BUS 2207-01 Multinational Management -

AY2025-T3

Learning Journal Unit 5

March 3rd, 2025

Human Resource Policies and Ethical Challenges in Expansion: A Case Study of Tierra Tech
LLC

Hello Professor,
 Introduction:

Now that Tierra Tech LLC is expanding operations by setting up a new facility in Nevada, strong

human resource (HR) policies will have to be applied to ensure efficiency and compliance and

that a good and healthy working environment is maintained. Expansion does provide many

operational advantages, but there are also challenges regarding recruitment, employee relations,

compensation workplace safety, and ethics in human resources. One of the most significant

ethical challenges in terms of human resource management is hiring and selection bias, so that

the work becomes unequal and multicultural (Rafaqat et al., 2022). If the company expands

towards Europe though, it would add another aspect of HR challenges in terms of different labor

laws, culture, and communication issues in a multilingual context. This journal entry highlights

the HR policies applicable in the Nevada facility, the ethical problem of discrimination in hiring,

the strategies to tackle such problems, and concluding remarks on possible HR challenges of

foreign direct investment.

Body:

HR policies promoting equity, complying with labor laws, and ensuring employee well-being

must be adopted by Tierra Tech LLC for its operations in the new Nevada facility. Recruitment

policies must be structured to allow fair and open recruitment processes without any evidence of

bias; onboarding and training programs should expose new employees to the principles and

values of the company as well as to workplace expectations and opportunities for career

development (Armstrong, 2023). Employee relations should allow open communication to

maintain such an environment where diversity and inclusion are valued. For this reason,

compensation policies must adapt industry standards to attract and retain talent while ensuring
compliance with the Nevada labor regulations. At the same time, safety policies should meet the

guidelines set by the Occupational Safety and Health Administration (OSHA) to ensure safe and

healthy environments for all employees.

The greatest ethical concern in current human resource management processes is that bias in

selecting candidates, creating inequalities in opportunities available to hire for jobs that should

otherwise lead to encouraging diversity in the organization. Research suggests that organizations

favoring inclusive hiring practices practice greater innovation and productivity (Diversity

Council Australia, 2017). Bias in hiring can include discrimination against candidates for their

gender, ethnic origin, or academic degree and not in terms of their actual skills or qualifications.

Moreover, it limits opportunities for groups who are already not represented and, therefore,

affects the ultimate success of the organization (Rafaqat et al., 2022).

In view of addresseing the ethical issue of bias in hiring, Tierra Tech LLC needs to structure its

hiring procedures to engender fairness and inclusivity. One possible effective means of achieving

this is through blind resume screening—the temporary removal of personal information from

applications (name, gender, age, etc.) so that candidates are judged solely based on their skill and

qualifications. Other measures, such as a standard set of interview questions and a diverse hiring

panel, can serve to limit subjectivity in decision-making, thus allowing equal opportunity to all

applicants (Villegas et al., 2019). An additional major way or approach would be providing HR

and hiring managers with bias training. Many biases, the research continues, are percentages of

unconscious decisions; thus, an individual might not be aware of them affecting their decisions.

Frequent training might enable recruiters to recognize and address such biases, ensuring their
hiring is based on merit and alignment with the company's goals (Diversity Council Australia,

2017). In addition, Tierra Tech ought to implement an internal diversity and inclusion policy that

clarifies its commitment to equal opportunity. This policy must be disseminated at all levels of

the organization to maintain a culture that acknowledges every employee as valuable regardless

of context or background.

If Tierra Tech LLC were to expand into Europe, it would find several HR challenges arising

from the discrepancies in labor laws, cultural diversification, and language difficulties. Each

European country has employment laws pertaining to working hours, minimum wages, and the

rights of employees. The company must therefore research these laws and ensure strict

implementation to avert any penalties (Leiden University, n.d.). In addition, the workplace

culture among different European nations varies greatly. On the other hand, in some countries,

employees look for a better work-life balance; on the other, there are countries that set more

importance on hierarchical structures and formal communication. As a result, failure to adapt to

such cultural expectations may lead to misunderstandings that decrease employee engagement

(Armstrong, 2023).

The diversity of language is yet another significant snag or drawback. Employees situated in the

various regions may speak different languages, leading to potential barriers when it comes to

communication between teams, management, and HR representatives. Language training for

employees and having a multilingual HR department could help ease everyone in the process of

communicating and collaborating with each other. Moreover, the talent acquisition strategy must

adapt itself to local markets. The labor market conditions in Europe are extremely competitive,
and attracting any talent requires offering an equally competitive salary, working conditions, and

career enhancement opportunities (Leiden University, n.d). Subsequently, all employee benefit

and social security systems present differences which Tierra Tech LLC will have to deal with.

Medical care, the contribution rates of pension plans, and parental leave policies differ from one

European country to another. Thus, knowledge of these policies and the adjustment of company

benefits to local standards will be crucial for employee satisfaction and compliance with the law

(Leiden University, n.d). Customized HR strategies based on the local labor laws and cultural

expectations of each country will be vital in achieving the success of expansion and workforce

management.

Conclusion:

Since Tierra Tech LLC is expanding operations into Nevada and is contemplating future growth

in Europe, the establishment of effective HR policies is crucial for smooth business operations

and an inclusive environment. Fair recruitment practices, transparent compensation structures,

and comprehensive training of employees will enhance a productive working environment.

Addressing ethical concerns such as bias in hiring is vital to encouraging diversity and equal

opportunities in the organization. Additionally, international expansion brings added complexity

to HR processes like labor law compliance, cultural differences, and management of the multi-

lingual workforce. The successful navigational path through these challenges lies through

strategic hiring practices, an array of diversity programs, and the alignment of HR policies to

respect local regulations. Adopting the people strategy in an ethical, inclusive, and legally

compliant manner enhances both organizational performance and the company's standing as a

fair and progressive employer.

Word count: 1244

References:

Armstrong, M. (2023). Strategic Human Resource Management: A Guide to Best Practices.

Kogan Page Publishers.
[Link]
human-resource-management-9781398617698

Diversity Council Australia. (2017, February 17). Building Inclusion – An Evidence-Based

Model of Inclusive Leadership. Research. Retrieved from
[Link]

Leiden University. (n.d.). European Labour Law Network. Retrieved March 3, 2025, from
[Link]
research/european-labour-law-network

Rafaqat, S., Rafaqat, S., Rafaqat, S. & Rafaqat, D. (2022). The Impact of Workforce Diversity
on Organizational Performance: A Review. Journal of Economics and Behavioral Studies. 14.
39-50. Retrieved from [Link]

Villegas, S., Lloyd, R., & Tritt, A. & Vengrouskie, E. (2019). Human Resources as Ethical
Gatekeepers: Hiring Ethics and Employee Selection. Journal of Leadership, Accountability and
Ethics. 16. Retrieved from
[Link]