7BSP1303 International and Comp HRM Assignment Sample

 GROUP REPORT

Introduction

Effective and efficient management plays a significant role in managing activities in a firm. The authority of an international firm needs to focus on three primary areas such as communication, etiquette, and organizational hierarchy. Cultural differences assist an organization to provide effective opportunities for personal development to its employees. The report is going to discuss the evaluation of cultural differences, cultural theories, and the importance of Human Resource Management policies and practices. The practices and policies of Human resource management support in building a healthy relationship between management and employees. In the present scenario, there are requirements for effective market analysis; HRM policies, effective strategy and planning in terms of building an effective work environment for employees and decreasing the impact of potential risks for instance market risk, performance risk, and strategic risk.

Importance of cultural differences for firms        

Efficient planning and strategies assist an organization to achieve the business objectives effectively in a short period. As per the opinions of Tarbaet al. (2019), management plays a significant role in international firms in terms of maintaining the productivity level of employees and building a healthy relationship among workers. There are several advantages of cultural differences for organizations including increased creativity, developing profits, improving cultural insights, effective range of skills, improving company reputation, developing employee engagement, improving innovation, and effective problem-solving.

Figure 1: Importance of cultural differences

Increased creativity

Creativity in work activities is necessary to develop competitive advantages and improve customer retention. Creativity assists the workplaces in decision making and problem-solving. Cultural difference in international workplaces supports improving production and bringing creative ideas in services (easyllama.com, 2022). A creative workforce can support international firms in enhancing the productivity level of employees and focus on long-term achievements.

Develop profits

A diverse workforce in international firms can support developing productivity levels in their specialization areas. As per the opinion of Beugelsdijk et al. (2018), the management needs to monitor the performance of employees and understand their capabilities in order to provide responsibilities. A diverse workforce can support the firms in developing competitive advantages.

The effective range of skills

Cultural differences in international workplaces assist the management to provide an effective range of opportunities for personal development. As stated by Awan et al. (2018), in the workplaces of international firms, the majority of employees belong to different cultures, countries, languages, and religions due to which the employees can enhance their skills and experiences through effective cooperation.

Improve company reputation

The authority of majority firms aims to develop services, enhance market share, and develop effective awareness among people regarding its services. As per the opinion of Boone et al. (2019), since in international workplaces, the management hires employees from different backgrounds, and cultures, which assists to develop a reputation in the market. Diversity in workplaces assists to improve competitive services through innovative and creative ideas.

Develop employee engagement

Effective engagement among employees in international firms is essential in terms of increasing productivity levels and implementing policies. As per the opinion of Yu et al. (2019), effective and efficient policies assist firms to develop employee retention, implement strategies, effective decision making, problem-solving, and bringing innovative ideas. Since the employees in diverse workplaces get effective opportunities for personal development, it assists to develop employee engagement (Kano, and Verbeke, 2018). Cultural differences support the management to develop employee engagement in workplaces.

Improving innovation

Innovation of ideas and implementation of strategies are essential in the development of an international organization. As per the opinion of Wales et al. (2019), the management of international firms needs to focus on innovative ideas in order to develop services and build a healthy workplace for employees. Cultural differences in workplaces assist in bringing innovative ideas for achieving the business objectives effectively.

Effective problem solving

Effective problem-solving in international firms assists in building a healthy relationship between management and employees. As per the opinion of Wales et al. (2019), employees from diverse backgrounds have different experiences, views, and perspectives. Cultural differences support the workplaces in effective problem solving from innovative ideas.

Analysis of cultural theories on HRM policies and practices 

The management of international organizations implements multiple policies and practices in order to maintain work diversity. As per the opinion of Boehm et al. (2021), theories act as guidance to achieve the business objectives and develop opportunities. The theory of cultural dimension is defined below in order to analyze the effect of cultural difference and Human Resource management policies in workplaces.

Hofstede’s cultural dimensions theory

The theory of cultural dimension focuses on a cross-cultural communication framework. As per the opinion of Gallego-Álvarez, and Pucheta-Martínez (2021), the theory has discussed mainly five dimensions of culture, for instance, time orientation, masculinity-femininity, individualism-collectivism, uncertainty avoidance, and power distance. The management of international firms needs to analyze the elements of artefacts, values, norms, language, and symbols. The theory of cultural dimension provided an effective definition of culture and ways of measurement.

Figure 2: Hofstede’s cultural dimensions theory

The management of international firms can focus on work goals with the help of cultural dimension theory. Cultural dimension theory can support international firms in decreasing the impact of inequality among employees in workplaces. The management can handle cultural differences in workplaces and analyze the importance of diversity in workplaces. As per the opinion of Talalova, and Werthschulte (2020), the element of uncertainty avoidance in cultural dimension theory focuses on social tolerance with change, risk, and situational uncertainty. The Human resources management of international firms needs to focus on the components of masculinity and femininity, time orientation, power distance, individualism-collectivism, and uncertainty avoidance before implementing policies or practices.

HRM policies and practices 

HRM policies and practices play a significant role in terms of building a healthy relationship between management, and employees, developing employee trust and improving employee retention. As per the opinion of Christopher (2019), the authority of majority firms needs to expand their business in foreign markets and there is a requirement of efficient management in order to manage diversity in workplaces. Human Resource management implements effective policies and practices in terms of maintaining cultural differences in international workplaces for instance performance appraisal, employee retention, communication, and development.

Performance appraisal

The human resource management of international firms needs to maintain work activities and monitor the performance of employees to analyze the capabilities, skills, knowledge, and experiences. As per the opinion of Saifuddin et al. (2020), the management of the majority of international firms implements the HRM practices of performance appraisal in order to motivate employees and increase the productivity level of employees.  There are several advantages of performance appraisal, for instance, effective morale and teamwork, developing motivation, enhancing profitability, developing employee performance, improve job satisfaction and employee retention (Diaz‐Carrion et al. 2018). Efficient and appropriate strategies assist to maintain cultural differences in the workplace and improve employee engagement in order to achieve the objectives of a business.

Employee retention

Employee retention plays a significant role in the development of an organization. The human resource management of international firms implements the policies of employee retention to reduce the impact of diversity risk. The policy of equality among employees assists to develop employee retention. As per the opinion of Talalova, and Werthschulte (2020), Human resource management in international organizations implements the practices of employee retention in order to develop morale, reduce costs, decrease training, reduce turnover, and develop productivity levels. The practices of employee retention assist to decrease the impact of cultural differentiation risk and building effective cooperation among employees in international workplaces.

Communication

Effective communication is essential in workplaces to build a healthy work environment and effective relationships among employees. The HRM practices of communication support the international organizations in implementing strategies, problem-solving, decision making, and bringing innovative ideas. As per the opinion of Talalova, and Werthschulte (2020), Human resource management is responsible for establishing an effective work environment for employees and maintaining a healthy relationship with management. The HRM practices of communication assist to build effective trust between the organization and employees. Trust in international workplaces plays a significant role in order to manage cultural differences in workplaces. HRM policies and practices are necessary for the development of an organization and maintaining diversity among employees.

Development    

The management of international firms needs to focus on the development of employees to develop employee engagement in workplaces. The HRM monitors the performance of employees to measure their strengths and weaknesses. As per the opinion of Saifuddin et al. (2020), the management can provide effective training by analyzing the weaknesses of employees and assisting in their development. The HRM practices of development assists to improve employee engagement, quality of services, market reputation, and teamwork.

Importance of HRM practices and policies for international organizations

Human resource management plays a significant role in managing cultural diversity in international workplaces. Cultural differences in international organizations assist to develop problem-solving, and innovation. Efficient and effective management assists to reduce the impact of risks and maintaining employee performance effectively. As per the opinion of Khan et al. (2019), for instance, the HRM in United Kingdom organizations provide effective security to employees, training for better performance, and focuses on performance appraisal to motivate employees. The human resource management of majority of organizations in UK provides opportunities for career development to develop employee retention. In international organizations, the management needs to provide effective safety to its employees to develop employee retention.

The HRM in international firms manage disciplinary and employee performance to develop future opportunities. Therefore, the human resource management of UK implements multiple policies to maintain the work activities smoothly for instance discipline and grievance, equality and diversity, health and safety, and equal opportunities. As per the opinion of Cumming et al. (2020), effective HRM policies and practices are essential to build trust and develop business activities smoothly. There are several advantages of HRM policies and practices for instance employment rules, organizational structure, workplace safety, managing employee concerns, professional and training development, selection, and requirement. The human resource management international firm needs to implement multiple policies and strategies in terms of managing workplace diversity, and providing equal opportunities for development. Cultural differences can affect the work activities in international firms effectively due to which there is a requirement of appropriate and efficient management.

The human resource management in UK follow acts and implements multiple policies to maintain work diversity effectively like Employment Relations Act 2004 (c 24), Family and Medical Leave Act (FMLA), and Occupational Safety and Health Act. The management of international organizations faces several challenges in managing cultural differences in workplaces for instance teamwork, communication, and adaptation behaviours. As per the opinion of Cumming et al. (2020), the implementation of Human resource management policies and strategies assist to develop services and reducing the impact of cultural diversity risks from international workplaces. In international organizations, an effective work environment supports managing cultural differences among employees and develops opportunities for personal development for employees.

Conclusion   

Based on the above discussion it can be concluded that effective and efficient management plays a significant role in the growth of an organization and expanding business in foreign markets. In international organizations, management needs to implement effective strategies and policies in order to develop trust among employees and build healthy relationships between employees and management. In the present scenario, the opportunities for personal development are essential to improve employee retention and enhance the quality of services. Effective training to employees regarding services supports their personal development and increases the quality of services.

An appropriate commitment of an organization helps in developing employee trust towards the services of the organization. Moreover, it can be stated that there are several advantages of cultural differences such as effective problem solving, decision making, bringing innovative ideas, and developing competitive advantages. Effective communication is essential in the workplaces of international firms in order to improve teamwork and resolve problems effectively. The study has discussed the importance of human resource management policies and practices in international firms. The HRM in MNCs needs to focus on effective selection and hiring processes on the basis of skills, knowledge and experience to reduce the risks of diversity in workplaces.

References

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Beugelsdijk, S., Kostova, T., Kunst, V.E., Spadafora, E. and Van Essen, M., 2018. Cultural distance and firm internationalization: A meta-analytical review and theoretical implications. Journal of Management, 44(1), pp.89-130. Available at: https://journals.sagepub.com/doi/abs/10.1177/0149206317729027

Boehm, S.A., Schröder, H. and Bal, M., 2021. Age-related human resource management policies and practices: Antecedents, outcomes, and conceptualizations. Work, Aging and Retirement, 7(4), pp.257-272. Available at: https://academic.oup.com/workar/article-abstract/7/4/257/6406531

Boone, C., Lokshin, B., Guenter, H. and Belderbos, R., 2019. Top management team nationality diversity, corporate entrepreneurship, and innovation in multinational firms. Strategic management journal, 40(2), pp.277-302. Available at: https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.2976

Christopher, N., 2019. The effectiveness of HRM policies and practices. International journal of social sciences, 2(1), pp.24-32. Available at: https://pdfs.semanticscholar.org/e5ff/6b7c8931e0cb664a22dc352f6139a66a4edf.pdf

Cumming, D.J., Wood, G. and Zahra, S.A., 2020. Human resource management practices in the context of rising right‐wing populism. Human Resource Management Journal, 30(4), pp.525-536. Available at: https://onlinelibrary.wiley.com/doi/abs/10.1111/1748-8583.12269

Diaz‐Carrion, R., López‐Fernández, M. and Romero‐Fernandez, P.M., 2018. Developing a sustainable HRM system from a contextual perspective. Corporate Social Responsibility and Environmental Management, 25(6), pp.1143-1153. Available at: https://onlinelibrary.wiley.com/doi/abs/10.1002/csr.1528

easyllama.com, 2022, 8 Benefits of Cultural Diversity in the Workplace, Available at: https://www.easyllama.com/blog/benefits-of-cultural-diversity-in-the-workplace

Gallego-Álvarez, I. and Pucheta-Martínez, M.C., 2021. Hofstede’s cultural dimensions and R&D intensity as an innovation strategy: a view from different institutional contexts. Eurasian Business Review, 11(2), pp.191-220. Available at: https://link.springer.com/article/10.1007/s40821-020-00168-4

Kano, L. and Verbeke, A., 2018. Family firm internationalization: Heritage assets and the impact of bifurcation bias. Global Strategy Journal, 8(1), pp.158-183. Available at: https://onlinelibrary.wiley.com/doi/abs/10.1002/gsj.1186

Khan, Z., Wood, G., Tarba, S.Y., Rao‐Nicholson, R. and He, S., 2019. Human resource management in Chinese multinationals in the United Kingdom: The interplay of institutions, culture, and strategic choice. Human Resource Management, 58(5), pp.473-487. Available at: https://onlinelibrary.wiley.com/doi/abs/10.1002/hrm.21935

Saifuddin, Q., Hussain, F. and Khan, I.U., 2020. Striving to Implement Green Human Resource Management (GHRM) Policies and Practices: A Study from HR Managers Perspective (FMCG Sector). International Journal of Management Excellence, 14(2), pp.2037-2051. Available at: https://www.researchgate.net/profile/Faizan-Hussain-2/publication/344075916_Striving_to_Implement_Green_Human_Resource_Management_GHRM_Policies_and_Practices_A_Study_from_HR_Managers_Perspective_FMCG_Sector/links/5f511c3da6fdcc9879c97875/Striving-to-Implement-Green-Human-Resource-Management-GHRM-Policies-and-Practices-A-Study-from-HR-Managers-Perspective-FMCG-Sector.pdf

Talalova, L. and Werthschulte, D.K., 2020. Adapting two cultures (a glance through the Hofstede’s cultural dimensions model). In FUNCTIONAL ASPECTS OF INTERCULTURAL COMMUNICATION. TRANSLATION AND INTERPRETING ISSUES (pp. 12-18). Available at: https://elibrary.ru/item.asp?id=44472355

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Yu, Q., Yen, D.A., Barnes, B.R. and Huang, Y.A., 2019. Enhancing firm performance through internal market orientation and employee organizational commitment. The International Journal of Human Resource Management, 30(6), pp.964-987. Available at: https://www.tandfonline.com/doi/abs/10.1080/09585192.2017.1380059

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