MN7374 - International Human Resource Management

1. How do international human resource practices differ between liberal market

economies and coordinated market economies? Choose one HR practice
on which to base your comparison. You might also find it useful to focus on
a particular sector and/or two specific countries.

1.Introduction:

International Human Resource Management in different sectors and enterprises

plays a progressively crucial part in providing resolutions to business issues at the
global scale. The literature proposes that there is a dissimilitude between
coordinated market economies (CMEs) and liberal market economies (LMEs). The
CMEs are said to have increased extent of pronouncement and harmonisation than
LMEs (Elaine Farndale, Chris Brewster & Erik Poutsma (2008)). LMEs, such as the
United States, Australia, Britain, Canada, Ireland, and New Zealand, inclined to have
more business-driven employment systems, whereas CMEs, such as Germany,
Austria, Belgium, Denmark, Finland, Luxembourg, the Netherlands, Norway,
Sweden, and Japan, tend to have more synchronized and communal employment
systems (Alan Hughes, 2013). This comprehensiveness of HRM applications within
a enterprise globally generates cross-border impartiality and affinity, and
arrangement of systems universally to ease an internal labour market. Nevertheless,
this evenness can guide to disagreement between business executions and regional
triumphing conditions in duration of federal cultural phenomena, establishments, and
business systems. The range of alteration of HRM practices needed is thus mostly
related to the scope of dissimilarities that exist linking the parent and host country in
terms of governmental regulations, organisations, and culture, as well as collective
tactical alternatives (Elaine Farndale, Chris Brewster & Erik Poutsma (2008)). Among
the distinct IHRM implementations, the employee management plays a significant
role in the attainment of organisation’s objectives and goals. The non-fulfilment of
worker administration leads to the destruction of the enterprise. In this essay, I have
planned to argue that the poor employee administration leads to the downfall of
recognised conglomerates and prominent establishments with comparison to good
execution of employee control between CME and LME countries. Employee
management involves performance management, transparency, employee
engagement and empowerment to achieve the best outcome and acts as a
foundation for many business applications related to HRM: the demand for staff
training, new employment, vocation development, rewarding, etc (Agneš Slavić,
Nemanja Berber* and Bojan Leković, 2014).

(Figure 1 – Created by Author) (Alan Hughes, 2013)

2.International Human Resource Management practices:

 IHRM has divergent implementations and pursuits involved in the

development of a business globally (Multiplier, 2021).
 It aims to make an organisation acquire competitive advantage over its
contenders and attain an irreplaceable position in the world market (Multiplier,
2021).
 It strives to provide qualified and skilled fundamentals to make the company
survive the global market economy (Multiplier, 2021). Some of the IHRM
practices involves,
 (Figure 2 – Created by Author) (Multiplier, 2021)

2.1.How are IHRM Practices changed in 2021?

The epidemic has caused the businesses and the employees to re-evaluate a
number of previously held standards and also led to changes in employee behaviour
and raised their expectations about the organisation and their work (Multiplier, 2021).

 In 2020, the once sceptical execution of remote work become indispensable

(Multiplier, 2021). Many Tech Giants and MNCs have instructed their
representatives to work from their homes and it is practiced worldwide and
some surveys state that workers have showed more interest and participation
during this period.
 Rather than being work-centric, HR's principal emphasis has switched to
seemly employee-centric (Multiplier, 2021) which enables the laborers to
discover new possibilities and conclusions.
 Another problem that had never been addressed prior to was worker
psychological state, which procured attention after the pandemic made us
conscious of its importance to productiveness (Multiplier, 2021).
2.2. Strategic human resource practices and innovation performance:

 The knowledge that is part of human capital helps businesses to develop

unique capabilities and find chances for revolution (Chung Jen Chen and
Jing-Wen Huang, 2009)
 As corporations produce new items and enhance administration procedures,
they need their staff to be driven and capable of coming up with original ideas,
adopting novel strategies, and seizing untapped potential innovation (Chung
Jen Chen and Jing-Wen Huang, 2009).
 In order to achieve business targets, the organisational management function
can affect and modify the viewpoints, abilities, and conducts of employees. It
also plays an important job in fostering the conditions required for inducing
and directing people towards the development of creative pursuits (Chung Jen
Chen and Jing-Wen Huang, 2009).
 Businesses require creative and innovative people that are resilient, risk-
takers, and liberal of equivocation and unreliability since they confront
comparatively increased precariousness and unpredictability during the
innovation procedures (Chung Jen Chen and Jing-Wen Huang, 2009).
 Thus, companies need to highlight these characteristics more while making
personnel decisions. Workers are more likely to generate a variety of new
thoughts and ideas and also engage in more creative, innovative etiquettes
when employers utilise creative aptitudes and inventive attributes as recruiting
and decision basis (Chung Jen Chen and Jing-Wen Huang, 2009).

3.Employee Management:

 Employee management is an integrated perspective which approaches after

the recruitment process and assists the workers to gradually ameliorate their
execution, productivity, performance and achieve the institutional objectives
and targets (Multiplier, 2021).
 Because the innovation process is often prolonged, sceptic, and
interdisciplinary, firms should cue the significance and value of innovation as a
corporate primary concern and provide conventional assessment techniques
 to compute innovation behaviours and out-turns (Chung Jen Chen and Jing-
Wen Huang, 2009).
 Pragmatic pressure from a accomplishment review produces targets and
sentiments of successes and serves as a crucial stimulus for employees
(Chung Jen Chen and Jing-Wen Huang, 2009).
 Performance evaluation may increase workers' enthusiasm to participate in
creative projects and help businesses produce successful innovation
outcomes (Chung Jen Chen and Jing-Wen Huang, 2009).
 Furthermore, rewarding individuals and group achievements with incentives
fosters creativity, both extraneous and inherent recompense are vital to
inspire employees to tackle the hard tasks and offer them opportunities to
produce more fresh thoughts and ideas to build successful new goods (Chung
Jen Chen and Jing-Wen Huang, 2009).

(Figure 3 – Created by Author) (Multiplier, 2021)

3.1.Managing Employee Performance:

 Workers are expected to get feedback for their work, as it enables them to
understand the organisational expectations and demands or requirements
and deliver high performance at faster pace.
 Also, it gives them a chance to improve themselves and explore new
viewpoints for the challenges they face. Based on statistics from LinkedIn, it
shows that 92% of workers have stated that negative feedback from their
 managers has been useful in improving their performance and helped them to
show more interest in their work.
 Thus, it is a good global Human Resource practice to include performance
evaluation through one-on-one meetings and regular performance reviews.

3.2.Transparency:

A crucial international HRM practice is to be open with the employees,

regardless of the success or failure of the business. Companies that foster
transparency of communication and feedback make employees feel trusted
and respected.

Transparency also promotes participation and engagement. Feeling well-

informed, employees volunteer to share ideas and contribute to decision-
making. This leads to better and well-informed decisions that help in your
company’s growth.

3.3.Employee engagement and empowerment:

According to Gallup's meta-analysis, truly engaged employees show an 18%

increase in productivity than the rest. Thus, employee engagement is a key HRM
practice.

Employee engagement involves open discussions, clear communication and most

importantly empowering them.

Employees are no longer interested in mundane work without growth. They are
actively on the search for upskilling and updating to face unknown challenges.
Organizing programs, professional courses, and seminars helps them cover the skill
gap created due to growing technology.

Thus, engagement through empowerment adds value to the organization and is one
of the age-old global HR practices that holds good through time.