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2.0 HRM structures, cultures and processes in global and domestic contexts.
2.0 Investigate the importance of HR practices to the business strategy of Apple.
Human resource management is the strategic approach to the effective management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer’s strategic objectives. This report is based on the HRM practice in Apple Inc. Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Four technology companies, alongside Amazon, Google, and Microsoft.
2.0 HRM models/theories in international perspective
Host country environment and its impact on IHRM: Employment in MNC subsidiaries takes on diverse forms in different societies. These differences reflect, in part, the inter-related social and institutional features of a host country including Labour market regulations; Industrial relations systems; Production systems; Education, training and careers; Social stratification; Welfare systems; and Household, family and gender systems. Host country conditions that affect an MNC’s IHRM practices are a) socio-economic conditions (labour market conditions and general business climate); b) Institutions (legal rules, formal and informal rules set by employers with or without unions); c) Norms (reflecting cultural and social traditions and routines). Some IHRM practices are more sensitive to host country influence than others (Reilly, and Williams, 2012).
Variables of global HRM vs. local HRM: Usually the principal activities of HRM are selecting staff and recruiting them, making staffing strategies and staffing, arranging training sessions, making many incentive and reward plans to motivate the workers, management of the performance etc. (Mullins, 2015). Nevertheless, on the prospect of the international market, HRM needs to cover a broader field which involves the interest of host authority, re-allotment and adjustment, taxation, service of executive and language translation (Torrington et al., 2014). The reason behind covering these areas is these affairs vary from nation to nation. For example, India’s taxation system is different from UK, a developed country. Bratton and Gold (2014) stated that international HRM concentration is mainly on visa affairs, cultural diversity and public benefit and interests. Gunningle and Morley (2016) suggested that global HRM’s focus lies on economic variations, political affairs, social and cultural affairs, legal affairs and ethical issues of different nations.
On the other hand, regional HRM do have to give that importance to these issues of their own nation. Thomson (2015) stated that regional HRM encounters fewer challenges than international HRM as international HRM have to deal with various issues like cultural issues, political issues, issues related to traveling and re-allotment, issues related to damage of the business and status loss in the different countries etc. Domestic HRM does not need to be concerned about these factors. International HRM also needs to encounters trouble from international terrorism, political uncertainty and global environmental affairs which regional HRM does not need to worry about. This means according to PESTLE analysis, the external environment impacts the international HRM activities more than the local HRM performances. For an example, international companies face more labor costs in the UK than in India, a developing country. To distinguish global HRM from local HRM David et al. (2014) determined five variables. They are given below in the form of a diagram:
The five variables determined by David et al. (2014) are attitudes of management, complexities and challenges in the international markets, cultural affairs, dependency of international companies’ domestic companies, and the type of industry where the business operates. According to Boxall et al. (2014), the key reason for the difference among the international and regional HRM is the worker of local HRM are the people of own nationality of the host company. However, in the international HRM workers of many ethnicity, cultures, language, religion and different nationalities work together. Mullins (2015) noted that the performance level of HRM of different nations also varies. The reason behind this is the organizational cultures and HR role and competency, selecting staffs and recruiting them, making of staffing strategies and staffing, arranging training sessions, making many incentives and reward plan to motivate the workers, management of the performance etc. varies from country to country.
There are different points of view on the impact of culture on management. There is a need in Coca-Cola for an analytical method for understanding IHRM situations involving culture. It involves studies including comparative management, cross-cultural management, international management and cross-cultural psychology of organizational behavior. IHRM in Coca-Cola is intrinsically international and multi-cultural, contributing to making culture a frequent component of issues managers deal with in their work Differences can often be identified in Coca-Cola between cultures and between local contexts in a) The values people have and consider fundamental; b) How people experience and interpret behaviors and events; and c) Extent of influence of powerful individuals and groups (Harzing and Pinnington, 2015).
Morgan’s IHRM model: Wetfeet (2013) stated that international HRM also differs from the domestic market depending on the kind of industry. For example, Companies like Apple or Coca-Cola are more specialists in handling HRM than the domestic small companies as they have to deal with larger staff numbers who come from different backgrounds. On the other hand, the regional companies deal with a small number of local staff who almost share the same background. Following the statement of Morgan (1986) cited in Mullins (2015), there are three issues that only international HRM encounters but domestic HRM do not face. They are staff types, HRM performance, and country’s operation……..