MN7374 International Human Resource Management Assignment Sample
Module code and Title: MN7374 International Human Resource Management Assignment Sample
Introduction
International Human Resource (HR) Practices is a good choice for business growth. This study is based on the impact and difference of HR practices in liberal and coordinated market economies. Liberal market economy depends on competitive markets for resource and investment collection.
Customers’ section has possessed less amount of control on the companies. On the other hand, a coordinated market economy completely relies on collaborative programs and has a direct relationship with formal organizations such as Government, trade unions, statutory bodies and logical authorities. This study focuses on the retail sector of the United Kingdom (UK). Thesis statement of this study is based on impact and difference of HR Practices in liberal market economies and coordinated market economies.
Discussion
Evaluation of HR practice in a liberal market economy
The liberal market mechanism is an economic ideology that encompasses a market economy with private institutional liberty and human rights. It is a decentralised system that does not need any financial assistance or aid from the government. This mechanism is purely based on the market mechanism and the demand value.
The liberal market economy often typically exhibits comparatively short-term, adversarial and hostile relations between economic actors, like the government and other non-profit organisations or International bodies for social welfare (O’Sullivan, 2020). This mechanism possesses a high tendency for innovation; private players are very active in bringing new and innovative products into the market to capture it. Biotechnology, IT, retail sector and electronic products, predominantly science-based innovations are encouraged more.
The UK, USA, and Canada are prime examples of liberal market economies as developed countries; they have enormous space to provide private players with the desired open market. The retail sector in the UK is diverse so Human resource practices are widespread in this sector. HR practices of an organisation enjoy many advantages in LME like employee engagement, the relationship between employee and company optimisation, the best platform for retailers, data monetisation and store experiences (Hassard, 2018).
The retailers in the UK can get ahead of returns in a cost-effective manner so optimisation is easily achieved. The human resource management of any company in this economy is very efficient in recruiting new employees and providing them with training. The relationship between employees and the managerial team is largely supported by the LME. A good team of employees eventually can obtain a good data monetisation. Human resource management in a retail industry outlines a full-proof strategy and tools for delivering its product to the end customers and generating good turnover for the company.
Evaluation of HR Practice in coordinated market economies
Coordinated market economy depends on approved and legal organizations for their resource and finance collection. Best HRs also shows a positive impact on business growth as training sessions increase their efficiency and productivity largely. All business industries require experienced and talented workers as their activity meets organizational goals with higher revenue.
On the contrary, managers for implementing advanced technologies within business grounds use this revenue. As per the context of coordinated market economy, companies seek permission from the Government and local authorities (Funke and Picot, 2021). Similarly, collaboration between companies and the Government enhances their image within the country. Retail sector of the UK closely analyzes market demands and thus, efficiently collects HRs from the community. Aspects of HR practices in coordinated market economies of the UK retail sector are discussed underneath.
Selection and recruitment- The employees are collected from the UK Community as per the customer demand. Firstly, the selection procedure is conducted by informing all recruitment updates to the Government. Specific qualifications and previous experiences are highly approached for further recruitment.
Development of a healthy working environment- Creation of a favourable workplace has created more interest among the workers. Recruitment phase is followed by training approaches and in this section, the managers inform about workplace facilities to the new workers. Such information providence increases their commitment to companies. For example, Tesco Plc is a popular retail company in the UK and holds 1,69,852 male and 1,91,919 female satisfied workers in 2021 (tescoplc, 2021).
Training session- Employee recruitment is followed by development of training sessions for the workers. In this regard, companies provide training to the workers based on innovative technologies and advanced communication. Thus, workers become highly productive after such training practices (Schloemer-Jarvis et al. 2022).
Direct access to technological tools and equipment- Training phase has direct relations with direct access to technological introduction. Ivanova et al. (2019) has opined that artificial intelligence (AI), visual reality, 3-Dimensional (3D) visualization, and real-time collaboration are important technologies that enhance employee knowledge towards their job role.
Motivational arrangement for employee retention- Employee recruitment is not an important criterion while companies become unable to retain their workers effectively. In order to make workers satisfied, companies have developed several approaches such as leave policy, appraisals, probation salary, good communication, health insurance, food reimbursement for the employees (Kamalaveni et al. 2019).
Difference between liberal market economies and coordinated market economies in terms of HR Practice
In every market economy, the theory of business systems is guided by neo-institutional theory and advice that the firms require to attain authority. They try to follow that by ranging their techniques and strategies according to the circumstances. There are some important differences in HRM practices, that is Human Resource Management, counting how much they have participated financially between the firms in Liberal Market Economies and Coordinated Market Economies.
They also bring out the differences between the countries within every kind of market economy team. Most of the extant research on financial participation has concentrated on learning about the effects that they face from market economy institutes, and they have two ways of doing it. They are done either one-sided or by distributing the study in two wide types of capitalism, Liberal Market Economies and Coordinated Market Economies.
Market economies are contemplated to make a difference in their pattern of HRM practice, adopted and diffused based on systematic interdependent configurations. HRM is a process of selecting and hiring staff or employees and it has to be presented with the HR practices. Several practices influence the productivity of the employees and are applied in both LMEs and CMEs. Comparative capitalism shows that several kinds of market economies or business systems cause the operation of the firms.
This study of LME and CME uses the main element of business systems regarding the practices that are used in managing HR. It also helps in measuring the effect of those circumstances on the firms that are being operated under several market economies including CME and LME (Butzbach et al. 2020). There are some differences found overtime in HRM practices between these different kinds of market economies. Significantly, the project reveals a hybrid alteration of both conjunction and similarity in the usage of a wide range of HRM practices across all market economies.
Liberal market economies are the Anglo-Saxon societies including the countries of the UK, USA, and Australia influenced by the shareholder ownership and concentrated on the profits made in short-term maximization and prefer a very minimum role for the government restricted with the labor markets and competition from strong markets. Coordinated market economies typified by the UK have a broader approach to stakeholders so, which causes more mismanagement of the labor market. Hence, there are lower forms of autonomy causing and they concentrate on the long-term return for their investments (Brookes et al. 2019). In LMEs, the internal relationships reflect the one-sided relationship and the competitive relationship of the market, which is external. In the case of CMEs, there is big interdependence on the employer as well as the employees.
Comparative capitalism deals with two problems that are related to the conjunction. One of them is to change over time that the Anglo-Saxon model of LMEs is keening into CMEs in higher amounts and that leads to the LME model. Alternatively, this trend of liberalization shows the substantial differences between LME and CME practiced by HRM. Although there can be developing steps to achieve institutional liberalization in CMEs, these might not lead to the firms, which are operated according to the LMEs, market (Hörisch et al. 2020).
Human Resources Management has some definite influence on the productiveness of employees both practiced in LME and CME in the UK they are-
- Recruitment- searching for and finding employees with the required talents is a big challenge for any company or organization. Utilizing the platform that is used before the employment assists in justifying fast and explaining the best resumes between all similar ones at the very first stage of the selection procedure. In the UK, under LME they use a software called HUNDRED5 which assists to identify the best participants and check their talents with a very easy and simple exam and it does not require reading out their curriculum vitae (Nölke et al. 2021). The Royal Mint and The London Gazette use this tool to recruit their new applicants. Another tool that is used by the HRM under CME is Expert Rating. It guides to recruit people for several designations. It contains around 1000 amazing tests to assist the company in take the correct decision and employing new candidates as per the requirement. Trinity House and Barclays mainly apply this software in the procedure of hiring new staff for their organizations. This is a short report made on the strength and weaknesses of an applicant. They recruit capable candidates from the platform by making reports on their existing employees’ opinions and their characteristics (Bechter et al. 2022).
- Favorable workplace- the working environment is created to reach the main requirements of the staff and motivates them at the same time so that their staff could stay encouraged and productive towards their tasks. LME offers the staff every necessary product, which can make higher productivity in their workforce. Every staff gets satisfied in their workplace as they are offered the essentials of comfortable furniture and necessary equipment. They arrange their workplace as per their choice. In LME, the HRM permits their staff to finish their tasks remotely because this is the way, which is becoming popular in the UK nowadays. International Consolidated Airlines Group SA and International Consolidated Airlines Group SA tries to proceed with LME (Schneider 2021).Whereas, CME follows to provide their employees with organizing a free space in the organization, where the staff can converse and communicate to have a little break and spend their Tiffin hours or short breaks. HRM also offers to buy various video games, to install some activities in the office area to make their employees feel free and relaxed so that they can switch between their works and rest modes under CME markets. Nationwide Building Society and Babcock International Group Plc. are the ones who apply CME to their organization. These are very useful methods surveyed across the UK and shown as positive (Gallego‐Álvarez et al. 2020).
Selection of HR Practice
Within business ground, human resource management (HRM) and HR practices are valuable factors as they meet market demands with best efforts. In the context of liberal and coordinated market economy, common factor is the resource collection. However, it has been derived from discussion that creation of a healthy working environment is considered as the best HR practice.
Company managers develop their organizational goals, vision, and mission and represent them to the employees. Such an information gain becomes profitable for them, as the project grows based on the market demands (Zhang et al. 2019). At the same time, expected duration and profitability is created and is informed to the workers.
On the other hand, managers have another responsibility to draw market demands through communication channels. These factors enable the project managers to create business goals. As per the opinion of Jawaad et al. (2019), good HR practices increase employee commitment that results in higher retention rate within organizations. This type of continuous commitment has influenced positively with growth of company profit and thereby, has increased the economy for the country.
- Coordinated market economy has a compulsory factor of Government approval. In this context, companies directly communicate with the formal organization to maintain the legal guidelines. As per the UK Guidelines, retail companies have maintained employee recruitment policy for their motivation. On the other hand, employee retention policy is also strictly followed by the company managers (Khalid and Nawab, 2018). For example, Tesco Plc has selected talented workers from the UK Community. In accordance with this, proper mentoring and leadership during training has increased motivation among the workers while Tesco Plc has also developed diversification and equalise approaches. Such approaches are highly beneficial to sharpen employee talent within the competitive market of the UK (tescoplc, 2021).
- Development of good HR Practice has another close relationship with workplace security. The new employees observe workplace hazards and a higher number of them reduce their concentration towards the company. Consequently, lowered productivity reduces company revenue along with less number of customer bases. In the aspect of liberal market economy, all resources are drawn from external markets with a closer relation with customer demand. Technological implementation also reduces workplace hazards and conflicts. Positive side of workplace security is based on appropriate maintenance of project duration. Moreover, technological development is a good approach as it enhances project growth (Zhang et al. 2019). For example, another popular retail company of the UK, named Sainsbury has, holds 81% committed number of employees within their company (sainsburys, 2021). On the other hand, continuous commitment of them is able to draw £431 million revenue in fiscal year (FY) 2021 (sainsburys, 2021). This revenue has faced huge growth in comparison to that of 2020 where the value was £569 million (sainsburys, 2021).
- Creation of employee programs within working premises increases their concentration to the company. Singh (2019) has stated that appraisals, award programs and relaxed leave policy encourage their activity readily. An example of Sainsbury’s has shown that this company has arranged an Employee Assistance Program in which the managers draw all employee issues. Furthermore, financial assets of Sainsbury’s are used for improving the workplace conditions (sainsburys, 2021). Their motivation enhances company growth and project completion with satisfaction of all market requirements.
- In the context of employee retention, improvements of such policies are required within companies. Sainsbury has also developed a diversity and inclusion program. Goal of this program is established during employment (sainsburys, 2021). On the other hand, the zero-tolerance approach reduces workplace bullying, discrimination and harassment within Sainsbury’s (sainsburys, 2021). As per the coordinated market economy, retail companies maintain the ethical guidelines of employee motivation and retention policy so that annual turnover rate decreases. The justified way to reduce annual turnover rate is the enhancement of workers’ motivation (Ozkeser, 2019). Growth of them is ensured while companies maintain all satisfaction for the workers.
- Creation of workplace security has another factor of training and development. Employee training follows selection and employment phase. During this session, all technological information is incorporated within workers. Previous satisfaction of the project has acquired a higher amount of revenue for the companies. On the other hand, the managers to draw advanced technologies from the competitive market use this revenue. Collection of resources and investment is completely considered the approach of liberal market economy (Lorincová et al. 2019). For example, Morrisons has developed £17.6 billion revenue in FY 2021 and this amount is used by the managers for implementation of advanced technologies (morrisons-corporate, 2021). On the contrary, this company also follows Section 172 of 2006 Directors Companies Act to evaluate employee security (morrisons-corporate, 2021). They have paid 209.2% annual bonus to the employees for securing attention from the employees (morrisons-corporate, 2021). It has implied from the discussion that workplace security and technological implementation are approachable as it increases the satisfaction rate of HR practices within the UK organizations.
Conclusion
Business growth is an important aspect and is ensured by effective HR Practices. Retail companies in the UK apply several HR practices. Such aspects are selection and recruitment, development of a healthy workplace environment, award and appraisals, training and development and employee retention. This study is based on the comparative analysis of HR practices between liberal and coordinated market economy.
The discussion has also shown that retail companies in the UK have strictly followed ethical guidelines of their Government and after the business years, all financial summaries are represented to the shareholders. Thus, they became interested in providing respective human resource and economic investment to the real companies. In addition to this, examples of Tesco Plc, Sainsbury’s and Morrisons are analyzed in this study.
The observation has also shown that liberal economy depends on external markets for their resource collection. Contrarily, the coordinated market economy completely depends on the Government, trade unions, statutory bodies and local authorities for their resource collection. Henceforth, it has stated that the thesis statement of impact and difference of HR Practices in liberal market economies and coordinated market economies is justified in this study.
Reference list
Bechter, B., Brandl, B. and Lehr, A., 2022. The role of the capability, opportunity, and motivation of firms for using human resource analytics to monitor employee performance: A multi‐level analysis of the organizational, market, and country context. New Technology, Work, and Employment.
Brookes, M., Wood, G. and Brewster, C., 2019. The antecedents of comparative differences in union presence and engagement: Evidence from coordinated and liberal market contexts. International Studies of Management & Organization, 49(4), pp.389-401.
Butzbach, O., Fuller, D.B. and Schnyder, G., 2020. Manufacturing discontent: National institutions, multinational firm strategies, and anti‐globalization backlash in advanced economies. Global strategy journal, 10(1), pp.67-93.
ENERGY&UTILITYSKILLS, 2022. Strategic Workforce Planning. Available at: https://www.euskills.co.uk/our-services/skills-solutions/strategic-workforce-planning/?gclid=Cj0KCQjw3v6SBhCsARIsACyrRAllcGlRFv_mHSbDmKxCM8-4ukEdC5X8cFqe6PL-aRwZp7X2rVnxaocaAvuGEALw_wcB [Accessed on: 21st April, 2022]
Funke, C. and Picot, G., 2021. Platform work in a coordinated market economy. Industrial relations journal, 52(4), pp.348-363.
Gallego‐Álvarez, I. and Pucheta‐Martínez, M.C., 2020. Environmental strategy in the global banking industry within the varieties of capitalism approach: The moderating role of gender diversity and board members with specific skills. Business Strategy and the Environment, 29(2), pp.347-360.
Hassard, J. and Morris, J., 2018. Contrived competition and manufactured uncertainty: understanding managerial job insecurity narratives in large corporations. Work, Employment and Society, 32(3), pp.564-580.
Hörisch, F., Tosun, J., Erhardt, J. and Maloney, W., 2020. Varieties of capitalism and labor market opportunities for the youth: A comparison of attitudes towards skill formation. European journal of government and economics, 9(3), pp.232-251.
Ivanova, A.S., Holionko, N.G., Tverdushka, T.B., Olejarz, T. and Yakymchuk, A.Y., 2019. The strategic management in terms of an enterprise’s technological development. Journal of Competitiveness, 11(4), p.40.
Jawaad, M., Amir, A., Bashir, A. and Hasan, T., 2019. Human resource practices and organizational commitment: The mediating role of job satisfaction in emerging economy. Cogent Business & Management. 6. pp. 1-23.
Kamalaveni, M., Ramesh, S. and Vetrivel, T., 2019. A review of literature on employee retention. International Journal of Innovative Research in Management Studies (IJIRMS), 4(4), pp.1-10.
Khalid, K. and Nawab, S., 2018. Employee participation and employee retention in view of compensation. SAGE Open, 8(4), p.2158244018810067.
Lorincová, S., Štarchoň, P., Weberova, D., Hitka, M. and Lipoldová, M., 2019. Employee motivation as a tool to achieve sustainability of business processes. Sustainability, 11(13), p.3509.
morrisons-corporate (2021), Annual Report and Financial Statements 2020/21, available at: https://www.morrisons-corporate.com/globalassets/corporatesite/investor-centre/financialreports/documents/2020-21/morrisons_ar20-21_web.pdf, [Accessed on: 19 April 2022]
Nölke, A., 2021. In search of institutional complementarities: Comparative Capitalism and economic policy reform. Journal of Economic Policy Reform, 24(4), pp.405-412.
O’Sullivan, M., Turner, T., Lavelle, J., MacMahon, J., Murphy, C., Ryan, L., Gunnigle, P. and O’Brien, M., 2020. The role of the state in shaping zero hours work in an atypical liberal market economy. Economic and Industrial Democracy, 41(3), pp.652-671.
Ozkeser, B., 2019. Impact of training on employee motivation in human resources management. Procedia Computer Science, 158, pp.802-810.
Retailthinktank, 2022. What changes are retailers making to their HR strategies and operational practices to adapt to the recession. Available at: http://www.retailthinktank.co.uk/whitepaper/what-changes-are-retailers-making-to-their-hr-strategies-and-operational-practices-to-adapt-to-the-recession/ [Accessed on: 21st April, 2022]
sainsburys (2021), Annual Report and Financial Statements 2021, available at: https://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/documents/reports-and-presentations/annual-reports/sainsburys-ar2021.pdf, [Accessed on: 19 April 2022]
Schloemer-Jarvis, A., Bader, B. and Böhm, S.A., 2022. The role of human resource practices for including persons with disabilities in the workforce: a systematic literature review. The International Journal of Human Resource Management, 33(1), pp.45-98.
Schneider, M.R., 2021. Labor-Management Relations and Varieties of Capitalism (No. 934). GLO Discussion Paper.
Singh, D., 2019. A literature review on employee retention with focus on recent trends. International Journal of Scientific Research in Science and Technology, 6(1), pp.425-431.
tescoplc (2021), Annual Report and Financial Statements 2021, available at: https://www.tescoplc.com/media/757589/tesco_annual_report_2021.pdf, [Accessed on: 19 April 2022]
Zhang, Y., Khan, U., Lee, S. and Salik, M., 2019. The influence of management innovation and technological innovation on organization performance. A mediating role of sustainability. Sustainability, 11(2), p.495.
Know more about UniqueSubmission’s other writing services:
