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Domestic and International Human resource management


Q. What are the main similarities and differences between domestic HRM and international HRM?


1. What are the main similarities and differences between domestic HRM and international HRM? 

Human resource management emphasizes the core business strategies to encourage the employees and to maintain the manpower for bringing out their utmost potentiality in the organisation. 

There are some similarities between domestic and international HRM which are mentioned below- 

a) Recruitment, compensation, appraisal, performance, training and development these are the main functions which are both domestic and international HRM has been done to maintain the manpower in the business.

b) Some factors of the environmental forces such as cultural, legal, political, social, economical can influence the HRM both domestically and globally.

c) The main look out of HRM both in domestic and global organisations are to achieve the organisation’s demand through increase the effectiveness of the employees and encourage them to give their best in terms of productivity.

The main differences between domestic and international HRM are as follows-

 a) International HRM differs from domestic HRM in a big aspect. Since the IHRM deals with other countries in terms of globalisation hence IHRM gets affected by international policies.

b)  International Human Resource Management (IHRM) works for a big exposure which differs it from domestic HRM. IHRM manages three types of employee base i.e. employees of the host country, employees of parent country and employees of the third country. It indicates that the responsibilities of IHRM are huge in compare to domestic HRM.

c) IHRM needs to provide proper language, cultural, social training to their employees who are sent to another country for business purposes. On the other hand, HRM does not need to provide this kind of functions (Edwards, Sánchez-Mangas, Jalette, Lavelle & Minbaeva, 2016). 

2. Compare cross culture management studies and list their advantages and disadvantages

There are many opinions about the cross-cultural management studies in order to compare the advantages and disadvantages of it. Below table is illustrated the advantages and disadvantages of cross cultural management.

Advantages   Disadvantages
Cross   culture management studies help the employees to know each other. It also   helps to create a bridge between different cultures, languages. Many   multinational companies create multicultural teams to enhance the scope of   learning of all the employees.The   disadvantage of the cross cultural management is the lack of cultural   sensitivity within the workplace.
The   cross cultural management studies help the organisations to create structure   of rules and regulation and apply these rules to the employees. It increases   the level of adjustment and understanding to avoid the cross cultural   differences. Discrimination   is also a big issue regarding cross cultural management disadvantage. It decreases   the willpower of employees and also generates diversification among the   attitude and behaves of the employees.
It   is stated that all the employees are required to know their team members who   are belong to other countries to cut the communication gap and gather   information to enhance the overall productivity.
Another   disadvantage of cross cultural management is, it increases the cost of   training. It is required to provide seminars, educational events to cut the   diversity in the workplace.

According   to Thomas & Peterson, (2017) in every cross cultural management sector,   conflicts are required to investigate. Through this operational activity an   organisation can easily manage all the conflicts. It also helps the manager   to understand all cultural perspectives and decrease the effect of conflicts   through creating the cultural bridge. It   is good to compete with the team members in the workplace in a healthy way.   Cross cultural management enhances the competition which pays impact to   generate unpleasant activities such as data breaching.

3. Should multinational be concerned expatriate failure? If so, why?

Multinational companies are required to be concerned about expatriate failure because it creates a high amount of cost against the inability of work. The increase in failure rates of the company expatriate by the employees who are being sent for foreign assignments increase the total cost of the company. Delay of submission of the assignments, inefficiency in the project or lack of concentration can create expatriate failure for business extension in the global platform. Therefore to mitigate this problem the company is required to take some personality tests, questionnaires, educational survey to make assure that the employees are appropriate to send for foreign assignments in abroad. It is necessary for an organisation to spend lots of money on the efficient employees for the training and development process. Therefore it converts the employee’s productivity into success of the organisations. According to () the expatriate failure has risen by 50% which associated with the cost of the company. The expatriate failures are not only create an effect on financial area, however it also pay an impact on the social area of the company. It indicates the failure of an organisation to control the human resource management in global platform. The expatriate failure of an assignment indicates the under performances of the employee as well as it illustrates the bad return of an expatriate (Kraimer, Bolino & Mead, 2016). 

4. Discuss the major factors associated with appraisal of expatriate managerial       performances

The major factors which are associated with the appraisal of expatriate managerial performances are described below.

Expatriate is manager of a company who is being to send for the assignment purposes in the host countries in abroad. The clients are one of the key factors for evaluating the performance of an expatriate. Both complaint and compliment of the clients are very essential and helps to gather all the information about the activity of the expatriate.

The selected expatriate managers are required to have enough knowledge about the cultural environment about the operation country. If the expatriate is unable to understand the overall conditions of the country then the expatriate are not able to enhance the productivity of the organisation.

An expatriate must able to understand the co-workers in foreign country in their own way. However to follow the way of own country can create unnecessary conflicts of miscommunication in the workplace.

 The company is required to place their managers and workers in different environment for certain time frame to achieve the adoptability of diversification of their behavioural changes (Bader, Berg, & Holtbrügge, 2015).

The MNEs are required to adopt different variables in the business development strategy to prepare the managers work in the international environments.  

5. Summarize the key challenges faced in training expatriate managers

Nowadays training and development is more vital for every organisation. It is required to enhance the business performance in order to achieve the business goals for globalisation. For this the role of a trainee manager is become more challenging. The challenges are summarized below.

Inconsistency in training: Many organisations spread their branches in different locations. For this the trainer of all branches are different which can create inconsistency in the process of training. This problem is raised because of teaching style, emphasizing power and level of knowledge of different trainees are different. For this the company is required to set some standardized curriculum for all the trainees to match the similarity of level of training (Bailey, Mankin, Kelliher & Garavan, 2018).

Workforce flexibility and mobility: The challenges in workforce regarding flexibility and mobility are increased. The reason behind this, the employees work in different shifts for these trainees are required to train the employees in flexible way and also check their adaptability of knowledge for encouraging the future progress.

Connection with global employees: In order to connect with global employees for purpose of business expansion training in different languages are given to generate the confidence level of the employees. 

Decreasing training cost: It is very important for the company to mitigate the cost of training. Classroom training is effective in its own way, however it takes a huge amount of spending including classroom charges, trainers transportation cost and other logistic cost. The company is required to provide the training with their own e-learning app to cut the extra cost. 

6. Why is it important to MNEs to understand the compensation practices of other countries? 

There are some policies , schemes, rules & regulations which are implacable to MNEs to understand the compensation practices of the other countries. Since the policies regarding rules and regulations are different in different countries it is very important to have the knowledge about different countries business practices and norms. Compensation practices including bonus plan, incentive structures, wages, and non-cash rewards are important for all the employees for knowledge purposes. All these compensations are needed to be consistent in global industries. The random changes of the practices of the company can decrease the potentiality of the employees and demotivate the willpower of their efforts. Another challenge of global industries are meeting the work deadline appropriately and control the process effectiveness so that there has a balance within the workforce in global industries. Compensation is required to run with a proper budget plan. Without any proper budget plan the workflows of companies are stimulated to decrease the allocations optimality. Manager are need to be aware about the rules and regulations of another country to manage market scenario and business strategies in order to enhance the productivity and profitability of the company’s overseas market (Tarique, Briscoe & Schuler, 2015).

7. What is your view of international initiatives to criminalise foreign bribery?

Criminalise foreign bribery is an issue which is required to be legitimate in order to set the business security and conforming the set of law and rules in international business segment. Many of the business organisations are merged with foreign country or many companies are worked for the foreign countries. It is not justified to do a business without knowing the laws and business norms. Foreign bribery has been signified as an awful criminal offence. Foreign industries are required to set the bunch of business policies and practices to mitigate the obligation of foreign bribery. It also enhance the initiatives to get attach with other country to increase the business orientations. Controlling the administrative function more effectively the international government are reinforced some business norms to channelise the functions actively (Hess, 2017). Corruption and the Multinational Corporation.. There are many intermediary bodies over there who are working to control the workforce to create an attachment between both domestic and foreign industries. It is noted that to cut the conflict within the workplaces which are located in different countries throughout the world and help to increase the collaboration the foreign government are imposed some authorised laws which are required to follow by all the parent countries and host countries. 

8. What are some of the typical challenges for HRM in internationalized SMEs?

There have some small industries in the market who want to be their business internalised. However there have some issues regarding proper human resource development training, fast mobility of the personnel, weak salary compensation structure which decrease the industry’s productivity. Therefore to make the changes and improvise the business structure these small companies are required to establish some set off strategies to encourage the internal operational activities strong. Human resource management of international SMEs face some typical challenges regarding face to face interaction with their applicant. The interviews are processed generally by social media such as video call. Through the video calling human resource tem are not be able to rectify all the personal behavioural traits of the applicant. Thus it creates problem to give the proper judgement about selecting the efficient candidates. Furthermore there is another problem for international SMEs to generate candidates; since the candidates are belonging to foreign country hence it is quite difficult to generate the candidates in a small time span. It is important to the human resource management to create a effective way to cope up with this challenges for business expansion internationally (Paul, Parthasarathy & Gupta, 2017).

9. Country of origin can strongly influence a firm’s approach to organisation structure. As MNEs from China and India internationalise, to what extent are they likely to differ from that observed for Japanese, European and US MNEs?

The MNEs from China and India internationalise but they differ from those in Japan, Europe and the US because their host governments are more supporting than that of the latter. The Chinese and Indian MNEs have an easier method of internationalisation because their governments are supportive by providing necessary information, issuance of travel permits and tax holidays.  Both Chinese and Indian firms have found it easier to internationalize in small niches which do not have competition from the US and European MNEs. As with China, there is a scarcity of data regarding Indian MNEs and their internationalisation. Indian MNEs have been found to internationalise faster and generally prefer high risk entry modes like acquisition (Zhu, Zhu & De Cieri, 2014). Chinese MNEs have been found to be rich in cash but poor in international management abilities. The preferred management approach of Chinese MNEs is the “light touch” integration which leaves the acquired companies under their existing management teams. An important requirement under this “light touch” approach is the smooth management of the company before its acquisition by the Chinese MNE. On the other hand, international HRM studies have shown that Japanese MNEs tend to use more parent country nationals (PCNs) than other MNEs of the world. Thus, it can be conclusively said that the work environment in Chinese and Indian MNEs is less professional as they are strongly influenced by the cultures of the country of origin. Contrarily, it can be stated that the work environment in European, Japanese and US MNEs is more professional when compared to their Chinese and Indian counterparts.

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