engaging the
energies of line managers and expert with various groups of employees (Brewster, Vernon,
Sparrow, & Houldsworth, 2016). IHRM includes the responsibilities of training and
development, recruitment and selection, human resource planning, payment and reward
systems, employees’ performance assessment and aligning employee developments
initiatives for corporate strategies. It is concerned with the issues related to human resource
(HR) in the process of foreign subsidiaries MNCs (Cascio & Boudreau, 2016). It maintains
the relationships between the operational activities of the companies and overseas
environments. The organisational structures are enormous with multiple levels of hierarchy
with centralization in decision-making. It promotes and encourages inequality between
individuals at every level. IHRM requires various activities of HR; need to look at wider
perspective, involvement of employee’s private lives, workforce change management,
exposing risks and wide impact of external forces (Khilji, Tarique, & Schuler, 2015). In
MNCs, recruitment and selection mainly named as international staffing in IHRM with a
need to hire international managers for position fulfilment at different locations. International
performance management requires appraisal as per international settings with a huge
consideration. It consists of multiple factors considering culture, primary company and the
subordinate company’s business goals with the experiences linked to the business
environment and major county culture where the business is established for conducting
performance appraisal.
HRM theories in the company underlined are organizational behaviour, ability
motivation opportunity (AMO), commitment, motivation, resource-based and dependence,
transaction costs, institutional, agency, human capital and contingency applied in the areas of
culture, diversity management, training and development, and international performance
management (Voegtlin & Greenwood, 2016). It consists of more three theories namely
convergence theory, Marxist theory and cultural perspective. The company’s culture shows
the differences from other companies sharing a meaning consists of beliefs, customs, values
and norms depending on the behaviour of individuals in the society. To manage the diversity
at the workplace by implementing and planning organizational practices and systems
depending on the characteristic like age, gender, race, income, personality, religious beliefs
and more of employees. International performance management helps in improving the

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development and performance of an employee by setting HR activities. Training and
development of employees for making them perform complex international operations
(Collings, Wood, & Szamosi, 2018). This essay is based on the knowing of IHRM in a global
economy by covering culture, training and development, diversity and international
performance management areas in the company with the help of theories and concepts of
organisational human resource management.
Diversity Management and culture at the workplace is essential for working
performance effectively by the employees in business. This concept is based on the people
acceptance and respect with their different and unique understanding. The cross-cultural
difference can be dealt by adapting, structural and managerial intervention, and exit with the
reduction in the issues of cultural diversity (Grivastava & Kleiner, 2015). Culture consists of
norms, values and traditions affect individuals or groups way of thinking, perceiving,
interacting, behaving and making judgements with time perceptions impacting daily
deadlines and schedules. Culture competence means the capability of effective interactions
with individuals from different cultures. It is necessary to be aware about one’s cultures
perspective with knowledge of other cultural activities in a broad way consists of cultural
differences attitudes tolerance and cross-cultural skills (Alexander, Havercome, & Mujtaba,
2015). Cultural competency training is important for the different cultures working together
to avoid issues including miscommunication, real conflicts and risking all effective employee
performance and productivity (Sharma, 2016). To manage cultural diversity in the workplace,
it is essential to develop cultural competence resulting in the capability of understanding,
communicating and interacting effectively with individuals through cultures. It also results in
cultural beliefs and schedules change with numerous cultural variations.
Communication in the working environment is essential for providing appropriate and
rapid information to enhance the performance of the team and work effectiveness. It is
necessary at the time of trouble and requires sudden corrective measures. At the workplace,
team-building is done for the management of employees with different cultures by assessing
cooperation between teams. The problems while team-building can generate problems as
team compromise individual from mixing these cultural types (Potterton, D., 2018). To build
cross-cultural team effectively generating potential advantages significantly benefiting
cultural diversity in the workplace. The different cultures considers time while balancing
professional and personal life, and mix at workplace between social behaviour and work.
There are many more differences consists of overtime perception or deadline issues in the

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workplace causing huge misunderstanding and disaster with scheduling as well. Hence, this
perception shows the importance of cultural divert and its impact on the regular working in
the workplace. The impact of work by events like religious and cultural affects the
workplace. The business runs with the start from January 1 and end of December 31 as per
the western secular year while some use broadly different calendars to examine holidays
specifically. It affects the workplace due to individual requirement of time off by observing
their holidays (Mor Barak, 2015). The cultural diversity trends are minority workforce
growth, stereotyping and prejudices growth, and diversity training embracement, increment
of females in the workforce at large and openly hiring people with disabilities and different
abilities acceptance.
In today’s time, cultural competence is an important skill with the increase in diverse
workforce to the globalization of business to work performance effectively. The cultural
differences switch from communication to teamwork and perceptions of time to differing
cultural calendars. The techniques, strategies and skills to manage cultural diversity in the
workplace and development of cultural competence focus on awareness, attitude, knowledge,
and skills. The skill of cultural awareness is to understand the reaction of one to other
individual with different behaviours and cultures interfering with effective working
relationships as they focus on actual behaviour instead of frequent and predetermined biased
notions (Ensari, Lopez, & Shackelford, 2017). The companion of awareness is attitude
enabling individuals to determine their cultural differences related to beliefs and values by
understanding backgrounds. It is easy to make a judgement but it is crucial to focus on facts
as per the suggestion of some people being more unfair and biased than others with rapid
disrupt cultural training. It is the goals of the company to manage cultural diversity in the
workplace with effective working creation of relationships without making any changes. The
knowledge of different cultures is important to maintain the values and beliefs equally by
ensuring conflict in behaviour about which individuals are unaware. The knowledge of self-
behaviour and other cultures is related to the workforce effectiveness and fairness which is an
important skill (Grissom, 2018). It also relates to the religious events and communication
styles to holidays. The objective of tolerance minimization made for differences is significant
for possibility of effective teamwork. The goal of training to allow organizational employees
and leaders is through skills for making cultural competence a continuous part of the
workplace. The new working environment can be generated by communicating,
understanding, cooperating and providing leadership through cultures. In 21st century, to

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manage the cultural diversity in the workplace is challenging for the companies to earn profit
from a competitive advantage in the economy.
Performance management is an essential human resource and managerial tool to set
measurable and clear objectives for work providing numerous opportunities. The activities
need to be performed is performance review, planning and coaching. Training and
development in performance management is frustrating and costly for employers for the
individuals in the workforce who never performs but it is the duty of them to make sure about
employees provided with training and development requirement with the necessity of
completing the work they are hired for with better performance. The focus is on training and
development of the workforce for performance management (Ayeleke, North, Wallis, Liang,
& Dunham, 2016). The effective HR planning is necessary about making sure the need of
training and development for individuals and groups to manage performance levels correctly.
It is applicable during the employment relationship with the start of recruitment and making
sure about the right individual to get hired for the job with appropriate skills. The tool of job
description is useful for employer to set expectations while providing defined margins to
employee (Khan, Abbasi, Waseem, Ayaz, & Ijaz, 2016). Induction process is for role
appointment to the employee significantly assisted by employer for becoming full functioned
member of the company. It helps in reducing turnover, long-term training costs and
improvement in the well-being of an employee. It also helps in identifying areas of employee
outside with the need of advance training and information to the employee about the
employer’s expectations. The process of induction is relevant for employer hiring an
employee with the information of not possessing the skill set as a whole required for the
appointed role. Thus, employer considering the amount of training before appointment
needed by an employee after the discussion helping to identify training provided to the
employee.
However, an employer pointing role of the employee to be difficult due to the
involvement of managerial aspects and more after covering the position. The new employee
required training for any new system in the company to solve the issues for being at the
position of the job permanently (Rowland, Hall, & Altarawneh, 2017). It is essential for the
employer to provide necessary training as required to an employee for enabling employee to
fulfil the job and its current position. To manage performance issues of an employee can be
done by monitoring the employment relationship on the basis of regular performance
appraisals and continuous training with other initiatives as well. Moreover, it the employee is

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not performing up to the required standard, the employer can follow the process for
addressing the poor performance. But, if not, than employee can also receive justified
dismissal. It requires employer to be proactive and patient all over the process with the
requirement of setting time frames of the employee improvement and monitoring
performance regularly. Firstly, employee will get the notice based on the performance as per
the general rule internationally with required standard (Emerson & Berge, 2018). The
employer needs to determine about the decision to be taken for dismissing an employee for
justified poor performance by discussing performance with an employee and communication
related to dissatisfaction, if any, with the standard. It requires providing the employee with
the statement clearly of the expected level of performance. Employer need to warn employee
about the conditions with the possibility of dismissal, if performance did not improve with
the required standard and providing training for improvisation (Imran & Tanveer, 2015).
Providing reasonable opportunity for improvisation to an employee, and discussing and
considering the changes with an employee as occurred even if not meeting the employer’s
requirements and expectations.
It is the need to provide training and other assistance to improve relevant
considerations with the identification at the time of performance management process as per
provided to an employee. The performance management process is to focus and look on
improvement, not with the use of intention of employee dismissal at the end and may become
a justified and correct result (Asfaw, Argaw, & Bayissa, 2015). Under the employment law,
the process starting with the employment policies and agreement in the workplace, and it is
essential for employers for being familiar with the policies linked to the poor performance of
an employee to be followed. The issues related to the performance management are
significant to build workplace with high performance (Rodriguez & Walters, 2017). The
combination of effective HR planning helps in reducing the workforce turnover and
increasing productivity. This process requires investment of money and time for resulting in
efficiencies and if not, employers need to demonstrate their side of bargain to meet training
and development needs (Ibrahim, Boerhannoeddin, & Bakare, 2017). The challenges faced in
international performance management are uniformity, environmental variations, criteria
validity, and distance and time variations, varied level of maturity, rater’s competence and
biasness, cultural adjustments, host environment and more. The major expectation of the
company is its effective work performance by the employees that can be fulfilled with
training and development to provide better understanding and culture adaption.

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It is to recommend that in IHRM, it is essential to work on cross-cultural differences
by managing diversity in the workplace and effective performance management with the help
of training and development of workforce. The issues can be resolved by adapting validity
and reliability with correct information and data, and using rational techniques, relevancy in
working with the appropriate purpose, appraisal forms customization of different factors
impacting performance to cover the standard continuously, it is really important for
workforce to have open and regular communication to provide continuous feedback. The
evaluation and procedure of performance appraisal need to be sensitive regarding changes
and varied ground realities consisting culture factors, trade unions, government functioning
and policies. It is important to make the process easy to operate and requires accurate
knowledge to the employer about employee’s working, culture, behaviour with
environmental factors and organizational culture affecting the company.
To conclude, culture and information performance management need to be effective
closed to the ground realities of the country where the concern of the employee is its
working. Hence, there should be customization for the employee, country and company
where the aim of the performance management is about skills improvisation and not making
employees dismissed. In IHRM, management of the MNCs need to face various issues and
challenges as mentioned above to manage the diversity in the workplace and performance of
different employees providing training and development to them. The areas need to be
managed differ from one to other type of employee based on the MNCs based in the countries
and purpose of sending the emigrant. MNCs pre-examine the expectations and roles
regarding the cross-cultural differences of the employees being diverse and performance of
the employees after training and development for effective results and overcoming all issues
and challenges faced by the company.

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