International HRM Trends and Challenges: A Wesfarmers Report

This report provides a detailed analysis of the trends and challenges in International Human Resource Management (IHRM) at Wesfarmers, a multinational company. It explores the impact of globalization, including the globalization of human capital and the need to address corporate and cultural differences. The report also examines demographic changes, such as an aging population, the rise of Generation Y, and the surge in female employment. Furthermore, it investigates the influence of technological advancements in the employment market, including better services for line managers, enhanced management through IT tools, and effective recruitment strategies. The report offers recommendations for overcoming these challenges, including effective cross-cultural management, short-term international assignments, training and development, a mobile and flexible workforce, stipulated timelines, expert advice, and leveraging technologies. The conclusion summarizes the key findings and their implications for Wesfarmers' IHRM practices.

RUNNING HEAD: WESFARMERS 1
Trends and challenges in IHRM of
Wesfarmers
Student Details:

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Executive Summary
MNCs are expanding their business across countries and HRM are facing challenges to
set uniform organization policies and culturally uniting the diverse populations in the formation
of one employee community. Furthermore, the role of HRM has evolved with the changes in
competitive market atmosphere which plays a strategic role in the achievement of any MNC.
There is an increase in competition globally and locally. Therefore, organization needs to
become resilient, adaptable, customer-focuses and agile to achieve the targets while expanding
business in foreign countries. Therefore, this report solely focuses on the new trends and
challenges faced by IHRM of Wesfarmers along with recommendations to overcome the
challenges faced by HR Managers and members.

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Contents
Introduction......................................................................................................................................4
Trends and challenges......................................................................................................................4
Globalization................................................................................................................................5
Globalization of human capital................................................................................................5
Corporate and cultural differences...........................................................................................5
Employment and Tax laws......................................................................................................6
Long-distance communication challenges...............................................................................6
Demographic changes..................................................................................................................6
Ageing Population...................................................................................................................7
Generation Y............................................................................................................................7
A Surge in female employment...............................................................................................7
Technological changes in the employment market.....................................................................8
Better services to line managers..............................................................................................8
Enhancing management...........................................................................................................8
Effective recruitment...............................................................................................................8
Data management and critical analysis....................................................................................9
Recommendations............................................................................................................................9
Effective cross-cultural management..........................................................................................9
Short-term international assignments..........................................................................................9
Training and Development........................................................................................................10
Mobile and Flexible workforce.................................................................................................10
Stipulated timelines...................................................................................................................10
Experts’ advice..........................................................................................................................10
Leveraging technologies............................................................................................................10
Conclusion.....................................................................................................................................11
Bibliography..................................................................................................................................12

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Introduction
Wesfarmers Limited is an Australia and New Zealand chemicals, trade, fertilisers,
manufacturing and safety produces, coal mining multi-national company. Headquarters of
Wesfarmers is in Perth, Western Australia with AU$65.98 billion of profit in economic year of
2016. Wesfarmers is the major Australian company in terms of revenue which now overtaking
MNCs like BHP Billiton and Woolworths. Wesfarmer has employee strength of approximately
220,000 (Wesfarmers, 2019). Additionally, the Board of Wesfarmers is robust advocate of
decent corporate governance. The Panel of Wesfarmers is dedicated in delivering a satisfaction
return to their shareholders and fulfillment of its corporate governance accountabilities and
responsibilities in the better interest of the organization and their shareholders. Wesfarmers
divisions are providing many job-specific and career developments of training opportunities
which covers technical knowledge, consumer service, leadership, teamwork and many more.
Furthermore, these programs are available for all employees. At a Wesfarmers level, the talent
team basically focuses on the capability and the potential of leadership team and general
managers who ensures the required capabilities, which are requires for the future to maintain the
model of leadership. Furthermore, Wesfarmers focus on standards of talent, which is developing
cross-divisional talent and help in individual development through highest and critical potential
leaders. Therefore, this report focuses on the Trends and challenges along with implications to
overcome the challenges and trends in Wesfarmers.
Trends and challenges
International HRM of Wesfarmers places highest focus on numerous responsibilities and
functions like orientation, relocation and conversion facilities to support employees to adapt a
new and dissimilar atmosphere outside the country. Additionally, in Wesfarmers selection of
employees needs careful evaluation of the personalities of the applied candidates (Hurn, 2014).
Development and training exceeds beyond knowledge and orienting training to comprise
sensitivity training and area experiences which enables the manager to comprehend the
understanding cultural differences in an improvised manner. The three chief trends and
encounters in IHRM of Wesfarmers are:

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 Globalization
 Demographic changes
 Technological changes in the employment market
Globalization
When an organization grows its process in other nations, the influence of globalization on
HRM and administration is important. Therefore, organizations like Wesfarmers are required to
deliberate a diverse variety of applied modifications to be capable in hiring, training, retaining
and supporting a workforce which is frequently spreading through numerous countries, which
sometimes have different cultural characteristics. Human Resource Department should adapt the
thinking and practices of new employees including cultural differences, technological
developments and foreign regulations (BS Reiche, 2016).
Globalization of human capital
It has been known that lot of workforce is required in retains. As an organization extends
in an overseas country, the influence of the globalization on HR methods extends to present
employees and also to new staffs. Therefore, the HR section needs an increment in the support
from the current employees as they transfer the people to foreign countries. Additionally,
assisting the employees with visa, work permit and housing are needed along with training in
issues related to culture and language acquisition. Further, new local based talent is required for
the better development. Wesfarmers capability to change in new markets solely depends on the
competence to fulfill needs and totally skilled labours. However, in few circumstances, local
employees might encounter the standards, but, in additional circumstances they might be looking
for more capable and trained employees for the transfer process in the foreign countries.
Therefore, in this situation, the inclination of employees for becoming mobile can be a main
issue for the efficiency (D Briscoe, 2012).
Corporate and cultural differences
Other important influence of globalization on the Wesfarmers HRM Department is the
requirement for considering the cultural differences. Since, the organization tends to have own
business values or methods of operations, however, there are cultural and societal alterations
among population as well. Social regulations within a civilization actually have emotional
impact the employees and the vision of workers, specifically, in context to spend time with the

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families and ideas regarding expectations of employment. Additionally, some cultures might also
have varied gender roles, specifically relating about the role of a female as a leader. A leader
who easily adapts the local culture might find better success between the workers (T Sekiguchi,
2016).
Employment and Tax laws
Global growth also affects varied taxes and labor legislations. In this context, HR
Department is required to prepare dealing with different tax rates, benefits necessities and
environmental guidelines. Furthermore, necessities might be in calculation to the conflict with
present business standards; therefore, it is requirement to uphold compliance with local
administrations. HR managers might of Wesfarmers become expert in handling issues which
only not relate to one industry but with ongoing subjects and administration standards with the
countries wherein the organization now functions (Y Baruch, 2013).
Long-distance communication challenges
In small organizations, the HR manager can easily ask the operative to stop by the HR
cabin for signing a form or discussing issues with salaries or handling a policy associated issues.
However, while managing employee over great reserves, like Wesfarmer’s HR department faces
great challenge in terms of communicating with the employee. Sometimes, they have to rely on
technologies like emails or conference calling, therefore, elimination of some direct human
elements of interaction. However, forms of HR management must be standardized throughout
the organization (MW Bhatti, 2016).
Demographic changes
Demographic changes already have a main influence on Wesfarmer HR departments
around the globe. As labor is becoming progressively assorted and this has led the organization
to make considered changes in such a manner wherein they can approach easy people
management. Additionally, it is not possible in a one-off shift. Furthermore, demographics
changes constantly and in some parts of the globe, the demographics are changing in a rapid
pace, which presents high challenges for HR department as they have to complete hiring,
training, managing and retaining an entire new generation of employees (A Al Ariss, 2016). As
per the new report by Economic Intelligence Unit (EIU) and SHRM Foundation title forming the
future of HR, there are numerous emerge and consolidated demographic trends which are

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probable in transforming the profile of the average employees over the upcoming 20 years.
Additionally, there might be no such term as average employee and organizations will become so
huge in terms of diversity like gender, age and culture are the approaches used by the HR
Department which can become completely redundant over some time.
Below mentioned are some trends which are identified in terms of demographic change:
Ageing Population
Ageing populations are apparent throughout the developed globe as persons live longer,
healthy live, and they will have great implications for HR organizations in the upcoming future.
Additionally, some European government have replied in the increasing longevity by raisin
pension age in the view of keeping employees in work for long and thereby reducing the strain or
state pension mechanisms (E Stavrou-Costea, 2016). This simply means that there is great
concentration for old people within the employees of the future, which needs a real re-thinking
about Wesfarmers HR department managing skills from recruiting to training the occupational
fitness and benefits the employees.
Generation Y
Meanwhile some population are ageing and others have moved in the opposite direction
to develop the countries in particularly interacting with the challenges which comes with
increased youth labour force. Young employees brings own HR associated encounters.
Generation Y have high opportunities from their employers, which focuses more on the instant
upcoming than the long term and are intense in striking an optimistic work life balance.
Attraction and retention of these young employees, often restless employees is a major challenge
for Wesfarmers HR department (DL Stone, 2015). Therefore, companies are required in
providing the opportunities to train and progress that millennial craving otherwise staff turnover
will soar.
A Surge in female employment
Report shows that more female employees are taking entry in the economic mainstream
which has resulted a boom in women employment. The boom has basically occurred in
developing countries wherein female involvement in studies is the rise and equity among the
genders has begun to emerge. Consecutively, Wesfarmers HR Departments have to mainly deal

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with male staff which requires the modification in existing practices, rules and programmes to
cater for females and creating a parity and peace among the female and male staff members (S
Shortland, 2011). With numerous women’s who have juggle with careers, children and other
responsibilities, they might have to select part time or flexible shifts which might have a effects
on business operations.
Technological changes in the employment market
Wesfarmers HRM comprises of activities like employment, teaching, development and
recompensing employees in the organization. HRM should aim in attaining affordability in area
of HR by delivering continuous education and training drivers for the professional and personal
growth of the staff members of the association. Furthermore, development in technology is a
significant activity to innovate the procedures within the organization which may comprise
acquired skills and knowledge (C Brewster, 2016). IT has great impact on companies which
exists in a dynamic environment. Therefore, information and communication technology makes
the below mentioned major impacts on HRM:
Better services to line managers
Both managers and HR attention is the achievement of the organization. The HR
department of Wesfarmers mainly functions to upkeep the employee requirements of the
company. Strategic planning among HR and line managers is significant to review projections
which concern the future organizational demands for the determinations to train current workers
and preparing the employees for promotion or recruiting people with great skills to supplement
the knowledge of existing worker (D Minbaeva, 2013). Therefore, developing and training the
line managers in IT tools will make the directors for numerous management activities.
Enhancing management
HR IT tools complement organization and improve effectiveness and competence which
leads to the achievement of the business. Like, development of an HR IT tools with global
operational capacity. Furthermore, organizations around the globe are focusing in the
improvement of organizational performance, eliminating the size and count of the organization.
Managers in the organization measures performance, through comparison against benchmark (M
Pudelko, 2015). In this context, the organizational management should ensure the improvement
of department on the basis of process, controls and targets for the better achievement of

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company’s competitive difference and this will be achieved by customizing HR IT tools of
Wesfarmers conferring to the norms of the association.
Effective recruitment
Administrations realize effective recruitment done through without the usage of IT.
Nowadays, administrations take the use of employment portals for searching best candidates.
This procedure has been made operative with the usage of internet and numerous persons come
to know regarding the suggestion which helps to the increase the possibility of employment
effective candidates (L Thoo, 2013). Employers can fill all the require information regarding the
job, career and personal growth of each candidate on online portals. The HR IT tools of
Wesfarmers not only assist in hiring the best possible but also maintains it.
Data management and critical analysis
Data organization has become easy for when IT tools are used and paper free as well.
Numerous of the repetitious work is not guide these days. This has increased the effectiveness of
the work and efficiency of it. Administrative presentation leads to the time success of the
organization whether in a steady or an unbalanced atmosphere. Performance data of staff
members can be disapprovingly analyzed by the help of HR IT apparatuses of Wesfarmers and
they are easily available (V Vaiman, 2012). Like, companies have recently developed a tool
which is paperless and pings the manager for the approval of passport. Therefore, this tool is
simple and helpful for the HR department.
Recommendations
As per the above points, human resource of Wesfarmers faces numerous challenges while
deciding the appropriate staffing policy, therefore, the below mentioned solution will assistant in
solving the issues related with international employment (Chambers, 2013).
Effective cross-cultural management
Miscommunication leads to differences in culture among the communicators. Therefore,
cross-cultural organization helps to solve the cross-cultural conflicts amongst the employers and
workers. MNC like Wesfarmers are adopting various strategies to resolve the conflict of

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emotions, behavior, race and culture. Therefore, such approaches comprise the transfer and
dissemination of skills and bicultural knowledge (GK Stahl, 2012).
Short-term international assignments
Short term assignments helps as the most effective form of non-standard activities. These
assignments comprises of a short term transfer to the employee to a foreign country. These
assignments helps to assist to resolve the challenges related with talent shortage in the foreign
country and managerial growth. These assignments also come with more advantages which
comprises of augmented effectiveness, simplicity and flexibility (Collings, 2014).
Training and Development
IHRM of Wesfarmers faces various challenges during their efforts in creating and
developing a high caliber staff. Therefore, a significant step during training and developing is
that HR manager should not only focus consideration on quality teaching but also ensures to
make the teaching engaging and effective (M Festing, 2013).
Mobile and Flexible workforce
Nowadays, the organizations have a lot of part time workers, work from home, video
conferences and field works. Therefore, HR managers of Wesfarmers face challenges to train the
employees. In this context, organizations should develop a mobile and flexible staff for better
outcomes (H Conrad, 2019).
Stipulated timelines
Because of the dynamic nature of the organizations, there is high opportunity in
achieving a competitive benefit. Therefore, HR managers of Wesfarmers should try to complete
the training in the deadlines to achieve the benefit of competitiveness among the staff members
(H Wang, 2016).
Experts’ advice
There is a high training cost which couples with inconsistent training. Therefore, the HR
managers should engage the trainers to promote effectiveness in utilizing the available resources.
Development of e-learning portals can serve as effective approach to create better environment
in offshores (JSP Story, 2014).

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Leveraging technologies
Providing the flexible training courses especially to part time workers will be effective
through monitoring the progress of employee.

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Conclusion
It is clear that challenges and changes in IHRM of requires new methods of thinking by
HR Department worldwide, which requires to update their practices to meet the challenges which
will come in future. Furthermore, there might be new and unique issues which will arise and will
demand entire new approaches. Therefore, this report highlighted the trends and encounters in
IHRM of Wesfarmers Australia. Trends and challenges included three major challenges like
globalization, demographic changes and technological changes. Furthermore, the report also
highlights the recommendations and implications to overcome the challenges in IHRM of
Wesfarmers. Recommendations like leveraging technologies, advice, flexible workforces and
effective cross-cultural management are highlighted.