International HRM in Hospitality Sector

This report provides a detailed analysis of International Human Resource Management (IHRM) within the hospitality sector. It explores the reasons for operating in international markets, strategic approaches to HRM, and provides examples of companies like Hilton and Radisson Blu that have successfully implemented IHRM. The report also discusses the importance of cultural values, training, and development in achieving sustainable growth. It concludes that IHRM is critical for businesses seeking to expand globally and improve their brand image and market share.

International Human
Resource Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
International HRM......................................................................................................................1
Reasons to operate in international market.................................................................................1
Examples in context to hospitality sector....................................................................................2
Strategic approach of HR............................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Human resource management is considered as one of most significant aspect for every
organisation. It has been noticed that international business opportunities can also be advanced
by having great role of human resource management. With an assistance of this, business
activities can be managed in appropriate manner so that goals and objectives can be
accomplished (Berger, 2008). In this report, key benefits of international business will be
discussed in context to hospitality sector. It will also focus on diverse strategic HRM approaches
that helps businesses to meet objectives. In present study, number of examples will be shared in
context to hospitality firm so that role of SHRM can be understand while operating business in
international market.
International HRM
As per the detailed study, it can be said that international business comprises all
commercial transactions that are considered between two or more regions, countries and nations.
It means by having improved focus on business firms may have accomplishment of operational
activities in diverse regions of world (Gully, 2013). In order to have effective management of
business activities at international level the business firm need to focus on international human
resource management. It is a combination of managerial activities which is being concerned by
management to have improvement in work conditions according to preference of global market.
In this, management focuses on improvement of procedures so that employee morale can be
enhanced in desired way (Berger, 2008). Along with this, employee retention is also one of key
aspect that is being referred by management in order to improve operational activities. It is a
process of procuring, allocation, utilizing human resources to meet the standards of international
business. In other words, it can be said that international human resource management is
combination of activities that are aimed to manage organisational human resources at
international level so that business firm may accomplish goals and objectives in desired way. It is
also advantageous for gaining competitive advantage and ensure that business is having
impressive level of success (Gully, 2013).
Reasons to operate in international market
International market allows to improve business opportunities because wide range of
market can be targeted in appropriate manner. With an assistance of this, businesses of
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hospitality sector may improve market share and lead business firm to impressive level of
success. It has been noticed that by having improved focus on international business, hospitality
firms may have effective designing of flexible product line by having proper evaluation of global
trends (Henderson, 2005). New standards can be set out in organisational policies by having
reference of global values. Use of technology can also be improved in appropriate manner so that
work performance can be improved in desired way.
In addition to this, it can be stated that hospitality firms may also focus on market that
have low competition so that better opportunities can be identified in international market. This
can be particularly advantageous when business have access to high-quality versions of products
that are superior to versions in other countries (Joe, 2008). Along with this, businesses of
hospitality sector mat also have rapid growth because demand in international market is high as
compared to domestic market. Innovative tools and technology can also be used by the
management to improve overall performance. Information exchange system can also be
improved which will facilitate in effective sharing of data. Moreover, new values can be add on
to the business by having proper analysis of different culture present in international market
(Lucio, 2013). Company can also provide better competition to domestic market competitors. It
is because international market renders better supply and delivery of services.
Moreover, another key reason of adopting IHRM is that it promotes globalization so that
mobilization of resources can be taken into account. It also allows to have effective management
of human resources at international level so that goals and objectives can be accomplished
effectively. Application of international strategies can be promoted so that overseas assignments
can be completed in desired way (Henderson, 2005). It also focuses on minimization of risk
factor by analysing diverse elements that are related with overseas operations. With an assistance
of this, business firm may also transform its organisational structure towards network
organisation which is beneficial to enhance the work performance. IHRM also plays a critical
role in implementing and control of strategies in an international business (Joe, 2008).
Examples in context to hospitality sector
For example, Hilton has expanded business in international market it has allowed
business firm to target wide range of customers from all over the world. It has influenced
business in positive manner that has also impacted on brand image and market share that might
be a critical issue for domestic market competitors. It is because international level brand values
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offers both monetary and non monetary benefits to organisation (Ruysseveldt, 2004). It indicates
that the adaptation of IHRM has allows business to expand its opportunities at global level so
that issues can be overcome in desired way.
Another one of great example is that Radisson Blu Resort is also focused towards
application of international human resource management. It has allowed business firm to
understand potential markets available in the world so that business opportunities can be
improved. Company has expanded its business in diverse nations and targeted developing nations
as key market (Lucio, 2013). It is because tourism sector is more attracted towards developing
nations which provide assistance to hospitality sector as well. In this, company has considered
customers needs as key aspect that may improve application of IHRM. Services and product line
is also designed according to key expectations and international hospitality standards. It has
turned Radisson Blu Resort has premium brand in global market and improved competitive
advantage over domestic market (Ruysseveldt, 2004). Company has also introduced unique
dining options in its services to attract more and more customers. It has also decreased the level
of risk which is beneficial for long term sustainability.
Moreover, Hilton Hotel has also adopted IHRM in order to expand its business
opportunities. It is one of key reason that Hilton group has become Hilton International Group
which is one of leading global hotel brand. Company is currently operating its business in 66
countries by having effective application of IHRM (Alfes, Shantz, Truss and Soane, 2013).
Recruitment and selection system is well designed according to human resource needs.
Organisation is also well focused towards soft skills' development among employees in order to
have better operations in 66 nations. Organisation has adopted ethnocentric approach of IHRM
which allows to manage cultural values and business practices in appropriate manner (Burke,
2013). Headquarters of firm is accountable to take decisions and have application of all standards
so that overall work performance can be improved in desired way. However, this results in little
communication between the corporation headquarter and its subsidiaries.
Strategic approach of HR
As per detailed study, it has been identified that there is systematic model of IHRM that
allows to meet key goals and objectives. It allows business firm to have improved focus on
broader HR activities so that issues work activities can be managed in desired way. With an
assistance of this, employee engagement can also be improved which is beneficial for sustainable
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development. Risk exposure is also one of key benefit that allows business firm to meet key
goals and objectives (Green and et.al., 2004). In addition to this, it has been noticed that business
firms of hospitality sector are well focused towards use of geocentric approach and ethnocentric
approach.
According to model of IHRM, it can be said that role of international human resource
manager is different and it mainly depends on the international orientation of the organisation. It
is one of critical task of managers to have actual interpretation of policies and standards. It is
necessary for manager to design strategies and organisational policies according to in-depth
analysis of international values and features of nation (Guest, 2011). Proper support need to be
provided by IHR manage to its senior manager so that goals and objectives can be accomplished
in desired way. With an assistance of collective working the management can easily enhance the
competitive advantage of firm. It is also significant for HR of hospitality firm to make sure that
international competencies must be referred in appropriate manner during application of
standards (Johnson and et.al., 2012).
In order to deal with diverse issues and challenges the business firm must focus on
formation of strategies and practices that will make their organisations successful. Management
must make sure that values, objectives and goals are being considered as critical aspect for
sustainable development. HR mostly faces issues while having dealing with unions of host nation
so management must design strategies in such manner that overall negative impact must be
reduced (Kearns, 2010). Micro level factors must be analysed in appropriate manner so that
issues can be overcome in desired way. Micro environment analysis must be accomplished by
having consideration of global mindset so that HR competences can be developed in appropriate
manner.
In addition to this, it can be said that cultural values may also impact the business in
negative manner. It is significant for management to make sure about cultural aspects in
appropriate manner. It has been noticed that every nation has different culture that also lead
difference in the customer perception. It means while having operation in different nation the
cultural values must be well concerned. Along with this, it has been noticed that behavioural
values are also different that impact work performance. In many nation showing aggression
towards work is symbol of activeness and in other some nations it is referred as frustration. HRM
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must design its policies and strategies as per effective consideration of cultural values for
sustainable development.
Management team must determine current and future aspects of international business so
that policies' formation can be accomplished as per standards. Factors like social, political,
economic, legal, etc must be ascertain so that HR standards and policies can be employed in
accurate manner (Lane and Kangulec, 2010). In formulation of IHRM strategy senior managers
also need to identify key competencies that are required to accomplish global organisational
objectives. Changes in global values also need to be evaluate on regular basis so that strategies
can be transformed in desired way. Sources of key elements must be ensure according to
standards so that issues can be overcome in desired way (Laroche and Rutherford, 2007).
It is also significant for human resource management to understand key dimensions of
IHRM such as host country where firm is operating business, home nation of l\head quarter
located and other nations that provide labour and other resources. During the policies' design and
application human resource management of hospitality firm must be appropriate so that issues
can be overcome in desired way (Machado, 2014). As it has been noticed that hospitality firms
are focused towards ethnocentric approach for effective management of human resources. It is
considered as method of international recruitment that allows business firm to manage human
resources. It means by having assistance of this, HR professional may recruit right candidate for
the right job roles while having operations in international market. In this, candidate skills need
to be judged according to willingness to adjust within organisational culture (Cantwell, Dunning
and Lundan, 2010). Moreover, recruitment is mostly accomplished with an assistance of
managers that are working at parent nation. It means employees from head quarter can be
transferred to managerial positions in host country. It is beneficial for improvement in
coordination among host and parent nation so that work performance can also be advanced.
Culture of parent company can easily be promoted to subsidiary firm so that work culture can
improved for long term sustainability. Along with this, ethnocentric approach also allows to have
better control over he subsidiary firms and manage activities in accurate manner (Chen, 2010).
In order to have sustainable development, it is necessary for business firm to have
effective application of training and development program. By having improved focus on
training and development program the business firm may improve overall work conditions.
Skills development is also one of key benefit that business may have by having effective
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application of training and development. Learning programs may also be implemented to
enhance the knowledge. For example, management has introduced learning course so that
information about hospitality operations can be improved. It will allow to lead business towards
impressive level of success. Programs are also advantageous to meet the standards and ensure
that goals and objectives are accomplished effectively.
Other than this, geocentric approach is also a method of recruitment which is adopted by
multinational companies. In this, candidates can be hired from different nations to meet the
objectives and improve effectiveness of human resource allocation. Suitable candidates for the
jobs is recruited irrespective of the nationality which allows to develop a group of senior
managers that holds international experiences (Condry, 2013). In this, members that hold
experience to work across the borders are being referred for the job. By having appropriate use
of experience the management can easily accomplish key gaols and objectives of company. It
also improves sharing of learning to meet the expectations and enhance performance.
CONCLUSION
As per above statements, it can be concluded that international human resource
management is considered as one of critical aspect for businesses. With an assistance of this,
number of hospitality firms has expanded opportunities in global market. It is beneficial to
improve brand image and market share. There are number of strategic options that need to be
referred by management for sustainable development. Ethnocentric and geocentric are two
approaches that provide support to recruitment system and allows to meet the demand of human
resource allocation at international level.
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REFERENCES
Books and Journals
Alfes, K., Shantz, A. D., Truss, C., and Soane, E. C. 2013. The link between perceived human
resource management practices, engagement and employee behaviour: a moderated
mediation model. The international journal of human resource management, 24(2),
pp.330-351.
Berger, L., 2008. The Compensation Handbook. McGraw Hill Professional.
Burke, J. M., 2013. Human Resource Management in the Public Sector.Edward Elgar
Publishing.
Cantwell, J., Dunning, J. H. and Lundan, S. M., 2010. An evolutionary approach to
understanding international business activity: The co-evolution of MNEs and the
institutional environment. Journal of International Business Studies. 41(4). pp.567-586.
Chen, S. F. S., 2010. A general TCE model of international business institutions: Market failure
and reciprocity. Journal of International Business Studies. 41(6). pp.935-959.
Condry, I., 2013. Japanese hip-hop and the globalization of popular culture. Introductory
Readings In Anthropology. pp.241.
Demirkan, S. and Demirkan, I., 2014. Implications of strategic alliances for earnings quality and
capital market investors. Journals of business research. 67(9). pp. 1806-1816
Green, N., and et.al., 2004. Human Resource Management: International Perspectives in
Hospitality and Tourism. Cengage Learning EMEA.
Guest, D. E. 2011. Human resource management and performance: still searching for some
answers. Human Resource Management Journal, 21(1), pp.3-13.
Gully, S., 2013. Human Resource Management. Cengage Learning.
Henderson., 2005. Compensation Management in a Knowledge - based World. Pearson
Education India.
Joe, M., 2008. Strategic Compensation: A Human Resource Management Approach. Pearson
Education India.
Johnson, C. J. and et.al., 2012. Resource selection functions based on use-availability data:
theoretical motivation and evaluation methods. Journal of wildlife Management.70(2). pp.
347-357.
Kearns, P., 2010. HR Strategy. Routledge.
Lane, B, and Kangulec, S., 2010.Integrated Offendor management workforce development.Safer
Communities.11(3).pp. 154-158.
Laroche, L. and Rutherford, D. 2007. Recruiting, retaining and promoting culturally different
employees. Oxford: Butterworth Heinemann.
Lucio, M., 2013. International Human Resource Management: An Employment Relations
Perspective. SAGE.
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Machado, C., 2014. Work Organization and Human Resource Management. Springer.
Ruysseveldt, J., 2004. International Human Resource Management. SAGE.
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