International HRM Analysis: Mashreq Bank's Practices and Strategies

This report provides a comprehensive analysis of International Human Resource Management (IHRM) practices at Mashreq Bank, a major financial institution in Dubai. The report begins with an executive summary and introduction to the bank, its mission, vision, and international operations. It delves into the application of HRM theories, reviewing existing practices, and highlighting their importance in achieving organizational goals. The report examines leadership theories, specifically the contingency theory, and its relevance to Mashreq Bank. It also addresses the challenges the firm faces in an international environment, including strategies for retaining and attracting local talent, and navigating cultural differences. Furthermore, the report synthesizes various influences on organizational behavior and its interface with management. It analyzes best practices in IHRM and describes other organizations in the same industry for their IHRM practices. The report concludes with recommendations for Mashreq Bank to improve its IHRM strategies and practices.

INTERNATIONAL HUMAN
RESOURCE MANAGEMENT

Executive summary-
International human resource management is the procedure of allocating, utilizing and
acquiring people in global business to achieve stated objectives and aims. Because of
international context, global HRM is interplay of three elements, HR activities, types of workers
and nations of operations. Due increasing of globalization, international HRM plays important
role in achieving organizational goals, they will be ready to move business operations into
another nations and effectively manage their people to achieve smooth operations of companies.
It bears both strategic and functional resemblance to human resource management, functionally,
it works almost same of functions as HRM, recruitment, performance management, training,
selection, career management and industrial relations.
Here, the current report is based on Mashreq Bank, they achieve its vision and mission
with skilled labour who are able to contribute while gaining competitive advantages. Human
resource management practice help firm to manage their workers at global level, they support to
retain people for longer and sustain business within marketplace effectively. HRM practices is
very important in context of company as it help to motivate staff and increase their performance
better than before. Organization develop strategies to recruit and attract residential people
towards business for purpose of getting skilled labour. Mashreq bank implement Agile system
which is quite beneficial for them as it help to enhance staff performance as well as company for
longer. Furthermore, company face challenges in international environment, through diversity
training they overcome cultural differences and manage people effectively.

Table of Contents
Executive summary-........................................................................................................................2
INTRODUCTION...........................................................................................................................4
A. Application of theory into practices............................................................................................4
a) i-Review of existing human resource management practices..................................................4
ii) Importance of HRM and its practices in company..................................................................6
B) i-Review of leadership theories..............................................................................................7
ii) Contingency theory of leadership in context of Mashreq Bank..............................................8
C) i-Challenges that firm face in international environment.....................................................10
ii) Strategies to retain and attract local talent.............................................................................11
iii) Cultural differences that results out of international and organizational plan to respond to
chalenges....................................................................................................................................12
iv Critically synthesize different influence on behaviour in organization and its interface with
management...............................................................................................................................13
D Analysing the best practice in IHRM.........................................................................................15
Describing other organization belong to same industry for their international HRM practices 15
4. Conclusion and recommendations.............................................................................................17
Conclusion.................................................................................................................................17
Recommendations......................................................................................................................18
REFERENCES .............................................................................................................................20

INTRODUCTION
The present study is based on Mashreq Bank it is located in Dubai, United Arab
Emirates. It is one of the oldest privately owned bank in UAE, founded in 1967 as bank of
Oman. It is considered as one of the first bank in this country to install ATM cash dispensers,
first to issue credit and debits cards and very first to present consumer loans. In recent time, bank
caters Islamic and conventional personal banking services to its consumers including loans,
credit cards and deposits. The oldest local bank in nation, Mashreq bank has offered financial
and banking services to a million of its consumers as well as businesses. Its was constituted in
Dubai as bank of Oman, prior to knowledge of UAE. It has powerful corporate banking and
retail presence throughout Persian Gulf with Branches in Qatar, Bahrain, Kuwait and Egypt. Its
business network extends across country with 50 percent of household banking with firm. Bank
also have consumers services centres in retail locations and one of the biggest ATM network in
state.
The mission of Mashreq bank is to delivery of extreme services, becoming clients
primary bank, and to being preferred employer. Its vision of single-minded leadership and
devotion differentiates from competition. Furthermore, the mission of company is t establishing
good relationships with all its stakeholders. Bank have international activities, they have 12
overseas premises in 9 nations including United States, Africa, Asia and Europe. Bank employed
4,000 workers in their firm and provide all the facilities to them that will enhance their
performance effectively. It is one of the biggest private sector bank operating in UAE and offer
financial services through their 60 branches in Qatar. The Biggest private sector bank, will
double their workforce from 400 people at firm services in Bengaluru to 800 in next 24 months.
A. Application of theory into practices
a) i-Review of existing human resource management practices
Human resource management is strategic method to effective management of workers in
company that help business to gain competitive edge while operating business at international
market or across the world (Armstrong and Taylor, 2020). HRM practices include planning,
selection, recruitment, training, development, performance management and induction of
workers. In context of company, professional and experienced person hire new applicants within
their business in order to deliver quality services and products to consumers. Training is one of
the best human resource management practice, that help to enhance employee performance and

increase productivity more than before. In order to develop skilled workforce and deliver better
services, organization develop training session for their existing as well as new applicants at
workplace. It helps to increase the capacity of people to adopt new technologies within banking
sector and methods that enhance their performance level as compare to past few months.
Training will help to increase skills of workers in performance of specific job within company,
an increase in abilities usually supports increase in quality and quality of outputs. It is beneficial
in context of Mashreq Bank and its staff, but training session required efforts to make it
effective.
Human resource management practice that company can utilized in order to retain
professional people with them for longer. This activity improve staff job skills in their current
position. Professional development support company succession planning strategy by creating
future manager for higher level jobs and more accountabilities. Development is cost effective
activity while training required a lot of money and time as well. Along within this, planning is
also considered as HRM practices where number and type of staff members needed to
accomplish their organizational goals. Planning helps management to analyse, gather and
determine current as well as future needs within company. Human resource manager plan ahead
in order to acquire things done by workers, it is also essential to plan to achieve organizational
goals. Planning helps established the best procedure to reach at goals, with respect to HRM, this
practice include determining personnel systems that will contribute to achieving of business
objectives.
Organizing is another important practices of human resource management, which firm
utilize to betterment of business performance. Day to day work is allocated at workplace to every
member as according to their abilities and skills integrated towards common goal.
HR system implemented by firm-
In context of company, Mashreq bank working in novel HR strategy to suite requirements
of their ongoing digital transformation. As digital transformation becomes difficult in financial
services sector. Bank started their branch transformation centring on enhancing consumer
experience and round clock services way ahead of their workers in industry. Company
implement Agile human resource system within at workplace that help to change organizational
nature effectively to one that is able to thrive and embrace in flexible, self organizing and
collaborative changing environment. Agile software implementation is more than practices such

as test driven development, planning session and stand ups. The adoption of this system saw
bank decentralizing enabler activities and creating nimble & dynamic team comprised of
services, sales and products groups. Each unit is essentially self-sufficient, permit workers to
take full ownership and accountabilities to deliver on consumers promise. One of the objective of
Agile system is to improve workers experience through procedure system enhancements,
improvement, empowerment and enabling of more transparency. Agile software break down
project into managerial teams, that help employees to focus on high quality development,
collaboration and testing.
ii) Importance of HRM and its practices in company
Significance and practices-
Human resource management is practice of deploying, recruiting, managing and hiring an
organization workers (Rees and Smith., 2017). It is really employee management within an
importance on those people as assets of company. In simple term, it is the most effective function
within firm concentrated on directing and selecting people who work in it. HRM deals with
many problems related to performance management, safety, compensation, benefits, training,
employee motivation and others. They play strategic role in managing people and workplace
environment, it contributes effectively to overall business direction as well as accomplishment of
their objectives. The issues sometimes rise up at centre of conflict between workers and
management, specially when workforce feels that their rights are being ignored. Now,
importance of good HRM is critical to synergy and productivity of work area. Their hard efforts
mostly geared towards people management while enforcing firm and state law policies in context
of labour management. In collaboration with recruiting managers of workers, human resource
department provides leadership training, scheduling assistance, team work management,
interview expertise, monitoring, selection and recruitment planning procedure.
Statement of business issue-
While operating business at global level, it is quite difficult to manage existing
workforce, it required a lot of efforts and planning. High employee turn over is one of the biggest
organizational challenge can faced by company that directly impact on profitability and
productivity. In context of this, human resource management practices work effectively, because
HR manager is able to keep everything better. To retain people for longer, effective HRM
strategies and practices is required. Human resource department identify current needs to their

staff member, they are able to solve issue and communicate with people to understand their point
of views. Performance management is one of the best HRM practice that human resource
manager will use to reduce high employee turnover and improve the performance of workers at
workplace (Schleicher and et.al., 2018). It provides structured plan for managing, developing and
continuously improving staff performance. It offers three common stages for people
development that help to overcome business challenge for better work. With first phase of this
practice, department encourage their employees to perform much better than before. They
provide training to people without making any differences that will enhance staff motivational
level and drive towards decreasing high employee turn over. In context of same, skilled and
knowledgeable people are considered as most important asset for company.
Employee turnover is not good for them, HRM always try to keep their best labour with
business and retain them for longer. Training and development is another human resource
management practice which play important role in regards with above business problem. It helps
people to acquire greater knowledge and skills to perform their job effectively, it will enhance
performance and motivate workers to contribute in achieving organizational goals. T&D
programmes are designed for existing as well as new employees in order to enhance their
knowledge, it caters job satisfaction to staff that helps to solve employee turn over issue stated
above. Along with this, utilizing people to fullest and maintaining workers in company for long
term is major practice of HRM, under this they are able to perform tasks like compensation,
provide fringe benefits, rewards and training to deserving people.
B) i-Review of leadership theories
Leadership theories seek to define how and why some people become a leader, such
theories focus on characteristics of leaders and some attempt to determine behaviour that
individual can adapt to improve their own leadership capabilities in different situation at
workplace (Palmer, 2018).
Contingency theory of leadership centre on specific variables related to the atmosphere
or environment that identify which articular leadership style is suitable for workplace situation. It
states that effectiveness of leader is contingent upon how its style matches to condition. It is not
concerned with having person adapt to situation, more goal is to fit leaders style with compatible
position. It is very important in context of business, because this theory provide leader a wide
range of ways to act to issues, it will give them important discretion in their decision-making

procedure. In simple words, contingency theory of leadership requires flexibility on part of
leader to measure each situation and then make judgement unique to those conditions (Harrison,
2018). It helps to provide possible solutions and resolve business problems. By using this
leadership style, leaders will respond to causes of staff problems rather than overreacting to
issues itself. Instead of centring on outcomes of issue, leader who comprehend significance of
contingency theory will able to understand all the influences that lead to critical situation. It will
be used to develp leadership profiles for company in which few styles can be fit with conditions
that have proven to be successful. Excellent leadership is not just about qualities and abilities of
person, it is all about striking right balance between needs, context and behaviours.
Behavioural theory of leadership is really upon belief that good leader are made, not
born. It is focuses on activities of leader, not on internal states or mental abilities (Malik, Saleem
and Naeem, 2016). According to this style, individual can learn to become leader through
observation and teaching. It is big leap from trait theory, in that it assumes that leadership ability
will be learned more than being inherent. It is based on some principles that behaviour will be
conditioned in effective way that one can have a particular response. It considers reactions and
observational actions of leader in given situation, this theory is classified as such because they
centre on study of particular nature of person. It also focuses on how person, assume and behave
that leaders can be made, a leader nature is the best predictor of their leadership influence and as
a outcome, is the better determinant of their leadership success. Furthermore, behavioural theory
promote value of leadership styles with emphasis on concern for staff, it also helps to promote
participative team development and decision-making by supporting people needs and aligning
members & team objectives. It is developed scientifically by nature focused studies of leaders
behaviour in conditioned. This behaviour centred method caters real marketing potential, this
theory states that leader uses three skills or abilities to lead their team, these skills are technical,
human and conceptual. It emphasizes point that favourable behaviour of person caters greater job
satisfaction to employees, and they consider person as their team leader.
ii) Contingency theory of leadership in context of Mashreq Bank
Contingency theory is suitable for company and beneficial for their international plan
operating business worldwide with skilled people who are able to contribute equally in achieving
business objectives & goals. This theory is dynamic in nature, so it modifies according to
situations, it is appropriate for organization because it permits leader t change their policies

accordant to workplace environment (Hu and Gifford, 2018). While operating business at global
level firm face difficult situation at work areas that impact on productivity and staff performance.
It is very important to handle to overall condition effectively without taking too much time. For
this, right leadership style is required that help to change workplace environment positively and
support company to sustain for longer within market with talented applicants. In context of this,
contingency theory of leadership is best, it provides option of people that helps them to progress
as well as share their ideas or innovative thoughts to higher authority. It explains hierarchy of
leadership that is applicable to firm, the overall concept if based on idea that there is always a
least preferred co-workers based on their behaviour and personality traits at work. In order to
become a leader within banking sector, it is important to retain people. Contingency theory helps
leader of company to influence and guide team of people towards specific business objectives.
The basis of this leadership theory is quite simple, it states that workers with different abilities
will perform better in their respective areas. Organization leader with contingency leadership
theory, is able to take decision after considering all the variables that impact staff performance.
Applying this theory, require person to stay alert and avoid relying on policies, rules and
tradition as only guides for their choices.
When Mashreq Bank expand their business into new market, it changes the whole
environment at work that impact on staff performance negatively. To improve worker morale,
and productivity, leader understand significance of this theory and its positive implications at
work area. In context of contingency theory factors, it suggests leader to take decision after
considering all the factors that impact on staff abilities. The effectiveness of this theory extends
to way leader think about consequences of direction and guidances as it relates to entire business.
A leader action reflect culture, commitment to workers safely and well fare, branding position,
profit orientation and consumers services attitudes of whole company. This style of leadership,
make leaders able to take decision and solve issues based on how it will affect business. It is
suitable for organization as it help to increase managerial discretion efficiently. Ne of the major
factors of contingency theory of leadership for leader is that it caters them with far better
discretion. Whether, people have flat or top Down organizational structure, they are capable for
implementing decision and assuring that workers remain committed to particular goals. Because
of this theory gives leader a large range of ways to solve issues or to take action against this, it
also offer them important discretion in its judgements making.

C) i-Challenges that firm face in international environment
There are a lot of challenges that companies faced while operating at international level,
that affect success and growth of business. Understanding human behaviour is one of the biggest
challenge that Mashreq bank will face in global environment that directly impact on sales and
market revenue negatively. Sometimes it is difficult to understand workers behaviour, it creates
challenge for HRM and organization. Without comprehend nature of staff it is impossible to
retain them for longer. Employee behaviour is defined as workers reaction to specific situation at
workplace. People need to behave sensible at work area not only to gain respect and appreciation
from others but also to maintain positive as well as healthy work environment. The behaviour of
workers is change that create problems for company in international environment. They want
proper job satisfaction and healthy work atmosphere, without obtaining their needs worker do
not perform effectively that impact on business profit margin.
To work efficiently and overcome this challenge company have to understand their staff
behaviour. When they comprehend their worker nature, it is easy for them to set better goals and
obtain workforce to function at peak efficiency. A sophisticated comprehension of human
behaviour will helps senior effectively harness staff motivation. Furthermore, when human
resource management can interpret human needs within company, it can drive people towards
fulfilling those needs and also talk out new plans to satisfy people.
Range of people are working within Mashreq Bank, they had different needs and
requirements in context of work. Like the above thing, it is also difficult to determine staff needs
in international environment that define another challenges for company. Demands of workers
are changes according to the situation, which need to identify by HRM. It is quite difficult to do
that affect growth of business negatively and decrease its profit margin rather than before. It is
long termed process that require a lot of efforts and times as well. Without determining the needs
of employees firm will not be able to build strong team and gain competitive advantages. So it is
very important to identify staff requirements. Physiological, safety, social, esteem and self
actualization are the different types of employee needs that the want while working in
international environment. Identify needs of exiting staff will be more complicated, many of new
generation of workers will be more difficult to enhance than their predecessors, this will in part
be outcome of change in value system. To retain people human resource management will
identify needs of staff instead of hiring the new ones. All above needs is important for growth of

professional and personal career, that will identified by HRM. When taking business
international, it is very crucial to consider how management will meet workers requirement for
operating in foreign nation.
ii) Strategies to retain and attract local talent
Methods to attract residential people-
To attract people Human resource management and its team member develop different
types of strategies (Buch and et.al., 2017). The current job market is highly competitive, there are
numerous vacancies every day, but how to attract potential applicant is big question. Strong
recruitment strategy will help HRM to attract local people towards them. The current market is
full of skilled and talented people, by creating effective hiring plan company is able to gain
attention of people. Job seekers look for clarity in job marketing in term of profile, business
history and career opportunities. HRM caters clear description of every required detail in job
advertisements, they will clearly communicate job requirements and how one can benefit from
this site. Human resource management residential people while using internet recruitment
platforms like Monster and indeed that permits them to connect with wider swath of candidates.
This strategy help to reach at wider area of people, internet is considered as global phenomenon,
with more users obtaining access every day, while in most developed nations, it usage in
extremely high.
Campus recruiting is one of the best strategy developed by HRM to gain attention of
skilled or residential people in pool of talent. The institutes or colleges are full of dynamic and
young candidates who show immense enthusiasm in their work, it is the great way to recruit
recent graduates.
Strategies for retaining people-
Employee retention is very important function of Human resource department, for this
they are able to make effective strategies that helps to gain its objective (Huo, 2018). Providing
rewards and benefits is one of the best way of employee retention. HRM consider the
performance of staff and then take decision to pay rewards accordingly it not helps to retain
people but also enhance the motivational level of staff rather than before. Insurance concerns and
health care will support to keep people in their job, along with this benefit are actually beneficial
matter, Salary matters a lot. There are many benefits will be gained with this strategy by human
resource management, such as increase productivity. Recognition and rewarding tends to

enhance workers productivity at workplace, it makes people go extra mile. A base way only
encourages a people to work at level that is needed of them, by creating rewards system HRM
retain workers and improve their job satisfaction. It refers to the ability of company to maintain
their workforce, in most instance it will be presented by simple statistic.
Employee engagement in decision-making process is another strategy for employee
retention, it stimulates team work morale and spirit for high performance. Because engaged
workers are more connected to their work are, they are more aware of their surrounding
environment. Employee engagement helps greater staff satisfaction that leads to employee
retention.
iii) Cultural differences that results out of international and organizational plan to respond to
chalenges
Organizational plan is to retain people and sustain business at global level effectively,
cultural differences affect it. It refers to different beliefs, languages, behaviours and practices
considered unique to staff members of specific ethnicity, national and race origin. Cultural
differences in organization include varying expectation of physical contact and personal space.
When company plan to established business into new market, the culture of that place is quite
different from home country, which create problems for firm to understand human behaviour and
their needs accordingly. In order to overcome these challenge, company had to respond quickly
and effectively, they plan training and development sessions for existing and new workforce that
help to reduce culture differences, help management to identify the needs of staff and also make
them able to understand human nature.
During training programmes, it is easy for human resource management to reduce
cultural differences and enhance workers performance. Through this process, HRM allow people
to understand the importance of cultural diversity. It is one of the best method that provide better
results and create positive work culture within business. Cultural diversity in work area while
operating internationally will provide benefits to firm as they can hire people from all sorts of
different backgrounds, regardless of culture, race and religion. Another way to overcome these
challenge is to assure there is an inclusion of individual of different cultural background in
worker. Diversity training will potentially foster inclusive work culture, create new chances,
encourage team work and leadership as well as thereby develop positive work culture (Barak,