Introduction to International Human Resource Management

International human resources management is defined as a branch of management

studies exploring the design and the effects of organisational human resource
implementation in cross cultural context (pelton,2006). International human resource
management is essential in dealing with multicultural speculations the way people
should be managed in different regional organisations. Organisations which manages
people in different regional contexts should be appraised of legal, cultural,
circumstances. And, should focus on cost effective management practices as well
(Brewster, Sparrow, Vernon and Houldsworth, 2011).
Domestic Human Resource management VS International Human Resources
Management.
Domestic human resources management is known as managing employees which are
involved within only one national boundary. International Human Resources
management deals with international countries in different regions in a large scale.
International human resources management differs from domestic human resources
management in several ways. International human resource management has to
manage complications operating in different countries. International human resource
management should focus on political systems, legal systems, economical aspects in
operating in different countries. Unlike domestic human resource management because
it only focuses on domestic aspects which involves with human resource management
(Raletic-Jotanovic, Ratkovic and Dasic, 2015)
Internationalization process
Internationalization process can be defined as the progressive steps taking in/ process
followed to expose an organization's business activities to the international context.
Internationalization of a business is achieved by complying to a respective procedure,
the process of internationalization can be described as the following.
Stage 01: Domestic operations
It is of vital importance to build a foundation before considering internationalization
(Mohitsh2, 2020). Therefore, capturing the domestic market's needs and wants to be
able to provide for is the first step taken towards internationalize (Mohitsh2, 2020).
Stage 02: Export Operations
Before moving into the foreign borders, the next best step is to introduce it's product to
the foreign market in the intension of familiarizing and building recognition in the market
(Mohitsh2, 2020). This can be done through exportation of products and services
(Mohitsh2, 2020). Example: Exporting goods from USA to China and Singapore to test
the sales volume in those countries.
Stage 03: Subsidiaries or Joint ventures
Forming a joint venture with a company in foreign soil is known to be one of the
strongest strategies taken in internationalization as it allows the domestic company to
utilize resources and distribution channels of the foreign company to provide for their
nation's market (Mohitsh2, 2020). Likewise, providing subsidiaries for a foreign
organization in carrying out domestic business activities will result in a similar impact
(Mohitsh2, 2020).
Stage 04: Multinational Operations
By becoming a multinational, the business may set up manufacturing facilities and
outlets in foreign soil under the originated company name, decision making panel will be
decentralized while having corporate level authority in the headquarters of the origin
country (Mohitsh2, 2020).
Stage 05: Transnational Operations
Companies at this stage are known as transnational companies as they will utilize both
domestic and international resources and responsiveness in fueling their manufacturing
process and other business activities (Mohitsh2, 2020).

There are two aspects for the transfer of International Human Resource
Management
1. Socio-cultural Aspect
China can be identified as a powerful country in the world due to its large geographical
area and the highest population in the world (Fan, 2000).
Chinese culture has core cultural values despite the differences in economic, political
and social factors in mainland China and other places which dominates Chinese culture
such as Hong Kong, Taiwan etc. These core values can be described as the factors
which gives a basic identity to Chinese people. These core values are shaped by the
four thousand years of history. According to a study conducted by Ying Fan (2000),
following factors have identified as core cultural factors in Chinese culture.
• People are governed by leaders instead of law
• Ability to bear hardships
• Honour the elderly generation
Hofstede’s Cultural Dimension for China
Ø Power Distance
According to higher rankings of PDI, power distance has a higher rate. China
believes the inequalities in the society is acceptable. Therefore, in an
organization, the relationship between subordinates and superiors are polarized
and abusive of power by superiors is tolerated in Chinese society. In contrast,
employees tend to not have determinations to step beyond their ranks (Hofstede
Insights, 2020).
Ø Individualism
China has a score of 20 which is an indicator of a high collectivist culture in which
 individuals tend to act on the interests of family and other people who has a
closer relationship. The commitment to the organization is low but the
relationship with the colleagues is identified as cooperative. However, personal
relationships are given more priority over organizational tasks (Hofstede Insights,
2020).
Ø Masculinity
China is known as a Masculine society with a score of 66. According to Chinese
employees, leisure time wasn’t given any priority and are sacrificed in order to
meet organizational tasks. Migrated farmers are identified to work in city areas
(Hofstede Insights, 2020).
Ø Uncertainty Avoidance
In China, there is a low score on Uncertainty avoidance. Chinese people are
familiar with ambiguity. Chinese language is known to have ambiguous meanings
which are difficult for the western people to understand. Chinese individuals can
be identified as entrepreneurial and adaptable (Hofstede Insights, 2020).
Ø Long Term Orientation
According to this dimension, Chinese culture is very pragmatic. Therefore,
Chinese people can adapt to traditions easily in changing conditions, invest, save
and thrift. However, they are perseverance when it comes to achieve results
(Hofstede Insights, 2020).
Ø Indulgence
China is a restrained society. Therefore, Chinese individuals are restrained by
the social norms, they believe perception by the society view before making a
action. Further, Chinese people do not put much effort on leisure time and are
believed that indulge themselves is wrong (Hofstede Insights, 2020).

Singapore is a small island located in South East Asia, just off the southern rip to Malay
Peninsula. Spread across a total area of 660 square kilometres it hosts a population of
5.64 million (Deterding, 2007). Singapore has been identified as the most modern city in
South East Asia for over a century and as a city that blends with Malay, Chinese, Arab,
Indian and English culture and religions (Singaporeexpats, 2019).
Hofstede’s Cultural Dimensions of Singapore
Ø Power Distance
Singapore is considered as country with high power distance where superiors
and subordinates treat each other as unequal. The country has a Confucian
background which focuses more on stability of society and it is based on unequal
relationships between people (Prof.Hofstede, 2019). Singapore is also known as
“nanny state” where people must do exactly what they are told to do (Bi, 2012).
In Singapore power is highly centralised, managers rely on bosses and rules,
communication is indirect and has a selective information flow. As a
 consequence of these factors there is a high-power distance rate in Singapore
(Prof.Hofstede, 2019).
Ø Individualism/Collectivism
The term “WE” is important in Singapore. Which means they prefer working as a
group or that they have collectivism culture according to Hofstede. In this culture
family is considered as prototype of all social organisations. Children are taught
to restrain themselves, to overcome individuality because he/she is a member of
a family and represent the family. Every single person is treated with dignity. self-
respect and prestige have been given a higher value. Their moral basis is
maintaining relationships and it is prioritized over task fulfilment. A manager of a
company in Singapore, respectability and calmness is really important
(Prof.Hofstede, 2019).
Ø Masculinity/Feminine
According to Hofstede’s chart Singapore has scored 48% in masculinity and is
determined a feminine culture. Softer aspects such as sympathy, been humble,
consensus and avoiding conflicts in personal and work life is valued above all.
Even though the PDI is high, employees are treated politely (Prof.Hofstede,
2019).
Ø Uncertainty Avoidance
This is at a very low rate in Singapore. And it is what had led the country to
achieve great heights. Singaporeans abide many rules therefore, they are known
as a “Fine country” (Prof.Hofstede, 2019).
Ø Long term oriented-
Singapore’s culture consists with qualities supporting long term investments.
They have a culture where perseverance, sustained efforts, slow results, thrift
and having a sense of shame (Prof.Hofstede, 2019).

The United States of American is the 3rd largest country in the world and is one of the
most culturally diverse country in the world, which makes them accepting of whoever
resides in the country regardless of gender country or religion (Zimmermann, 2017).
The United States has of the most distinct and complex business cultures in the world.
American business culture driven is by a primary objected and that is “Time is money”,
the business culture is largely money oriented, they also are very individualistic in their
approach to business and are heavily motivated in succeeding in their respective
careers. American’s generally refrain from building a friendship or a relationship with
their business partners and keep it secretly professional though in most Asian cultures
building a relationship is considered necessary for business.
American business culture as compare to that of China and Singapore, China, one of
the main and very important aspect of Chinese business is that they believe that they
can succeed only if they work together as a team, they do not believe in an
individualistic approach to business, which is the a complete opposite to the how the
American business function. Americans are very direct in their communication unlike
Chinese people who communicate in a very indirect manner as they fear hurting a
person, but Americans can be blunt in their approach whilst negotiating a business and
refuse to take NO for an answer, whereas Chinese people respect and acknowledge
difference in opinion and do not force themselves on anyone in order to make a deal
(LaMarco, 2018). In Chinese culture, building a relationship or level of trust in order to
do business is considered as a very essential factor while doing business. On the other
hand Americans refuse to involve personal relationships while doing business, they are
like to keep it strictly professional at all costs, in that case Chinese people do not mind
involving their personal in their business they do it all the time. Companies in the US
have a nearly non-existent power distance, employees at the lower level have direct
contact with their seniors, whereas in in the Chinese cultural an employee who is of a
lower position in the organization cannot expect to have direct contact with their
superiors as Chinese like to maintain a high level of power distance (Bryant, 2019).
Singapore, is a multi-ethnic nation, with ethnicities like Malay, Indian, Chinese and
because of this just like the Americans, they are as well very open in their outlook and
their approach to business and do not pass judgement or get offended, as they
acknowledge the difference in culture but appreciates certain ways a person conduct
themselves. When conducting business meetings, it is in Singaporean culture to gift
something valuable, is a gesture that all Singaporean follow. Whereas, American’s do
not follow such traditions, in Singapore such gestures are considered as important and
representation of someone’s character (Troy, 2017). One main similarity between the
way America and Singapore do business is that their very career driven and are
persistent and strive for success. Just like their Asian counterparts Singapore maintains
a high-level social hierarchy (Polevikova, 2013), whereas this is not practiced in United
States, disagreeing with a senior in a business meeting and giving negative opinions on
a senior’s decision in Singapore is considered as a sign of disrespect whereas in
America it is considered as a normal manner of behaviour and senior accept any form
of suggestions suggested by the employees as this is a sign of being ambitious and
career oriented and is highly appreciated by seniors.
2. Institutional Aspect
Ø Government laws
The political party rules in China is The Communist Party. Even though China
can identify as a country which has a stable political environment, many
researchers have found that the lack of openness of Chinese political system is
questionable. Moreover, the distinctive factor about maintaining a stable political
background while improving infrastructure and cheap labour, China has been an
attractive country for Foreign Direct Investments (FDI). Furthermore, China has
also been recorded as the third largest country in FDI. Foreign investment plays
a major role in China since 1980. China motivates foreign investments in order to
gain capital, managerial expertise and transfer of technology (Taylor, 2013).
In accordance to America, president can identify as the person who rules the
country for four years. America can also identify as the second largest
democratic country in the world. The country has a stable political background as
well. Furthermore, The advanced technology and infrastructure and the stable
political background, America positions as an attractive country for FDI. Further,
America has been identified as the first choice of many powerful multi-national
cooperation in the world for investing.
Singapore is a democratic country which has achieved huge economic success
whereby the president is the head of country. Attracting Foreign Direct
Investments (FDI) has been key success factor for them.
They have been maintaining very good relationships with China and USA.
Singapore has high fines and they have done well in fighting against corruption
and is ranked 3rd among the least corrupted countries. However severe
restrictions are imposed on their basic rights to freedom of expression,
association and peaceful assembly (M.Rahman, 2019).
Being a democratic country, which is led by a president, America shows some
similarities to Singapore in terms of politics. But, unlike Singapore, America has
given the freedom for people to express them self, association and peaceful
assembly. When transferring the American HRM practices to Singapore the
company must give extra attention to these factors and adapt their HRM
practices to suit the host countries political environment.
Involvement in International organizations
China is a permeant member of the United Nations Security council and also are
members of WTO, BRICKS, BCIM, ASEAN Plus, G20 and APEC. Consequently,
China can describe as maintaining a fairly good diplomatic relationship with many
powerful countries in the world and trade politics (Rahman and David,
2020).America is a member and founded some of institutions such as
International Monetary Fund, the United Nations, World Bank, OPEC (David J.,
2020).Consequently, China’s involvement with the World Trade Organization
(WTO) since 2001 has made a major contribution to labour deployment practices
and also to overcome the obstacles in labour deployment (Zeng and Su 2009 et
al., Taylor, 2013).
Singapore is a permanent member of United Nations, IMF, World Bank, ASEAN,
APEC and commonwealth countries and some other prestige’s institutions. And
they maintain a good relationship with many power full countries including China,
USA, North Korea (M.Rahman, 2019).

America is also a main member and founder of some institutions such UN, World
Bank, OPEC which Singapore
Labour market characteristics
• Labour costs
In China, the minimum wage rate varies based on the criteria set by
Chinese government tie t time. These changes are done annually or in
 every two years based on the following, (Boquen, 2020). The minimum
wage rate has two types. Which are monthly and hourly for full time and
part time employees respectively.
In Singapore, there is no officially given minimum salary which has caused
the country’s economy to be dynamic (Stotz, 2020). So, the American
company should be more careful when considering the payments for the
employees in Singapore.

• Types of contracts
In China, according to the article 12 of the 2008 China Labour Contract
Law three types of contracts can identify as follows, (Boquen, 2020).
1. Fixed term labour contracts
2. Open term labour contracts
3. Specific task labour contracts

According to the policies in labour laws in China, full time employees it is

mandatory to granted with a written Employment contract by the employer.
Failure to adhere to these terms will legally compel the employer (Boquen,
2020). Furthermore, under the 2008 Employment Contract Law, if an
employee has to be terminated under any circumstances caused by the
company, the employer has to provide a severance pay. This severance
pay is three times as the employee average monthly salary (Boquen,
2020).
In Singapore government has imposed an employment Act to protect the
rights of the “employees” defined under the Act. It does not apply to,
managerial & executive positions, domestic workers, seamen and most of
the government staff
Having a written employment contract is highly advisable in Singapore.
Only senior management employees have the chance to negotiate options
employment contract. Any violation of a term by employee or employer is
considered as a breach of contract. This contract provides several
important clauses such as,
§ Appointment position
§ Duration of employment contract, if applicable

Ø Education System
In China, the leaders have improved the quality of the education in order to
achieve sustainable development in the country. The most distinctive
government policy can identify as the law on 9 years of compulsory education
 system. As shown on the above figure, even though the quality of the education
is uneven, the country tries to reduce the gap funding schools and with
necessary factors (Centre for Strategic and International Studies,
2020).Moreover, the legal aspect of vocational training is outlined in Employment
Promotion Law in article 44 – 51 which states the responsibilities of the
government and employers in occupational education (Centre for Strategic and
International Studies, 2020). In human resource management perspective,
Chinese enterprises are competing for highly qualified graduates. This factor has
become crucial when retaining staff (Zeng and Su 2009; Liu 2009; Wu 2009;
Wang 2009 et al., Taylor, 2013). Moreover, there are two stages in the
localisation of human resource practices by multinational companies (MNC) in
China. Basic employment training in MNCs have been provided for Chinese
employees in labour intensive industries in 1980s and 1990s. Whereas,
technological individuals and top management was seconded from the home
country. After 2000, the senior management have filled with local employers who
qualifies master’s or a doctoral degree (Wu, 2009 et al., Taylor 2013).

Figure 1 – Provincial education index in China

Source - Centre for Strategic and International Studies, 2020
In Singapore, Singapore is known to have an outstanding education system in Asia
region according to the assessments done internationally. According to International
Student Assessment (PISA) for reading, science and mathematics, Singapore has ranked
among the top performing economies in year of 2009 and 2012. Further, Singapore
ranked first in the global school ranking of Organization for Economic Co-Operation and
Development (OECD) among 76 countries. Based on these factors Singapore’s
education system is known as a “Sustain Improver” (Osman-Gani and Chan, 2009).
However, the major obstacle which Asian countries is the insufficient talents. According
to a study conducted by IBM in 2008, lack of management and leadership skills prevents
the countries from developing. As a result, Singaporean government planned a talent
attraction programme which developed under the support of Ministry of Manpower. For
example, Research and Development talents have given an attractive remuneration
package exceeding USD 1 million for qualified applicants. Talent attraction and
development were given a major priority in emerging industries such as Information and
communication industry, Health care industry, bio medical sciences etc. (EDB, 2008 et
al., Osman-Gani and Chan, 2009). Additionally, a study conducted by Osman Gani and
Jacobs (2005), has stated that Human Resource Development professionals are able to
launch website platforms for the use of Training and Development as Singapore has a
rapid growth in technological segment.

Some American IHRM practices (references start from no. 23)

Ø Rewards management
The development and execution policies and approaches that intends to reward
people equally according to their importance to the organization (Reward
Management, 2020). Most American companies follow new innovative
approaches to enhance the employees to work efficiently in order to improve the
company’s performance. Team-based rewards and individual rewards such as,
profit sharing and gain sharing is important according to the American culture
(2020).
Ø Power Distance
Organizations describe the relationships such as, subordinate/superior
relationships who belongs into a specific culture is known as power distance (The
Power Distance Relationship, 2020). America has a low power distance
according to the Hofstede’s cultural dimensions. Low power distance indicates
friendly interaction between the boss and the employees in an organization
(Hofstede Insights, 2020).
Ø Recruitment
This is a process of attracting and seeking the most suitable individuals to fill up
the vacancies in an organization. The recruitment process in America depends
on the organization’s recruitment practices. However, in every American
workplace a contract is signed in order to guard the employee rights and limits
the liability of the organization’s owners and managers (Lehman, 1995)
Ø Workplace Environment
A business environment is the main factor of the qualities and attributes of their
work and labor productivity levels, as this shows how well the employees are
 motivated to perform (Allan, 2020).The American work environments allows their
employees to arrange their own work plans as they are eventually becoming
more flexible. However, American employees are supposed to work for 40 hours
per week and it’s believed that it shows the country’s strong work culture (2020).
Part B
Implementation of HR Practices in China and Singapore
Ø Reward Management
China
To implement American practices of human resource management in China
using an ethnocentric approach is the best suited option, due to the Chinese
culture. Step 1; in order to implement American Human resource practices a
person who is aware of how the company operates should be appointed at key
positions in different levels of the organization, this will help in the appropriate
implementation of HRM practices. Step 2; Assign every department of the
organization with a task that must accomplished within a given time frame. Step
3 Mention that if all the employees of each of these department are ready to
collectively work in order to achieve the given task within the given time frame
will be rewarded, either with an increment in salary or a bonus for that month.
Step 4 Recognize each of the employees’ individual input into the completion of
the task and duly reward them. Step 5, Analyse every departments potential and
continue to reward good work, since, Chinese people in general are not
individualistic in their approach and thus working collectively with an American
head of department will help them build a sense of trust and a relationship
between the two.
Singapore
In order to transfer the company’s operations to Singapore they need to follow an
ethnocentric approach as it helps the employees work with mixed cultures which
eventually helps them adopt to the organization’s culture. The step by step
implementation process is as follows; Step 1 is to get the employees in
Singapore involved and distinguish the American IT company since Singapore is
a multicultural country consisting people from different ethnicities, cultures
thereby, people are more open minded and flexible therefore, by appointing an
American HR manager in Singapore it will help the employees easily adapt to the
American culture. In Step 2 the HR manager needs to relate the rewards into the
organization’s culture such as, by being punctual to work shows that the
employees are motivated to work in order to achieve company goals. This
indicates the management that the employees are willing to work efficiently
thereby, the management will be impressed. In Step 3, the HR manager has to
appoint HR assistants from the host country to track and monitor the progress
and closely supervise each employee regardless of the type of job. Step 4, the
HR assistants will report the employees progress to the HR manager and reward
 the employees accordingly. The highly performed employees will be rewarded
with promotions, salary increments.

Ø Power Distance
China
Power distance in China is quite high, hence a business or its manager cannot
change their perspective.
Implementation process Step 1; For the explanation of how power distance does
not exist in the American culture and that is what is expected from the employees
as well, a workshop should take place in the organization must take place before
the organization commences their operations, It should be made very clear to the
employees that no matter what position anyone holds in the company, everyone
is entitled to the same facilities and will be treated equally. Step 2; Start with
letting the employees know that everyone is addressed by their first name
regardless of what position they hold in the organization and that if they have any
issues, they directly come and talk to a senior authority regarding the problem,
since in chinse culture the juniors cannot come in direct contact with the seniors.
Step 3; Instil the idea in them that the reason behind this is to make employees
feel more comfortable in their environment and this intron helps them work better.
Step 4; Encourage employees to give their opinions and innovative ideas to do a
certain task, as this gives them a sense of involvement in their decision making
of company which is fair and all decisions don’t necessary have to belong solely
to someone in authority.
Step 5; Correct every employee if they fail so understand this in a mild manner,
as this will make lose their traditional thinking, as they respect their seniors and
will follow their order this will not be very difficult. Since people who hold key
positions in the company at this point are not the local people the senior will not
mind being addressed by their first name, they consider this as a normal gesture
and will not affected by low power distance.
Singapore
The step by step implementation process is as follows; Step 1 During the
induction program the HR manager will educate the employees about the
American culture, since it has a low power distance the relationships between
employees and management are strong therefore, the company expects active
participation in. Step 2 Afterwards, the management advises the employees to
engage in more team-based work, in which the employees will be assigned into
groups to complete a specific task as it helps to build strong relationships among
their coworkers. Step 3 The company should open up social media platforms
where all employees and the management can communicate and connect with
everyone and share their knowledge. Management and employees will equally
contribute and participate in workshops, forums and meetings. Step 4 The
management takes employees ideas and opinions into consideration when taking
future decisions or if making any changes to the company.
Ø Workplace Environment
Step 1, Hold a workshop explaining, the code of conduct expected by every
employee and how American companies work. Step 2 Draw an agreement,
stating the employees’ rights and duties, working days, office timings, code of
conduct expected by the employee and the consequences if employees do not
abide by the rules mentioned in the contract. Step 3, an induction training period
will be conducted by the American employees for the local employees, educating
them on the perfect way to conduct themselves in the workplace. This may hard
for the Chinese to follow, but an induction training will help them understand the
different dynamics of an American workplace environment.
Singapore
The Singaporean working environment is known to be professional and unique
as it has induviduals working from different nationalities it helps employees learn
new skills and improve their knowledge. Moreover, working in Singapore is a
worthwhile experience to all employees regardless of their nationality. Step by
Step process of implementing a working environment in Singapore is as follows;
Step 1 Assigning an American HR committee to examine the host country
workplace and to make sure the operations are flowing similarly with the home
country in order to make it easier to stabilize the company culture. Step 2 The
appointed HR committee has to take the responsibility in educating the
Singaporean employees on the organizational culture which involves the
employee attitudes, beliefs, values of the company such as, been punctual, dress
code and disciplinary behaviors. Step 3 During the induction program the
employees should be informed about work timings, as the work timings differ
from America and therefore, the employees needs to agree working for night
shifts in order to communicate and work at same time to avoid any
miscommunication and there could be meetings via video conferencing with the
American company. Step 4 Lastly the company has to implement their rules and
regulations according to the employment act of Singapore and has to abide all
employee health and safety regulations and provide a fair working environment
to all employees and they should sign the form of contract issued by the
company.
Ø Recruitment Process
Step 1, Since Chinese education system is not as strong as that of America,
recruiting Chinese will not be as easy, as there are certain educational
qualifications that the candidates are required to possess step one is to come up
with an appropriate recruitment system. Step 2, Advertising job vacancy on
websites, social media, newspapers and banners. Step 3, A Research will be
conducted on all candidates that apply, shortlist those who we think is most
suitable for the job and organise date for the interview. Step 4, Extensive
interview must be conducted on each of the candidates. Step 5, After the
 candidates have been interview, suitable candidates will be called in for training
and development, every candidate that will be chosen in China will have to
undergo a training period in order to prepare them for American business.
Singapore
Recruitment practices in Singapore involve hiring the most suitable candidates
considering their qualifications in order to take up positions in the organization.
It’s a critical factor that all organizations in Singapore follow fair hiring and
recruitment practices. The step by step implementation process is follows; Step 1
the American HR manager will decide on the best suitable hiring and recruiting
methods that can be carried out in Singapore in order to seek the best qualified
candidate. Step 2 The most common recruiting method in American
organizations is advertising through websites and advertising on the company
website. Therefore, in order to attract the most appropriate candidates in
Singapore the company should post the vacancies online and on their company
career site as online advertisements reach a large number of people. Step 3
Once candidates fill up their application the HR team should thoroughly examine
and finalize the shortlisted candidates and will be called for interviews. Step 4
The qualified candidates need to be given a proper training and development
according to their occupation and afterwards conduct an induction program by
the management of the home country in order to understand the company further
and work accordingly.

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