International HRM: A Review of Practices, Challenges, and Benefits

This report provides an overview of International Human Resource Management (IHRM), emphasizing key HR practices such as creating a healthy and positive working environment, implementing performance-linked bonuses, and providing training and development opportunities. It discusses the importance of these practices for organizations operating internationally, highlighting their impact on employee productivity, staff turnover, and the ability to attract skilled employees. The report examines the creation of a positive work environment, including communication strategies and team-building efforts, while also addressing potential challenges such as employee stress, conflicts, and job insecurity. It further analyzes performance-linked bonuses as a tool for improving employee morale and efficiency, and the advantages and disadvantages of such practices. Finally, the report explores different types of training and development programs, their importance in enhancing employee skills and technological proficiency, and the potential drawbacks such as increased stress and loss of interest. The report concludes by reiterating the significance of effective HR practices for organizational success and growth in the global market.

International HRM

Table of Contents
Introduction
International HRM
Healthy and Positive Working Environment
How to create a Healthy and Positive Work Environment?
Advantages
Challenges
Performance Linked Bonuses
Advantages
Disadvantages
Training and Development
Types of Training
Importance
Disadvantages
Conclusion
References

Introduction
Human Resources is an important component for organisations that operate both
domestically as well as internationally and involves different activities like
recruitment, selection, compensation and benefits, training etc. This increase in the
globalisation has grown the importance of International HRM, as organisations
now understand that having an effective HRM system will be beneficial to them in
order to gain a competitive advantage. International HRM is one of the most
important concepts for companies that operate internationally. It helps them in
hiring the right candidates for the different vacant positions in their system.

International HRM
International HRM can be defined as a set of different practices like allocation
and utilisation of human resources within an organisation. It also includes
recruiting, selecting, hiring, training and developing employees in different
international organisation. Some most important HR practices are –
 Healthy and Positive Working Environment
 Performance linked Bonuses
 Training and Development

Healthy and Positive Working Environment
Developing and maintaining a healthy workplace environment is necessary to
generate positive output. It not only improves the productivity of employees but
also reduces overall staff turnover. A healthy working environment influences the
way in which employees perform significantly. It motivates them to complete all
the tasks that are assigned to them on time, effectively. If employees are happy
with their jobs and working environment, they are more likely to exceed the
expectations of the management and outperform themselves.

Cont…
The management of Tesco always seeks different ways to build a healthy
working space for its employees. For this, they encourage sharing of ideas
among the team members as well as provides different opportunities of training
and development to them in order to develop new skills and improve the
existing ones. People who put extra efforts in order to get tasks done are
recognised and rewarded for their work. A healthy working environment builds
team spirit among the employees which also promotes creativity among them.

How to create a Healthy and Positive Work
Environment?
A healthy and positive environment can be created by encouraging the employees
to work with others in teams which can help in improving their productivity. For
example- team leaders and managers in Tesco are flexible with their employees
and no hard rules are implemented on them. Bonuses, incentives and other
performance related benefits are offered to them to develop a healthy and safe
environment for working. Organisations these days also promote wellness in
order to increase the productivity of employees and reduce absenteeism.

Cont…
Good and healthy communication between the employer as well as employees
is an essential element for building a positive environment at work. The
employees should have a clear understanding of what is expected of them. And
the key to good communication is to be direct and the words should also be
used carefully. The managers as well as team leaders should listen to the ideas
and thoughts that are put forward by their team members. This will create an
environment wherein all the employees of the company will be comfortable in
working with each other.

Advantages
 Increased Productivity – A healthy work environment can improve the
overall productivity levels of the employees making them more efficient.
This is because the employees will not feel it like a burden of coming to the
workplace every day.
 Reduced Staff Turnover – A positive and healthy work environment will
make the employees being more engaged and committed to their jobs. This
way, they will not look out for opportunities in the market.

Cont…
 Attract Better Experienced Employees – Companies that constantly make
efforts to create a working place that is positive as well as healthy, are able to
attract better skilled and experienced employees.
 Lower Rates of Absenteeism – When employees enjoy the kind of work they
are doing, they are less likely to take leaves. This will be beneficial for the
company as if the work environment of the company is healthy, its employees
will automatically be healthy. Also, they would like coming to work every day
and would not find excuses to not come to work.

Challenges
 For many workers, an unhealthy work environment can be a reason for their not
being able to perform well. They will feel both social as well as mental pressure
like stress, anxiety, depression, hypertension etc. This will affect their levels of
energy and the output of work generated by them adversely.
 Since there is a lot of pressure on the employees, there can be cases wherein
conflicts can arise between them. This way, they will not be able to concentrate
on their work and the overall productivity of the company will be affected.

Cont..
 Also, the employees will not feel safe and secure in their jobs, which means that
there will be a sense of job insecurity. Due to this, they will look out for other
opportunities in the market. This can hamper their overall performance as well
as productivity levels due to which the company’s performance will also get
impacted.
 The employee turnover of the company will increase as they will not feel like
coming to the workplace. Therefore, it is important that the management of the
company should develop effective strategies to overcome these challenges.