Table of Contents
2.0 International perspective of HRM.
Host country environment and its impact on IHRM.
Variable of global HRM vs. local HRM.
Morgan’s IHRM model
3.0 Investigate the importance of HR practices to the business strategy of Sainsbury.
3.1 Cross-cultural management
3.2 International recruitment and selection.
3.3 Broader perspective.
3.4 More involvement in mployees’ life.
3.5 Effects of Expatriates and Local Workforce Mix.
3.6 Risk exposure.
3.7 Broader External Influences.
In the United Kingdom, Sainsbury’s is the 2nd biggest retailer in the grocery sector. In every supermarket sector, Sainsbury’s has a whopping 16.0% share. It is known as the first self-service retailer, and its headquarter is in London, UK. Sainsbury’s first shop was in Drury Lane in 1919. The establisher of Sainsbury’s is John James Sainsbury’s and it was established in 1869, Holborn (Sainsbury’s 2020). But in 1995, Sainsbury’s was demoted to the third-place because Tesco and Asda took the first and second place in international business. Sainsbury’s again took 2nd place in 2014 but in 2019 Sainsbury’s was demoted to their position in third place again. From then they understood that if they can improve their human resource management department, their staff may have proper management. For 20 years, the director of Sainsbury’s is the same person. His position in the firm has been changed in many ways but not his point of view. The SMT (senior management team) of the company has decided that the company will firstly give attention to the HRM department. They contacted outsiders because they think an outsider of the firm can present unique and creative HRM ideas in the organization.
2.0 International perspective of HRM
Host country environment and its impact on IHRM
There are many countries that are hosting the IHRM environment and it impacts international business. According to Reilly and Williams (2012), the host countries have different conditions which affected MNC’s HRM. These are norms, institutions, socio-economic conditions, etc.
Variable of global HRM vs. local HRM
There are a lot of variables between global and local HRM. International HRM mainly focuses on cultural diversity, public interest and visa affairs (Bratton and Gold, 2014). Also, it concentrates on the political, social, cultural affairs of different nations. (Gunningle, 2016). On the other hand, local HRM has to focus on its own nation (Thomson, 2015). Local HRM has less completion than global HRM. International HRM has to manage many kinds of international issues whereas the local HRM needs not worry about these things.
There are different types of cultural management in IHRM. It has many issues between cultures and local contexts. This is how people interact and experience events, the values that people have etc (Harzing and Pinnington, 2015).
Morgan’s IHRM model
In the diagram, we can see that above the principal, the companies have procured, allocate and utilize. International companies should be focus on this diagram and strategic to HRM process (Mullins, 2015).
VRIO’s full meaning is value, rarity, inimitability and organization. According to Torrington et al. (2015), this VRIO is very important for every international company because it can bring the success to the company.
Reilly and Williams (2012) stated how important the Ulrich model is for HRM because it shows that HR can be the best contributor to business performance. Ulrich (1996) has many rules. Two of these are given below:
Administrative expert: managing the infrastructure, re-engineering processes and shared services in Coca-Cola
Change agent: managing the transformation or change in Coca-Cola
3.0Investigate the importance of HR practices to the business strategy of Sainsbury
3.1 Cross-cultural management
For Sainsbury’s, the cross-culture management must be analyzed so that the connections and selections can be made properly. This management is cross-cultural for Sainsbury’s business (Dave, 1996). Cross-cultural management has great impacts from one culture to another culture. Every international company and firm should take cross-cultural management (Hall, 2015). According to Kelly (20113), there are many differences between the home country and the host country but the cultural rivalry and issues can be overcome.
3.2 International recruitment and selection
The international recruitment and selection of Sainsbury’s can lead to success or failure in the organization. Lawrence (2014) stated that centralized and decentralized recruitment needs to be chosen by the organization. The workers’ strategies for the firm need to be chosen by Sainsbury’s in the host country (Selmer, 2015).
3.3 Broader perspective
According to Dash (2008), the HR manager needs to have a broader perspective of all the HR activities. The broader perspective ensures equity of treatment for various groups.3.4 More involvement in employees’ life
Involvement with employees’ life is very essential for business organizations. The involvement of workers’ family members is very limited. This is unsatisfying for the workers. So, IHRM must involve housing, children’s education, spouse employment and family healthcare for expatriates, local staff and so on.
3.5 Effects of Expatriates and Local Workforce Mix
The local workforce mix is another compulsory part of IHRM. According to Alrawi (2018), HR managers must manage the problems of legal, political, cultural, economic differences. Also, they have to concentrate on many HR activities.
3.6 Risk exposure
Exile failure is another big problem in Sainsbury’s. The cost like journey, training, salary, relocation can be higher for changeable foreign exchange rates. The cost which is not direct like the loss of share market, reputation damage, etcisa great risk in a business organization. Also, political instability and terrorism are very risky for a business environment. HR department considers the political and ethical issues when the international meeting happens.
3.7 Broader External Influences
External matters in business also influenceHRM activities. Malaysia’s human resource management can be a great example. Dowling, et al. (2018) stated that Malaysian HR managers give the workers all kinds of rights and motivate them by many external activates. They try to increase workers’ skills and develop their performances. Another essential factor of the HR department is the state economy, which means the nation’s economy. Also, it can be the local, regional or global economy. HR managers also need to be concerned about the international environment because the international environment is very useful for every business organization. They have to be very careful for local businesses because in local businesses there is no security and also it can be a problem in the business environment.
In conclusion, one must say that human resource management is very crucial for Sainsbury’s business environment. Proper human resource management practice is required because proper management can be successful in a business environment. Human resource management has several responsibilities like the betterment of role and performance in business, improving the workers’ skills, motivating the workers and so on. This report describes various types of human resource practices like reward management, training and development, work-life balance and so on. Lastly, Sainsbury’s human resource management discusses employees’ relationships with everyone.