International Human Resource Management: Critical Evaluation

This report examines cultural and institutional factors of Mexico and how they can impact global HR management and practices. Specifically, by analyzing Mexican culture based on Hofstede’s dimensions, economy, labor legislation, union and employment tradition we reached the conclusion that the features of Mexican culture (high power distance, strong collectivism, high level of masculinity and uncertainty avoidance) and institutional factors have a strong impact on management styles and HR practices of business in Mexico and may arouse some challenges for global company and their expatriates, especially those from countries that bear different cultural features and institutional conditions. In order to minimize the potential conflict between Mexican local employees and expatriates, parent companies need to provide trainings (culture assimilation, country condition, etc.) before sending anybody to Mexico. Also, whether the expatriates should put more effort to disseminate home country (headquarter) culture or to adjust to local culture depends on the company’s strategy in terms of being localized or standardized around the globe.

It is hypothesized that cultural differences in behaviour will mean differences in HRM practices within different cultures but those within the same cultural cluster will be similar whereas those in different clusters will be dissimilar. Employees and managers from different cultures take decisions in different ways – the processes, behaviours and values are not the same. People have different value orientations as a result of individual psychology, life-stage and generation and assumptions about behaviour determined by cultures are linked to a variety of organisational behaviours.

The HRM policy of a firm is looked as a most important strength which needs to be taken care of all the time to have a competitive advantage within the industry they operating in. Multinational corporations (MNCs) seek to transfer their home-country human resource management (HRM) practices to their overseas subsidiary as to them it is just another approach towards globalisation. It can be an element of success for MNCs if they manage to transfer these HRM practices across their subsidiaries in an effective manner. An effective transition of these policies depends on the organisational, cultural, social and relational factors (Bartlett & Ghoshal 1998; Evans, Pucik & Barsoux 2002; Poedenphant 2002). The transition of these policies

Bradley-Geist. When asked where she finds topics she made a list of different ways she looks: topics evolves over time, lots of reading to find trends or topics, watches different news stations, pays attention to different work situations that has found interesting, and talking with friends and coworkers (Bradley-Geist, 2015). This allows for topics to spawn from different areas, this provides confidence to search the world for topics and not putting strict restrictions on where to look for topics. After examining the title, the contents of “Recent developments and emerging challenges in international human resource management” the sense of exigence in IHRM is obvious. The word challenges indicates there are problems in the IHRM that are with out solutions. There are many current hot topics and gaps in IHRM in this special edition “Recent developments” they address many of them: role of institutional and cultural differences, national cultural differences in cross-border activities, cross-culture diversity management, expatriate adjustment and performance, and cultural differences between regions within

They need to build integration among HR practices and strategies of its auxiliary firms in distinctive region with a specific end goal to accomplish general organizational targets. Then again, these associations additionally guarantee a critical level of adaptability in their IHRM procedure on the grounds that representatives from distinctive nations are sponsored by diverse cultures and social qualities. Adaptability impacts the workers' execution. Due to the strengths of globalization and the associations' interest to create and implement a worldwide methodology, International Human Resource Management (IHRM) is turning into an essential to accomplishment of the organizational. The essential distinction between domestic and global human resource administration is the knowledge and obligations

In the context of International HR (IHR), managers take on the same responsibilities as their local based colleagues but the area of activity and difficulty of these duties is based on the extent of internationalisation of the organisation. As they move towards a more global economy, organisations are supposed to revise their HR strategies. From one country to another, for example, external factors (e.g. politics) or internal factors (e.g. practice) would be vastly different. As a result of this, normal decisions can be really complex in an organisation operating around the world in multiple countries, particularly since for international organisations,

Human resource management functions in multinational companies are incredibly complicated by the need to adapt policies and procedures related to personnel, to differences between the countries, which is one of the branches. In particular, the countries cultural differences, differences in economic development and legal systems may require an international company adaptation programs of hiring, firing, training and remuneration for

Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,

[3] Bartlett and Ghoshal (1989, p. 71) advocate mechanisms to build transnational human resource management (THRM), "[A] fundamental prerequisite for the normative integration a transnational seeks is a sophisticated HRM system. The transnational uses systems of recruitment, training and development and career path management to help individuals to cope with its diversity and complexity". Accordingly, they argue that the role of THRM policies and

Increased business globalization, emergence of new economic hubs like BRIC countries (Brazil, Russia, India and China) as well as more intense competition among organizations at the domestic and international level alike over the past two decades, have necessitated the need for studies in the comparative Human Resource Management (HRM) (Budhwar & Sparrow, 2002a). As a result, a growing number of conceptual (Aycan, 2005; Edwards & Kuruvilla, 2005) and empirical studies (Bae, Chen, & Lawler, 1998; Budhwar & Sparrow, 2002b; Easterby-Smith, Malina, & Yuan, 1995) have addressed the configuration of HRM in different

Dennis R. B., & Randall S. S. & Lisbeth C. (2009). International Human Resource Management: Policies and Practices for Multinational Enterprises, Third Edition. Routledge, Taylor & Francis Group Ltd. ISBN 0203866967

Another survey of 3011 organisations that had more than 200 employees was done in 11 countries using the Cranet Questionnaire. The cultural practices were measured by collecting data from middle managers response to the questionnaire such as common behaviours, institutional practices, proscriptions, and prescriptions in a 7-point scale, where ‘1’ indicates strong disagreement and ‘7’ indicates strong agreement. From this survey, the authors summarized the enabling and disabling factors of cultural practices in HRM which is devolution; workforce diversity; strategic orientation of HRM and

At a political and economic level, globalization is the process of denationalization of markets, politics and legal systems i.e. the use of the so-called global economy. Globalization refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity (village markets, urban industries, or financial centres). It means that world trade and financial markets are becoming more integrated. Growing internationalization of business has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles, work ethics etc. HR managers have a challenge to deal with more functions, more heterogeneous functions and more involvement in employee’s personal life.

Borders are no longer restrictive and companies are not constrained by the physical boundaries of the countries where they are located. Many companies would stretch across borders and choose to build innovative and competitive global workforces. With the increase of global and interconnected work environment, the connectivity among workers across the world will increase. This will increase the personal, organizational and economic links among workers globally. As business will lose a “typical” worker identity, the new persona of the global workforce will offer new challenges for HR managers to understand the underlying drivers and to adapt to the needs of diverse workforce in terms of age, gender, religion and ethnicity. The ability of HR managers in managing the new demographic profile of that workforce will impact the business a

National companies do not become global companies immediately. Involvement in international HRM depends greatly on a company 's phase of globalization. Import-export firms. Firms in the first phase of globalization simply move products across national boundaries. The firm does not employ people in other countries, except a few managers responsible for negotiating business agreements. These agreements usually involve buying or selling complete products or services. Import-export firms need to understand their trading partners ' cultures and usually must overcome communication barriers to negotiate agreements. Negotiations are usually done by expatriate representatives, but expatriates are not employed as extensively by import-export firms as by multinational enterprises. HR policies and practices remain relatively unchanged from the company 's traditional home-base practices. (HR Magazine,06-01-1995)