Discuss about the Human Resource Management Multinational Corporations.
The international human resource management is the structured and sequential method of utilising and allocating the human resource in the multinational corporations. The human resource managers in these multinational companies need to undertake the efficient human resource practices to structure the organisational functionalities (Tooksoon 2011). Maintenance of the human resource policies is the integral part of the IHRM contexts. The multinational companies deal with many employees who are from diverse cultural background. The effective human resource management fosters innovative approaches to the organisational contexts. The maintenance of the flexibility in the organisational functionalities helps the employees work with proper ease. The IHRM practices are diversified in different countries. It sometimes creates potential challenges for the human resource management teams.
The study will thus identify the different human resource management procedure in Australia and India. The cultural differences are the major obstacles for managing the organisational scenario. On the contrary, it can be implied that establishment of effective human resource management process provide many opportunities to strengthen the organisational culture in the international level. The study will thus shed lights on the differences in the national culture of Australia and India. Accordingly, the application of the IHRM practices in these two countries will be discussed. The use of the theoretical model would be helpful enough to explain the underlying concept. The study will be concluded by focusing on the practical experiences related to the IHRM practices.
The International Human Resource Management is a broader concept that explores the HRM activities in multinational companies all over the world. Allocating the human resources and utilising their skills are the major responsibilities of the international human resource practices. Human resource management maintains the responsibilities of developing the employees’ potentiality, approaches and behaviour (Mockaitis, Zander and De Cieri 2015). In the international context, it is noted that the effective human resource management plays the most vital role in managing the cultural diversity in the multinational companies. The cultural values of the different countries create the significant impacts on the organisational functionalities. The organisational functionalities depend on the diversified cultural values in different countries. Accordingly, the human resource management requires concentrating on the diversified working cultures and manage the entire organisational environment. Storey (2014) explained that the nature of the human resources is usually multi dimensional. The employees receive the opportunity to develop their competence level and knowledge parameter if they are under the supervision of efficient human resource management team. The globalised and competitive business word is changing the demands of the business in this current era. The international human resource management is mostly concerned about the foreign environments and the HRM activities of the organisation. The further section of the study will consider the role of the IHRM process in managing the diversified cultural values.
It is evident that the work culture of Australia and India is completely different to each other. The cultural difference is one of the major reasons behind such diversified nature of work. The culture of the work in Australia and India depends on the different perspectives, which are influenced by the national cultural aspects. There are two major differences noticed between Australia and India in the workplaces.
The work-timing depends on the number of people working for a particular day. This timing of work will vary between each country. In case of Australia, it is noted that people work for eight hours in a day (IndianConnection.com.au s2016). In fact, the organisations in the western countries follow the similar timing for each day. However, on the other hand, it is noticed that people in India usually work for ten to twelve hours in a day. Moreover, it is important to state that the Australian organisations are usually fond of promoting the fair work and maintaining the work-life balance. On the contrary, the Indian organisations are yet to bring such concept in their working schedule.
It is noticed that there is much appreciation foreseen in the Australian organisations. In most of the cases, the management appreciates and recognises the employees. They even listen to their concerns without being judgemental. Each of the employees receives equal opportunities to raise their concern without any hesitation. On the other hand, the judgmental behaviour of the Indian culture sometimes brings challenges to the employees. It affects their creative thinking to bring more innovations to the business process (Gannon, Roper and Doherty 2015). The concerns about the cultural values, creeds, and religions are sometimes becoming major obstacles for the employees. Hence, it can be inferred that the equal employment opportunity is not much significant due to the cultural barriers in India.
Managing the effective human resource management in the international context has become the integral part of every organisation. Accordingly, many of the challenges and opportunities are associated with the subject matter. The recognisable trends and challenges of International Human Resource Management are described further.
In this current scenario, the emergence of global competition is one of the innovative norms. The employers and the employees aspire to be the global player in HR markets (Gupta 2013). Due to this globalisation effects, the organisations are undertaking many of the innovative processes to gain more supports from the customers. The internal activities are thus transformed and restructured (Jackson, Schuler and Jiang 2014). The HRM departments take this initiative to manage the entire organisational scenario in this change management situation. The HRM maintains the responsibility to manage the employer and employee altogether and focuses on the performance parameters as well. This globalisation effects are thus bringing the opportunities for more innovations and business growth in this competitive business scenario (Crucini, Kose and Otrok 2011). However, the HRM department usually faces challenges in retaining the employees and reducing the turnover rates. The employees tend to leave when they generate the sense of job insecurities in this challenging business market. In such cases, the human resource management has to put the extra effort to motivate the employees and bring the job security by ensuring more facilities.
It is noted that the shifts in the demographic structure are frequently changing the work patterns. Countries like Australia and India are facing major challenges in ageing populations. This challenge raises two major concerns in the international contexts. First, When the ageing workers retire, the organisations loss the intellectual property and the other information. Secondly, when these employees retire from the work, they do not receive the proper pension plans and welfare facilities. These aspects are quite challenging for the human resource management. Moreover, the demographic feature is also representing the beliefs and attitudes of the young generation.
The effects of globalisation are changing the workforce structure as well. The power of Information Technology is causing the permanent loss of jobs in first-job entry and middle-tier level. The changes in the technological structure are bringing more innovations in the business scenario. However, these technological changes provide both the opportunities and threats. Most of the people are now operated remotely and very few amounts of people are working in the central location (Nowak 2016). The workplace diversity is maintained through the growth of a multigenerational flexibly skilled, and the cross-cultural workforce. However, it is noted that the sophisticated management practices can facilitate this initiative more specifically.
The responses of education are considered as the most significant solutions for the challenges faced due to the demographic changes. In this current scenario, the traditional education system is highlighting most of the challenges for the organisations. The business practitioners are mainly focusing on the professional qualifications and workplace learning process. Therefore, the educational differences in different countries vary the work cultures as well. Hence, the challenges are much significant for the international human resource management.
Even though the effects of globalisation are bringing more opportunities, it is noted that the entire global changes are not always positive. Society demands for better equity in this current sophisticated world (Festing et al. 2013). Therefore, the income distribution and the benefits are shared between profits and wages. The income distribution is also focusing on the regional growth disparities. The income level of the workforce in Australia and India has also changed accordingly.
The above discussion is suggesting the challenges and the opportunities for IHRM process. Based on this description, the use of the Hofstede model will be discussed in the further section.
The use of the theoretical model is beneficial in exploring the cultural values in different countries. It is noted that the different dimensions of model are creating the significant impact on the workplace attribute. Recognising this aspect, Mr. Geert Hofstede introduced a theoretical model, which is creating the society-based cultures on the organisational values (Upadhyaya and Rittenburg 2015). On the other hand, the Civilisation and Globe Model is also suggesting the differences in the national cultures and the impacts of such differences in organisational contexts. The further section of the study will provide the cultural dimensions for Australia and India.
The Hofstede Model introduces five different cultural dimensions that have the significant impacts on the organisational values. These dimensions are shown below:
It is noticed that India has scored much higher in the power distance dimension. The power distance is explained as an extent to which the members of the country expect and accept the power distributed unequally. India has scored higher in this dimension and it depicts that there is the high rate of the inequality in regards to power and wealth within the Indian society (Storey 2014). In this scenario, the managers expect much obedience form the team members. Moreover, the employees need to derive clear ideas about their role, responsibilities and functions (Shen 2011). The caste system in India has divided the workforce in India. On the other hand, it is noted that the Australian organisations are providing the equal opportunities to the members. Moreover, the organisations in Australia promote the fair work and provide the necessary facilities to the employees to maintain the level of equality more specifically.
In India, the collectivistic traits are much visible. The individuals are led by the suggestions provided by the groups. They are expected to support the preferences that are coming from a larger number of populations (Sikora and Ferris 2014). On the contrary, Australia is a highly individualised country. In the Australian organisations, the individual preferences matter the most for taking any relevant decisions. The needs and basic demands of the organisations are also noticed more tactfully.
India is considered as the masculine country. Therefore, it has scored higher in this dimension. In terms of visual displays of success and power, it is noticed that India is very masculine (Snell, Morris and Bohlander 2015). Australia has the similarity with India in this dimension. Australia is also pointed out as the masculine country. However, the Australian organisations are much focused on the shared values that the people try to bring on for achieving success. The positive behavioural traits of Australian professionals for resolving issues are much commendable.
India has the medium to low preferences in the uncertainty avoidance. The Indian organisations tend to accept the imperfections and can go beyond the plan to bring the effective outcome. Australia has the very nominal score in this regards. There are moderate chances of uncertainties in the Australian organisations (Mondy sand Martocchio 2016). Moreover, the HRM management is competent enough to resolve the uncertain issues.
The last dimension is describing the process of linking the past situations with the challenges in present and future. The Indian culture is much associated with the philosophical thoughts. The great tolerance level of the religion is somewhat dealing with the philosophical values. Hence, the long term orientation in India is based on the beliefs. On the other hand, Australians has the very normative culture (Mockaitis, Zander and De Cieri 2015). The Societies of Australia establish the strong concerns by focusing on the absolute truth. They usually exhibit more respects for the traditional values. Therefore, the Australians do not settle for long term orientation, rather they concentrate on the relatively small propensity approaches.
The Globe Theory of Cultural Value is focusing on the motives, beliefs, values, and interpretations. The globe theory captures each of the dimensions altogether to understand the cultural values within the organisation. It is to be noted that the international organisations need to consider the approaches of the employees who are diverse in culture (Kraimer, Takeuchi and Frese 2014). Therefore, it is necessary to give preferences to the individual culture and traditional approaches. The theory is though not accepted widely in this recent time. However, it can be inferred that the major responsibility of the human resource management is to keep the attention on the diversified cultural values in achieving the success parameter (Jackson, Schuler and Jiang 2014). The Indian and Australian organisations are thus supporting such value based preferences and promoting the equality management.
It is noted that many of the expatriates stay in Australia. If the expatriates belong to any Asian country, they sometimes face the issues with racism. However, in this current scenario, the efficient HRM department is promoting the equality in the organisation. In order to fulfil such ideas, the organisations need to come forward and bring more ideas about business innovations (Kehoe and Wright 2013). On the other hand, India is a country, which greets the expatriates by maintaining the proper hospitality. However, in the organisational scenario, some of the situational crisis takes place that may affect the business functionalities. Hence, it is essential to look beyond the discriminative attitude and establish the efficient human resource management process to resolve the issues. The proactive participation of the human resource management would be beneficial enough in establishing the cultural value in the international organisations.
Conclusion
The study provides the insightful ideas about the efficiency maintained by the international human resource management. Managing people with diverse cultural background is not easy. Moreover, it is also noticed that there are significant differences found in the work culture of Australia and India. The international human resource management process deals with the significant opportunities and challenges as well. Most of the challenges are coming from the changing demands of the business in this globalised scenario. Therefore, it is essential to recognise the cultural beliefs in different countries. The application of the Hofstede and Globe model is exploring the conceptual analysis about the cultural dimensions. The human resource management needs to keep the focus on these cultural dimensions before scheduling any business activities. However, in this current scenario, the technological structure has been changing drastically. The diversification of the culture would thus be beneficial enough to bring more innovations. However, the human resource management in the international context has to be competent enough to resolve those emerging challenges.
References
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