Report on Trends and Challenges of IHRM for Multinational Corporations

This report examines the trends and challenges of International Human Resource Management (IHRM) within multinational corporations (MNCs), using Woolworth as a case study. The report identifies three key challenges: health and safety, political and legal factors, and technological advancements. It analyzes the impact of these challenges on future HR practices, including talent management, performance management, recruitment, and compensation, considering cultural differences between Australia and the UK. The report emphasizes the importance of adapting HR policies to address these challenges, promoting a healthy and safe work environment, navigating diverse political and legal landscapes, and embracing technological innovations to enhance global competitiveness. The analysis includes critical evaluations and recommendations for effective IHRM strategies.

TRENDS/CHALLENGES OF
IHRM FOR MNC'S

EXECUTIVE SUMMARY
The present report is based on International HRM practices and their working that can
impact over working of enterprise. It derives as set of activities that aimed at managing human
resource at international level. Furthermore, in this report brief discussion about the Impact of
HRM challenges at international level and its effects on HR practices are needed to be
considered.

TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Identification of three challenges for international HRM and its impact on future HR
practices. ................................................................................................................................1
RECOMMENDATIONS.................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
IHRM can be defined as set of activities aimed at managing organisational human
resource at international level to achieve objectives and competitive advantage over competitors
at national and international level. It is an umbrella term for being inclusive of various HR
related aspects that involves Payroll and talent management process, when operating at a global
scale (Nezhad, Hull & Bentallah, 2018). It is set of distinct activities, processes, functions that
all are directed towards attracting, maintaining and developing in MNC both at domestic and
overseas level.
The present report is based on business activities of Woolworth which is an Australian
firm working in retail sector. Thus, present assignment will look upon various challenges that are
affecting HRM internationally. These trends will be as Technology, Health and safety act and
mobility. Furthermore, Impact of above challenges has to be shown on future HRM practice in
the enterprise. In addition to it, the difference between IHRM and HRM is quite unpredictable
and influenced by external factors, requiring additional functions, continue changes in
perspectives, more intervention in employees’ personal lives etc (Potgieter & Doubell, 2018).
Thus, international human resource management plays a crucial role with regard to provide
solution to global business issues.
MAIN BODY
Identification of three challenges for international HRM and its impact on future HR practices.
International Human resource management is one of the process that work to procure and
allocate an effective utilisation of human resources of an organisation at an internal level. There
exists following challenges in the field of Technology, health and safety and Mobility that are
affecting international HRM practices Potgieter & Doubell, 2018). It is the responsibility of HR
manager in an enterprise to integrate effective HR related policies and practices that allows a
significant amount of flexibility, when operating at different nations and at a global level. Thus,
it is concerned with identifying and understanding how MNC’s manages their geographical
dispersed work force in terms to leverage their HR resource to obtain local as well global
competitive advantage. It can be defined in following manner as are-
1

1. Health and safety-
It is the responsibility of HR to frame rules and procedures for health and safety for
employees working in enterprise. To gain competitive advantages it is essential to enforce
effective working environments at international level (Feitosa Ribeiro, 2018). HR manager need
to work on this issue to prevent firm’s activities from being obstructed. It is essential to have
compete information about the staff's health. Keeping health related information of employee
helps the firm in knowing kind of activities which are safe for employees to participate in. It is
also assistive to avoid risks for legal complications (Yadav, 2018).
Health and safety at international context-
At global level, increased level of funding is required for the international organisations
that involves support from world health organisation as well as international labour organisation.
It is basically to face a rising demand of effective policies, guidance and training. As per the
view of Cranston, (2018) Thus, HR should take Effective steps to regulate ban and control over
use of hazardous products that leads harmful impact on health of workers . As per the view of
states Collings & Isichei, (2018) that it the responsibility of HR of Woolworth to promote a
harmonized global market where health of workers is guaranteed in worldwide perspective.
Impact of HR practice in Woolworths-
The impact of challenges can be seen in terms of HR practices in following manner as
are-
1. Talent management and retention- With help of health and safety legislation it is
possible to attract talent management and to have long term sustainability of employees
in enterprise (Michael & Francis, 2018). Thus, investment in health and safety programs
for disability management can be done to build a proactive wellness program with
preventive measures and safety programs as an aid for a timely achievement of firm’s
overall goals and objectives. It is part of company’s overall success strategy as it is an
effective tool for talent retention (Malik, 2018).
2. Performance management- This kind of legislation help to build positive working
environment in the enterprise. Thus, workplace health, safety culture will be beneficial to
have positive impact on workforce. It is effective tool in order to develop a positive
reporting process (Ayentimi Burgess & Dayaram, 2018). It is procedures that involves
identifying, assessing, controlling risk to workers in all workplace operations. In addition
2

to it, this is one of beneficial aspect in terms to maintaining effective environment at
workplace.
Culture similarities and difference and evaluating the impact of HR practices-
The Woolworth is also functioning in UK as this firm has online approach that is owned by
Shop Direct Group. There are some cultural differences as it relates with above challenges which
are-
Talent management- Australia fosters culture of respect, collaboration and performance in
which employees can able to develop themselves over period of time (Oppong, 2018). In UK,
HR professionals works as to attract, identify, develop, engage and retain individuals and they
create initiatives to manage talent strategically so that it is possible to have high performance by
encourage learning in entity (Patel & 2018). Thus, candidates of any country need to works as
per the laws and legislation of UK.
Performance management- In UK and Australia there is slight difference in pay and
benefits to customers and that leads to have impact on performance management of Woolworth..
The Australians works far more as work to live, UK candidates are more driven and frantic.
Own Critical evaluation about the trends and impact on HR-
As per my viewpoint, Health and safety plays a major role in maintaining talents in
individuals by keeping them active and committed towards the achievement of organisational
goals (Ayentimi, Burgess & Brown, 2018). This in turn creates a base for effective performance
management as a systematic approach that leads to minimise the risk of injury and illness. Thus,
healthy employees are productive and they can help to have positive impact on firm’s bottom
line.
2. Political and legal- The political trends can impact any level of society whether individuals,
families, enterprise or small business etc. It can affect the working of enterprise in a large
manner. Thus, HR is responsible to frame polices so it can control the impact of political trends.
Political and legal at international context-
The organisation deals with several political as well as legal system that are needed to be
stable. Thus, legal authorities face coups, dictatorial rules, corruption are badly impacting over
the business environment . Furthermore, Mockaitis, Zander & De Cieri, (2018) states that
3

Variations in political and lawful system around the world can become a hurdle to effective
global human resource manager.
Impact of HR practices in Woolworth-
1. Recruitment and selection- The Human resources operating across geographical and
culture boundaries can impact the hiring policies of Woolworth. Thus, quoted firm need
to develop their HR practices to adapt new labour laws and tax liabilities. To operate
business in UK, they will require to pay value added tax. Hiring employees who are not
US citizen requires HR to apply for visas and economic data to federal averment (Rowley
& Warner, 2018). It will lead to have impact on HR practices of Woolworth as they are
operating their business functions in UK and the Human Resource of entity need to frame
polices as per country they are undertaking business functions. Australian candidates
wants to apply for job in United Kingdom then they will also be hired as per recruitment
and selection norms of UK.
2. Compensation- Australia offers an incredible standard of life in its diverse and
multicultural cities. The Australians provides more lucrative salary with national average
of UK. As this leads to have impact on HR practices of same firm in two different
locations. The both countries have differed laws and legislations about norms of salary
and other pay benefits. Thus, HR practices of Woolworth will get affected as they need to
frame salary, compensation and other benefits as per laws and legislations of UK
government’s policy. It will be applicable to all candidates of UK as well any other
country. This is backbone of any HR strategy but international HR benefits relates with
focussing on work life balance of employees. Thus, many international companies have
already executed programs as paternity leave, flexible working time and extended
holidays etc. The International HR adopts Work life balance as it is idea to provide
employees with program and initiatives that improve both personal and professional life
(Chung, 2018).
Culture similarities and difference and evaluating the impact of HR practices-
 Free-spirited- Australian Citizens are free spirits and love the great outdoors, displaying
high risk adventure profile. It is impossible to work in UK for Australians as there is
reserved environment developed from hierarchy history of past and present citizen of
British Isles. This kind of issues affects the working of enterprise and HRM practices as
4

there is culture diversity between individuals of Australia and UK. At times when people
comes from differed country and society and works together in same firm there must be
presence of common, consistent working culture and HR must create rules as to guide the
operations of enterprise. Pragmatic- In Australia, a fairly pragmatic outlook can be seen due to their relaxed
approach where they are also not averse to take few risks. It leads to the acceptance of
new ideas and willingness to try anything different things as they are more relaxed
citizens as compared to UK. Thus, UK’s citizens may find difficulties to adapt new ideas,
unfamiliar social practice, innovative ways of communicating practice. It will affect the
working of HR as they need to provide training to workers and that relates to culture
awareness to build positive environment (Michael, & Francis, 2018). It is the
responsibility of HR to develop their practices so that each thing can be undertaken
effectively and efficiently. It helps to enhance cohesiveness among employees .
Own Critical evaluation about trends and impact on HR-
According to my perception, political and legal factors can impact on overall working of
the enterprise at international level. As the laws and legislations of all countries are differed to
each other (Horwitz, 2017). The quoted firm is operating its functions in UK, candidates of any
country will be imposed by policies governing in United Kingdom. Thus, Practices of HR will
get affected as they need to increase culture awareness among employees. With help of it, I have
analysed that HRM need to frame the policies that helps to maintain Recruitment and selection,
training and various other factors.
3. Technological-
Technological trends refer to being mindful of the technology that is recently becoming
popular and is readily accepted in market or industry (Kumar and Routroy, 2017). Ideal
technology trend awareness skills refer person's ability to either corresponds to the adoption of
wide technology.
Technology at international context
Innovative and effective technical equipment’s are impacting the immigrants and their
work practices. The employees come from differed background and there are different styles of
working. To cope up with it, international HRM should work as per providing training to
5

candidates. Technology leads to bring changes and modifications in modern equipment’s so that
process of firm can get improvised. According to the view of Oppong, (2018) states that HR
professionals have to organise training and development programmes for immigrants to make
them familiar with the new technology and culture of company.
Impact of HR practice in Woolworths as per technology-
 Leadership development- The Woolworth company is facing challenges with being
expected to provide the essential structures, processes tools, developing the future leader
for the organisation and point of view to make the best selection (International HRM
Considerations, 2018). Training and development- International HRM decide to employ new international
technologies then they need introduce their employees with the new technology like how
it works and operates by implementing training and development programmes. They
need to discuss skills required for operating new technology. The training and
development will help to develop potential among individuals and it helps to foster work
in future and current time (Australia & UK Cultural Differences, 2018. ). The HR is
responsible to provide effective training facilities to their local and non-local workers in
terms of culture awareness. It will lead to have great impact on working of the enterprise.
General similarities and differences when Woolworth operating internationally
Australians are more open to communication in comparison with UK, they are politer and
more open while interacting with others. Where as in the UK people are usually restrained when
getting into conversation with any person. In respect to individualistic culture the people of
Australia and UK are considered similar, individuals give more importance to their self-image.
Own Critical evaluation about trends and impact on HR-
I would recommend the HR professionals to implement training and development
program for employees in order to deal with technological changes. Woolworths needs to
develop an effective understanding of social and cultural codes and unwritten rules and norms
for immigrants.
RECOMMENDATIONS
1. HR manager need to frame effective policies for implementing health and safety at
workplace. They should work as to bring reduction in use of hazardous process as it
creates harmful effects on health of employees.
6

2. The political situation of both the countries are differed to each other as the quoted firm
also operates its function in UK, If any Australian is employed in UK than laws and
legislation will be imposed of United kingdom. For this, International HR should frame
policies that to create effective political conditions in workforce.
3. It is responsibility of international HRM to provide training and development facilities to
employees who are not familiar with innovative machineries.
CONCLUSION
From above report it can be summarized that Human resource at international level helps
to achieve organisational objectives and competitive advantages. Thus, report is based on
activities of Woolworth. Furthermore, following things has been covered as challenges for
international HRM and its impact of trends on HRM practice.
7

REFERENCES
Book and Journals:
Rees, G., & Smith, P. (Eds.). (2017). Strategic human resource management: An international
perspective. Sage.
Horwitz, F. (2017). International HRM in South African multinational companies. Journal of
International Management. 23(2). 208-222.
Michael, M., & Francis, R. (2018). A Study on International Human Resources Management
Practices (IHRM).
Chung, C. (2018). Making sense of global integration and local responsiveness in international
HRM research. International Journal of Multinational Corporation Strategy. 2(2). 153-
175.
Rowley, C., Wei, J. Q., & Warner, M. (2018). Approaches to. International Human Resource
Management. 119.
Conrad, H., & Meyer-Ohle, H. (2017). Overcoming the ethnocentric firm?–foreign fresh
university graduate employment in Japan as a new international human resource
development method. The International Journal of Human Resource Management.
Patel, P., , & (2018). The transfer of HRM practices from emerging Indian IT MNEs to their
subsidiaries in Australia: the MNE diamond model. Journal of Business Research.
Ayentimi, D. T., Burgess, J., & Brown, K. (2018). HRM development in post-colonial societies:
The challenges of advancing HRM practices in Ghana. International Journal of Cross
Cultural Management.
Oppong, N. Y. (2018). Human resource management transfer challenges within multinational
firms: From tension to best-fit. Management Research Review.
Ayentimi, D. T., Burgess, J., & Dayaram, K. (2018). Does the historical and institutional re-
construction of Ghana support the transfer of HRM practices?. Journal of Management
History.
Malik, A. (2018). HRM and ER: A Strategic Perspective. In Strategic Human Resource
Management and Employment Relations. Springer, Singapore.
resource management. SAGE Publications Limited.
8

Michael, M., & Francis, R. (2018). A Study on International Human Resources Management
Practices (IHRM).
Cranston, S. (2018). Calculating the migration industries: knowing the successful expatriate in
the Global Mobility Industry. Journal of Ethnic and Migration Studies. 44(4). 626-643.
Collings, D. G., & Isichei, M. (2018). The shifting boundaries of global staffing: integrating
global talent management, alternative forms of international assignments and non-
employees into the discussion. The International Journal of Human Resource
Management. 29(1). 165-187.
Yadav, R. Challenge of International Human Resource Management.
Feitosa Ribeiro, A. C. (2018). Managing diversity and the opportunities for candidate dependent
on work visas in Ireland(Doctoral dissertation, Dublin Business School).
Potgieter, A., & Doubell, M. (2018, April). The Impact of a New Generation of Employees on
Corporate Reputation in South Africa as an Emerging Market. In The 2018 Annual
Conference of the Emerging Markets Conference Board. Wits Business School.
Nezhad, H. R. M., Hull, R., & Bentallah, B. (2018, January). Introduction to the 1st International
Workshop on Cognitive Business Process Management (CBPM’17). In Business
Process Management Workshops: BPM 2017 International Workshops, Barcelona,
Spain, September 10-11, 2017, Revised Papers. Springer.
Oppong, N. Y. (2018). Human resource management transfer challenges within multinational
firms: From tension to best-fit. Management Research Review.
Mockaitis, A. I., Zander, L., & De Cieri, H. (2018). The benefits of global teams for international
organizations: HR implications.
Online:
14.3 International HRM Considerations. 2018. [Online]. Available through:
<http://open.lib.umn.edu/humanresourcemanagement/chapter/14-3-international-hrm-
considerations/>.
Australia & UK Cultural Differences. 2018. [Online]. Available through:
<https://www.overseaspackers.com.au/australia-uk-cultural-differences/>.
9