International Human Resource Management Strategies: Microsoft

This report delves into Microsoft's international human resource management (IHRM) strategies, focusing on its expansion into Britain and Africa. It analyzes the complexities Microsoft faces in the global market, including cultural and language differences, and proposes various strategies such as innovative technologies, quality focus, and demand diversity in Britain, and business development and low-budget products in Africa. The report also examines the benefits and limitations of these strategies, and how they impact the HRM function, including the need for training and development. Furthermore, it applies Hofstede's cultural dimension model to address cultural differences and proposes measures to motivate employees and mitigate cultural shock. The report concludes with recommendations for successful global expansion, emphasizing the importance of understanding local markets and adapting HRM practices accordingly.

Running head: International human resource management
International human resource management

International human resource management
Table of Contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................3
Complexities faced by Microsoft in global market.......................................................................................3
Strategies are used by Microsoft in Britain..................................................................................................4
Strategies are used by Microsoft in Africa...................................................................................................5
Benefits and limitations of proposed strategies in Britain and Africa..........................................................5
How HRM function will be affected by implementing these strategies.......................................................6
Task 2..........................................................................................................................................................6
Hofstede cultural dimension model............................................................................................................6
Cultural shock and measures to motivate the employees...........................................................................7
Conclusion and recommendations..............................................................................................................9
Bibliography................................................................................................................................................9
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Introduction
The report focuses on the development strategies to enter into a global market. Microsoft
company has been taken in the report to explore and expand the business activities in Britain and
Africa. Microsoft is one of the biggest software companies in the world. Various complexities
are involved while conducting trading activities and operations globally. It explains that how
Microsoft uses various strategies in Britain and Africa to overcome the competitors in the
market. Along with this, Hofstede model is used by the firm to reduce the culture differences in
Britain and Africa.
Microsoft Corporation is an American multinational technology company which was
founded in 1975 by Bill Gates and Paul Allen. It manufactures and sells various computer
software, personal computers, and consumer software products. It is the best well known and
reputed company in software products. Its headquarters is located in Redmond, Washington. It is
biggest software maker measured by revenue and profit. There are approx 124,000 employees
employed in the corporation.
Task 1
Complexities faced by Microsoft in global market
Various challenges faced by Microsoft while entering a global market. The company is
not able to find a true market to sell its products. It is the biggest challenge to enter into a global
market. Further, the firm fails to evaluate and analyze the needs, requirements, and expectations
of the customers in other countries. Therefore, it is difficult to find a right customer for the
products in the global market. Cultural and language differences also arise while entering the
international market. If the firm enters into a global market then it needs to do advertisement and
promotion to attract more customers in the global market. It requires a deep understanding of the
moral, customs, culture, and religious of that country (Gibson, 2011). Being a HR consultant, it
is the duty of the HR consultant to resolve the complexities which are faced by Microsoft in the
market.
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In addition, the firm has to face language barriers while entering in a global market. It
also affects the trading activities and operations of the firm. The firm is not able to maintain an
effective and dynamic communication due to language issues and barriers. The company needs
to rely on translators to understand the language of other countries. The executive of other
countries uses facial expression instead of the words to communicate with people in other
country (Piekkari, Welch and Welch, 2014). Thus, HR consultant should conduct counseling
sessions and programs to overcome these issues.
Distance and time zone differences and barriers are other key challenges in the global
market. Along with this, the firm is not able to find the reliable and right partners in other
country to start business activities and operations. The trustworthy and competent people can
become a challenge for the firm. In addition, political issues also affect the trading activities and
operation of the firm in other country. Many people are strong against globalization, outsourcing
and global business practices in the foreign country. Further, human rights are also abused in
other countries. Therefore, it can affect the brand image and position of the firm in the global
market.
In addition, if the company conducts its trading activities in another country then the firm
will have to be aware of the laws and regulations of that country. The laws and regulations can
influence the success and growth of the firm. The legal complexities of global business can be
tricky and complicated. Thus, the company will have to take legal advice from international
lawyers who have excellent knowledge of law and policies. Now it is assumed that the
organization needs to focus the challenges and risks of other country while entering a global
market (Riles, 2011).
Strategies are used by Microsoft in Britain
Being a HR consultant, it is the responsibility of the HR consultant to use effective and
dynamic strategies in the organization. Microsoft will use various strategies in Britain to expand
and flourish its business and to overcome the competitors in the world. The strategies have been
discussed below.
 Innovative technologies: Britain is a developed country and the main objective of the
company is to provide the best quality of software products to people in the international
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market. Innovation strategies help to overcome the competitors in Britain. By using
innovative strategies, Microsoft is able to attain long-term goals and objective in that
country (McMichael, 2011).
 Focus on quality of the products: It is an important and effective strategy which can be
used by the firm to explore its activities in the Britain. The company must need to focus
on the quality of the software products. The organization must use the latest software to
gain long-term benefits in Britain. It will also help to increase and maximize the sale of
the company in overseas country. Along with this, Microsoft also focuses on the prices of
the products to beat the competitors in the global market.
 Demand diversities strategy: Microsoft will focus on the needs, requirements, and
demand of the various products in Britain to achieve the goals and objectives. Thus, it
will also help to increase the revenue and profit of the company. By using this strategy,
the firm is able to fulfill the demand and requirements of the customers in the
international market (Bass and Dalal-Clayton, 2012).
Strategies are used by Microsoft in Africa
The environment of the Africa is effective and dynamic. Therefore, Microsoft uses effective
and unique strategies in Africa to attain the objectives and targets in that country. The strategies
which are used by the firm in Africa have been discussed below.
 Business development strategy: In this strategy, market research, and competitive
analysis are conducted by Microsoft to enhance and maximize the business activities and
operations in Africa. Further, this strategy also focuses the client relations in order to
increase the sale of the software products in such country.
 Low budget products strategy: If the company wants to enter into the new market then
low budget products strategy is used by Microsoft. It also helps to attract more customers
and to attain the output and results within the organization.
 Development of the backward areas: The main aim of this strategy is to develop and
build the backward areas. It will help to fulfill the corporate social responsibility and to
maintain sustainability within the organization. It will also help to gain the trust and
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loyalty of the local residents of that country. All these strategies are used by the company
while conducting business activities in Africa (Akaka, Vargo and Lusch, 2013).
Benefits and limitations of proposed strategies in Britain and Africa
The benefits of the proposed strategies have been discussed below.
 These strategies help to expand and explore its business in the international market.
 It helps to enhance and increases the revenue and profit of Microsoft in Africa as well as
Britain. Further, it also reduces and eliminates the risk and key challenges of the global
market.
 These strategies are the effective and dynamic tools to stand out against the competitors
in the international market (Leigh and Blakely, 2016).
The limitations have been discussed below.
 It is very complicated and difficult rather than small and medium-term business.
 It is very complex to provide products and services to the customers in the international
market. The firm is unable to know and understand the culture and language of the other
countries.
 It minimizes the revenue and profit of Microsoft.
How HRM function will be affected by implementing these strategies
The HRM is affected by implementing these strategies in the proposals. If the company
implements these strategies then they need to provide training and development coaching to the
expatriates. Thus, it is very costly and time-consuming process. It affects the goals and
objectives of the firm (Bamberger, Biron and Meshoulam, 2014). On the other hand, these
developmental strategies have a favorable impact on the HRM. The HRM can maintain diversity
and sustainability in the organization. HRM team can perform their task and duties in a hassle-
free manner. Microsoft can easily explore and flourish its business activities in the international
market. By using these strategies, HRM can easily understand the language and culture of the
foreign countries. It also helps to provide a better quality of product and services to the
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customers in Britain and Africa as well. HRM can easily implement rules and policies within the
organization by using these strategies (Budhwar, and Debrah, 2013).
Task 2
Hofstede cultural dimension model
This model helps to analyze the culture of the foreign country. HR department should
understand the cultural differences and values to attract and retain more expatriates in the Africa
and Britain (Hofstede, 2011). It is essential to understand and know the culture of Britain thus,
the firm uses Hofstede cultural dimension model for the future expatriates which has been
discussed below.
Individualistic/ collective
Under this framework, individuals are integrated into groups. It refers to the group than
individuals. Culture is important to attain the personal goals and objectives of the organization.
In collectivist societies, the goals and objectives of the group are important and valued than
individual goals and objectives.
Masculine/ feminine
Under masculine, the rules, and regulations for women and men are different and unique.
However, this is less than feminine societies (Venaik & Brewer, 2013).
Power distance
Power distance model plays a significant role in Hofstede cultural dimension model. This
dimension does not measure and evaluate the level of power distribution in a given culture.
Under this dimension, people are casual in the matter of upward direction and guidance. Thus,
existing workers hesitate to share information and ideas with their superior and boss.
Uncertainty and avoidance
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This is a dimension that measures and evaluates the way through which a society deals
and handles with unexpected events, unknown situations and stress of change. This tool checks
and evaluates whether workers are capable of taking risks, challenges or not.
Time perspective
This dimension checks and evaluates the long-term orientation of the people. This
dimension is goal oriented and it is related to the time perspective. They plan for future
orientation against their present-oriented mindset or short-term mindset (Hofstede, 2010).
Indulgence V/S Restraint
This dimension measures and evaluates a culture ability to satisfy and fulfill the needs,
requirements and personal desires of the members. Thus, this dimension will help the country to
attain the goals and objectives of the firm. Now it is assumed that cultural Hofstede cultural
dimension model helps to eliminate and reduce the cultural differences in overseas countries
such as Africa and Britain (Moran, Abramson and Moran, 2014).
Cultural shock and measures to motivate the employees
Cultural shock is the feeling and emotion of disorientation, anxiety, and insecurity that
are the result of the unfamiliar culture. The causes of the culture shock are wide and they depend
on the culture of the different countries (Crowne, 2013). If the culture shock arises then
Microsoft needs to motivate the employees to gain the long-term goals and objectives within the
organization. The cultural issues include reputation, morals, social structure, humility, respects
and time sensitivity (Furham, 2012). There are many ways to motivate and encourage workers to
eliminate the cultural differences. Some factors contribute to motivate and enhance the
performance of the employees. These factors include recognition, simulation, development, and
responsibility. The company can provide incentive, bonus, and rewards to motivate the
expatriates in some other countries. Further, teamwork is important to enhance and motivate the
workers. In this way, the firm can measure and evaluate the motivation to explore its business in
the overseas country (Dörnyei and Ushioda, 2013).
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The various types of reward and compensation practices that could be offered to motivate
expatriates for a new overseas assignment that have been discussed below (Aktar, Sachu, and
Ali, 2012).
 Incentives: The Company can provide incentives and some other benefits to the
expatriates who perform excellent task and duties. It will provide motivation to do work
in a hassle-free manner.
 Training: Microsoft can provide on the job and off the job training to the expatriates to
increase and expand their knowledge and skills globally.
 Insurance plan: Microsoft can offer insurance plans to motivate the expatriates in Africa
and Britain.
 Vacation trips: The vacation trips could be offered by the firm to improve and enhance
the expatriate's performance and efficiency in the foreign country.
 Promotion: The promotion and transfer increase and enhance the morale of the
expatriates. It will also help to motivate the workers for doing work effectively in the
overseas country.
 Recognition: This method also helps to encourage expatriates to improve the efficiency
and effectiveness of the workers. Apart from this, different types of reward and
compensation include overtime pay, base pay, stock options, bonuses, promotion,
housing allowances, leaves, vacation and retirement benefits (Aktar, Sachu, and Ali,
2012).
Conclusion and recommendations
On the above aforesaid information, it has been concluded that Microsoft needs to
monitor the development strategies and policies to flourish and expand its trading activities and
operations in Africa and Britain as well. Various problems are faced by the company while
conducting its business activities in other country. Along with this, Hofstede cultural dimension
model is developed and built by the company to eliminate the cultural differences in the
organization. In addition, the firm also provides motivation to the expatriates to accomplish the
goals and objectives of the firm.
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Now it is recommended that Microsoft must focus on the development strategies to enter
into a global market. Further, it must focus on the strategies, plans, and policies of the
competitors in order to gain success and growth. It should focus on the macro environment to
beat the competitors in the market. In this way, the company can reduce the risks and challenges
of the market.
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