International HRM Assignment Sample

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Introduction - international human resource management

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The strategic method of managing human resources in a worldwide setting is known as international human resource management (IHRM). In order to accomplish organisational goals globally, it entails the management of people in multinational organisations while tackling complications including cross-cultural communication, workforce diversity on a global scale, and global legal and regulatory disparities(Opatha, 2021).

Within a single national border, human resource management (HRM) focuses on managing domestic personnel while navigating well-known legal, cultural, and regulatory frameworks. IHRM, on the other hand, entails managing a varied global workforce while taking into account extra difficulties related to cultural diversity, global regulations, and the difficulties of conducting business across borders(Raletic-Jotanovic et al., 2015).

IHRM is essential in the present environment of globalisation and international commerce because it makes it possible to manage different global workforces effectively, allowing firms to traverse cultural subtleties, follow laws abroad, and gain competitive advantages. It promotes collaboration and adaptation, improving the organization's capacity for change and responsiveness to the needs of the global market (Lina, 2018).

  1. Coca-Cola's culturally tailored HR policies in various countries.
  2. Google's diverse workforce management strategies across its international offices.

Chosen Company

Tesco is a British international retailer with its headquarters in Welwyn Garden City, England. Jack Cohen started Tesco in 1919. It began as a market stall but has now grown to become one of the biggest retailers in the world, operating in 12 countries and employing more than 440,000 people worldwide. Tesco sells a large variety of goods through several shop types, including supermarkets, hypermarkets, and convenience stores, including food, apparel, and gadgets. Tesco has positioned itself as a pioneer in the retail sector, emphasising customer-centric methods and environmental efforts. It is well known for its innovative retail practises and strong internet presence (Tesco Plc Company Profile - Overview, 2023.).

Mission: To meet the demands of consumers by delivering premium goods at competitive costs and a strong emphasis on first-rate customer support.

Vision: Being the most highly regarded company by:

  • The clients they look after.
  • The areas where they are active.
  • The personnel they have (Tesco Plc Company Profile - Overview, 2023.).

Current IHRM practices adopted by the company

  1. Diversity and Inclusion Initiatives: Initiatives for diversity and inclusion include putting policies into place to guarantee that their global workforce is diverse and inclusive and encouraging a climate of respect and fair opportunity for workers from all backgrounds and demographic groups.
  2. Cross-Cultural Training: Providing cross-national personnel with training programmes that emphasise cross-cultural communication, sensitivity, and awareness in order to promote efficient teamwork and understanding among the heterogeneous workforce (Arora, 2016).
  3. Global Talent Management: Implementing talent management tactics to find, nurture, and keep top talent internationally, global talent management ensures that the appropriate people are in the right positions to support the company's international expansion and success.
  4. International Compensation and Benefits: Designing competitive compensation packages and benefits suited to the unique demands of employees in various nations, taking into account aspects including local economic conditions, cost of living, and legal requirements to attract and retain skilled employees worldwide.
  5. International Labour Law Compliance: Ensuring compliance with international labour laws and regulations in all of the nations where Tesco conducts business, demonstrating a dedication to moral and accountable business practises on a worldwide scale (Tesco PLC,” 2019).

Shortcomings of the current IHRM policies

  1. Cross-cultural communication challenges include those brought on by misconceptions and misinterpretations resulting from cultural differences, which might result in inefficiencies and communication breakdowns among the global workforce.
  2. Complex legal compliance: Difficulties guaranteeing complete compliance with the varied and changing international labour laws and regulations in the several nations of business, which might pose legal risks and difficulties.
  3. Compensation disparities: Potential differences in pay and benefits across areas that might cause inequality and employee unhappiness, which would negatively impact morale and overall organisational effectiveness.
  4. Talent Retention Issues: Problems with maintaining top personnel internationally, which might result in a talent drain and higher recruitment expenses, make it difficult for the business to keep a professional and experienced team (Mahmood & Nurul Absar, 2015).

3 Most Important IHRM Practices

Here are the explanations of the three most important International Human Resource Management (IHRM) practices for Tesco:

  1. Diversity and Inclusion Initiatives:

Definition: Organisational efforts to develop a workforce that includes people from all origins, cultures, and demographics in order to ensure that all workers feel appreciated and respected.

Features/Factors:

  • Encourages an environment of respect and equality inside the company.
  • Promotes innovation and creativity by promoting the fusion of various viewpoints and ideas.
  • Increases the company's standing as a diverse and ethical employer.

Relevance to Tesco:

  • Contributes to creating a varied staff that mirrors Tesco's multiracial client base, improving customer happiness and understanding.
  • Increases employee morale and productivity by fostering a diverse workplace where people feel appreciated.
  • Enhances the company's brand image and strengthens its reputation as a moral and ethical business, recruiting top personnel (Aldamoe et al., 2012).
  1. Cross-Cultural Training Programs:

Definition: Programs for cross-cultural training are created to provide staff members with the knowledge and skills they need to function well in a variety of cultural contexts, facilitating cross-cultural communication and cooperation.

Features/Factors:

  • Emphasizes cultural sensitivity and awareness to prevent miscommunications and disputes.
  • Aims to enhance successful administration of varied multinational teams by developing global leadership qualities.

Relevance to Tesco:

  • Minimizes tensions and misunderstandings by enabling good communication and understanding amongst personnel with diverse cultural backgrounds.
  • Improves operational efficiency and performance by enabling more seamless coordination and communication amongst foreign teams (Aslam et al., 2014).
  1. Global Talent Management:

Definition: The deliberate sourcing, nurturing, and retention of exceptional people across national boundaries comprise global talent management.

Features/Factors:

  • Focuses on discovering and developing the talents and competences of high-potential personnel.
  • Emphasizes career development and succession planning to guarantee a stream of qualified executives for future positions.

Importance to Tesco:

  • Enables Tesco to find and develop qualified workers throughout the world, guaranteeing a robust talent pool to support the company's development and worldwide expansion.
  • Enables efficient succession planning, allowing a seamless change in leadership and continuity in crucial positions across many areas (Arbab & Abaker, 2018).

Critical evaluation of each practice

Diversity and Inclusion Initiatives:

Advantages:

  • The Inclusive Workplace Model contends that diversity encourages innovation and creativity, which improves problem-solving and decision-making.
  • Increases productivity and morale among employees.
  • Promotes a variety of viewpoints, which is advantageous for improving consumer comprehension and market reach.

Disadvantages:

  • The Social Categorization Theory emphasis’s the possibility of in-group prejudices and disputes in heterogeneous teams, which can affect team cohesiveness and productivity.
  • Handling cultural differences and establishing clear communication are difficult.

Effects on Tesco

  • Increased customer satisfaction as a result of greater comprehension of various client demands.
  • Improved employer branding and a favorable corporate reputation.
  • Increased innovation, creativity, and consumer involvement in product offers.

Cross-Cultural Training Programs:

Advantages:

  • The Cultural Intelligence (CQ) Model places a strong emphasis on the value of cultural knowledge, motivation, and strategy to enhance cross-cultural relationships.
  • Reduces misunderstandings and disputes by increasing cultural sensitivity and awareness.
  • increases the ability of leaders to manage diverse teams in a global context.

Disadvantages:

  • The Acculturation Model contends that lengthy cross-cultural training may cause employees to lose touch with their own cultural norms and values.
  • It takes a lot of time and money to plan and conduct in-depth cross-cultural training programs.
  • Assessing the direct effects of cross-cultural training on worker performance and company results is challenging.

Effects on Tesco

  • Enhanced multinational team communication and cooperation, which results in more efficient global operations.
  • Reduced cultural tensions and enhanced communication, which led to higher production and efficiency.
  • Improved staff retention and satisfaction

Global Talent Management:

Advantages:

  • Theoretical Perspective: To maintain a competitive edge, the Talent Management Framework emphasis’s the strategic identification and development of high-potential people.
  • Ensures a robust personnel pipeline for next leadership roles, fostering organizational stability and expansion.
  • Increases employee enthusiasm and engagement, which increases retention rates.

Disadvantages:

  • The individuals Shortage Theory emphasis’s the difficulties businesses experience in finding and keeping qualified individuals internationally, which results in increasing competition and higher hiring costs.
  • Possibility of internal disputes and rivalry among staff members for career progression chances.
  • Risk of failing to consider the growth of mid-level workers, which might result in skill gaps and decreased operational effectiveness.

Effects on Tesco

  • A large talent pool to help the business grow and expand internationally.
  • Smooth leadership changes, maintaining continuity in important jobs

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