Assignment on International Human Resource Management (GC01887)
Table of Contents
Task 2: Individual Report
1.0Â Â Â Â Â Â Introduction.
2.0Â Â Â Â Â Â International perspective of HRM.
Morgan’s IHRM model
VRIO.
Ulrich model
Impact of Host country environment on IHRM.
Variables of global HRM vs. local HRM..
Culture.
3.0Â Â Â Â Â Â Investigate the importance of HR practices to the business strategy of Wal-Mart
3.1 Effective Job analysis and job design.
3.2 Effective Recruitment and selection of retail employees.
3.3 Providing effective Training and development:
3.4 Easy Performance Management:
3.5 Setting fair Compensation and Benefits.
3.6 Helps in achieving organizational goals.
4.0 Conclusion.
Task 3: Reflective Essay.
1.0Â Â Â Â Â Â Introduction.
2.0Â Â Â Â Â Â Investigate how career development and career management works within Wal-Mart Inc.
2.1 Model of career systems.
2.2 Career management practices in Wal-Mart Inc. 12
3.0 Performance management in Wal-Mart Inc.
3.1 Concept performance management
3.2 Theoretical bases of performance management
3.3 Performance Management System.
3.4 Stages in a performance management system.
3.5 Performance management in Walmart
4.0 Conclusion.
References.
References.
Task 2: Individual Report
1.0Â Â Â Introduction
Harris (2014) stated that HR practices indicate the practices of the human resources by which they can improve their skills, experiences and another performance level. Special training and motivational system are needed to ensure the quality of Human resources. Harzing and Pinnington (2015) stated that international HR management is a concept related to the performance improvement system of personnel in the international area. This paper concentrates on the importance of HR practice for a multinational company named Wal-Mart. Wal-Mart (a global retail shop). At present, Wal-Mart has 11,503 shops in 27 countries but with 55 different names in United States, Canada, Mexico, UK, Japan and India (Wal-Mart, 2020). The amount of revenue is US$514.405 billion with 2.2 million employees. Since Walmart is an international company, it requires managing human resources internationally. This paper analyses the international perspective of HRM and then the importance of HR practice to support the business strategy of Wal-Mart.
2.0Â Â Â International perspective of HRM
Morgan’s IHRM model
Huselid (2015) noted that international HRM and local HRM have key differences due to their operational process and nature of the industry. The nature of an international firm and a local firm is not similar. The process of IHRM can be understood by a model developed by Morgan. This is summarized below:
The figure represents that the local companies are concentrated with the functions of procurements, allocation, and utilizations whereas international companies like Wal-Mart engage and manage the international and host countries factors.
VRIO
VRIO stands for value, rarity, inimitability, and organization. The value indicates that Wal-Mart’s HRM should assist in creating value. Rarity indicates that Wal-Mart’s HRM should assist in developing as well as removing rare skills of personnel. Inimitability indicates Wal-Mart’s HRM should assist in developing rare skills that are absent to competitors. The organization indicates that Wal-Mart’s HRM should assist in organizing the HR effectively to meet organizational objectives (Torrington et al., 2015).
Ulrich model
Ulrich developed a model of HR that represents the contribution of HR in the following responsibilities (Reilly and Williams, 2012). Firstly, the HR managers of Wal-Mart act as strategic partners of the organization. Then the HR managers of Wal-Mart act as administrative experts to manage administrative functions. Then they act as an employee champion to manage employees and they also perform as an agent of the Wal-Mart to perform the overall functions.
Impact of Host country environment on IHRM
Reilly and Williams (2012) stated that the structure of HRM depends on the environment of the host country because the environmental factors have a direct impact on HR practice and management. The multinational corporation has different countries employees who have come from several societies and cultures. Therefore, the main structure of HRM should be based on the host countries’ environmental factors including Laws of Labour rights protection, industrial relations, production method, level of education, training and careers; Social condition, family system, and gender systems (Reilly, and Williams, 2012).
Variables of global HRM vs. local HRM
The main functions of human resource management include staffing functions through a better selection system, training for fresher employees, rewarding through fair and reasonable salary and providing promotion facilities for better performance (Advaitha, 2016). But in the case of the international market, HRM needs to manage an important factor that is a cross-border problem. The HR manager considers the demand of host authority, re-recruitment, taxation policy, language factor and corporate culture (Torrington et al., 2014). This happens due to dissimilarities from nation to nation. For example, the corporate culture of one country is different from another country like between Bangladesh and UK. In addition, international HRM has been connected to visa factors, cultural differences, host country’s demand and rules and regulations.
According to Huselid (2015), IHRM functions depend on economic considerations, political factors, social issues, cultural issues, along legal as well as ethical considerations of several countries. But these issues are less concentrated with the local HRM. In the case of local HRM, the HR managers only consider the local environment factors like cultural, political, and economic considerations. Domestic HRM is less risky than International HRM because IHRM faces several difficulties due to international terrorism, unstable situation of political as well as global uncertainties (Advaitha, 2016). Domestic HRM is easy to manage because it faces fewer problems than the IHRM. The PESTLE analysis focuses that international HRM functions are more concerned with external issues than local HRM. The differences between domestic HRM and IHRM are shown in the below diagram:
The differences between domestic HRM and IHRM can be summarized on the basis of 5 points including management attitude, complexities & challenges, cultural factors, the reliance of international firms on local farms, and the nature of the industry. Reilly and Williams (2012) mentioned the main dissimilarity between IHRM and Domestic HRM is that the employees are coming to the same nationality and the same language in Domestic HRM whereas IHRM employees have different cultures, languages, religions and nationalities. Â Since Wal-Mart is an international company, the HR managers of Wal-Mart must have the knowledge to understand the concept of Domestic HRM and international HRM to manage the variables successively.
Culture
Cultural issues have an effect on human resource management. In the case of international human resource management, employees are working together from different cultures, languages, religions and nationalities. Harzing and Pinnington (2015) mentioned that the HR managers of MNC need to consider several cultural factors like cross-cultural issues and cross-cultural psychology. Since Wal-Mart is an international company, the HR managers of Wal-Mart must have the knowledge to understand the cultural issues concerned with international human resource management. It includes the basic values of people, skills education level and experience of people, quality of thinking and explaining the events, quality of dominant individuals and teams……………….
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