Contemporary Issues in International Human Resource Management Report

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This report delves into contemporary issues within International Human Resource Management (IHRM), exploring key concepts and approaches essential for managing human resources across international boundaries. It examines the significance of IHRM in business expansion, emphasizing the role of HR in adapting to foreign regulations and cultural differences. The report analyzes four HRM approaches: Convergence vs. Divergence and Universalist vs. Contextual, along with the use of PESTLE analysis to assess political, social, technological, and economic factors. It further explores European comparative models and Kerr's concept regarding technology adoption, highlighting their impact on business operations. The report concludes by summarizing the models and approaches used by organizations in IHRM, providing a comprehensive overview of global HR practices and strategies.
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Contemporary Issues in
International Human
Resource
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
INTRODUCTION..................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
TASK 2 ...........................................................................................................................................8
INTRODUCTION..................................................................................................................8
The issues considered when forming multicultural team while working across international
borders....................................................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
TASK 3..........................................................................................................................................14
INTRODUCTION................................................................................................................14
Human rights principle and role of International labour organisation in context of developing
country..................................................................................................................................14
CONCLUSION....................................................................................................................18
REFERENCES..............................................................................................................................19
TASK 4..........................................................................................................................................20
INTRODUCTION................................................................................................................20
Reflection Statement............................................................................................................20
CONCLUSION....................................................................................................................21
CONCLUSION .............................................................................................................................21
REFERENCES..............................................................................................................................23
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INTRODUCTION
International human resource management plays a vital role in concepts of allocating,
procuring and effectiveness in utilization of human resources in foreign boundaries. When
establishing new business across international boundaries, managing human resource is essential
as it helps the management to determine growth and development opportunities according to
employment factors. The ultimate objective of HRM department in organisation is to expand
business in international boundaries with cooperation, innovation and collaboration with
employment rules and regulations in order to promote performance of enterprise and efficiency
of business operations. Further, HR is responsible to keep an eye over the factors like changes in
policies and regulation which need to be amended according to the legislation enacted by
government of foreign country. Moreover, It will evaluate the situation of working with people
from different cultural backgrounds have its own global benefits in the area of international
business. Thus, it will identify the learning from the report through a reflective statement.
TASK 1
INTRODUCTION
Employees are the backbone of the organisation, therefore the task will analyse the
concepts and approaches which assist organisation in recognizing opportunities for human
resource management. Further, it will evaluate the relationship between HR and organizational
management that are interlinked to each other as the manager the department is accountable for
making effective changes according to external factors. It will identify the use 4 HRM
approaches that is Convergence verses Divergence (Baumer,and et.al., 2017) and Universalist
verses Contextual used by management to analyze the factors of internal market before
expanding business operations. Further, it focused on use of Pestle analysis by human resource
manager to analyze the manpower policies and regulation across the international boundaries.
The comparative approach to international human resource management. The HR manager is
responsible for establishing equal opportunities and treatment to workers (Albrech, 2011). The
effective HR planning assist the business in maximizing, profits, growth and survival. There is
vast different in managing human resource domestically and internationally which is stated
below:
International standards of allocating human resource and measurement of performance.
Fluctuations in currency and international policies and procedures.
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Process of taxation, registration, agreement, health and safety and personal living
standard of individuals (Meredith Belbin, 2011).
There are various difficulties faced by HR while expanding business across the international
boundaries which are as follows:
Failure in the rates of repatriation and expatriation.
Identifying right skills and capabilities according to job requirement.
Convergence Divergence
Convergence approach to HRM hen expanding
into international market as it assist the
organisation in maintaining uniformity in
structure and function. If the company will
formulate its strategy and rules according to
new market it will destroy its uniqueness of
functioning for which the management need to
be quick in adapting changes (Brewster, 2007)
Divergent approach of Human resource
management provides firm flexibility to
formulate its business operation according to
new market requirement (Brewster, Sparrow
and Harris, 2005). Hence, it is the major
responsibility of HR to analyze and choose the
approached cautiously when expanding
organisation across the international boundaries
It is used by the used in international human
resource management as it assist the
organizations in making use of different
practices and policies altogether.
This approach driver the HR management
function in one line.
In this the management make use of various
underlying HR practices of international
boundaries (Clark, Grant and Heijltjes, 1999).
Characteristics of HRM in this approach
remains constant.
This provides flexibility to company in
managing functions according to functions and
policies and procedures of international
market. (Huo, Huang and Napier, 2002 ).
This is rigid in terms of changing policy as it
do not provide flexibility to change according
to environment but this followed by the
company as it assist the company in
maintaining its uniqueness which assist the
business in foreign country.
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In convergence approach the management has to organize regular training and
development session in order to enhance the efficiency if employees and business operations
according to international market. Basically it is improvising the structure and culture according
to new market requirement. Apparently, in divergence approach to human resource management
is liable to conduct market research in order to analyses the requirement of international market.
The research and divergence approach if HRM involves different type of risk as in this the firm
has to completely amend its business functions according to new market requirement. However,
the approach has its own advantages as it provides own set of rules which assist the Enterprise in
stabilizing its business operations according to requirement (Hodges, 2017).
Universalist Contextual
In this the management focuses on high pay
levels and extensive employee training in order
to increase employees efficiency and
effectiveness (De Cieri, Wolfram Cox and
Fenwick, 2007 ).
It aims at specialization in managerial activities
and in this the hrm manage the risk with mutual
understanding.
This aims at transforming traditional practices
in management and policies and procedures of
HR.
The policies and procedures is based on
Expertise advice and experienced practices
across the international boundaries.
This states that there is no single way to handle
the practices of HR. Therefore, it is important
for hr to implement all the best Possible
strategies which assist the management in
dealing with change across the globe.
In this management focuses on establishing
specialized policies and practices in order to
establish stability of business functions across
the international boundaries.
In accordance to this the management aims at
providing high level of employbility security.
The HRM focuses recruiting and hiring expert
and trained staff in order to attain competitive
advantage. This the approach which assist the
organisation in expanding business in foreign
country with stability on the other hand it
restricts the recruitment function because
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seeking and hiring expert employees in new
country turns difficult and it limits ten growth
of firm (Gehert and Fang, 2005).
In this the company has different and practice
hiring practices.
Implements and follows the expertise hiring
practices.
In this the company focuses on centralized
decision making process.
It aims at committed relationship between
employer and employee.
The universality approach is focused on improving employees and internal efficiency of
organisation according to international market changes. This is the best strategy and approach
which assist the management in stabilizing its business operations in new market. However, the
contextual approach of human resource management deals with external market changes with
mutual understanding. It is important for the management to analyses the business and business
environment of firm when expanding across foreign countries as it assist the entity in
determining the risk which can hinder the performance of business.
In contrast, to analyse and identifying market factors of internal market, it is important
for the HR manager of enterprise to implement use of Business approach which is Pestle analysis
(The Role of PEST Analysis in Bolstering International Business, 2016). Thus, approach do not
comprise roles and responsibilities of HR but it helps management in determining international
factors which can impact the business operations (Chang, Gong and Shum, 2011).
Political Factors: This provides HRM opportunity to evaluate about regulations like,
international employment laws, consumer protection laws and consumer protection regulations.
It is evaluated Human resource manager because insatiability of political factors creates
hindrance for business. Political instability affects the ability of HRM to manager the business
function as the fluctuation in these factors demands continuous amendment in employbility plans
and procedures (Gehert and Fang, 2005).
Social factors: It comprises demographic and cultural aspects of society which depends
on awareness, segmentation, age, population, attributes and safety of the citizen of foreign
country. In accordance to this factor the HR manger of company analyses the skilled and capable
employee seeking for Job. Offering job to skilled individuals in society assist the company in
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establishing its stability across the international boundary and grabbing the positive attention of
society.
Technology: Understanding the advancement of international technology assist the HR
in analyzing the need of recruitment. Keeping a check over Technological advancement of
international boundaries assist the HR in analyzing the need of skilled and capable employees
who can assist the business operations even without training and development. Adapting the use
of advanced technology aid the firm in making innovation in its services according to
requirement of foreign countries Whereas it also assists the entity in maintaining and improve
cost effectiveness of functions.
However, on contrary, the Regio-centric approach is used by management to establish
effective communications, coordination within one specified region. This helps organisation in
transferring employees with one region derived under geographical boundary. Further, it is
beneficial in setting interaction between regional areas (Doherty Dickmannand Mills, 2011).
European comparative models applicability
It is based on working ability and efficiency of people across international boundaries. In
this the Human resource management focuses on regulatory framework and employment
relationship with employees. Further, the comparative model of HRM comprises different
culture, ownership structures, roles of trade union etc. The ultimate objective of European model
is to establish coordination and cooperation between all the employees in the organizations.
For comparative research about employability Study the company focuses on using the
concept of research methodology in which it focuses on collecting data about the market and
unemployment. The study about the skilled employed and unemployed individuals in the country
which can assist the enterprise in business operation. The knowledge over employability
condition assist the HRM team in analysing the implementation of advanced technology. Further,
it assists the HR in formulating effective employees plans and practices according to
international country (Gehert and Fang, 2005).
Kerr's Concept regarding technology focuses on adoption of technology by developing
countries had fundamental effects on economies like, reducing the national costs of production,
delivering quality products, and establishing communication. Further, the Kerr concept of
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technology is based on attaining competitive advantage by offering products and services across
the international boundaries. The concept involves, investigation of main points, needs,
requirements a required to stabilise business operations in new area (myth, Kerr and Phillips,
2017). Apart from this, proposing and effective idea of innovation, analysing technologies which
can assist the management in improvising its functions, conducting a feasible study, designing
products and services. In addition, it also comprises, designing of product in accordance to meet
the requirements of consumers and commercializing good and services.
CONCLUSION
The task summarized the models and approaches used by the organisation while
expanding business operations across the international boundaries. It analysed the use of
Convergence verses Divergence and Universality verses Contextual which assist the manger in
stabilizing recruitment and section procedure across the international boundaries. Further, it
focused on Pestle analysis factor which assist the manager in determining the planning and
procedure for manpower in foreign countries. Moreover, it outlined European comparative
models applicability and Kerr's Concept regarding technology which focuses on adoption of
technology which assist the management in attaining competitive advantage by offering products
and services across the international boundaries.
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REFERENCES
Books and journals
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource
Management International Digest. 19(3).
Doherty, et.al., 2011. Exploring the motives of company-backed and self-initiated expatriates.
The International Journal of Human Resource Management. 22(03). pp.595-611.
Chang, S., Gong, Y. and Shum, C., 2011. Promoting innovation in hospitality companies through
human resource management practices. International Journal of Hospitality
Management. 30(4). pp.812-818.
Smyth, S.J., Kerr, W.A. and Phillips, P.W., 2017. Governance Challenges from Transformative
Technologies. In Biotechnology Regulation and Trade. Springer International
Publishing. (pp. 99-124).
Baumer, E.P.. and et.al., 2017. Comparing grounded theory and topic modeling: Extreme
divergence or unlikely convergence?. Journal of the Association for Information
Science and Technology. 68(6). pp.1397-1410.
Hodges, B.H., 2017. 6 CHAPTER Conformity and Divergence in Interactions, Groups, and
Culture. The Oxford handbook of social influence. p.87.
ONLINE
The Role of PEST Analysis in Bolstering International Business 2016. [ONLINE]. Available
through: <http://pestleanalysis.com/pest-analysis-in-international-business/>.
Brewster, C. (2007) Comparative HRM: European views and perspectives. International Journal
of Human Resource Management. 18(5) pp. 769-78 [online]. Available Through:
<http://www.ingentaconnect.com>
Brewster, C., Sparrow, P. and Harris, H. (2005) Towards a new model of globalizing HRM.
International Journal of Human Resource Management 16(6) pp. 949-970. [online].
Available Through: <http://www.ebscohost.com>
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Huo, Y. P., Huang, H. J. and Napier, N. K. (2002) Divergence or convergence: A cross-national
comparison of personnel section practices. Human Resource Management [online].
41(1) pp. 31-44. Available at: <http://onlinelibrary.wiley.com>
Clark, T., Grant, D. and Heijltjes, M. (1999) Researching comparative and international human
resource management. International Studies of Management and Organisations
[online]. 29(4) pp. 6-23 . Available at: <http://www.ebscohost.com>
De Cieri, H., Wolfram Cox, J. and Fenwick, M. (2007) A review of international human resource
management: integration, interrogation, imitation. International Journal of Management
Reviews [online]. 9(4) pp. 281-302. Available at: <http://www.swetswise.com>
Gehert, B. and Fang, M (2005) National culture and human resource management. International
Journal of Human Resource Management [online]. 16(6) pp. 971-986. Available at:
<http://www.ebscohost.com>
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TASK 2
INTRODUCTION
The task will outline the issues which are considered by multicultural team when working
in foreign country (Bhardwaj and Sharma, 2017.). It will discover the issues faced while working
in virtual team across the foreign countries which demands understanding, identifying and
appreciating each others cultures and identities.
Introduction about multicultural teams
Division of labor according their skills and capabilities, in one team to attain one
common goal is the strategy used by the enterprise to make employees efforts coordinated and
cooperated towards one common goal. In this the manager divide workers according to their
skills and capabilities required for one particular task whereas the multicultural team is the team
formed by the manager which comprises the members with different cultural backgrounds. It is
challenging job for the business across international boundaries to make individual work together
for one common goal. Further, managing multicultural team is task and responsibility itself
where managers ensures employees in virtual team participate and coordinate with each other by
communicating effectively (McDonnell, Lamare and Lavelle, 2010). The organisation aims at
providing guidance and direction by organizing training and development session on regular
basis. For instance, Japan is one country where employees coordinate and cooperate with each
other during work because according to them the individuals believes in working in teams
keeping their personal feelings aside. However, in U.S. it is the norm that individual has to work
alone without any monitoring and guidance.
ROLE OF HR MANAGER
When forming multicultural team it is important for the manager to consider that small is
beautiful. Manager when expanding business in international market focuses on forming team of
10 people with different skills and capabilities. Managing the functions of small team avoid the
chance of uncertainties which can lead to conflicts between team workers. Further, the
management focuses on the structure which should be systematic. When people from different
backgrounds work together than the functions of organizations should be adequately divided.
The manager selects team, the company focuses on deciding the members required for particular
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job function that is team size. Secondly, the management focus on overall team composition like,
allocating people according to their skills and job function. Further, the manager focuses on
selection of people according to requirement. Lastly, the management conduct the recruitment
process to make effective selection of multicultural team.
Link between diversity and team performance
Working in virtual team across the foreign countries is the process understanding,
identifying and appreciating each other’s cultures and identities. Working with people with
different cultural backgrounds have its own global benefits in the area of international business.
All workers are skilled and experts in their own field and economy and contributes their
maximum to organisation (Borras Jr, and Franco, 2010). Further, Multi-cultural teams come up
with different cultures which assist the company in attaining competitive advantage. Virtual
working assists the management in developing the team spirit among workers which is essential
to enhance the performance and establishing trust and dynamics (Bird, Mendenhall and Oddou,
2010). Moreover, issues of Multi-cultural are not always visible but exist. People with different
backgrounds while working come across several challenges due to culture, communication,
technology and management of work.
Negative impacts
The miscommunication between employees working in team leads to various difficulties'
honesty, trust, informal relationships which arise due to time zones, geographical distance
and majorly cultural differences.
Time difference is issue for virtual teams because management need team to make
synchronized efforts which lacks due to hours difference of countries (Tibbitts and
Fernekes, 2011). Time zone is important criteria which should be considered by
organisation when expanding its business across the international boundaries because it is
the thing which connects work and performance spirit of employees. Further, in foreign
countries time difference is the biggest issue faced by organizations. In accordance,
individual do not want to schedule a meeting with a virtual team which creates major
communication gap. For instance, if connected to United States from Japan than the users
face hard circumstances in order to establish communication because it will be time
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