Analysis of International Human Resource Management Practices

This report delves into the intricacies of International Human Resource Management (IHRM), contrasting it with domestic HRM practices. It meticulously examines the impact of complexity, cultural environments, and industry types on IHRM, highlighting key differences and challenges faced by multinational corporations. The analysis explores how factors such as differing legislations, cultural values, and workforce diversity influence IHRM strategies, including remuneration, holiday policies, and workplace practices. The report emphasizes the significance of managing cultural differences, addressing issues like power distance, individualism, and masculinity, within a global workforce. Furthermore, it discusses the impact of organizational conflict, blame games, and taxation policies on IHRM. Through organizational examples, the report provides insights into the practical implications of these factors, offering recommendations for improving IHRM approaches in multinational business entities. The report concludes by emphasizing the importance of efficient diversity management and appropriate strategies to mitigate the challenges associated with managing a globally diverse workforce.

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International Human Resource Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................3
Complexity:................................................................................................................................4
Cultural Environment:................................................................................................................7
Industry Type:..........................................................................................................................10
Conclusion:..............................................................................................................................11
References:...............................................................................................................................13

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Introduction:
The implication of the international human resources management is observed to be
notably high amongst the modern mainstream profit based and non- profit business entities.
The awareness amongst the business entities regarding the efficient management of their
human resources is notably visible. With a precise look at the link between the enhancement
of sustainability associated with the business activities of the business entities and the
requirement of handling the human resources in a professional manner, it becomes significant
for the business entities to ensure efficient utilization of their human resources (Marchington
et al. 2016). As per the comments of Noe et al. (2015), the importance of the human resource
managers in the modern business entities is sky high as they are required to conduct a series
of activities which includes recruitments and selection of the staffs, remuneration
management of the staffs, rewards and recognition management of the staffs, accurate
management of the training and development of the staffs along with continuously enhancing
the quality of the working environment in the business entities.
Having said that, Brewster et al. (2016) mentioned that the differences and difficulty
level of managing the human resources in the domestic and international level is
comparatively different and that is pretty prominent with the strong emphasis that the
international human resource managers are required to put for the management of the
differences of cultural events and industry type. As per the comments of Bal and De Lange
(2015), the success of the managers in efficient administration of the human resources at the
organizational context, is seen to be largely reliant on their ability in tackling the cultural
differences. The rate of participation of the staffs belonging to different cultural and social
background in the multinational business entities are seen to be comparatively higher than
that of the business entities that operate in the domestic market. As a result, the complexity

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associated with the management of the human resources in the international firms is
considered to be comparatively higher than that of the domestic firms. The study is based on
the analysing the differences between the dynamics of the international and domestic human
resource management activities and processes. The parameters that are to be considered for
the evaluation of the differences are the inappropriateness associated with the complexity,
cultural environment and industry type. For better understanding of the differences, the study
cites organizational examples as evidences and at the same time, it provides a set of
recommendations for the improvement of the multinational business entities’ approach in
tackling the differences.
Complexity:
The changes between the domestic and the international human resource management
on the basis of complexity is perceived to be notably high. The domestic human resource
activities are primarily less complex than that of the international human resource
management. As per the comments of Stone and Deadrick (2015), the differences between
both the forms of human resource management is seen to be principally reliant on the
different forms of legislations and the cultural differences that are required to be
professionally managed from the portion of the international human resource managers. As
per the comments of Latukha (2015), the business entities that are operating within the
perimeter of a single country, are required to comply with the legislations of that particular
country. In addition to this, Stone and Deadrick (2015) stated that the human resources
managers operating in an organization that operates domestically, have the necessity to
comply with the domestic labour and employment legislations. As a result, the human
resource managers of such business entities are seen to formulate the remuneration packages,
holiday packages, work time characteristics, rewards and workplace health and safety
arrangements of the staffs as per the domestic legislations.

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Apart from this, Brewster et al. (2016) mentioned that the multinational business
entities that have their business expanded across the globe, are required to comply with the
international legislations. The human resource managers of the multinational business entities
have the necessity to formulate the international human resource management and
employment relation policies which roughly includes remuneration packages, holiday
packages, work time characteristics, rewards and workplace health and safety arrangements
as per the legislations in which their business entities are operating. As the human resource
managers of such business entities are required to comply with the diverse employment
legislations during the formulation of the human resource policies, it increases their
complexity and difficulty level. With a precise look at the numerous characteristics of the
human resource management, it is visible that the remuneration package is one of the
significant feature of the human resource policies (Latukha 2015). Having said that, the
business entities that operate domestically, have the necessity to comply with one industry
standard wage guidelines primarily framed by the Labour and Employment Department of
the government and on the other hand, the international human resource managers are
required to closely monitor the industry standard guidelines of the remuneration packages of
all the countries in which they are operating before the formulation of their wage
characteristics. On the other hand, the list of holiday is also an important criteria that
differentiates the operations of the international and the domestic human resource managers.

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The human resource managers who are working in an organization that is operating
domestically, are observed to face a limitedly diversified workforces where the participation
of the staffs of different religion is comparatively less than that of the multinational business
entities. However, Marchington et al. (2016) mentioned that the efficient employers across
the globe have the tendency of providing the desired scope to their staffs in celebrating their
religion and that influences such business entities in including the religious red letter days in
the list of holiday of their business entities. As the participation of workers from different
religious groups are comparatively less in the domestic firms, it becomes comparatively easy
for the human resource managers to include the religious red letter days in the company’s list
of holidays. On the other hand, the diversity in the work groups of international firms on the
basis of the workers belonging to differently religions are seen to be significant and that is a
primary concern for the international human resource managers in formulating the list of
holidays of their business entities.
The incapability of the human resource managers of the multinational firms in
including the red letter days of each and every religions contributes to the inaccurate
management of the diversity and on the contrary, the irrational incorporation of the same in
the company’s list of holidays will reduce the operational days. As a result, the human
resource managers of the multinational business entities are seen to be in dilemma and that
increases their difficulty level. Apart from this, one of the major differences in the domestic
and international human resource management activities is seen to be the application of the
diverse approaches in the management of the workforce diversity. As per the comments of
Sparrow, Brewster and Chung (2016), the business entities that primarily operate
domestically are seen to face lesser obligation in managing the diversity amongst their staffs.
As the dynamics of such business entities includes the participation of individuals with lesser
number of religions, the diversity amongst the staffs on the basis of the religious belief and

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social values are considerably limited. On the other hand, the business entities that operate
globally, are observed to be exposed to a larger and diverse workforce. As such business
entities are present in different national territories, it becomes important for them to ensure
the fact that they are consistent with their formulation of the policies. As a result, such
business entities face the necessity to ensure that the diversity of the business entities is
managed in a professional manner which certainly increases the level of difficulty associated
with the operations and actions of the human resource managers employed in the
international firms.
In addition to this, Ogunyomi and Bruning (2016) mentioned that the taxation policies
in different nations for the professional executives is seen to be different and that is one of the
major differences that the human resources managers of the international firms are required
to manage in comparison to the domestic firms. The rate of professional tax is a major
concern for the multinational business entities and for the human resource managers of such
business entities. Apart from this, the centralization of the business operations of a particular
organization that operates domestically enables the company the desired scope to function in
an efficient manner when it comes to the management of the communication in the
organizational context.
In addition to this, Vance and Paik (2015) claimed that the majority of the
international firms are seen to be largely affected with the cases of organizational conflict and
that affects the success of the business entities in improving the team performances. In
addition to this, Vance and Paik (2015) highlighted the concern of the power politics in the
organizational context with the claim that the business entities are largely affected with the
blame game and power politics issues and that is pretty prominent in the mainstream business
business entities such as Amazon or Walmart. As per the comments of Greasley (2020), the
managers and the employee base of different divisions of majority of the multinational

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business entities are seen to put the blame on each other during the decline in the
performances of the business entities. Greasley (2020) mentioned that the practice of such
blame game from the part of the staffs and the managers of the multinational business entities
has the possibility of increasing the difficulty of the human resource managers and at the
same time, it reflects the declining culture of the business entities.
Cultural Environment:
With a detailed consideration towards the concept of culture in the organizational
context, it is evident that the culture has the ability to affect the team performances in the
organizational context. As per the comments of Greasley (2020), the mainstream commercial
business entities along with the non- profit business entities are seen to recruit their
professionals on the basis of the skills and expertise of the individuals and in such situation, it
increases the diversity of the workforces. As a result, the participation of the individuals
belonging to different cultural values and social beliefs are seen to be notably high and that
certainly increases the activities of the human resource managers of the multinational
business entities. As it becomes important for the business entities to ensure the efficient
management of the diversity in the organizational context for the improvement of their
performances in various aspects such as the quality and production, it is necessary for the
human resource managers to initiate appropriate activities for solving the challenges that they
face in the management of the cultural differences.
As the participation of the staffs belonging to diverse cultural backgrounds and social
values in the domestically operating business entities is considerably limited, it provides
greater ease to the human resource managers of such business entities in tackling the
challenge. On the other hand, the participation of the staffs belonging to different cultural and
social values, amongst the multinational business entities, is seen to be notably high and that

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increases the operative actions of the human resource managers (Sparrow, Brewster and
Chung 2016). Having said that, it becomes important to analyse the different factors of
culture that promote the perception of the cultural differences inside the workforces. The
primary factors that increase the cultural differences in the organizational context, are power
distance, individualism or masculinity.
Considering the formation of a workforce with the participation of three different
nations such as China, Spain and United Kingdom, the differences amongst the staffs of these
three countries in the aspect of power distance is pretty noticeable. With a score of 80 in the
aspect of the power distance, the Chinese society reflects considerably high acceptance level
towards the unsatisfactory circulation of the power (Hofstede-insights.com 2020). In the
organizational context, the preferences of the staffs and the managers towards the hierarchical
formation is notably high and at the same time, the relationship between the senior and
superior relationship is largely polarised. On the other hand, the staffs belonging to the
Spanish society are seen to have model level of acceptance towards the unequal distribution
of power in the organizational context. On the other hand, the staffs belonging to United
Kingdom are seen to have lesser consideration towards the hierarchical formation of the
organizational structures and at the same time, the low acceptance level of the professionals

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towards the imbalanced circulation of power in the administrative context is pretty prominent
with the score of 35 in the dimension of power distance (Hofstede-insights.com 2020).
On the contrary, the modern business entities are seen to be largely focused on the
improvement of their team performances as that is much required in meeting the demands of
the market in a professional manner. In such situation, the role of the individualism aspect is
seen to be notably important. China with a score of 20 in the dimension of individualism,
certainly reflects the collectivist nature of their society (Hofstede-insights.com 2020). The
bonding between the staffs enable the business entities in managing their business actions in a
professional manner and on the other hand, it also places the business entities on the verge of
facing the heat of the unionization. On the contrary, the score of 51 in the same dimension
from the part of Spanish society is a true reflection of their intermediate position (Hofstede-
insights.com 2020).
The staffs are seen to have dual inclinations and is selective in their approach in
forming associations for the management of their business activities. On the other hand, the
British society is seen to be primarily individualistic in nature and that is visible with the
score of 89 in the dimension of individualism (Hofstede-insights.com 2020). The British
citizens are seen to be largely individualistic and private individuals. The British citizens
have the tendency of considering about themselves and their immediate families only which
reflects their individualistic tendency. On the other hand, the Chinese and British society are
seen to be primarily masculine in nature where the citizens have the tendency of becoming
best in whatever they do and their preferences is considered to be secondary in the same. On
the contrary, the citizens belonging to Spanish society are seen to be feminine in nature and
that is apparent with the score of 42 in the stated dimension (Hofstede-insights.com 2020).

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The Spanish citizens are observed to have special consideration towards their
preferences rather their urge in becoming best in their operations. With a precise look at the
issues, it is evident that an organization working exclusively in any of the mentioned nations
will face considerably limited amount of necessity for restructuring the cultural differences
and on the other hand, a multinational company that is operating in all of the mentioned
nations, will face great share of difficulty in tackling the differences of culture amongst their
staffs. Hence, it is understandable that the human resource managers who operate for the
international firms are exposed to highly difficult management activities in comparison with
the business entities that operate domestically.
Industry Type:
With a precise consideration towards the type of the industries, it is understandable
that the business entities that operate in the competitive business market have different
obligations for the management of their human resource in comparison to monopoly business
market. As per the comments of Reiche et al. (2016), the recruitment and selection of the
staffs in an organization that is functioning in the competitive business market, is seen to be
primarily focused in sourcing skilful and experienced staffs who have the capability to put
extra efforts from their part for meeting the demands of the market.

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In such situation, the business entities are ready to invest additional monetary
resources for securing the services of the skilled and experienced labours and as a result, it
becomes comparatively more difficult for the human resource managers of such business
entities in comparison to the business entities operating in domestic monopoly market to
ensure an optimal workforce planning. On the other hand, the industries that are bound with
extensive amount of legislative power and rules, are seen to put added pressure on the
business entities in managing the legislative consequences such as the taxation, ethical
practices and environmental legislations (Bailey et al. 2018).
These legislative considerations are seen to be immense on the staffs of international
firms which increase the concern of the human resources managers operating in the same as it
enhances the difficulty of their business operations. The domestic business entities are seen to
face the heat of the same in a comparatively lesser extent as such business entities are
required to comply with the national legislations only which provides some breathing space
to those business entities (Bratton and Gold 2017). Apart from this, the business entities have
the necessity to retain expert professionals for the accurate supervision of their trade activities
in the competitive business markets as that is crucial for the mainstream business entities in
retaining their customers in an well-organized manner.
Having said that, the competence of the business entities in retaining expert
professionals is observed to be dependent on their ability in delivering the scope to enhance
the skills through the training and developmental activities. As a result, the business entities
which require to improve their quality of service for improving their growth and survival,
have the necessity to introduce diversified training and developmental facilities for their
staffs (Shields et al. 2018). Hence, it also adds up to the responsibility of the international
human resource managers as the necessity of the skill development and quality improvement