International HRM: Expanding Business Globally and HR's Role

This report examines the critical role of International Human Resource Management (IHRM) in global business operations. It emphasizes how IHRM functions, including recruitment, selection, training and development, compensation, and legal compliance, directly impact a company's ability to expand internationally. The report highlights the responsibilities of HR managers in recruiting, training, and managing employees across different cultural backgrounds. It also covers the key elements of an effective HR strategy, such as aligning business and HR needs, developing strong HR strategies, evaluating organizational performance, and setting organizational culture. The report underscores that a sustainable IHRM system is essential for companies to succeed and grow in the global market, ensuring employee satisfaction and effective management of international business activities.

Running head: International HRM
International HRM

International HRM
The paper talks about the role of human resource management in an organization. It
explains that how human resource management affects the business activities and operation of
the firm. It describes the functions of the IHRM. It tells that how a company can expand its
business globally with maintaining a sustainable IHRM within the organization. It explains the
responsibilities of HR manager to conduct business activities and operation at international level.
Human resource management is the core function of the organization which includes
recruitment, selection, motivation, personnel management, and appraisal in order to meet the
long-term goals and objectives across the world. Human resource management plays a
significant role in every company to run the business effectively and efficiently. There must be a
team who can do work for the employee's safety and welfare. Human resource management
should assist and guide the employees in difficult situations. Therefore, every company
maintains a human resource department to carry the works and activities related to the
employees. The HR team search potential and efficient candidates in the market and hire them
for the work. They provide training and development to recruit candidates within the
organization. The human resource department maintains a close relationship between employer
and candidate within the organization. They maintain proper communication and collaboration
among the employees. They resolve and handle various disputes and conflicts of the employees
at the workplace. In this way, they provide job satisfaction to the recruiting candidates in the
organization. They are responsible for all the activities and actions of the employees. After
various researches, it has been analyzed that human resource management plays a crucial and
integral role in the organization.
Further, International human resource management may be explained as a set of actions
and activities in order to gain the organizational goals, objectives and competitive advantages
across the world. Human resource is very significant resources in the company to meet the
success and growth within the organization (Armstrong & Taylor, 2014). Every company should
maintain a sustainable human resource management in the organization. It includes various
functions such as training, development, recruitment, selection, compensation and reward
system, and performance appraisal at international level. In addition, it also includes the
universal skills administration and expatriate management. Mainly, international human resource
management manages business activities and human resources at international level. It also
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manages the three categories of the workers such as home country employees, host country
employees, and third country employees. The home country expatriates are the employees who
are from the nation where the firm head office is located (Budhwar & Debrah, 2013). Further,
the host country is a person who is a resident of a country in which the firm plant and branch are
situated. The third country national employee who is not a citizen of the host country and home
country as well but they are working in the subsidiary company. In today’s era, it is seen that
many companies are expanding its business across the world. Therefore, the corporations are
facing many difficulties and challenges to create and maintain various rules, regulations, and
policies in the host country. If the company wants to expand its business globally then the
company needs to maintain a sustainable human resource management in the organization. In
international business, people come from different culture and background to run the business
smoothly. Thus, entire business activities depend upon the sustainable human resource
management. The functions of international human resource management have been discussed
below (Bratton & Gold, 2012).
Recruitment and selection: It is the primary and important function of IHRM. The company
hires skilled, qualified and potential employees to perform the international business effectively
and efficiently. The major elements of recruitment and selection include job analysis,
interviewing applicants, and compensation system and job description. In international business,
the international human resource management needs to evaluate and understand each country in
order to meet the goals and objectives of the company. They are responsible for the training and
development of different candidate who belongs from different location and background around
the world (Stahl, Björkman & Morris, 2012).
Training and development: Training and development are essential for international business
across the world. When the company hires employees, then it is the responsibility of IHRM to
provide effective training and coaching to a candidate for improving their skills and knowledge.
The company can use the on the job method and off the job method to enhance and increase the
productivity and efficiency of the workers (Brewster, Houldsworth, Sparrow & Vernon, 2016).
Professional development: It is the major HR function which is related to training. Professional
development provides various opportunities to employees for education and growth. It provides
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various career growth and success opportunities to the employees. It provides motivation to the
employees for doing work effectively and efficiently (Wright & McMahan, 2011).
Benefits and compensation: It is a major function of international human resource management
which is providing by the HR team. The company should provide compensation and rewards to
potential and capable employees. Thus, this approach is used by the multinational organizations
to enhance and increase motivation and efficiency of the employees. Many organizations
provide some other benefits such as flexible working hours, medical facility, maternity leaves
and insurance facility (Crook, Todd, Combs, Woehr & Ketchen, 2011).
Legal function: It is the final function of the international human resource management. The
company should ensure the various labor laws regulations to maintain the organization existence
and sustainability in the market. There are various laws and regulations has made by the
government related to the employment. The laws include minimum wage, health benefits,
compensation, and reward. The company should understand the taxation policies of the host
country. All the laws and regulations should be followed by the government to flourish and
expand the business across the world (Berman, Bowman, West & Van Wart, 2012).
Further, various operative, managerial and advisory functions are performed by the HR
team to achieve the long-term goals and objectives of the company. In addition, international
human resource management focuses on the core competencies and core values of the host
country and home country as well. Core competencies and values are the unique strength for the
organization to expand its business globally. If the firm wants to expand its business
international level, then it should focus on the competition that is existed in the host country. It
should also evaluate and measure the technology and innovation of the country (Salvendy,
2012).
The roles and responsibilities of HR manager as international aspects which have been discussed
below.
 The human resource managers are responsible to expand and flourish the business
activities and operation across the world. They are responsible to recruit the new
candidate for the organization. They check and evaluate the skills and potential of
recruiting candidate in order to meet the requirements and expectations of the job. They
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are responsible to hire a right and potential candidate for the right job. Now a day’s it has
become very difficult to find out thee suitable applicant who have enough experience and
knowledge to meet the requirement of the job at the workplace. Employees play a vital
role to determine the growth and success of the firm.
 The HR team is responsible to make effective and unique policies and rules for the
employees to maintain sustainability in the company. They are responsible to check and
evaluate the background, qualification, and experience of the recruiting candidate to
attain the goals and objectives of the company (Sparrow, Brewster & Chung, 2016).
 Further, human resource management is responsible to provide training and development
to the new applicants. They check and measure the working environment of the company.
Through training and coaching, the human resource manager checks the productivity and
efficiency of the employees to fulfill the requirements and needs of the company. They
evaluate the methods and strategies of the training to ensure the better outcome and
results. They are responsible to handle and manage the appraisal of the employee.
Performance management helps the workers to increase the motivation and morale of the
employees. It will also enhance and increase the confidence level of the employees. In
this way, employees will perform work and task effectively and it will also increase the
productivity of the organization and employees as well (Alfes, Shantz, Truss & Soane,
2013).
 The human resource management should provide a safe and healthy work environment
and culture to the employees to increase the productivity of the workers. They should
eliminate the negative barriers from the environment. They should maintain a reciprocal
and friendly relationship with employees and they must resolve the key issues and
problems of the employees. They are responsible to maintain proper communication and
collaboration at the workplace. They create team spirit and teamwork within the
organization to maximize the profit and revenue of the firm (Huselid & Becker, 2011).
 Further, if the company conducts business activities at international level then various
disputes arise in the firm. Thus, HR manager is responsible to take initiative and
appropriate actions to resolve these key issues and conflicts. There is a link between
human resource management and organization.
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International HRM
 They are responsible to provide job satisfaction and morale to the employees in order to
meet the goals and objectives of the firm (Kehoe & Wright, 2013).
 They need to maintain employees’ records and files which are related to the employees’
background and employment. They are also responsible to provide employee
development and counseling assistance to the workers. They must frame unique and clear
HR policies and strategies to ensure the maximize sustainability in the organization. In
addition, HR manager must provide incentives and rewards to the potential and skilled
employees to increase the outcome of the company. They are responsible to evaluate and
analyze the performance and efficiency of the employees. They are responsible to
provide some other benefits to the employees (Knowles, Holton III &Swanson, 2014).
 They are responsible to improve the communication and interpersonal skills of the
employees to perform the task and duties more effectively.
Key elements of HR strategy: The key elements of Hr strategy have been discussed below.
Aligning business and HR needs: The HR manager focuses on the employees’ requirements
and needs in order to fulfill the goals and objectives of the firm. It is the major key element of
the HR strategy. HRM is the primary part of the organization to achieve the goals and objectives
across the world (Boxall &Purcell, 2011).
 Developing effective HR strategy: HR plays a vital role as mediator and consultant to
develop and build the strong HR strategies and plans for the employees. The strategies
and plans are the important tools for the IHRM to its successful business development.
 Evaluation of organization performance: The human resource management evaluates
and analyzes the organization and employees performance as well to maximize the profit
and revenue of the company (Mendenhall, 2012).
 Effective organizational structure and design: It is one of the biggest key tools of HR
strategy to design the organizational structure and policies across the world.
 Developmental strategy: The human resource department develops strong and unique
strategies and policies to attract more candidates in the organization.
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 Reward strategy: Compensation and reward are the important key elements of HR
strategy within the organization. The appraisal, incentives, and salary are decided by the
human resource department (Jiang, Lepak, Hu & Baer, 2012).
 To set the organizational culture: The human resource management sets the
organizational culture to make the strong position of the company across the world.
Through the effective and unique key elements of HR strategy, the company is able to gain the
long-term benefits in the organization (Werner & DeSimone, 2011).
On the above discussion, it has been analyzed that none of the company can expand their
business activities and operation at international level without effective and sustainable human
resource management. Thus, the company should build an effective human resource department
in the organization. Further, employee satisfaction plays an integral role in the organization to
ensure the success and growth of the company. The organization should adopt innovative
techniques, policies, and procedures to increase the productivity of the employees.
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