International HRM Report: Key Aspects for Stargazers Wine

This report provides a comprehensive analysis of International Human Resource Management (IHRM) practices, focusing on the case of Stargazers Wine. It begins with an introduction to IHRM, highlighting its significance in today's competitive business environment and emphasizing the importance of effective human resource management for organizational success. The main body of the report delves into the international aspects of HR, discussing the key elements of HR strategy, including aligning HR needs with organizational goals, building an effective HR strategy, and evaluating company performance. The report also explores the challenges in international human resource management, such as staffing, cultural differences, and maintaining a balance between top and lower management. Furthermore, it provides insights into effective HR strategies, emphasizing multicultural management, employee relations, and remuneration. The report concludes by summarizing the key findings and recommendations for Stargazers Wine, offering practical guidance for optimizing its IHRM practices and achieving its business objectives.

INTERNATIONAL
HUMAN RESOURCE
MANAGEMENT
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TABLE OF CONTENTS
Introduction....................................................................................................................................3
Main Body......................................................................................................................................3
International aspects of HR.....................................................................................................3
Key elements of HR strategy..................................................................................................6
Challenges in international human resource management................................................9
Effective HR strategies...........................................................................................................11
Conclusion....................................................................................................................................12
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INTRODUCTION
In the present scenario, human resources are considered as the most vital and
valuable assets of the organization. Nowadays, the competition in almost every industry
has become so intense that it is no longer easy for enterprises to gain a competitive
advantage over other companies (Welch & Björkman, 2015). Businesses now
emphasize on the development and effective management of their human resources to
sustain in the market and achieve the desired volume of sales and profits. However, it
can be critically argued that management of human resources is not an easy task for
organizations as there are various issues and challenges faced during the same
(Farndale, Raghuram, Gully, Liu, Phillips, & Vidović, 2017).
The present study is based on Stargazers wine which is a leading and most
renowned wine manufacturer in Australia. The selected business enterprise offers a
diversified range of wines which includes 2017 Tasmania Riesling, 2016 Tasmania
Pinot Noir, 2016 Tasmania Chardonnay, 2017 Tupelo, etc. This study outlines
international aspects of human resource management with regards to Stargazers wine.
The key elements of HR strategy are also highlighted in this report.
MAIN BODY
International aspects of HR
International human resources management can be defined as the process in
which different action plans and strategies are employed by global businesses to carry
out effective management of all their staff members (Armstrong & Taylor, 2014). The
process is also conducted with a motive to accomplish different short and long-term
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business objectives. Apart from this, the aspects of international human resources also
emphasize on providing a competitive advantage to companies.
The HR manager working at Stargazers wine needs to focus on various aspects
and areas for carrying out the smooth flow of all HR related activities and practices. The
concept of international human resource management explains that a manager is
required to perform more HR related activities in international HRM. In addition to this,
the HR manager of Stargazers wine will be needed to develop a broader perspective
regarding things and areas related to employees or staff members. On the other side of
this, it can be critically be critically argued that the HR manager of selected business
enterprise needs to take care of the fact that the exposure to risk and influence of
external factors is very high in international HRM.
Conducting training and development programs for employees will be a
significant aspect for Stargazers wine’s HR manager. The training sessions will
emphasize on providing international employees with knowledge about the overall work
culture, rules, regulations and working practices within Stargazers wine. Another
fundamental aspect of international human resource management is that it encourages
companies to operate with the global workforce (Cristiani & Peiró, 2015). It can be
expressed that instead of operating with domestic or local employees, a more
diversified workforce is employed by organizations.
The concept of globalization has allowed more effective and smooth flow of
resources between international countries. In the modern era, the demand and interest
for international human resources management have grown very well, and there are
several factors behind this increased demand (Story, Barbuto, Luthans, & Bovaird,
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2014). Global and international businesses now seek for adopting practices and policies
which can support in the effective management of the diversified workforce.
Overall management of employee performance is another aspect which needs to
be considered by the HR manager of Stargazers wine. It can be stated that the
manager should make use of various performance measurements and management
tools such as balanced scorecard, management by objectives and 360-degree feedback
(Dickmann, Brewster, & Sparrow, 2016). Furthermore, effective selection and
implementation of performance measurement tools will develop a sense of satisfaction
among employees working in Stargazers wine. At the same time, the use of these tools
will also encourage staff members to give their best towards growth and success of the
enterprise.
Multicultural management, employee relations, and effective remuneration are
the other key aspect of international human resource management. The manager needs
to ensure that a healthy working culture has been developed and implemented within all
international units of Stargazers wine. The workplace culture should not encourage
practices such as discrimination, biases, and bullying. At the same time, the HR
manager needs to make sure that the culture promotes respects and support towards
every staff member working for the wine company (Farndale, Raghuram, Gully, Liu,
Phillips, & Vidović, 2017). It is the core responsibility of Stargazers wine’s HR manager
to develop effective strategies to deal with areas such as conflict management and
disputes between all employees.
On the other side of this, it is the duty of the manager to make sure that the HR
practices have complied with the rules and employee regulations established in different
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countries. The system of reward and incentive within Stargazers wine’s international
units needs to be satisfactory and transparent. HR manager must offer adequate pay
and attractive rewards to employees against the work done.
Thus, it can be stated that the HR manager working in Stargazers wine is
responsible for managing different aspects linked with international human resources.
Key elements of HR strategy
HR strategy is required in every organization with the motive to manage the
human resource effectively. Further, it is a well-known fact that HR strategy is only
developed when the company is indulged in proper planning practices that contributes
in accomplishing the desired objectives (Gomes, Sahadev, Glaister, & Demirbag, 2015).
Considering the case of Stargazers wine Australia it has been found that the company
is indulged in the practice of producing vine and is based in the Australian market. For
smooth functioning of the business operations, effective HR strategy is must where it
assists the business to focus on its desired objectives, and it acts as a development
tool. The key elements of the HR strategy are as follows:
1. The first stage is to along human resource need with the organizational one.
Further, the internal capabilities of the organization are only developed if human
resource requirement is considered as an integral part (Farndale, Raghuram,
Gully, Liu, Phillips, & Vidović, 2017). The question related to the need of human
resource arises whether the internal capabilities of the business support in
accomplishing the key goals or not. In the wine industry, it is one of the most
crucial tasks of HR personnel to ensure that HR strategy is aligned with the
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company strategy as this contributes a lot to enhancing profitability level of the
Stargazers wine.
2. The second most important task is to build effective HR strategy where it has
been identified that effective HR strategy allows in monitor business progress
and in turn all the operations are carried out efficiently (Gomes, Sahadev,
Glaister, & Demirbag, 2015). HR strategy is all about whether effective
techniques are used to manage the present workforce of the business or not,
identifying the present and future workforce need, etc.
3. Evaluation of the company’s performance is the next stage where the managers
working in Stargazers wine Australia have to keep a track record of all the staff
members working in the company. For instance, performance of employees in
production department can be known from their contribution to the production
process (Stone, 2013). So, this is quite integral to the business and knowing the
real performance of the staff allows the company to perform efficiently.
4. The effective structure along with the design of the company is also one of the
most significant tools of the HR strategy where Stargazers wine has to design its
internal structure effectively so that all the operations can be carried out smoothly
(Sparrow, Brewster, & Chung, 2016). Further, it has to be ensured that the
structure of the business motivates staff members and through this their active
participation can be encouraged in every possible manner.
5. It is necessary for Stargazers wine to select the right people within the workplace
and appropriate techniques have to be undertaken for retaining them in the
company, for instance, the employees working in production department must
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have right skills and knowledge so that they can easily contribute in the major
affairs of the business.
6. Development of the effective strategy is another key area where the HR strategy
of Stargazers wine must focus on rendering training to the employees in every
possible manner (Francis, Parkes, & Reddington, 2014). Further, different modes
are present through which it is possible for the company to deliver training to its
employees such as on the job and off the job.
7. Reward strategy is another key area that company needs to focus on where
appropriate rewards have to be given to the employees so that they can actively
participate in the business affairs (Stahl & Tung, 2015). The company maintains
a balance between monetary and nonmonetary reward practice so that
motivation level of the staff members can be well maintained with the help of this.
8. Setting organizational culture is also one of the most significant practices where
the HR department of Stargazers wine holds the responsibility to set the internal
culture of the business. Therefore the development of the right culture can assist
the company in satisfying needs of its employees and can allow in development
of healthy culture (Marchington, Wilkinson, Donnelly, & Kynighou, 2016). This
area is most important for the company as by focusing on this area it is possible
for the business to accomplish its desired objective through the support of its
employees.
So, these are some of the most significant elements that must be present in the
HR strategy of the business and through this organizational performance can be
enhanced easily. It can be expressed that all the mentioned above elements need to be
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considered by the manager of Stargazers wine while formulating human resource
management strategy for international operations. Negligence of these elements can
directly result in creating several kinds of obstacles and hurdles in the long-term
success of the organization. In addition to this, the wine manufacturer will also start
facing issues in terms of attracting new employees and retaining the old ones.
Challenges in international human resource management
It can be expressed that carrying out the adequate flow of all human resources
related activities and operations is not an easy task to perform. The manager deals with
wide range of issues and challenges while carrying out international human resource
management practices (Festing, Budhwar, Cascio, Dowling, & Scullion, 2013). The role
of HR manager within Stargazers wine can be termed as one of the most complicated
tasks in the entire organization. The rationale behind this is that the manager is required
to maintain a balance between top management and lower management and this is
very challenging.
The manager has the responsibility to carry out best utilization of available
resources and provide adequate directions to the company. At the same time, HR
manager responsible for satisfying the need and expectation of employees working in
the lower level of management (Rees & Smith, 2017). It can be expressed that
maintaining a balance between two aspects mentioned above is very challenging and
the HR manager is required to do the same in the best possible manner.
Another challenge which can be faced by Stargazers wine’s HR manager
while carrying out management of international human resources is that linked with
staffing. It can be expressed that development and implementation of effective staffing
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strategy at international level is very challenging. The overall degree of competition at
the global level is highly intense, and success of organizations relies heavily on
attracting the most skilled and competitive applicants during the process of recruitment
and selection.
Businesses such as Stargazers wine will be required to adopt various
approaches for carrying out international recruitment. The three approaches are the
geocentric, ethnocentric and polycentric approach (Varma, 2013). Apart from this,
mixed methods or procedures are also employed by businesses to carry out the
process of recruitment and selection. The selection right and most appropriate approach
to recruitment is a challenging task for companies.
The HR manager of Stargazers wine can also face issues linked with conflicts
and disputes among workers. The cultural difference among staff members increases
the chances of conflicts and managers are required to develop effective strategies to
deal with the same. On the other hand, development of adequate and satisfactory
international policy of compensation is also difficult (Liu, Gong, Zhou, & Huang, 2017).
The HR manager working in Stargazers wine needs to formulate and implement
compensation policies which are consistent and according to the overall operational
structure adopted by Stargazers wine. In addition to this, the policy should satisfy labour
laws and regulations developed in the international country.
On the contrary of this, it can be critically argued that global HR managers must
ensure that the compensation policy is competent enough to attract new talent and
retain the old ones (Ketchen Jr, Crook, Todd, Combs, & Woehr, 2017). In the present
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scenario, companies are required to develop policies which can create satisfaction
among workers and can retain them in the long run.
Effective HR strategies
For a company like Stargazers wine, good and effective HR strategies are
essential for long-term growth and sustainability (Meyer & Xin, 2017). One of the main
and most important characteristics of goof HR policy is that it focuses on promoting a
culture which is happy, safe and healthy. The benefit of such culture is that it helps in
developing the sense of satisfaction among workers and the culture also encourages
staff members to stay within the organization for the long run.
On the other side of this, it can be critically argued that the manager working in
Stargazers wine should emphasize on implementing an open book management style.
The advantage of using this style is that it helps employees to stay enthusiastic with
regards to overall operations and management practices (Klikauer, 2014). The HR
manager and top management of Stargazers wine should start sharing information of
new clients, sales, short and long-term objectives, etc. The use of open-book
management style can encourage staff members to give their best by maintaining the
interest of employees.
Another effective strategy for international human resources management
which can be adopted by Stargazers wine is linked with the implementation of
performance-based pay. The company should emphasize on the fact pay, incentives
and rewards should be based on the overall performance and efforts delivered by staff
members (Mahajan, 2015). The strategy will encourage employees working in
Stargazers wine to provide more effective and result oriented performance.
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Nowadays, companies also emphasize on developing a workplace which
promotes knowledge sharing among employees. The use of a strategy such as
knowledge sharing is beneficial because it will help workers to enhance their knowledge
base and skill set. At the same time, the staff members in Stargazers wine will be able
to improve their core competencies and overall effectiveness.
CONCLUSION
From the above carried out report, it can be inferred that conduct effective
operations and management of human resources at international level is not an easy
task for businesses. Stargazers wine’s HR manager will face the different type of issues
and challenges regarding formulating effectively and result oriented HR policies and
strategies.
The manager will be required to develop a much broader perspective of things
and operations. Furthermore, it can also be concluded that the HR manager at
Stargazers wine should make sure that all the elements linked with the development of
effective HR strategy are satisfied in the best possible manner. Apart from this, to
manage the international human resources appropriately, Stargazers wine should
emphasize on implementing open-book management, safe working environment and
performance-based pay system.
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