Analysis of HRM Practices and Challenges in International Business

This report delves into the realm of international human resource management (HRM), analyzing the practices and challenges faced by businesses operating globally. It commences by exploring various recruitment strategies employed by companies, including company branding, social recruiting, applicant tracking systems, and college recruitment, while also considering the specific regulatory aspects of the UAE employment regime. The report then examines the challenges in development strategies and practices, such as failures in fostering a learning culture and creating career blueprints. Furthermore, it addresses the role of international transferees and expatriates, highlighting the challenges associated with their management, including strict regulations, retention issues, and cost considerations. The report also investigates the impact of cultural differences and idiosyncrasies, such as language barriers and communication issues, on HRM practices. The conclusion emphasizes the critical role of HRM in international markets and the need for adaptable strategies to navigate the complexities of a diverse workforce. This report provides valuable insights into the multifaceted world of international HRM, emphasizing the importance of strategic planning and cultural sensitivity in achieving business success.

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Table of Contents
Introduction......................................................................................................................................2
Recruitment strategies Adopted by Companies...............................................................................2
Other Consideration.........................................................................................................................3
Challenges in Development Strategy and Practices........................................................................4
Role of International Transferee and Expatriates............................................................................4
Challenges for cultural Differences and Idiosyncrasies..................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
With the advent of globalization, the companies whether they are big or small that emerged as
being local have showed their stand globally. It has given rise to the diversity in the man power
as well as the cultural sensitiveness that has emerged to a great extent (Farndale et al., 2017). It
has been a leading factor to the rise of international human resource management. The work of
International human managers is easily managed if MNCs export their products to few of their
small offices in foreign locations where as in globalized companies HR managers have to tackle
the objectives that are conflicting in their strategies to some extent (Cooke et al., 2019).
International Human Resources play a vital role in the growth and success of any business. They
ensure that HRM policies are in accordance with the objective of the firm and manage
accordingly. In the recent scenario, practicing HRM in a different environment, culture as well as
ethics background is sure challenging. Some of the typical challenges that the HR managers
faced are cross-cultural issues, their training as well as development, performance appraisals
with international staffing process (Budhwar, 2016)
In the following part there will be detailed analysis of the HRM practices adopted at international
level and challenges faced while doing their activities that resist them to grow in the market.
Recruitment strategies Adopted by Companies
There are different types of recruitment strategies that are majorly adopted by the HR department
while recruiting and selecting the candidate for their company.
Company Branding
Most of the HR managers build as well as promote great career websites, distribute job opening
on the social network to make sure that the website is mobile responsive. They allow the
employees to participate in social media, blogging as well as other online discussion boards that
help in creating engaging the employees as well as create connection between them with up-
coming talent (Kaltenecker, Hess and Huesig, 2015).
Social Recruiting

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The social media has changed the landscape of HR recruitment. It helps in providing the
platform where the HR recruiter, employers as well as candidates can connect long before the
official recruitment process that take place. Businesses use social networks to promote open
positions as well as finding the top talent. It allow the HR recruiters to learn about as well as
discover more about the potential hires with significantly allows the individual to learn more
about the company in an effective manner (Melanthiou, Pavlou and Constantinou, 2015).
Invest in an Applicant Tracking System
Most of the companies in the international market invest in applicant tracking system. It is one of
the software that automates the process of posting the jobs as well as findings that qualifies
talent. It often involve one-click job posting to multiple sites, applicant sorting as well as
interview scheduling (Bondarouk, Parry and Furtmueller, 2017).
Consider College Recruitment
Most of the top companies on the international market arrange college campus and select
students for their work. They are majorly seeking for fresh talent that gives new picture to their
business in an effective manner (Lim and Greenwood, 2017).
While adopting the above strategies, the HR manger is required to follow some regulatory aspect
in the international market as they are explained in below points:
 The UAE employment regime is intricately connected to their immigration regime
without a valid work permit as well as residency visa sponsorship through a locally
licensed as well as registered entity, it is majorly impossible for expatriates to work in the
UAE lawfully. Therefore, it is required for the HRM manager to analyze such situation
before recruiting any employee.
 As stated in Article 2 that the Arabic shall be the language that will be used in all records,
file, contracts as well as data provided for in such law or n any orders or regulations
issues on implementation thereof (Jabeen, Friesen and Ghoudi, 2018)

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Other Consideration
 There are no specific requirements, rules or any regulations that given the advertisement
of positions in the UAE. It is common for the advertised posts to be restricted to the
Western qualified candidates, specific genders or the national of specific countries
(Haider, Fatima and Asad, 2016).
 The HR is required to check full background of the candidate before recruiting such
employee in their company. it include
 The criminal record will be check in which all the employees applying for the
employment residence visas must obtain a Good Conduct Certificate for every
country in which they reside in last five years.
 The medical history should be analyze by the HR manager as a pre-condition to the
issuance of a UAE residency visa, all expatriates must undergo with the medical test
at a local government-approved medical testing center.
 Drug Screening, the UAE adopts zero tolerance approach to the possession as well as
misuse of the narcotic drugs. Therefore, there is requirement for pre-employment
checks for HR manager.
 There are a number of laws in place that establish an overarching the framework for
protecting the privacy a swell as punishing the misuse of the data or any information
breaches (Barnett, Malcolm and Toledo, 2015).
Challenges in Development Strategy and Practices
The learning and development strategy play a vital role in retaining the employee for longer
period in the company. The HR is required to adopt effective learning and development
strategies to grow in the international market. However, they fail in providing certain things that
are explained in below points:
 Fail in fostering a learning culture: most of the leading international companies fail to
provide the approach to learning in their organization. The investment in L&D is high
that resist most of the international companies to invest such amount in proving such
environment to their employees. They create issue in managing diversify business and
also cause issue of equality in the business at greater level.

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 Fail in creating career blueprint for employees: the company ignore in framing the plan
for their employees that can support them in their program and kind of skills and
behavior that is required to develop so.
 Resist in offering learning choices: the employees also fail to provide learning choices to
their employees in an effective manner. They only tied up their employees with one
particular work that create the issue of demotivation in the organization at greater level
(Inayat et al., 2015).
Therefore, such issues create issue of diversifying the business in the global market
effectively as well as creating issue of managing equality in the business. Some of the
individual are treated special that increase the issue of demotivation among the employees at
greater level.
Role of International Transferee and Expatriates
At certain extent transferee and expatriates created challenge for Management as well as HR at
greater level. As they are explained in below points:
 UAE has imposed strict regulation on transferee and expatriates therefore, it is required
for the HR to manage and follow the regulation while selecting or recruiting such
employee in their company. It created challenge for HR to analyze such law and manage
accordingly as well as it also increase cost to the company that enhance overall cost of
the company at greater level if they do not retain for loner period (McNulty and Vance,
2017).
 The HR feel challenging in retaining the transferee and expatriates in their organization
due to the reason, the opportunity for them would increases at greater level that increase
risk to the company to retain such employee in the company. It can affect the overall
performance of the company at greater level as well as in effective manner.
 While different understanding level among the company and expatriates create the major
contributor to assignment failure. It affects n the overall performance of the company at
greater level. The management of the company gets disturbed while working in such
environment.

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 The cost of hiring such outsiders as comparison to the local employees are high that
created issue for HR to manage cost of the company. it create issue for the management
of the company if such employees fail in rendering their employees in an effective
manner (Welch and Björkman, 2015).
Challenges for cultural Differences and Idiosyncrasies
In the recent scenario, most of the companies hire people from international market. Therefore it
increases the risk of cultural differences as well as idiosyncrasies in the organisation. The
company faces certain challenges due to cultural differences and idiosyncrasies. It is explained in
below points:
 Difference in language and communication increases the issue of coordination among the
team members. It creates lack of coordination among he team members that affected their
performance at greater level which is linked with the profit margin of the company
directly.
 A particular issue that arises in the workplace is dealing with the social or any culture
differences is respecting and accepting the differences of others. Part of this may steam
from lack of understanding or respect. It create unhealthy environment in the
organization that increase the level of demotivation among them at greater level (Stone
and Deadrick, 2015).
 The professional communication can be misinterpreted o difficult to understand across
the language as well as the culture. The non-verbal communication is a delicate as well as
nuanced part of the cultural interaction that can also lead to misunderstanding or even
offense between the team members from different countries that created issue for the HR
to manage such environment. It increases that issue of disputes in the business that
created unhealthy environment in the business at greater level.
 Navigating the requirement of visa, employment laws as well as the cost of the
accommodating workplace requirement can be difficult for the company to manage while
hiring employees from outsiders. It majorly creates issue for the company whiles the
employees do not retain in their company for longer period. Therefore, it would affect

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overall cost of the company at greater level (Chatzipanagiotou, Christodoulides and
Veloutsou, 2019).
Conclusion
From the above analysis it can be concluded that human resource management play an essential
role in the international market. They are effectively resources the human in the organization to
achieve growth and success in the market. The HR manager in the organization adopted effective
and innovative recruitment strategies to hire high skilled candidates for their company. They
majorly adopted social media platform to brand their company that can attract candidate to apply
for job effectively. However, the HR manager is required to keep in mind the regulation of
National Employment Law while continuing their recruitment process in the market. The law of
UAE is strict that need to be follow for the HR while considering any candidate for their
company. However, Most of the companies has faced challenges in managing human and in
recruiting the employees from the international market due to the reason it the cultural and
language and due to strict regulation imposed by UAE on selecting employees from outsiders.
Moreover, the Transferee and Expatriates also create challenge for the company at greater level,
retaining such employee increase cost to the company and also create challenge for the HR to
retain such employees due to huge cultural difference create lack of coordination among the
employee that generate the issue of demotivation among them at greater level.

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Budhwar, P. S. (2016) International human resource management. New York: Edward Elgar
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