Table of Contents
2.0 International perspective.
3.0 China and Sweden’s cultural issues.
4.0 Intuitional and cultural context
4.0 HRM functions at IKEA.
4.1 Recruitment and selection.
4.2 Learning and Development
4.4 Performance and Rewards.
5.1 Recommendation 1.
5.2 Recommendation 2.
5.3 Recommendation 3.
6.0 Action plan.
Human Resource Management is a significant issue for gaining organizational goals, most importantly for the businesses that are operating in the global market. Thus, it is essential for organizations to integrate the human resource management strategies within the business operation effectively to ensure better performance and productivity of people. This report focuses on several issues related to internal and comparative human resource management focusing on the case study of IKEA, which is a leading furniture company operating in the global market. In the first section, the international perspective of HRM is outlined. Then, the cultural issues between China and Sweden are discussed. Next, the institutional and cultural context of human resource management is evaluated. Then, several issues including recruitment and selection, learning and development, diversity, performance, and rewards are discussed. Finally, this report provides recommendations for IKEA on how it can improve its HRM in the global market and provides an action plan to implement the recommendation provided.
2.0 International perspective
As Torrington et al. (2013) note, global Human Resource Management concentrates on host government relations, taxation, language translation services, administrative services, relocation, and orientation that are not important in familial Human Resource Management. Most significantly, according to Briton and Gold (2012), the system of taxation varies from city to city. Such as, the system of taxation in the United Kingdom is rather diverse from improving countries such as Bangladesh. According to Gunnigle and Morley (2016), global HRM concentrates on host-government relations, visa and immigration issues, and public advantages which are fewer needed in domestic Human Resource Management. According to Weightman (2011), internal Human Resource Management wants to concentrate on an extensive outlook of the diversity of culture than domestic Human Resource Management.
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As Britton and Gold (2016) say that global Human Resource Management must provide more deliberation on staff individual lifestyles and better recompense plans, for example, health and safety issues, housing and benefits, recreational programmers, communication and transformation, child benefits and children education, health insurance, spouse insurance, etc. According to Thomson (2012), global Human Resource Management observes more difficulty from its staff than employees worked in domestic companies. Additionally, the international Human Resource Management observes more cultural, political, ethical, and legal, economic challenges, and racial than the domestic Human Resource Management. According to Mullins and Laurie (2014), global Human Resource Management contains 3 times more straight prices in wages and salaries, traveling, relocations, and training in contrast to domestic Human Resource Management.
Additionally, the indirect prices connected to status losses and damages of business are also advanced in internal Human Resource Management than in domestic Human Resource Management. Global Human Resource Management also observes a more active environment of business, unstable situations of politics, global terrorism than domestic Human Resource Management. According to Britton and Gold (2013), global Human Resource Management is more affected by external powers such as instability of politics than domestic Human Resource Management. Dowling et al. (2014) said the cost of labor is higher in global Human Resource Management than domestic Human Resource Management. Such as, in improving countries such as India, China is less than improved countries such as the UK and UK. Dowling et al. (2014) explained 5 variables that vary from global Human Resource Management to domestic Human Resource Management which are given in the diagram below:
Diagram: Five variables that differ international HRM from domestic HRM Source: Dowling (2014)
The above diagram explains five main aspects that vary the global Human Resource Management from domestic Human Resource Management. These aspects are several environments of culture, types of industry, the dependence of International Business in the domestic market, senior management attitudes, and difficulty in international business (Dowling, 2014).
In terms of the international market, HR performances vary from domestic businesses significantly. The main cause is domestic Human Resource Management observes staffs arrive from the personal nations, while the international Human Resource Management agrees with employees come from different educationally and cultural backgrounds (Boxall, et al., 2015). Additionally, the performances of HRM in international and domestic business differ from country to country established business structure and culture, Human Resource roles competencies, and roles. The organizational performances of HRM differ from the global market to domestic business. According to Claus (2013), the International Human Resource Management from domestic Human Resource Management by the interconnection of cultural and social factors in the market.
According to Bratton and Gold (2013), to find out distinctions among domestic and global Human Resource Management in the method of selection and recruitment, rewards system, designing performance appraisals, contracting to the staff, designing pay structures. Such as, more part-time employees are employed in difficult nations containing the United Kingdom in contrast to improving countries like Bangladesh. Additionally, the cost of labor is high in the United Kingdom in contrast to an improving country such as Bangladesh. Further, in improving states like Bangladesh the immense popular quantity of people go to Bangladeshi civilization, but in improving countries like the United Kingdom people arrive from unite cultural backgrounds…………….