International Human Resource Management: India vs. USA Report

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This report provides a comparative analysis of international human resource management (IHRM) practices, specifically focusing on recruitment and career management within the context of India and the USA. The study highlights how cultural differences, as defined by Hofstede's cultural dimensions, significantly influence these practices. The report uses Amazon as a case study to illustrate how a multinational corporation adapts its IHRM strategies to suit the distinct cultural landscapes of India and the USA. It explores variations in recruitment processes, selection criteria, career development initiatives, and performance evaluation methods. The findings emphasize the importance of understanding cultural nuances to effectively manage human resources across different countries. The report concludes by underscoring the need for multinational companies to adopt flexible and culturally sensitive IHRM approaches to maximize their success in global operations. The report emphasizes the differences in recruitment processes, selection criteria, career development initiatives, and performance evaluation methods. The findings emphasize the importance of understanding cultural nuances to effectively manage human resources across different countries.
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Running Head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT 1
International Human Resource Management
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT 2
Executive Summary
The human resource practices at the international level are different from that at the local level.
Some methods that work well in a given country cannot always yield same results when applied
to a different country. The variation is mostly attributed to the cultural differences that exist in
the various countries according to Hofstede’s cultural dimensions. This paper focusses on
establishing the comparison in recruitment and selection practices in India and USA. Besides, it
also compares the career management in the two countries. Thus, the report is important in
helping understand the application of the international human resource practices in different
countries.
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT 3
Table of Contents
Introduction......................................................................................................................................3
Recruitment and Selection...............................................................................................................4
Career Management.........................................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................5
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT 4
Introduction
Currently, International human resource management is a key aspect for consideration for
the multi-national companies. Different nations have different cultures, political states and
social-economic positions which affect the businesses in many different ways. Thus, application
of one of the human resource management practice in one country may produce different results
when applied to another nation. Therefore, unlike the domestic human resource management, it
is hard to manage human resource at a global level which necessitates the application of
strategies that are likely to handle these differences in the nations (Kundu, Divya & Pardeep,
2007).
The USA is a federal state that is made up of fifty states, five governing territories and
also a federal district. USA has over 324 millions of people living I these states which cover
about 9.8 million square kilometers. It country ranks the third in the world by total area. It has
one of the most powerful economies in the world. On the other hand, India is a south Asian
country with federal governance, large enough at position seven in the world by area. Currently,
India is one of the word's fastest growing economies. Amazon has ventured into both USA and
India and currently active in these countries (Chow, Huang, & Liu, 2008).
Recruitment is one of the key aspects of the organization that must be handled with care.
When done at international level, the agencies involved usually take appropriate strategies for
effectiveness. Internationally, recruitment can be done at parent country nation, host country or
third country nation (Birasnav & Rangnekar, 2009). On the other hand, career development
entails all the activities that are involved in developing the skills and experiences that are
required to help one handle both the current and the future career roles. People in different
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT 5
nations develop their careers differently due to different cultures (Adnan, Abdullah, & Ahmad,
2011).
The purpose of this report is to bring out the differences that exist in various aspects of
the international human resource due to differences in culture of the countries under
consideration. It establishes how Amazon recruitment and selection is done differently by
Amazon and India due to the cultural differences that exist between the two countries. Also, the
essay targets to establish the differences that exist in the career development as one of the aspects
of the international human resource. Therefore, this essay exposes the international human
resource management differences that exist in different countries due to differences in cultural
contexts.
Recruitment and Selection
Recruitment refers to the process through which a given company uses to identify,
screen, shortlist and hire the potential right people to take up job vacancies in a given
organization. It is a very critical step in the every organization and must be done with minimum
mistakes to get the best skill and talent for the organization. It entails all the activities that are
undertaken to attract, select and get the potential candidates that who have the right
qualifications to take up the job positions in the organization (Absar, 2012). Selection entails the
activities that are undertaken to identify the most qualified people from those that have been
attracted for a given job position in the organization. Selection can be done through interviews,
checking in the referees and also testing them.
Recruitment and selection have a different perception at the international level. Amazon
being of the multinational organizations employs different recruitment and selection strategies
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT 6
(Zhu, Warner & Rowley, 2007). The way the organization conducts recruitment and selection in
one country is different from the other. This is because the recruitment strategies employed in
one country cannot necessarily yield fruits in the other country. This fact is attributed to the fact
that different nations have different cultural dimensions (Deloitte, 2011).
Comparing the recruitment at USA and India, there are differences and similarities that
come out. India is one of the countries with high uncertainty index according to Hofstede’s
cultural dimension, the state adopted strategies that emphasize on testing and monitoring the
processes of recruitment. The process is profoundly influenced by the traditional management.
This is different from the USA which has a low uncertainty index. These differences make the
force organizations that operation in USA and India to employ different strategies to conduct
recruitment and selection. Amazon as a multinational company operates in both countries and
has employed different strategies in the two countries for effective management of the human
resource of the organization.
Also, India is a high power distance country. Thus there is a lot of emphasis on the
connections rather than recruitment and selection (Effron and Shanley, 2011). This is different
from the USA which is a low power distance country that emphasizes on the advertising,
recruiting and selection. Therefore, the cultural differences in cultural dimensions between the
USA and India bring about differences in recruitment and selection processes (Gusdorf, 2008).
Career Management
Career management is defined as a continuous learning process that entails planning and
the shaping of the individuals in acquiring the skills that are necessary for the helping an
employee to achieve the future goals and expectations of the career market. Career management
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT 7
is a human resource practice that demands the contribution of both the employer and the
employees themselves (Benko and Weisberg, 2007). The employee needs to do self-assessment
and make efforts to work towards achieving the future market goals and expectations in the field.
Different countries have different ways in which people manage their careers depending on the
prevailing nation’s culture (Cheese, 2008).
Usually, career management entails three main steps that guide an individual to grow in
their lines. Firstly, there must be career planning which is the process of identifying the goals
that need to be achieved (Bharathi, 2009). It entails self-assessment practices that helps one
know their interests and the development needs and analyzing the strengths and weaknesses in
one’s life. Secondly, there is career channeling where one identifies the routes in the career to
follow depending on the goals. The last step is career development which is a continuous process
throughout one's life. The organization plays a critical role in the career management of a given
employee because of their support (Benett, 2013).
The role of the organization in the career of employees in India and the US has various
similarities and differences in the two nations. Usually, the companies consider training and
development, mentoring programs, lateral growth and the performance evaluation. India offers
minimal training and development to its employees, unlike the US which advocates for pieces of
training and believes that it is a way to help employees and increase productivity in the
organization (Singh & Mohanty, 2011). Also, India has little emphasis on the mentoring
programs for its employees as compared to the USA which has promoted these programs to help
its employees increase the career management. Regarding the performance evaluation, both
countries advocate practice this aspect as a way to establish the level of productivity and
effectiveness of the employees in the organizations (Warner, 2008).
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT 8
It is evident that a similar organization running business in the USA and India is forced to
differently handle the career management as one of functions of the human resource in business.
Amazon is a player in both the US and India. The career management practices that company
employs in India is totally different from that it uses in the US. This is mainly because of the two
countries have different cultural dimesions.
Conclusion
In conclusion, the international human resource has various aspects that need to be
considered for effectiveness. Multinational companies find challenges in the practices that they
should employ in the subsidiaries operating in different nations. This is mainly because similar
practices yield different results when applied in the various countries. Recruitment and selection
in India and USA depict differences in the way they are done. Also, career management as one
of the aspects of human resource is done differently in the two countries, and only a few
similarities exist in practice.
The explanation for the differences in the international human resource management
practices is greatly attributed to the cultural differences that exist among various countries.
According to Hofstede’s cultural dimensions, states have varied aspects of culture which is the
primary cause of the differences in business activity practices that exist. Therefore, the prevailing
culture, political state, and social, economic positions have influence not only recruitment and
career development but also on the entire organization’s human resource practices of the
organization in different countries.
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT 9
References
Absar M. (2012). Recruitment and the Selection practices in the Manufacturing Firms in
Bangladesh. The Indian journal of Industrial Relations, 436-448.
Adnan, Z., Abdullah, H. & Ahmad, J. (2011). "Direct Influence of the Human Resource
Management Practices on the Financial Performance of Malaysian R&D Companies,"
World Review of Business Research, 1(3), 61-77.
Benett, A. (2013). The Talent Mandate: Why smart companies put people first. Palgrave
Macmillan, New York.
Benko, C. and Weisberg, A. (2007). Mass Career Customization: Aligning workplace with
today's non
traditional workforce. Harvard Business School Publishing, Boston
Bharathi N. (2009). “Employees Engagement Practices In the Spinning Mills- An Empirical
Study," Prabandhan: Indian Journal of Management, Vol. 2:4
Birasnav, M. & Rangnekar, S. (2009). "Structure of human capital enhancing the human
resource management practices in India" International Journal of Business and
Management; 4(5): 226-238
Cheese, P. (2008). Driving high performance in the talent powered organization. Strategic HR
Review, 7(4).
Chow, I., Huang, J., & Liu, S. (2008). "Strategic HRM in China: Configurations and the
Competitive Advantage," Human Resource Management, 47(4), 687-706.
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT 10
Deloitte (2011). The global talent challenge
getting new people in new jobs in new place
Effron, M. and Shanley, J. (2011). What qualities make a world class talent management leader?
In: The Talent Management Handbook, L. Berger and D. Berger (eds). McGrawHill,
New York.
Gusdorf M. (2008). Recruitment and Selection: Hiring the Right Person. USA: Society for
Human Resource Management.
Singh, R., & Mohanty, R. (2011). “Performance Appraisal Satisfaction and Organizational
Commitment: Moderating Role of Employees' Cultural Values," International Journal of
Indian Culture and Business Management, 4(3), 272-297.
Warner, M. (2008). Reassessing human resource management with the Chinese characteristics.
An overview. International Journal of Human Resource Management, 19(5), 771-801.
Zhu, Y., Warner, M., & Rowley, C. (2007). Human resource management with Asian
characteristics: A hybrid people-management system in East Asia. International Journal
of Human Resource Management, 18(5), 745-768.
Kundu, S., Divya, M. & Pardeep K. (2007), “Human Resource Management Practices in
Shipping Companies,” Delhi Business Review, Vol.8, No.1
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