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International Human Resource Management

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Role of International Human Resource Management in Marketplace

714 Downloads I Published: 28 Feb ,2019

Introduction

International human resource management (IHRM) basically focuses on covering the large or wider aspect of the human resource management function. It basically focuses on managing the challenges faced by the manpower in the international marketplace. Along with this, IHRM also manages the certain external factors related with rules and regulations of the government of foreign country (Hendry, 2012). The present report basically focuses on measuring the different culture among the different nations that is JAPAN TOKYO and AUSTRALIA with the help of using hofstede cultural model. Along with this, it also focuses on the gaining insight knowledge regarding the IHRM challenges that is faced within the region.

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Contrasting Hofstede culture

In order to manage the international human resource management Hofstede cultural dimension must be applicable within the organization. With the help of using this framework it focuses on describing different cultural and values existing within the society. Along with this it would also focuses on influencing the activities and behavior with the change in different cultural values (Harzing and Pinnington, 2010). The theory is widely used in the different field such as international management, cross cultural communication etc. there are different dimensions of national cultures that mainly include Power distance index, Individualism vs. Collectivism, Uncertainty avoidance index, Masculinity vs. Femininity, Long term orientation vs. Short term orientation and the last dimension is Indulgence vs. restraint. All the dimensions are contrasting with each other that is the foremost dimension is power distance index that clearly showcase the high power and low power. The high power indicates that there is clear hierarchy established in society (CHUANG and Liao, 2010). On the contrary to this, lower power indicates that there is less authority. Another dimension is Individualism vs. Collectivism that mainly emphasis on the aspect of I vs. we. Another dimension is Uncertainty avoidance index that showcase that if society score high then it indicates that there are high level of grounded rule and regulations within the society. On the other hand, low score indicates that there is high acceptance of the differing thoughts within the society. Another include Masculinity vs. Femininity under masculinity society accept for the heroism and assertiveness (Alfes, Shantz, Truss and Soane, 2013). On the other hand, in Femininity it focuses on the feminism society that is caring view as they perceived women are more emphatic. Another dimension includes Long term orientation vs. Short term orientation under this there is low level of index that ensure traditional aspects are taken into the consideration. On the other hand, there is high level it indicates new problem solving method is used.

Contrasting Hofstede culture among different countries that is JAPAN TOKYO and AUSTRALIA

This cultural theory mainly focuses on measuring the different culture values of two nations that are distinct from each other that is JAPAN (TOKYO) AND AUSTRALIA. With the help of this cultural model it has been assessed that as compare to Australia Japan Tokyo has high ratio within the power distance index that clearly showcase that in Japan has more power than the other country (Wright and McMahan, 2011). On the other hand, it has been clearly indicated that Australia has high individualism that is they prefer to be alone or individual as compare we being in the group. Australia score 90 while the Japan scores 46 in the score that ensure collective society in which the individually effectively expressed their opinion and thoughts. On the contrary to this, another dimension within the model is masculinity that indicate Japan has score 95 that indicate masculinity society within the world. On the other hand, Australia scores 61 within the model that indicates less masculine society that clearly indicates working in the group as compare to the individual (Lengnick-Hall, Beck and Lengnick-Hall, 2011). Another dimension within the model is uncertainty avoidance that is how the society would deals with assessing the culture it has been assessed that Japanese is consider as the most uncertain nation that scores 92 that is lower than the Australia. Along with this it is assessed that Japanese market has high risk of uncertainty avoidance that is consider as one of the vital reason that do not engage in any sort of change activities within the region.

Opportunities in operating in 2 different nation cultures concurrently

If the organizations operating their business in JAPAN (TOKYO) AND AUSTRALIA where culture of both the nations have different in nature then they will get various opportunities. Explanations of these benefits for the companies are as follows:

Creativity

By running the same business in varied culture nations such JAPAN (TOKYO) AND AUSTRALIA then organization able to develop creativity at the workplace. Heterogeneous culture promotes a wide pool of various viewpoints that helps in solving the numerous issues such as marketing, forecasting of demand of products, sales of the goods etc (Greenberg, 2017). This thing encourages the development of creative thought processes within the organizations. If the firms operate their businesses in JAPAN (TOKYO) AND AUSTRALIA such kinds of diverse cultures then it make the employees open minded and aware from various good and bad aspects of other cultures (Business Advantages of Diversity in the Workplace, 2017). Culture diversification of two countries change the way of thinking, behaviour and reactions of personnel towards understand other cultures. This increases the interaction and collaboration between diverse staff members who are working in various nations and belong to different culture backgrounds.

Problem-solving

It is second benefit for organizations which are operating in two different nations such as JAPAN (TOKYO) AND AUSTRALIA same time. The reason of this is diverse employees contain enough experience and perspectives to address problems in more effective manner. So, quality of problem solving can only be improved with running the business in different culture countries. It promotes critical thinking at the workplace which builds a good link between company and the culture in which it doing its business (Bélanger, 2015).

Organizational growth

Every organization has contained a natural desired to build a positive and negative impression with its actions. In this, type of culture of nation also plays an important role in this direction. If firm able to understand and learn major aspects of countries culture in which it is operating its business then possibility of organizational growth become increase. This thing minimizes the culture gap within the organizations and focus over the establishing a good image in the market place (Harzing and Pinnington, 2010).

Attract and retain talent

By running business in JAPAN (TOKYO) AND AUSTRALIA which are diverse in culture aspect, organizations able to attract and retain talent in an effective manner. This adds a competitive edge to the companies. With the nation’s culture diversity, firms increase language skills pool and its leads to help the business to compete at international level. The outcome of this, enterprises will easily attract new talents and retain them for long term (Meredith Belbin, 2011).

Help in building synergy in teams and enhance communication skills

Organizations running their business in JAPAN (TOKYO) AND AUSTRALIA avail benefit related to building synergy in diverse culture teams. This leads to enhance communications skills of the employees and they become able to understand different cultures in an appropriate manner (Guest, 2011).

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Reduced costs related to turnover and absenteeism

Operating business in diverse culture nations like in JAPAN (TOKYO) AND AUSTRALIA, organizations can easily manage diversity at the workplace by reducing costs associated with turnover and absenteeism. For example, by putting the same event at the workplace in different countries, it able to contribute in brings the reduction in turnover of employees. It saves the financial costs of the firm by improve group process (Jiang, Lepak, Hu and Baer, 2012).

Increase diverse customer bases

When the organizations are operating their businesses in more than one nation such as JAPAN (TOKYO) AND AUSTRALIA which belong to different culture then it help in increase the customer bases that are also diverse in nature. For example, marketing strategy of McDonald will be varied in JAPAN AND AUSTRALIA. The reason of this, its consumers have belonged with dissimilar culture background. In this situation, it becomes important for the company to develop altered marketing strategy that can able to attract both kinds of culture people simultaneously (Sparrow, Brewster and Chung, 2016).

Develop new processes of working

When company run its same business within the two countries which are different in terms of culture then it develops some new processes to complete the work. In today’s fast moving world, organizations cannot depend on a single thinking. They have to adopt new cultures and thinking with the time. So operating businesses in JAPAN (TOKYO) AND AUSTRALIA enables the firms to develop new procedures of performing the tasks and running the business in more effective manner (Armstrong, 2011).

1st HRM challenges

Compliance with international regulations is referred to be a foremost challenge in both chosen nations of Japan and Australia where HRM is considered to play the most strategic role in an organization. It is where they are hereby referred as a direct accountable bodythat are required to handle the appointed staff members of the organization along with dealing with their other related issues and conflicts, etc. Compliance management comes under their functionalset of responsibility into which they are required to frame certain strategic policies for the organization as a way of handling the people and their work (Bratton and Gold, 2012). This section is however in consideration to maintain and adhere by the international policies of different nation where today’s trade activities are continually extendingtheir business. It is with a need base consideration of surviving in today’s contemporary set of business that is depicting a rising state of globalization. This in turn has led to intensify the contending sense of operation in the established business organizations with a need base concern of expanding it to a larger extent.

This in turn has made a direct impact on the deputation procedure of recruitment and selection (R&S) that is mainly governed by the HRM bodies in the enterprises of both designated countries named Tokyo and Australia. This is for instance to state a factual illustration of such hiring where an Australian business is apparent to enlarge their business in Tokyo (Guest, 2011).It is with a similar consideration of Japanese companies where they are also apparent to extend their businesses in Australia as a mean of raising their profits with an expanded set of market. In context to which, deputing employees who is are nonresident to Australia and Japan, then the HR’s are hereby required to follow a through procedure of documentation. This is basically to transcribe the passport and visa of those candidates. This is basically to be well informed about the legal proceedings of the nation to fulfill the requisite clauses of business operations and alleviate the complexity. Additionally, the HR personnel’s are together required to adopt newer set of labor laws along with different taxation policies, etc., that is evident to impact upon their adopted policies of wages as well.

2nd IHRM challenges

Another vital challenge in this particular field of HRM is in context to specify a prime maintenance of a diversified workforce where the HRM personnel’s of both the countries are hereby evident to employ different set of workers from the preceding challenge. It hereby necessitates the HR personnel’s of their respective organizations to make diversified hiring of individuals who belongs from different cultural and topographical backgrounds (Mathis and Jackson, 2011). This often tends to create a disputed context among such diversified workforce where they are often not contented with one other’s distinct set of views. It is therefore depicted to be another spectacular issue in the forum of international business where a prime interpretation of varied culture is important for the HR personnel’s of the organization. It is with a fundamental sense of maintaining the diversified culture of the establishment where they can also edify their employees about the same.

Operating with individuals who belongs to different ethnic background necessitates them to adopt different work style that matches with the ongoing perception of their markets as a mean of corresponding to the some newer ideas and ways of communication. It is along with another prime measure of referring to suchunfamiliar practices that areprevailing in the newer marketplace and depicts their diversified socio- cultural norms (Jiang, Lepak, Hu and Baer, 2012). This is for instance to specify a factual illustration of hiring employees in Japan who belong to Australian ethnicity might have distinct view about the work handling procedures that are being adopted by the HR in their state. It is therefore important for the HR personnel’s of Japan to carry an open mind set about adapting newer style of work.

3rd IHRM Challenges

Another foremost challenge for HRM is in context to handle the backbone of today’s modernized business environment where they are hereby required to carry such policies of benefits and compensations that carries a plentiful outlook for the employees.This is basically to focus upon the work life balance of the employees who are belonging to diversified locations and may carry a distinct perception than the authorized officials of the organization(Ulrich, 2013).A pertinent indication of benefits and compensations is to give a developmentalscope to the employee’s where they are also required to arrange timely sessions of training and development for them.

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Conclusion

This report has illustrated a precise context of international human resource management wherein it is segregated in three vital parts. The foremost section has depicted a leading culture of global organizations named as Hofsted culture. Another section of this report has defined distinct opportunities that can be acquired by the organizations of both elected states named Japan and Australia when they can interchangeably operate in one other’s diversified structure. Lastly, it has also represented some leading challenges that are being faced by the organizations while operating with a diversified workforce of both these nations.

References

  • Alfes, K., Shantz, A.D., Truss, C. and Soane, E.C., 2013. The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model.The international journal of human resource management,24(2), pp.330-351.
  • Armstrong, M., 2011.Armstrong's handbook of strategic human resource management. Kogan Page Publishers.
  • Bratton, J. and Gold, J., 2012.Human resource management: theory and practice. Palgrave Macmillan.
  • CHUANG, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service context: Taking care of business by taking care of employees and customers.Personnel Psychology.63(1). pp.153-196.
  • Guest, D.E., 2011. Human resource management and performance: still searching for some answers.Human resource management journal,21(1), pp.3-13
  • Guest, D.E., 2011. Human resource management and performance: still searching for some answers.Human Resource Management Journal.21(1). pp.3-13.
  • Harzing, A.W. and Pinnington, A. 2010.International human resource management. Sage.
  • Hendry, C., 2012.Human resource management. Routledge.
  • Jiang, K., Lepak, D.P., Hu, J. and Baer, J.C., 2012. How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms.Academy of management Journal,55(6), pp.1264-1294
  • Lengnick-Hall, C.A., Beck, T.E. and Lengnick-Hall, M.L., 2011. Developing a capacity for organizational resilience through strategic human resource management.Human Resource Management Review,21(3), pp.243-255
  • Mathis, R.L. and Jackson, J., 2011.Human resource management: Essential perspectives. Cengage Learning.
  • Meredith Belbin, R., 2011. Management teams: Why they succeed or fail.Human Resource Management International Digest,19(3).
  • Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into strategic human resource management.Human resource management journal,21(2), pp.93-104.
  • Ulrich, D., 2013.Human resource champions: The next agenda for adding value and delivering results. Harvard Business Press.
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