BMG935 CRN 13605 International HRM Assignment Sample

Introduction (BMG935 CRN 13605 – International HRM)

In the modern era, Multinational Corporation (MNC) has faced multiple issues which may be considered as one of the biggest threats in operating the International Human Resource Management (IHRM). It is the prime responsibility of the HRM of an MNC to identify the main issues and challenges of the company or else the global operations of the company may be negatively impacted. In this essay, the many IHRM issues of Reliance Industries Limited (RIL) and the possible solution to these problems and issues will be discussed in detail.

Overview and background history of the company

Reliance Industries Limited (RIL) is one of the biggest MNC of India and in the world as the country is currently operating in overseas countries such as Mauritius, Uganda, Rwanda and other African countries. Moreover, in 1957 Dhriubhai Ambani started this company in Mumbai as after a modest beginning the growth of the company has increased significantly and in 2020 RIL has ranked 48th regarding the most valued organization in the world (Ril.com. 2021). Additionally, RIL has a good brand value in the petroleum refining industry and the RIL is able to provide a variety of products in the market such as naphtha, propylene, Jet oil, gasoline and Liquid Petroleum Gas (LPG) and many more (Refers to Appendix 1). In other responses, the IHRM of the company is extremely innovative and for that reason, the company is able to establish the world largest petroleum refining hub in Jamnagar (Ril.com. 2021).

After analysing the 2019-20 financial report of RIL it has been observed that the annual turnover of the company has increased by 5.4% in comparison with the previous yarer and in 2019-20 the amount of consolidated turnover of the company was INR 6,59,205 crore (Ril.com. 2021). Furthermore, the company also deals with other products and services such as retail business, entertainment and telecom services, digital services and many more. The number of employees in the company is also increasing day by day as currently, the company has more than 1,95,618 employees all over the world (Ril.com. 2021).

Literature review

Outlining the issues present in the IHRM

International Human Resource Management (IHRM) has become challenging due to several issues which directly impacts the growth and progress of organizations to a great extent and needs to be handled with extreme care and precision. It may be asserted that identification of the issues present in the IHRM assists in mitigating the risk factors which may translate into serious threats in the long run (Wood et al., 2018). On the other hand, it needs to be mentioned that Reliance Industries has been facing several issues related to IHRM and the issues are discussed below:-

Recruitment and selection process

It needs to be mentioned that Reliance Industries have been facing issues and major problems relating to the selection of candidates which is one of the most important issues which the IHRM of the company has faced in the past few years. Additionally, it has to be opined that getting the appropriate candidate for the company has become a truly challenging task which hampers the international recruitment process of Reliance Industries (Ril.com. 2021). On a contradictory note, appointing female candidates often becomes a major issue as many of the female candidates do not prefer to work outside the country which impacts the overall workforce in a profound way. Furthermore, it may be stated that the recruitment and training process directly impacts the performance and productivity of the workforce which assist in organizational growth and prosperity (Hamza et al., 2021).

Training and development

Training and development of the employees plays a crucial role for the overall strategic implementation of plans and policies which aim towards achieving organizational goals however, Reliance Industries have been facing issues in this field. The IHRM managers are finding it difficult to provide best quality training on using the latest technological devices and providing training through digital mode. In addition to this, providing an environment which facilitates learning becomes an important factor in developing a team with maximum potential (Refer to Appendix-2). On a broader note, lack of skilled and experienced trainers have become an important issue which is directly impacting the international HRM practices of Reliance Industries in a profound way.

Performance management

Performance management is another important aspect of the international HRM and it needs to be mentioned that Reliance Industries has been facing problems in maintaining a constant rate of performance of the employee due to several issues such as organizational conflict and lack of proper communication among the different departments of the company which is hampering the harmony of the workforce. In a more specific way, it needs to be implied that performance management becomes crucial in managing the overall performance of an organization which may be done through providing rewards and recognition to the employees (Tweedie et al., 2019).

Implications of Covid-19

However, it may be implied that the outbreak of the Covid-19 has further complicated the situation and the selection and recruitment process has faced difficulties due to shortage of skilled candidates. Moreover, the cross cultural working environment and lack of effective leadership during the Covid-19 has deeply impacted the international HRM practices of Reliance Industries in a negative way.

Problems due to Brexit

It may be asserted that Reliance Industries have faced problems due to changes in the legislative policies and regulations due to the Brexit and due to this reason the IHRM of the company has faced unwanted pressure. On the other hand, it may be added that Brexit has several impacts on the recruitment and selection process of fresh candidates where changes have taken place in the worker’s rights (Ridgway, 2019). However, it may be implied that understanding the new immigration system has now become different which has created a problem in the IHRM practices to a great extent.

Pay and compensation

On a broader note, it may be stated that issues relating to payment and compensation have become a major cause of concern for companies and Reliance Industries is no exception to it where the managers of the international HRM department have been facing issues related to complex tax structures and policies related to pension. Moreover, issues related to currency rate risk are another major issue which have affected the international HRM practices in a negative way. Moreover, it needs to be mentioned that pay and compensation packages impacts the levels of employee satisfaction in a profound way which is a plays a vital part in the administration of an organization (Rahman and Singh, 2019).

Re-entry and career issues

Issues related to expatriation have become a significant area of concern where employees are facing reduced work status which is creating anxiety and tension among the workforce and it has become a really challenging issue to handle for the international HRM department of Reliance Industries. Furthermore, it may be opined that social factors relating to cultural change are directly impacting the productivity of the workforce and the employees are finding it difficult to adjust with the new environment which the international HRM managers are required to deal with extreme care and attention (Omar, 2021). Along with this, it may be added that deploying the employees in a foreign country are often done in order to achieve organizational goals and with the aim to enhance brand image and reputation (Chiang et al., 2018).

Analysis of the international HRM issues or problems

It needs to be mentioned that the international HRM of Reliance Industries have been facing various issues including performance management of the employee, recruitment and selection process due to Brexit and Covid-19, issues relating to pay and compensation of the employees, problems relating to expatriation and problems due to the outbreak of the Covid-19. Along with this, the international HRM practices of Reliance industries are also getting impacted due to the lack of proper training facilities of the employees which have been weakening the workforce to a great extent and it is getting reflected in the overall performance and productivity of the employees. In other words, it needs to be implied that following a strategic planning often becomes useful in implementing changes in a large scale within an organization which benefits the organization in multiple ways (Cooke et al., 2019). However, it may be proposed that managing the performance of the employees may be done successfully through providing extrinsic as well as intrinsic rewards which definitely encourages and boosts the levels of motivation of the employees and also helps in achieving corporate objectives (Refer to Appendix-3).

In a more specific way, it has to be stated that issues relating to training and development have become a major cause of concern for Reliance Industries where lack of experienced and trained leaders and technicians are hampering several international HRM activities in a negative way. In a more precise way, use of latest technologies and technical devices have been emerging as a serious issue among the employees which the company needs to overcome as soon as possible in order to avoid loss in the long run (Mangipudi et al., 2019).Additionally, it may be asserted that cultural impact plays a vital role in managing the international HRM issues which impact global firms in a significant way (Adler and Ghadar, 2017). In addition to this, issues relating to training and recruitment have impacted the IHRM activities and operations of Reliance Industries where employee retention has become a major cause of concern and the company needs to focus on making changes in the policies of the IHRM to provide benefits to the employees. Apart from this, the issue of employee retention because of Brexit is extremely important as without a talented as well as dedicated workforce, Reliance industries will never be able to achieve its organizational goals and objectives.

Furthermore, it has to be opined that issues relating to pay and compensation has always been a problem with reliance Industries where the IHRM practices has failed to achieve expected results which has ultimately dissatisfied the employees of the company to some extent. In a more specific way,organizations often frame the payment structure of the employees according to the potential of the employees and also on the basis of individual contribution towards a n organization (Shaw and Zhou, 2021). However, it needs to be mentioned that the existing complications in the tax structure have further affected the motivation of employees where expatriates are facing immense changes in the levels of salary and the employees are also worried about the new positions they are being offered (Pilukienė, 2017). Providing new positions to the employees often demotivated the employees of Reliance Industry and the IHRM department has failed to show promising efforts to solve these issues. Moreover, it may be mentioned that problems relating to smooth administration have also affected the IHRM operations and activities to a great extent which has impacted on the global progress of the company in a major way (Elshanti, 2017).

In other words, it needs to be implied that the outbreak of the covid-19 has impacted the IHRM functionalities to a great extent where availability of skilled employees and retention of the employees have become a major cause of concern. On a broader note, it may be proposed that paying attention towards various policies and risk areas improves the levels of entire management of an organization which generates expected results in the long run (Shujahatet al., 2020). On a contradictory note, it needs to be argued that the absence of a strong and strategic leadership as a result of Brexit has also impacted the performance of the Reliance Industries in a negative way which has further complicated the IHRM practices of the company. On the other hand, the problem of cultural diversity and inability to cope up with changing work environments has impacted the international HRM active of Reliance Industries in a negative way and has resulted in reduced productivity and performance of the employees. It may be added that paying attention towards managing diversity in the work environment will enhance the organizational culture to a great extent and impact the company in a positive way (Adeinat and Abdulfatah, 2019).

Possible solutions for IHRM issues

It is the duty of the HRM of the company to find out possible solutions of the issues as there are several issues in the company which has been discussed and in this part the way to resolve will be discussed:-

Creating and innovative selection and recruitment process

It needs to be noted that if the IHRM of the company is able to establish an innovative selection and recruitment process then the recruitment issues of the company may be resolved. Additionally, the employees of an MNC need to be skilful and for that reason the company needs to optimize the interview process which helps the company in selecting proper employees for different operational worlds of the company. One of the main approaches of the IHRM of the company will be to explore the multiple IHRM indicators which has a Positive implications in identifying the cross cultural differences in the workplace (Edwards and Rees, 2017). Apart from that, the employer of the company needs to have innovative screening and monitoring skills which will select the candidates according to the skills assessment test. RIL is currently operating in the international market as an IHRM of the company needs to have proper skills which is useful in designing the global recruitment process. One of the biggest advantages of heroic global skilful employees is that it creates a positive impact in managing the global operations of the company.

Providing a technically based cross cultural training

Employee development will be one of the main targets of the company in the global context as the use of new training devices and tools may be impactful in ensuring the proper employee development for the company. The company needs to provide direct training to the employees, however, during the Covid-19 it is extremely difficult to provide direct training. Moreover, virtual collaboration with training consultants is extremely helpful as it is also useful in providing training video to the employees of the work from home scenario. It has been observed that the expatriate and inpatriate employee of RIL has faced cultural issues such as language discrimination as if the IHRM of the company provides English language speaking training to the employees then the language barrier may be mitigated. Additionally, it is the duty of a company to implement a proper and innovative technology which will be useful in communication within the employees of the company as nowadays, the execution of mobile learning technology has been increased to enhance the effectiveness of training and development programs for employees (Butler et al., 2021).

Implementation of an effective performance management

In the modern era, it is the one of the biggest duties of the IHRM of RIL is to create an innovative performance management or else it will be extremely difficult to increase the performance level of the employees. The HRM of an organization needs to establish a growth mind-set which will convert failures into opportunities which is immensely essential to deal with the existing challenges of the company and that will ensure the growth of the company (Sen, 2020). One of the main approaches of the performance management is to track the performance of every employee and if an employee is not able to improve the productivity level then the performance management will provide the employee mental support which may increase the motivation level of employees. RIL needs to establish the transparency and clarity in the leadership and it is also essential to provide a performance review to every employee every year.

Implementation of remote working during Covid-19 pandemic

Covid-19 has created multiple challenges for RIL as during this time it was quite impossible to physically present in the office premises and for that reason the company has enforced work from the home procedure. In addition to that, during the pandemic, the company needed to provide adequate mental support which is essential for the health and wellbeing of the employees for the organization. Covid-19 has created multiple challenges for the new joiners as many employees of MNCs have not received cross cultural training, however, the companies have executed technology to provide cross cultural training to the employees through digital platforms (Caligiuri et al., 2020). In other responses, the IHRM of the company has implemented cloud computing services which were one of the most innovative ways to maintain the continuity of the company during the Covid-19. There are many benefits of cloud computing service as it is cost-effective and able to provide more sustainability in the performance and productivity level of the company.

Implementation of new technology in HR services

There is a requirement of new technology in HR services that may be useful in mitigating the career and employment issues of the company. Additionally, the use of Linkedin, Indeed, Naukri and multiple job portals may be useful in finding proper employees for the company. Moreover, the execution of talent management is also important for the company as it is always based on proper planning, developing and managing the employees of the organization in a professional manner. One of the main approaches of the IHRM of the company is to maintain starting ethics as it is extremely significant in ensuring the safety of privacy of the employees in the workplace (Refers to Appendix 4).

Conclusion

From the above discussion, it may be concluded that RIL is an MNC company that is currently expanding its business in the international market and for that reason, the IHRM of the company needs to play a crucial role in managing and handling the global operations of the company.

Recommendations

Smart and innovative recruiting and selection processes may be useful to resolve global hiring challenges for the company
The IHRM of the company needs to establish a talent management which will be useful in handling the global managerial activities
The successful execution of performance management is extremely essential as it generates a beneficial impact in enhancing employee engagement in the workplace
The managers of the company need to establish an effective communication channel which is essential in maintaining a healthy relationship with employees
It should be recommended that the IHRM of the company needs to provide a work form facility during Covid-19
Career counselling approaches and mentoring programs need to be adopted to ensure the professional growth of employees
A strong ethic code needs to be maintained to avoid workplace bullying and harassments

References

Adeinat, I.M. and Abdulfatah, F.H., 2019. Organizational culture and knowledge management processes: case study in a public university. VINE Journal of Information and Knowledge Management Systems.

Adler, N.J. and Ghadar, F., 2017. 6. A Strategic Phase Approach to International Human Resources Management. In International management research (pp. 55-78). de Gruyter.

Butler, A., Camilleri, M.A., Creed, A. and Zutshi, A., 2021. The use of mobile learning technologies for corporate training and development: A contextual framework. In Strategic corporate communication in the digital age. Emerald Publishing Limited.

Caligiuri, P., De Cieri, H., Minbaeva, D., Verbeke, A. and Zimmermann, A., 2020. International HRM insights for navigating the COVID-19 pandemic: Implications for future research and practice.

Chiang, F.F., van Esch, E., Birtch, T.A. and Shaffer, M.A., 2018. Repatriation: what do we know and where do we go from here. The International Journal of Human Resource Management, 29(1), pp.188-226.

Cooke, F.L., Wood, G., Wang, M. and Veen, A., 2019. How far has international HRM travelled? A systematic review of literature on multinational corporations (2000–2014). Human Resource Management Review, 29(1), pp.59-75.

Edwards, T. and Rees, C., 2017. International human resource management: globalization, national systems and multinational companies.

Elshanti, M., 2017. Transformational leadership style and organizational learning: The mediate effect of organizational culture. International Business and Management, 15(2), pp.1-14.

Hamza, P.A., Othman, B.J., Gardi, B., Sorguli, S., Aziz, H.M., Ahmed, S.A., Sabir, B.Y., Ismael, N.B., Ali, B.J. and Anwar, G., 2021. Recruitment and Selection: The Relationship between Recruitment and Selection with Organizational Performance. International Journal of Engineering, Business and Management, 5(3), pp.1-13.

Mangipudi, M.R., Prasad, K.D.V. and Vaidya, R., 2019. Employee Performance as Function of Performance Management System: An Empirical Study Information Technology Enabled Services Companies around Hyderabad. European Journal of Business and Management Research, 4(4).

Omar, K.M., 2021. Factors Motivating Human Resources Management (HRM) in the Public and Private Sectors. Open Journal of Business and Management, 9(2), pp.688-700.

Pilukienė, L., 2017. Importance of motivation and work pay of young employees in the value creation chain of a business company: assessment of changes in and formation of expectations. Business, management and education, 15(2), pp.211-226.

Rahman, S. and Singh, T., 2019. Dimensions of employee satisfaction with compensation: Scale development and validation. International Journal of Business Excellence, 19(2), pp.223-242.

Ridgway, M., 2019.Brexit: human resourcing implications. Employee Relations: The International Journal.

Ril.com. 2021.Reliance Industries – The Reliance Story. [online] Available at: <https://www.ril.com/TheRelianceStory.aspx> [Accessed 8 December 2021].

Sen, S., 2020.Digital HR Strategy: Achieving Sustainable Transformation in the Digital Age. Kogan Page Publishers.

Shaw, J.D. and Zhou, X., 2021. Explained Pay Disperson: A 20-Year Review of Human Resource Management Research and Beyond. Research in Personnel and Human Resources Management.

Shujahat, M., Akhtar, A., Nawaz, F., Wang, M. and Sumbal, M.S., 2020. Knowledge risk management in two-tier HRM structures. In Knowledge Risk Management (pp. 49-68). Springer, Cham.

Tweedie, D., Wild, D., Rhodes, C. and Martinov‐Bennie, N., 2019. How does performance management affect workers? Beyond human resource management and its critique. International Journal of Management Reviews, 21(1), pp.76-96.

Wood, G., Cooke, F.L., Demirbag, M. and Kwong, C., 2018. International Journal of Human Resource Management (IJHRM) Special Issue on: International human resource management in contexts of high uncertainties.

Appendix-1

BMG935 CRN 13605 - International HRM