International HRM Report: Horizon Education Inc. Analysis

This report analyzes the international human resource management (IHRM) strategies of Horizon Education Inc., a US-based educational materials provider, as it plans to enter the Far Asian market. The report begins by discussing the selection of a Plant Manager, emphasizing the importance of experience and potential for success. It then explores the organizational context, recommending a global organizational structure to manage overseas operations effectively, considering factors like control and autonomy. The cultural context highlights the need to understand Japanese cultural nuances, such as high-context communication and polychromic time, to foster harmony and respect. The report also examines international compensation, advocating for a balance sheet approach to maintain expatriate living standards while controlling costs, and outlines key components like base pay, variable pay, and allowances. Finally, the report addresses training, development, and performance management, emphasizing cross-cultural training, employee development programs, and regular performance assessments to ensure successful overseas operations. The report concludes by summarizing key recommendations for Horizon Education Inc. to achieve successful and continuous overseas operations.

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Running Head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International Human Resource Management

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Introduction
In the present paper, the discussion is regarding company Horizon Education, Inc. It is
known as a major provider of educational materials in the United States of America. The
company’s focus is more on learning tools as well as systems for carrying out effective use in
business classrooms, technology and science. Furthermore, it builds up and renders an array
of products comprising of the books, videos, software, manuals, and hardware expended in
the areas of technology education, instructional development and business applications. Cost-
reduction, quality augmentation and innovation are the prominent strategies considered by the
organization to maintain its growth and productivity levels. Manufacturing, Creative
Development, and Transportation, Service and Maintenance are the core pillars of the
company (Alharbi and Mamman, 2015).
Choosing a Plant Manager
The company Horizon Education Inc. planning to enter the overseas market and that
is Far Asian region. Before moving to the overseas market, deep research is required to make
out the market conditions over there. Additionally, the company should select talented
personnel that could handle the tasks associated with the new manufacturing unit in Japan.
There has to be a perfect choice for the designation of the Plant manager. For the Plant
Manager position, the company decided to go with Fredrick Rogers as he is associated with
Horizon Education, Inc. for five years as a production department manager. His working
skills are exceptional and recognized for a real propensity for directing high-quality
production operations and that makes him the company’s rising star. He does not have any
experience working outside America but develop the talent to accept the challenges and to
turn it into an opportunity.
The above option is the preferred choice as it would help the company enter the new
region with full zeal. By having the talent and aptitude, he would affirm the business to have

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a good start and to make it continue as well. There is no doubt that these two countries are
very much different from each other be it culture, laws, politics, rules and regulations, and the
habits, tastes and preferences of the customers are concerned. Then also, the aim is to
understand these things and to make a kick-start.
Organizational Context
In general, an organizational structure is the arrangement of an organization in such a
manner that describes the reporting relationships amid the subordinates and the superiors. On
that basis, the hierarchy is formed and it becomes clear who will report to whom. In an
organizational structure, the delegation of tasks takes place and the superiors have the
authority to check if the employees are working properly or not. Conceptually, it is known as
the formal arrangement of the roles, responsibilities and relationships that takes place at an
organizational level (Arulrajah, 2017).
In this respective case, the company Horizon Education Inc. would find it effective to
go for Global Organizational Structure. Due to the rise in overseas operations, there is a need
to call for successful incorporation of HR related activities together with fortifying an
international organizational structure. There has to be understanding with the fact that while
conceiving organizational structure, the internationalizing firm over and over again has to
make your mind up for the following contravening issues.
 Considering the type of control and that should get maintained by the parent
company headquarters over subsidiaries
 Degree of autonomy in arriving at key decisions and that has to be allowed for by the
parent company headquarters to subsidiaries
In addition to this, it extends to re-organization and amalgamation of till now disunited
organizational interests and that gets involved into an internationally incorporated
organizational structure which may either be free-based on functional, geographic, or product

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divisions. This has to be understood that depending upon the firm strategy and calls for the
exterior business environment, and it may further be fine-tuned to a worldwide matrix or
trans-national network structure.
The Culture Context
The second most problematic concern is to throw a glimpse on the Cultural Context.
There stay great necessity making out Horizon Education, Inc. and the way it recognizes that
it is important to consider the cultural context in a potential new overseas venture. It is highly
essential getting to know what type of cross-cultural management approach and knowledge is
needed to make the overseas operations highly successful. The company should give a
thought pertaining to the product or service that doesn't put in value or get together to the
local markets desires, and then it demands a closedown. This is the reason it is indispensable
gathering facts pertaining to the conditions prevailing and the people residing in the
community and what they value. In Japan, High context cultures prevail and that utilize
polychromic time. The other important cultural considerations that the company should
consider are:
 Developing such a culture that helps in building harmony amid the management and
the team members
 Having a communal workspace that would help managers and subordinates work
closely
 Exhibiting respect towards the values, traditions and rituals (Bauernberger, 2007).
The above stated cultural considerations are going to help the company have overseas
operations in a successful manner. It also looks forward to helping the business have an
effective international presence within the selected region. There stays great necessity
working well on these considerations in order to have a triumphant presence and to carry on
incessant operations.

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International Compensation Context
Horizon Education, Inc. recognizes that it is important to consider the compensation
merits in a potential new overseas venture. It is very much clear that the company is
functioning in the new region, it is important to come up with an effective compensation
package that could make workers feel good and highly motivated. The international
compensation has to be such that does justice at the part of the expatriate employees and at
the same time does not create cost burden at the part of the parent company (Keller, 2010).
Global compensation package comprises of the housing allowances, home leave, base
pay, cost-of-living allowance, education assistance for dependents and premium pay. The
following are the key elements discussed below:
Base Pay: As per this, when an employee goes for an international assignment, it is up
to the company to settle on the base rate of reimbursement. In general, it gets related
to pay ranges available in the home country and then may be aligned based on local
variances. It can be determined on the grounds of four key approaches such as home-
country-based, host-country-based, headquarters-based, and balance sheet approach.
But, after going through all these approaches, it would be good to consider the
balance sheet approach. According to this, the compensation is computed expending
the home-country-based approach with all the possible adjustments, implications and
compensations. On that basis, the net salary has been found out. After that, it gets
commuted to the host country's currency. This could be very well analyzed that one of
the most important goals of an international compensation management program is to
keep up the expatriate's present living standard, and building up an even-handed and
purposeful compensation plan that blends well with the balance and flexibility and
that makes it extremely exigent for multinational companies. This is the reason the
balance sheet approach is the most preferred one (Schmidtmann, 2008).

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Variable Pay: It comprises of the two kinds of incentive plans that are short-term and
long-term incentive plans. Short-term plans are annual-based plans that connect
awards grounded on conforming to the individual or group performance objectives.
Long-term incentive plans differ in length from three to five years. These plans
mainly comprise of the equity-based incentives covering up the stock options,
curtailed share grants and other types of equity-based plans.
Premium and Allowances: Premium and allowances are added to the base pay and
that lets in cost of living adjustments, assistance related to education, housing help,
and pay related to any kind of hazard.
Benefits: The key benefits offered to the expatriates are health care plans, retirement
plans, and spousal partner assistance.
The International Training, Development & Careers Context
The last one problematic concern for the Horizon Education Inc. is to look forward to
the types of training, development and performance management and measures. It is
important to have proper ways of training, developing, and managing the performance levels
within the overseas operations. For making it work, it is needed to move forth with the key
points (Singh and Kassa, 2016).
 Cross-cultural training and language training is a must for the expatriates
 Development of the employees should take place by means of different programs
 Avoid any kind of favouritism towards the managers working at the national level
 Constructing a database at a global level to make out the talent within and outside the
company
 Drawing up a mobility pyramid to make out the willingness of the employees to move
to new locations (Quelch and Bloom, 1999).

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 Presiding over challenges such as job dissatisfaction and employee turnover and
retaining the number of workers
 Organizational goals clarity is a must
 Having regular assessments of the worker’s performance
 Encouragement shown for self-managed teams
 Making out the leadership potential
 Obtaining feedback at regular intervals (Kang and Shen, 2017).
Conclusion
The above stated four problematic concerns are resolved by means of providing with
the best recommendations that Horizon Education Inc. should consider in order to have
successful and never-ending overseas operations. By doing the same, it could be made out
that the results obtained would be far better and improved enough. It allows the company to
maintain its presence with the utmost effectiveness.

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References
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Arulrajah, A.A. (2017) Productivity and Quality Management through Human Resource
Management: A Systematic Review. International Review of Management and
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Bauernberger, J. (2007) Human Resources in the Global Market. Norderstedt: GRIN Verlag.
Schmidtmann, L. (2008) Global Marketing and Global Human Resources Management.
Norderstedt: GRIN Verlag.
Kang, H. and Shen, J. (2017) International Human Resource Management in South Korean
Multinational Enterprises. Melbourne: Springer.
Keller, M. (2010) International Human Resource Management. Norderstedt: GRIN Verlag.
Quelch, J.A. and Bloom, H. (1999) Ten Steps to a Global Human Resources Strategy.
WORLD VIEW, 15.
Singh, N.R. and Kassa, B. (2016) The Impact of Human Resource Management Practice on
Organizational Performance - A Study on Debre Brehan University. International
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