International Human Resource Management system

Introduction

Human resource management is the strategic approach and effective management of the multinational corporate firms to retain skilled workforce for the business so that it is easy for the organisations to perform better and gain high market share across their international markets (Noe et al., 2017). According to Tung (2016), through human resource management process, it is possible for the organisations including domestic and international firms can maintain their competitive advantage as well as maximise employees performic through encouragement and motivation. In the recent era of globalisation and marketisation, it is necessary to develop international human resource management strategic planning mainly for the transnational organisations who operate their business operational activities across the international borders (Wright, 2018). It is difficult for the multinational corporate firms to manage the issue of cultural diversity, differences in languages, diversity on values and beliefs for which the managers and the leaders cannot develop effective team. The aim of the study is to develop and analyse the international human resource management strategic planning in the organisations which is a multinational firm operating across the international borders.

It is the responsibility of the firms to develop effective strategic planning for facilitating international mobility as well as managing international assignees across the global markets. The organisation is also responsible for managing the international human resources through develop proper strategy so that it is possible for the company to manage the employees and their families in both the host and international country for enhancing the organisational performnace as a whole. In this regard, the organisations focus on managing human resources by satisfying the employees and maximising their values as the staff members are the major stakeholders of the firm in achieving success and gaining competitive advantage across the globe by managing the global mobility policies. The organisations develop effective strategic planning for managing their employees in the developed nation the UK as well as the emerging market China, so that they can manage international human resources strategically by handling cultural diversity, differences in languages and skill.

Factors influencing global mobility policies to facilitate international mobility

According to Khilji, Tarique, and Schuler (2015), international human resource management is a set of activities for managing organisational human resources at international level so that it is possible for the firms to achieve the organisational objectives and gain competitive advantage over the competitors at national and international level. The international human resource management is necessary to reallocate the employees in host and international emerging nations so that the staff and employees can handle the organisational operational activities at different locations of the firm across the globe. The factors influencing the global mobility of the human resources are such as recruitment and selection of the right participants in the firm, training and development at the workplace, performnace appraisal and dismissal at international level, skill management, expatriate management through which it is possible for the transnational organisations to ensure staffing and management of the human resources at the workplace and retain them for long run (Cascio, 2015). The factors of non-monetary rewards are important for reallocating the staff members and in this regard, the leader and managers of the organisations focus on managing health and safety of the employees which is necessary for the employees who can feel safe and secured at the workplace. For reallocating the staff in the host country and emerging market, it is essential for the human resource managers to ensure the employees that there is adequate safety polices and Health and Safety Act at workplace where they can work safely. Moreover, as opined by Al Ariss, and Sidani (2016), managing transparency and accountability is another policy for international mobility, where the managers need to treat all the employees fairly and give them equal opportunities for working better and firm an effective group for future success.

In addition to these, the non-monetary rewards such as promotion, recognition of success and respect at the workplace and sense of achievements at the workplace are also important factors through which the employees can be reallocated in international countries appropriately (Bratton, and Gold, 2017). Additionally, arranging training and development for the employees is another success factor for enhancing global mobility of the workforce where the staff members can improve their technical skill and gather more knowledge about the working tactics in the organisational stores across the international borders (DeCenzo et al., 2016). Moreover, the cultural training is another factors though which the employees can understand the local culture, perspective of local population and market trend as well as they can understand values, beliefs and understanding of the other colleagues at the workplace which in turn helps to manage the cultural diversity and use common language for positive interaction though their languages are different as per the nationality of the employees (Reiche et al., 2016). On the other hand, the sense of professional development is another factor through which the organisations can increase the interest of the workforce and give them a chance for personal and professional development through training and development program. These are the major non-monetary factors that are influencing the strategy of global mobility of the employees where the transnational organisations can manage their human resources across the world (Brewster et al., 2016).

As stated by Baruch, Altman, and Tung (2016), there are other monetary factors which also contributes in enhancing the practice of global mobility which are benefits and compensations, performance related pay and yearly bonus through which the employees can get financial assistance from the organisations. Through providing adequate salary by maintaining the law of Minimum Wage Act is important to motivate the employees to accept their transfer to a host country and emerging market like China, where they can fulfil their basic and psychological needs (Bratton, and Gold, 2017). Proper compensations to work abroad as well as yearly bonus and performnace related pay are effective to manage the employees as well as their families efficiently. Moreover, as stated by Baruch, Altman, and Tung (2016), there are some multinational firms who arrange accommodation for the employees and their families at subsidised rate which helps the employee to bear the cost of living and manage their families successfully. this is also another influencing factor to manage the assignees (Brewster, Chung, and Sparrow, 2016). In addition to these, the organisations provide health insurance to the staff at international countries so that they feel valued and safe to work with the firm. Hereby, housing agreements, remuneration changes, health care and assistance of their children at boarding school in the host country and emerging market economies are influencing factors that will help the multinational corporate firms to manage their employees at different international locations and retain them for run (Schuler, and Jackson, 2008). In this regard, as opined by McNulty, and De Cieri (2016), developing employee’s relationship by enhancing communication and cooperation is also another influencing factor to manage the international mobility of labours where the transfer of skill and abilities are effective for the expatriates to improve their knowledge and work efficiently to enhance the performnace of the firm as a whole. Managing the workforce, cultural diversity and improving engagement with all the employees are effective for influencing global mobility and apart from that, the factors such as involvement in employee’s personal lives, providing harmony and encouraging the staff as well as working flexibility and choosing of working hours are also influencing the staff to work internationally and contribute in the organisational success (Bailey et al., 2018).

Strategies and practices of transnational organisations

The multinational corporate firms are efficient in managing international human resource management, where the firm is operating across the international borders and the company focuses on expanding their business across the developed nation the UK and the emerging market China through which they can gain highly competitive advantage over other competitive brand operating in the market. In this context, the companies focus on managing the staff for global mobility and utilising the influencing factors for managing the employees across the international stores. In this regard, As opined by Bailey et al. (2018), the companies aim at servant leadership to manage the international human resource, where empathy towards the staff, listening to the employees and commitment to the people at the workforce are helpful for the leader and managers at the firms to manage the employees and build trust and loyalty among the workforce. This is effective for building strong corporate relationship with the employees and manage the expatriates across international borders. As opined by McNulty, and De Cieri (2016), respecting the individuals and cooperating with all the employees further influence the staff for global mobility, where the leader and managers of the firm are efficient to manage the employees and their families by respecting and fulling the commitment towards them. The training and development are another important factor, where the company tries to improve their skill and abilities as well as provide them a chance for personal and professional development which in turn encourage the staff to work across international stores of the company. The organisations provide training opportunities as well as encourage the employees to participate in Lifelong learning program for their professional development. Training and development program further enhance cooperation and improve communication among the staff where they can build a strong team for successful teamwork at the workplace. According to Bratton and Gold (2017), the leader and managers also arrange group discussion session and invite the expatriates in the general meeting so that they can share their feedback and proper empowerment of the employees at the workplace further influences the assignees and enhance global mobility across the international stores of the businesses in Both the UK and China.

According to Brewster et al. (2016), Health and wellbeing benefit of the organisations is another strategic planning to manage the international human resources where Consumer Directed Health Plans, health Reimbursement Accounts (HRA) Plans and Health Savings Account (HAS) are effective contributor of the leader of the multinational corporate firms in managing health and safety of the expatriates worldwide. In addition to these, Accidental Death & Dismemberment Insurance (AD&D) as well as short and long term disability insurance, business travel accident insurance and critical illness insurance are the strategic planning of the businesses to manage the workforce and provide them safety and security for long run which in turn improves trust and loyalty among the employees, where the company is successful in managing their commitment towards their employees as well as their families. On the other hand, as stated by McNulty, and De Cieri (2016), financial benefits is another contributing factors for managing the assignees and under this program, the activities such as Stock Purchase Plan, discount on the purchase from the companies for the employees and their families as well as appropriate housing agreement across the international borders further influence the employees to accept the opportunity of global mobility and manage their families well by fulfilling their basic needs as the company is proficient in maximising the values of the employees as well as their families by providing food, lodging and health services to them

In order to manage the cultural differences in the workplace in both the host country the UK and the emerging country China, it is necessary to provide cultural training to the staff members mainly to the expatriates so that they can handle the cultural differences and diversity in language, values and beliefs. Hereby, the cultural training and induction process at the firms are effective for the employees to understand the organisational culture and acknowledge the values and beliefs of domestic employees which in turn helps in working with others with proper collaboration and enhancing communication. The leaders and managers are cooperating with the assignees for building strong relationship and give them freedom to work and flexibility at the workplace so that it is possible or them to retain the expatriates successfully. Additionally, As stated by Baruch, Altman, and Tung (2016), managing transparency and accountability at the workplace, empowering all the employees at the decision-making practice and treating all of them, fairly are also contributing factor to manage the expatriates and enhance global mobility where all of the staff members can feel valued at the workplace of the businesses. For performnace management, the leaders at the firms focus on efficiency and effectiveness of the process, quality of the customer service, productivity of the sales personnel and timeline management through regular monitoring process through which the human resource managers can maintain the employee’s performance of the expatriates and motivate them by providing monetary and non-monetary rewards. Moreover, as stated by Brewster et al. (2016), for managing changes and handling cultural diversity at the workplace due to presence of expatriates and assignees at the workplace, the leader focuses on enhancing communication, sharing important news of the firm with the employees and ensure their value creation. The strategic planning pf the company is effective for maximising the values of the assignees as well as their families through which the firm becomes successful in managing their expatriates and develop effective international human resource management strategy.

Conclusion

It can be concluded that it is necessary for the transnational organisations to manage their international human resource and assignees so that skilled workforce can be managed well, and it is possible for the firms to enhance their overall performnace worldwide. The above-mentioned strategic planning at the firms are effective to retain the employees for long run and manage the expatriates successfully. The health and wellbeing benefits, financial rewards as well as managing organisational culture as a whole are contributing factors in the organisation to manage their workforce across the international stores across the globe. It is the responsibility of the multinational firms to manage their assignees as they are the main stakeholders who can improve the organisational performnace and contribute in gaining competitive advantages across the global retail industry. Hereby, monetary rewards such as performnace related pay, health benefits, bonus as well as employee’s relation, transparency and accountability, managing cultural diversity at the workplace and managing changes are effective for the firms to maximise the performance of the employees and manage the assignee by enhancing more global mobility for knowledge and skill transfer and improving efficiency of the firm to serve the customers across the globe.

Dig deeper into International Human Resource Management with our selection of articles.

Reference List

• Al Ariss, A. and Sidani, Y., 2016. Comparative international human resource management: Future research directions. Human Resource Management Review, 26(4), pp.352-358.
• Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., 2018. Strategic human resource management. London: Oxford University Press.
• Baruch, Y., Altman, Y. and Tung, R.L., 2016. Career mobility in a global era: Advances in managing expatriation and repatriation. The Academy of Management Annals, 10(1), pp.841-889.
• Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. London: Palgrave.
• Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management. London: Routledge.
• Brewster, C., Vernon, G., Sparrow, P. and Houldsworth, E., 2016. International human resource management. London: Kogan Page Publishers.
• Cascio, W.F., 2015. Managing human resources. London: McGraw-Hill.
• DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of Human Resource Management, Binder Ready Version. New York: John Wiley & Sons.
• Khilji, S.E., Tarique, I. and Schuler, R.S., 2015. Incorporating the macro view in global talent management. Human Resource Management Review, 25(3), pp.236-248.
• McNulty, Y. and De Cieri, H., 2016. Linking global mobility and global talent management: the role of ROI. Employee Relations, 38(1), pp.8-30.
• Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
• Reiche, B.S., Stahl, G.K., Mendenhall, M.E. and Oddou, G.R. eds., 2016. Readings and cases in international human resource management. London: Taylor & Francis.
• Schuler, R.S. and Jackson, S.E., 2008. Strategic human resource management. New York: John Wiley & Sons.
• Tung, R.L., 2016. New perspectives on human resource management in a global context. Journal of World Business, 51(1), pp.142-152.