MBA 7008: Managing People in a Global Context - Assessment Report

This report analyzes Global Human Resource Management (HRM) practices and theories, focusing on the American multinational corporation (MNC) Leisure Choice International (LCI) and its global presence. It investigates the balance between local and global requirements, the impact on MNC strategy and structure, and the effects of global organization strategies on HRM policies and practices, particularly concerning international managers. The report examines people resourcing, training and development, and pay structures in different countries, highlighting how HRM practices are affected by the global strategy. It also discusses the benefits and limitations of standardization strategies for LCI's HRM, considering the German context. The report emphasizes the role of international managers in adapting HRM practices to various countries and dictating organizational goals while navigating the changing landscape of global business. Furthermore, it explores the impact of globalization and internationalization on HRM practices and the types of multinational enterprises and their structures.

Managing people in a global context assessment

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Table of Contents
Introduction................................................................................................................................2
Part A.........................................................................................................................................2
Part B: Human Resource policies in relation to International managers...................................5
Part C: Benefits and limitations of the standardization strategy for Leisure Choice
International (LCI) and its HRM................................................................................................9
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
Global Human Resource Management (HRM) is a broad term that includes various aspects of
an organization such as HR, talent management and payroll management on a global scale.
Thus, Global HRM is a solution that helps in leveraging the comprehensive HRM, which aid
in ensuring that the employees are active, collaborative and engaged in the organization (Noe
et al. 2017). The objective of the individual report is to demonstrate the understanding of
Global HRM practice and theories in term of American MNC Leisure Choice International;
an MNC that is based on the U.S however, has a global presence. It was found that there is a
need for balancing both local and global requirement and has an impact on the strategy and
structure of MNC. The implementation of Global Organization strategy is found to effect
HRM policies and practices with respect to international managers. It was also demonstrated
that there are certain benefits and limitations of implementing the strategy in term of effective
HRM of the organization and its performance in the future with respect to its impact on the
German context.
Part A
With the development of technological innovation, it can be stated that for an organization, it
is easier to conduct business on a global aspect as it helps in increasing the reality rather than
being a necessity. Thus, it is important for multinational companies to have an integrated
manner that is capable of serving the employees working in the same company across the
globe. Globalization, considered by various people to be the certain surge of what might be
on the horizon, is as regularly as conceivable confused with internationalization, be that as it
may, is, in reality, something astonishing. Internationalization suggests the growing
noteworthiness of overall trade, worldwide relations, settlements, alliances and others

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(Lumby and Foskett, 2016). Between national, clearly, infers between or among nations. The
basic unit remains the nation, even as relations among nations become continuously
fundamental and huge. Globalization insinuates worldwide money related compromise of
various once in the past national economies into one overall economy, primarily by
unhindered trade and free capital adaptability, yet also by basic or uncontrolled development.
It is the fruitful erasure of national cut-off points for budgetary purposes. Worldwide trade
(spoken to by comparative ideal position) pushes toward getting to be interregional trade
(controlled by preeminent favoured point of view). From the setting of IHRM, it tends to be
expressed that the two ideas are significant. The effect of globalization and
internationalization helped being developed of IHRM practices and speculations that
permitted improvement of MNCs everywhere throughout the world.
Four arrangements of multinationals enterprises that exist. They include:
 A decentralized association with a strong closeness in its country of starting point
 An overall united association that verifies cost advantage where decrepit resources are
available
 An overall association that develops the parent organization's R&D
 A transnational endeavour that uses every one of the three classes
There are unassuming separations between the various types of overall affiliations. For
example, a transnational — which is one kind of around the globe — may have its home in
any event two countries and spread out its endeavors in different nations for a sporadic state
of an adjacent reaction in Leisure Choice International. In the U.S. From the investigation of
Bretos and Marcuello (2017), it tends to be recognized that every one of the arrangements
results in various kinds of structure and HR practice. It very well may be seen that various

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kinds of MNCs are made to fulfil the point of the organization. Thusly, basic changes and
HRM rehearses vary for each situation, as the need is extraordinary. Conversely, local
responsiveness requires MNCs to settle on key choices dependent on local setting.
The weight in worldwide responsive are the forces that make MNCs misuse in general
resources and arrange their activities on an overall reason to recognize economies of scale
and achieve cost decline. Huang and Zhou (2017) opined that the motivation for Global
Integration is the requirement for adequacy in Leisure Choice International. Even more
unequivocally, the enhancements of imaginative developments empower associations to
develop to make all around and achieve economies of scale, realizing the more organized
things. In addition, the kinds of customers have ended up being homogeneous around the
globe. Moreover, MNCs will, as a rule, has "overall chess" framework, using the advantage
made in one market to finance exercises in another.
As indicated by Bretos and Marcuello (2017), the drivers for local responsiveness are
(I) the distinctions in purchaser taste in various nations;
(ii) The run of the mill qualities of the item framework in host nations;
(iii) The regulatory expenses of organizing make on a worldwide premise;
(iv) The upgrades in advancements empower organizations to scatter assembling to littler
nearby plants with minimal effort;
(v) The exchange and administrative hindrances set by local Governments.

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Basically, Malik et al. (2017) discusses that the standard loads for local responsiveness are
the qualifications in customer tastes and tendencies; differentiates in system and standard
practices; in allotment channels; and host government demands in regard to Leisure Choice
International. Such loads for nearby responsiveness urge overall firms to change their things
and organizations to all the almost certainly satisfy the need of indigenous people. Four
systems of global associations are amazingly down to business and supportive to grasp the
veritable loads looked by worldwide associations in the overall business focus. Those
theories moreover give a defence of how overall associations respond to overall coordination
and adjacent responsiveness, which makes me see the business world in an undeniably
practical and systematic way.
Part B: Human Resource policies in relation to International managers
The strategy of Leisure Choice International (LCI) i.e. the Global Organization aims to be
implemented across its sites over a period of 10 years. The integrity concept adopted in this
case is to shift from USA operations to global context. Therefore, on shifting the operations
of the company globally, the strategy of Global Organization would definitely affect HRM
policies and practices based on different countries. In the context of International Managers,
it is the responsibility of them to plan the global strategy of a company, so that it can run
successfully across the world as it was in its origin (Deresky, 2017). For instance, the
international structure of the company was an additional benefit for this strategy, which made
LCI successful in operating in German. The Global Strategy of LCI would affect the HRM
practices and policies, which the International Managers mainly handle in terms of hiring,
training and development, and pay structure. It is the responsibility of the International

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manager of the company to study the HRM policies of each country before setting up
business there because each country holds different policies from another.
a. People Resourcing
The process of recruiting and selecting employees in the company varies from one country to
another. Noe et al. (2017) stated that talent management plays a pivotal role in business
strategy because it manages one of the crucial assets of the company i.e. people. Therefore,
on launching a new strategy of Global Organization, the International HR Manager of LCI is
responsible to handle people resourcing practices while shifting on other countries. For
instance, the national HR manager at LCI (USA) holds the recruitment and selection process,
which is different from that of other countries; let us take example of Germany. The
recruitment and selection system in the USA was neither position based nor strongly career
based. However, the selection criteria were preferred experience and extensive interviews.
On launching the strategy of Global Organization, the company has planned to be present in
50 countries; thereby, the selection and recruitment process will be affected based on the
HRM policies in specific country. On taking example of Germany, it is found that the
recruitment and selection process depends much beyond the position and desired resume of
the candidates. Instead, it is focused on the personality, ambition, and motivation of the
candidate. From the report of Kröll et al. (2018), it is also found that while recruiting or
selecting a candidate on international grounds, the recruitment methods vary from the origin
country to that of the international country where it is planned to operate. Hence, in this
regards in Germany, the selection process is based on different sections of interview,
personality check and so on to see what the candidate can contribute to the organization for
longer-term.

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b. Training and development
Training and development is another important human resource practice. According to
Harzing et al. (2016), it is the responsibility of International HR managers to look at the
needs and requirements for training and developing the candidates. On launching the new
strategy of LCI i.e. the Global Organization, it is found that the responsibility between the
National HR managers of USA would be different from that of International Manager across
the 50 countries where the company operates. Dipboye (2017) asserted that HR value chain is
an important HRM model that believes its functions to divide into two parts such as HR
activities and HR outcomes. In this context of LCI and its new strategy implemented, the HR
activities might be same in all countries however, the style and process are different that
brings different HR outcomes. In the context of the USA, the training and development
process in LCI was based on the employee needs and requirements of particular post.
Training expenditure allocated to per employee in the USA is identified $724, for which the
statistics revealed that per year on an average, employees take 1-3 days of training because of
too expensive (Cascio and Boudreau, 2016). On the other hand, the process and expenditure
of training and development keep on changing from country to country.

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Kuchinke (2018) stated that the operation site of Germany was taken for example, where LCI
operates successfully. In Germany, unlike the USA, dual system of training and development
takes place that shows the adoption of the Global Organization strategy affects the HRM
practices on focusing more on integrated policies with increased focus on the international
HR Managers' role. In Germany, the International HR manager has to focus on strong
investment in vocational training to start the career. Youth-centric HR practices are followed
and therefore training provision decreases with employee age (Berg et al. 2017).
Furthermore, it is found that on launching the strategy of Global Organization, the training
and development of youth were seen popular in the USA, which changes on shifting to other
counties. For instance, in Germany, the International HR Manager of LCI would be more
focused to retain older workers as well as increasing training provision and flexible shifts.
Therefore, both People Resourcing and Training and Development practices are studied to be
affected by the planned Global Organization strategy of LCI. It is found that HRM practices
in relation to International HR manager are affected in the sense that the process, expenditure,
criteria have changed on shifting to a global market. According to Koleva and Stoyanova-
Warner (2018), the International Manager thus played a key role in terms of handling all the
changing HRM practices and policies in different countries. The International Manager
maintains a thorough contact with all the national HR managers in terms of dictating the key
needs and goals of the organization while practicing HRM activities (Detterbeck, 2016). As a
result, this helps LCI to operate in different countries properly and practice the HRM
activities to get the desired outcome on shifting from diversified strategy to integrated
strategy.

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Part C: Benefits and limitations of the standardization strategy for Leisure Choice
International (LCI) and its HRM
 Benefits of the standardization strategy
The new internal management concept of LCI i.e. launching of Global Organization strategy
shows that the company from operating only in the USA has aimed to operate globally across
the 50 countries. The implementation of this strategy has resulted to be beneficial in terms of
HRM practices of the company such as it has helped to standardize the HRM activities in the
international context. From the discussion of Brewster et al. (2017), it is understood that this
strategy is beneficial in the context of converting the current HR practices and policies more
globally integrated HRM. As a result, it is also observed that this has brought the best practice
of increased focus on the role and responsibilities of the International Manager.
Furthermore, according to Strandberg (2017), it is found that the strategy of Global
Organization is beneficial to rise strategic alliances between the countries where LCI operates.
Apart from this, the other beneficial factors identified include the development of international
HR function, increases licensing and contracting abilities between the countries easily. This
creates an immense opportunity for growth of flexible international firms alongside because the
International Manager has helped to create a positive bond between all the 50 countries (Cascio
and Boudreau, 2016). As a result, it is advantageous for the development of all HR activities
such as training and development, recruitment and selection, payments and others to match the
requirements of the native customers. This would ultimately benefit the parent organization i.e.
LCI.

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In addition to the benefits of standardization strategy for Leisure Choice International and its
HRM as well as change the strategy from diversified to the integrated manner, there are certain
limitations specifically in understanding it in the German context. On the off chance, an
association builds up a customer base or if the association serves a particular market,
organizing its techniques may mean it loses a segment of its past customers. Right when an
association wanders into new markets, especially in outside business segments,
institutionalization methodology may kill the firm. While it may be more affordable to execute
institutionalization system, it wanders into another market where people use HRM rehearses in
a noteworthy way, its institutionalization measures may make it slower to respond to financial
circumstances and end up costing cash (Atlasstaffing, 2019). Institutionalization may be
significant in specific locales of business, for instance, German market for this situation; be that
as it may, a couple of parts of a business should be tweaked by the customers' needs. Customer
organization, publicizing, flow, and thing evaluating must be driven by nearby monetary
circumstances in German to be effective. Institutionalization can get a business into a channel.
Rules, when realized, a little while later, it becomes the standard and may end up settled in the
corporate culture, making them hard to change when change is required. Regardless, financial
circumstances much of the time change, and associations that change quickly are best arranged
to misuse them. Standardization may in like manner cover ingenuity, particularly in thing plan
(Farndale and Brewster, 2019).

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The nature and quality of political structures vacillate from country to country. U.S. firms are
familiar with a reasonably consistent political system, and the equal is legitimate in an
expansive number of the other made countries in German. Fiscal factors affect the other three
factors (Higginbottom, 2016). Different countries have particular financial structures. Some
even still work with a modified variation of communism, which has failed. Social forces
address another noteworthy concern affecting worldwide HR the administrators. The lifestyle
of affiliations was inspected before in the substance, and clearly, national social orders
similarly exist. Culture is made out of the societal forces affecting the characteristics, feelings,
and exercises of a specific get-together of people. Chiang et al. (2017) stated that social
complexities totally exist between nations; in any case, imperative social differences exist
inside countries additionally. From the analysis of the various factors, it can be stated that
HRM practices are important in all aspect in both global and local contexts. The understanding
of the methods or practices employed by Leisure Choice International in Germany is required
and was successfully implemented in order to expand its business on a global perspective.
Therefore, adoption of an integrated strategy is more suitable and adaptive in nature than the
diversified. Moreover, on evaluation of the strategy, it can be seen that pros are more
satisfactory and weigh higher than cons resulting in adoption of it in this context.

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Conclusion
From the above study, it concludes that the launching of new strategy by LCI to operate in 50
countries apart from only in the USA has brought many benefits as well as limitations in the
HRM practices. The International Manager has taken the responsibility to practice the HR
activities that have shown that adopting Global Organization strategy has affected training and
development as well as people resourcing practicing. The example of Germany has been taken
to show how the responsibilities of national HR manager and International HR manager differ
along with differences in USA HRM practices with other countries. The strength of this
strategy identified in standardizing the HRM practices and focusing on a more integrated one.
However, the limitations brought by this strategy include loss of responsiveness and unique in
some business sectors,
Thus, from the study, it is learned that HRM practices keep on changing on shifting from
diversified strategy to integrated strategy. Furthermore, it is also learned that based on
different culture and social norms of different countries, the HRM practices and policies
change.

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