International HRM –

Unit I
Dr R Nandhini
Deputy Director
CDOE, AMET Deemed to be University
 IHRM - Definition
•A collection of actions aimed at managing human resources
internationally is known as international human resource
management, or IHRM. It aims to accomplish organizational
goals and get a competitive edge over rivals on a national
and worldwide scale.
• IHRM includes standard HRM tasks like hiring, screening,
training, and development, as well as performance reviews
and terminations carried out on a worldwide scale. It also
includes supplementary activities like managing expatriates
and global skills globally.
 Categories of Employees as per IHRM
• Home country employees − Workers who live in the nation where
the company has its corporate headquarters, such as an Indian
working in India for a corporation with its headquarters in Indi.
• Host country employees − Workers who are citizens of the
country where the subsidiary is based, such as an Indian
employed abroad as an NRI.
• Third country employees − These are the workers at the
corporate headquarters or extra locations who are not citizens of
their current nation
• For instance, the CEO of a subsidiary owned by an Indian
multinational corporation with its headquarters located in America
can be a French national. The employee, a Frenchman, works for a
third country.
• The concept of international human resources management is
as old as globalisation itself. The management is not the
same because of the various cultural differences. It is among
the factors contributing to the ongoing globalisation
movement's significance, ubiquity, and complexity. Gaining
the upper hand or competitive advantage by hiring and
developing employees' skills, efficacy, and efficiency is the
core goal of integrated human resource management (IHRM).
• The IHRM solely handles expatriate functions in addition to
HRM functions and activities. Dispute settlement between
domestic and foreign workers, cross-cultural management at
various levels, and collaboration between local and foreign
workers are some of its other qualities.
 International Human Resource
Management – Concept

• The process of obtaining, assigning, and using human

resources in a worldwide business to accomplish the stated
goals is known as international HRM. International HRM is the
interaction of three dimensions: HR activities, employee type,
and nations of operations— because of the global setting.
 The dimensions of international HRM
• Purchasing, assigning, and using personnel for overseas operations are the
three main components of international HRM. All HR duties that are
pertinent to domestic operations and covered in various sections of the
text are covered by these three overarching activities.
• Based on their country of origin, employees in multinational corporations
fall into three categories: nationals of their parent country, nationals of
their host country, and nationals of a third country. Parent country
nationals (PCNs) are people whose country of origin is the same as the
location of the company's headquarters. Those whose country of origin is
the one in which the company has business are known as host country
nationals, or HCNs. Individuals whose country of origin is not their home
country or their host country are referred to as third country nationals
(TCNs).
• Home country, host country, and third country are the three categories of
nations that participate in international HRM activities. The firm's home
nation is its place of origin. The nation where the business is based is
known as the host country. A single company may have multiple host
nations. A third nation is a place where resources are obtained, including
human resources. Several third world countries might exist.
 Need - IHRM

• Cultural Diversity
• Workforce Diversity
• Language Diversity
• Economic Diversity
 CULTURAL DIVERSITY - ELEMENTS

• Individualism versus Collectivism

• Power Orientation
• Uncertainty Avoidance
• Masculinity versus Femininity
• Time Orientation
 WORKFORCE DIVERSITY
• Workforce diversity in a multinational corporation can also be
understood in terms of employees moving across national
borders to carry out their duties.
• On this basis, an employee can be put in one of the following
categories:
• Expatriate: a national of the parent country assigned to a long-term
posting in the activities of the host country.
• Inpatriate: a national of a host country or a third country who is
stationed in the nation where the corporation has its headquarters.
• Repatriate: an expat who, after serving overseas, returns to their
home nation.

• Diversity in the workforce suggests that different employee

groups provide not only their knowledge and experience but
also their attitudes, drive to work or not, emotions, and other
personal traits.
 LANGUAGE DIVERSITY
• Although language serves as a channel of expression,
employees from various nations speak different languages.
Despite being widely spoken, English falls short of the mark
because it is not universally understood. Although foreign-born
personnel may be urged to acquire the language of the host
nation in order to facilitate the better exchange of information,
this is often not practical.
• Sending communications in multiple languages is an
alternative to this. It suggests that in order to ensure that
employees understand what is being said, communications
should be sent in multiple languages.
• While there are no hard- and-fast rules in sending such
messages, it appears safe to say that such a message should
be transmitted in the languages the employees understand to
ensure adequate coverage.
 ECONOMIC DIVERSITY
• Economic diversity is measured by comparing the per capita
income of the various nations in which a multinational
corporation conducts business. Compensation management, or
paying wages, salaries, and other financial compensation to
employees situated in multiple countries, is strongly tied to
economic diversity.
• "Thereshould be equity in paying to employees" is one of the
fundamental tenets of employee compensation. However,
because its operations are spread across several nations with
disparate economic conditions, it is challenging for a
multinational corporation to put this idea into practise.
• A parity based on the cost of living in the host countries ought
to be established in such a case.
• Diversityof various types in a global firm suggests that HRM
practices have to be tailor- made to suit the local conditions
 ROLES - IHRM
• Champions of Processes: This roles encompasses: a. Building commitment of the
senior leadership. b. Training managers. c. Monitoring HR processes.
• Guardian of Culture: This includes: a. Overseeing and managing the application of
international systems and values. b. Making certain that upcoming leaders are
perceptive and prepared to handle global issues.
• Effective Political Influencer: It means: a. Understanding internal labour market
where a subsidiary is located b. Managing the internal labour market for the global
managers.
• Network Leadership: It includes: a. Building strong internal and external networks. b.
Keeping abreast with latest trends and developments. c. Mobilizing resources to staff
project teams effectively.
• Builder: This includes: a. Articulating various International HR management basics. b.
Developing basic internal HR management practices at the beginning of internalization.
• Change Partner: This means: a. Continuously calibrating human resource
management practices as the external environment changes. b. To enable the MNC to
be agile in terms of its HR practices to meet the challenges of the environment and
cash-on the business opportunities.
• Navigator: It encompasses: a. Building a competent organisation and enhancing
individual competency. b. Maintaining a balance between long- and short-term
objectives and plans. c. Finding a balance between local responsiveness and global
integration. d. Finding a balance in a global setting between change and the status quo
 ACTIVITIES - IHRM

• Establishing or Reviewing Employment Policies

• Recruitment
• Selection Process
• Performance Assessment
• Training and Development
• Employee Compensation
 IHRM - CHALLENGES

• Integration Issues
• Heterogeneous Functions
• Staffing, Recruitment and Selection
• Training and Development (T&D)
• Compensation
• Performance Appraisal
BASIS OF DRIVERS OF INTERNATIONALIZATION OF
BUSINESS
• The entrepreneur: The abilities, competencies, and
experience of the entrepreneurial team determine whether the
development efforts linked to Internationalization of a highly
entrepreneurially driven organization succeed or fail.
• Relationships with customers: Is your internationalization
predicated on a select group of significant clients? It is both a
benefit and a hazard, or an opportunity and a danger.
• Costs: Moving some of your activities overseas to a less expensive
location may seem like a smart idea. If internationalization is solely
motivated by cost savings, one must be careful to remember to
invest in growth as well.
• Outsiders: Do you believe that you are drawn to overseas markets
by your partners, consumers, industry, or others?
Internationalization ought to come after a conscious decision on
your part. And the things you intend to start should follow suit.
 DRIVERS OF INTERNATIONAL BUSINESS
• Limited Home Market
• Excess of Production
• Global Marketplace
• Emerging Markets
• Growth in Market Share
• Higher Rate of Profits
• Political Stability
• Technology and Communication
• Transportation
• Changing Demographics
• Liberalization of Economic Policies
• Trading Blocs
• Differences in Tax System
 DOWLING (1999) – SIX FACTORS
DIFFRENTIATING HRM AND IHRM

• Wide range of HR activities.

• Need for a broader perspective.
• More Involvement in personal life of the employee.
• Responsiveness to changes in staffing requirements as
international strategy changes.
• Higher risk exposure.
• More external influences.
DIFFERENCE BETWEEN HRM AND IHRM
 BUSINESS STRATEGIES

• A Business Strategy is a plan of action or collection of choices

that help entrepreneurs accomplish particular goals for their
company. It is nothing more than a comprehensive strategy
that a company's management use to maintain operations,
win over clients, and accomplish the goals of the enterprise.
• It is the long-term plan outlining the intended image, course,
and destination of the organization in business.
• It is a well thought-out and adaptable business intent and
action plan that is created with the following goals in mind:
• Achieving effectiveness
• Perceiving and Utilising opportunities
• Mobilising resources
• Securing an advantageous position
• Meeting challenges and threats
• Directing efforts and behaviour
• Gaining command over the situation
LEVELS OF STRATEGY
• Corporate level strategy: A corporate level strategy is a
comprehensive, integrated, action-oriented, long-term plan created by
upper management. It is employed to determine business lines,
growth and expansion, acquisitions and mergers, diversification,
integration, new investment and divestment regions, and so on.
• Business level strategy: Business-level strategies are those that are
specific to a given business. The general managers create it by
transforming the mission and vision into practical strategy. It
resembles a blueprint for the whole company.
• Functional level strategy: Functional level strategy, created by first-
line managers or supervisors, entails operational decision making with
respect to certain functional domains such as marketing, production,
human resources, research and development, finance, and so forth.
 IHRM STRATEGIES

• Focus on strategic hiring.

• Invest in global leadership training programs.
• Let strategic Human Resource Management partners head the team.
• Focus on Compliance
• Take the help of technology to integrate the global workforce.
• Training and development strategies
• Build a culture of diversity.
• Effective Tools for global resource management (Resource Guru,
TeamDeck, Forecast, Smartsheet, Activcollab, Runn, Paymo, Scoro,
Mavenlink, Bigtime)
 SIHRM – STRATEGIC INTERNATIONAL HUMAN
RESOURCE MANAGEMENT
• SIHRM, involves the human resource department actively
participating in the company's strategic initiatives. Despite the idea's
potential as a helpful reaction to global competitiveness, there hasn't
been much empirical support for it from earlier studies.
• Not many research have attempted to correlate specific results with
the level of SIHRM implemented in different kinds of multinational
corporations.
• A fuller picture of the relationship between firm and SIHRM type
might be obtained by classifying SIHRM according to the degree of
integration with strategic planning and dividing firms into groups
such multi-domestic, global, and hybrid.
• To that end, top strategic executives, such as CEOs, and top HRM
executives from eighty four U.S. based firms were surveyed regarding
their firm type, the degree of SIHRM practiced, and certain outcomes
such as amount of expatriate training and expatriate failure.
 Barriers in effective global HRM

• Ethics and corporate social responsibilities

• Bribery
• Code of conduct for MNCs
 Ethics and Corporate Social Responsibilities
• MNCs must weigh the morality and ethics of both their own nation and the
host nation.
• Ethical Relativist: A relativist in ethics holds that there are no absolutes
in morality. In certain situations, what is appropriate in one location could
not be in another. Although relativism is flexible, it could have negative
long-term effects for a multinational corporation.
• Ethical Absolutist: An multinational corporation that adheres to this
strategy is heavily impacted by the laws and customs of its native nation.
The values and culture of the host nation are not highly valued by them.
Ethical absolutists have come under fire for their haughtiness and lack of
regard for the customs and cultures of the nations they are visiting.
• Ethical Universalist: An ethical universalist holds that there are
underlying principles that enable us to distinguish between good and bad.
These regulations must be followed in every nation and circumstance.
Cultural differences between nations shouldn't constitute grounds for MNC
misconduct, according to ethical universalists. Morally reprehensible
behavior can be distinguished from culturally diverse behavior. MNCs
ought to be aware of this distinction and strive to uphold the highest
moral standards
 Bribery

• J. Macken's report indicates that wealthy nations bribe

developing nations with an estimated amount of $85 billion.
Developed-nation MNCs have been charged of buying off
government officials. Therefore, nations ought to enact
legislation to combat corruption. For instance, the US has a
statute known as the Foreign Corrupt Practices Act (FCPA)
that forbids US-based companies from bribing officials
abroad.
 Code of Conduct for International
Business
• The 1994 Caux Roundtable Conference on "Principles for Business
Conduct" served as the catalyst for the development of the first draft of
a worldwide corporate code of conduct. A symposium on global
corporate ethics took place in Caux, Switzerland, and business
executives from around the world attended.
• The main goal was to develop a set of guidelines and moral standards
that would be used as a benchmark for international business
operations. In the US, the Minnesota Center for Corporate Responsibility
conducted extensive research on this topic. The main aim of Caux
conference as given in the charter is, “to further the twin value of living
and working together and human dignity by promoting free trade,
environmental and cultural integrity and prevention of bribery and
corruption.”
 SOCIO-CULTURAL CONTEXT

• The following cultural elements must be well comprehended

with:
• Language
• Religion
• Etiquette
• Negotiation
 Role of Culture in International HRM

• Culture plays an important role in international human resource management.

We first take up the elements of cross-cultural diversity.
• Cross-Cultural Perspectives In every nation, socioeconomic and cultural factors
have an impact on management techniques and philosophy. Transferring one's
native country's work culture, supervisor-subordinate dynamic, decision making
process, value systems, and methodologies to other nations can be challenging.
As a result, there is still confusion surrounding the application, transferability,
and utility of advanced management knowledge and techniques. Studies
spanning cultural boundaries have verified disparities in management practices
and thought processes that stem from social, economic, and cultural contexts.
 Examples of Cross cultural contexts
• 1) Collective responsibility is highly valued in Japanese society, as seen by
the term "Shu-jo-hu-on," which means "gratitude to nature and other human
beings for one's success.“ This way of thinking calls for giving up the notion
of individual dominance in favor of cooperative community action. This isn't
the case in Western civilization, which is built on individualism and strives for
the fulfillment of each person rather than the collective as a whole. It is
believed that making decisions in the Japanese system takes longer than in
the American system. The formal decision making process under "ringi seido"
can begin at any level, although it typically begins at middle management
and moves both laterally and horizontally. As a result, the risk is decreased.
The degree of participation, examination of detail and speed of
implementation is higher in this system compared to US-European system
where individuals play more important role, and make quick decisions, but
the accuracy and implementation may not be of that high order.
• 2) In Mexican society, work is not seen as a means to an end, unlike in Anglo-
American culture.
• 3) Despite its flaws, American management is still regarded as being
more democratic than that of French, German, and Indian
management styles; yet, it is acknowledged that an autocratic
approach is not always bad and can even be suitable in some
circumstances.
• 4) According to certain research, authoritarian leadership in business
has outperformed democratic leadership in economically developing
nations in terms of production. Additionally, compared to the majority
of managers in developed nations, it has been discovered that
managers in these nations tend to project their ideals onto others.
Compared to affluent countries where performance is a major factor in
deciding pay packet, these countries have lower salary gaps between
average and bad performers. While managers in wealthy countries
emphasize growth and competitiveness, managers in underdeveloped
countries are also reported to be content with the routine upkeep of
their operations. The research demonstrates that there is no one right
approach to run a business or accomplish tasks.
 Elements of Cross-Cultural Diversity

• Cross-cultural diversity aspects include

• Hand gestures
• Symbols
• Spoken
• Unspoken language.
 SPOKEN LANGUAGE

• Spoken Languages divide the people among the multiple

cultural groups.
• Belgium has two different civilization based on the spoken
language, French and Dutch.
• In Switzerland, there are two languages – French and German
• Canada has two languages speaking people – English and
French
 Spoken language is important in the corporate
sector for four reasons

• Language can be crucial to the gathering and assessment of data. The

opinions of strangers should not be the only source of information when
it comes to understanding the local business environment. A manager
who speaks the language well enough to be able to analyze the business
situation directly has a significant competitive advantage.
• Though English is widely acknowledged as the global language of
business, a manager must be able to engage with people in the
community and should be proficient in the language of the host nation.
• Using translators to conduct internal business communications with non-
English speaking staff is ineffective if managers lack language
proficiency in the host nation.
• Language goes beyond the pure technical skills to help the manager(s)
to understand the business context and operational challenges.
 Unspoken Language

• unspoken language is a powerful tool for enhancing our vocal

communications and conveying our attitudes, values, and
beliefs. Though there are many ways to classify the various
forms of nonverbal communication, the most commonly
recognized ones are facial expressions, posture, hand
gestures, walking, olfaction (smells), artefacts (jewellery),
proximity, touching, eye contact, and silence.
 Hand Gestures

• In certain cultures, hand gestures can be highly expressive,

yet their meanings are frequently ambiguous or even
contradicting.
 Symbols and Colors

• Color symbolism can be extremely perplexing.

• Green is a prominent color in Muslim nations, in Malaysia it
represents "disease" and "pain."
• In Chinese tradition, the color red represents love, joy, and
happiness; in many African civilizations, however, it
represents death and mourning. Red is a color associated
with violence and sacrifice in South Africa and Nigeria.
 Managing Cultural Diversity
• Developing a more varied and productive staff is essential to
a company's success, and managing cultural diversity
requires a management program. A program like this will help
the company throughout the testing phase to make the right
plans for hiring and choosing the top personnel to oversee
the global business operations.
•A company's capacity to navigate a culturally diverse
marketplace will be enhanced by having a workforce that is
culturally diversified. Furthermore, culturally diverse work
teams are better equipped to handle consumers from varied
cultural backgrounds.
• They can draw in a wide range of clients by improving their
advertising and utilizing additional marketing strategies. They
are also more adept at managing professional associations,
labor unions, financial institutions, and other organizations.
• Businesses that want to operate successfully on a worldwide
scale must create cross-cultural training initiatives to help
staff members become more accepting of people from other
backgrounds and colleagues. "Cultural assimilation" is a
well-liked method of cross-cultural training where trainees
react to scenarios of distinct conditions in specific countries.
These kinds of initiatives have worked well in Arab nations,
Iran, Thailand, Central America, and Greece.
Managing Individual and Workforce Diversity

• The international HR manager needs to gain expertise in managing

individual diversity in addition to managing cultural diversity. It goes
without saying that there will still be a lot of ways in which people in
each culture differ from one another.
• The American proverb "different strokes for different folks" will be
carefully and selectively applied by a skilled HR manager to manage
the individual or individuals who provide a distinctive contribution to
the company's growth. Managing a diverse staff can occasionally
provide difficulties like stereotypes, poor cohesiveness,
misunderstanding, and mistrust.
• Nonetheless, a well-integrated system that plans, implements, and
attends to the demands of training, development, awareness, and
assimilation of particular types of cultural sensitivity for its diverse
workforce can overcome these barriers to diversity.
 Essential facilitators for effective
management of cultural diversity
• Resounding and obvious leadership support.
• Constantly evaluating the training required to handle cultural diversity.
• Adaptable programs for a varied workforce's recruitment, selection, training, retention,
and upward mobility.
• Family-friendly programs, like daycare centers and senior care centers.
• Other work arrangements, such as flexible hours, job sharing, compressed work
weeks, and part-time employment.
• Possibilities for non-conventional workers and international workers who don't want to
immigrate to work remotely.
• Diversity training.
• Language training.
• To encourage diversity, high-potential women, minorities, and fringe groups can be
guided by high-level managers through mentoring or other means.
• Support organizations that can assist in creating minority networks for the assistance
and direction of employees in need.
• Opportunities for career advancement, such as promotions, to optimize diverse
employees' upward mobility and help them break through glass ceilings that often
ORGANIZATIONAL DYNAMICS AND IHRM
• While research on global leadership proposes a distinct way of
thinking with an emphasis on managing in a worldwide setting,
cross-cultural leadership examines the similarities and contrasts
among cultures.
• According to the survey, HR departments of multinational
corporations devote a significant amount of time and money to
the selection and training of expatriates, with the majority
focusing on knowledge and behavior modification training
appropriate for particular cultures.
• They are led by a cross-cultural viewpoint that highlights the
distinctions and parallels between national values and ways of
behaving.
• Comparing two national cultures can be pointless, though, as
multicultural teams work in an international setting with
individuals of various nationalities collaborating to achieve a
global goal.
ROLE OF CULTURE IN INTERNATIONAL HRM

• As multinational organizations are diverse and global in

scope, culture plays a large and complex role in multinational
Human Resource Management (IHRM). Understanding
culture's impact on IHRM is essential for managing a
multinational workforce efficiently.
• Culture affects several elements of IHRM.
• Culture has a significant impact on HRM policies and
practices. It also plays a vital role in the structure of the
organization.
 Functions of Culture in IHRM
• Selection and Recruitment: Culture has a significant impact on
the hiring and selection of foreign workers. When employing workers
from other nations, HR professionals need to take cultural sensitivity,
language competency, and fit into the workplace into account.
• Cultural differences have an impact on training and development
initiatives. It is imperative for IHRM to create training that is culturally
appropriate, considering variations in learning styles and
preferences.
• Workers Onboarding: For foreign workers, the onboarding
procedure is shaped by culture. It comprises orientation to the global
culture and principles of the organization as well as the norms of the
local workplace and the culture of the host nation.
• The assessment and management of performance are
influenced by cultural influences. HRM procedures like performance
reviews and feedback must take cultural differences into
consideration.
• Pay and Benefits: Depending on cultural norms, pay and benefit packages
may differ. HR specialists need to preserve equity across global operations
while coordinating them with local standards.
• International Mobility: Managing foreign transfers and expatriate
assignments is a common part of IHRM. It is imperative to comprehend and
tackle the cultural obstacles that employees and their families encounter when
on international mobility assignments.
• Inclusion and Diversity: In a global organization, culture plays a critical role
in fostering inclusion and diversity. The goal of HR procedures should be to
promote an inclusive culture that respects and values cultural diversity.
• Cross-Cultural Communication: In IHRM, effective cross-cultural
communication is essential. HR specialists need to be adept at clearing up
misunderstandings and closing communication gaps.
• Conflict Resolution: Misunderstandings and confrontations can arise from
cultural differences. HRM must be skilled in handling conflict resolution and
mediation in a culturally aware way.
• Organizational Change: How personnel from various cultural backgrounds
adjust to organizational changes is influenced by their culture. When making
adjustments, HR professionals must take cultural differences into account.
• Ethical and Legal Considerations: IHRM must respect local norms
and values while navigating the difficulties of international labor laws
and ethical standards.
• Leadership and Management Styles: Different cultures have
different approaches to leadership and management.
• HR specialists must be aware of these variations and assist leaders in
changing their approaches as necessary.
• Employee Engagement and contentment: Engagement and
contentment among employees are directly impacted by culture. The
goal of HR procedures should be to establish a supportive, welcoming,
and values-aligned workplace culture.
• Knowledge Transfer and Sharing: Cultural considerations may have
an impact on knowledge transfer and sharing in international
organizations. HR may help different teams share best practices and
information by facilitating these exchanges.
• Local Compliance: Taking cultural sensitivity into account, IHRM
experts must make sure that HR policies and procedures abide by local
laws and regulations in each country of operation.
 Cultural Effects on IHRM
• Impact of culture on HRM policies and practices: As employees
work in different cultures, cultural differences arise. Employees are
selected based on their experience of working internationally, ability to
speak various languages, handle stress, experiences with diverse
cultures, and personalities. An ideal candidate is a person with
managerial competence and a willingness to get trained in other cultures
and languages in the organization's organization.

• Impact of Training: Training is provided to employees about the cultural

components of the business. The general purpose is to train employees to
get acquainted with the new culture while taking overseas assignments.
Employees are trained in language, culture, goal setting, managing
family, and stress. Cultural training is essential for the organization’s
success; if the managers are not aware, the product or policy
implemented can fail, causing enormous losses for the organization.
• Impact on compensation and rewards: Organizations prefer
paying in a standard method in the means of payment, no matter
which country an employee works in. But sometimes, the strategy
might fail due to the cost of living being different in a different
country. So, organizations pay through a banding system to keep the
salary band standardized throughout the global organization.
• Impact on performance evaluation: There is always a debate
about who should rate the home country employees. Cultural
differences make the evaluation process ineffective as the host
country managers might harshly judge or place the home country
employees.
• Impact on HR Priorities: Culture has an influential impact on HR
priorities. The priorities for IHR Managers might shift from employee
retention to leadership development. In a global environment,
managers are not concerned about employee retention; instead,
they develop leaders who can survive in a new culture and train their
workforce to operate effectively in a global environment.
 COUNTRY AND REGIONAL
CULTURES
• Dimensions: According to a report on the website of the Association to
Advance College Schools of Business, while opening an office abroad, take
into account cultural variations along four dimensions:
individualism/collectivism, uncertainty/avoidance,
masculinity/femininity, and power distance.
• Members of low-power cultures, like Danes, expect to actively participate in
debates at all levels, while members of high-power distance cultures, like
Malaysia, show considerable deference to people who rank higher than them.
Collectivist cultures—like Venezuelan—emphasize the common good while
individualist cultures—like English—place more emphasis on freedom.
• Multinational corporations should understand that, in accordance with these
cultural conventions, management styles ought to vary throughout offices. It
is more profitable to focus on how a product improves relationships rather
than how it helps you accomplish goals when promoting it in a culture that
values feminine.
• Family Ties: The ways that different cultures approach families
and businesses also vary. A manager who recruited her brother
could very possibly face accusations of unethical nepotism in
the United States. On the other hand, hiring a stranger instead
of a qualified relative is frowned upon in many Latin American
communities.
• A global company that works in Latin America in addition to the
United States might reconsider implementing a policy that
forbids hiring relatives, whereas a small corporation that
exclusively operates in the United States might.
• Training: For small multinational companies to be competitive
across cultural boundaries, they need to adapt the culture at
their own headquarters in the United States.
• Creating a culture of training is one approach. Presentations on
cultural differences and incentives to visit to countries where
your offices are located could be included in training. Employing
a diverse team at the corporate office also facilitates introducing
everyone to other cultures.
• Unified Culture: Global corporations also need to find a way
to respect different cultures while maintaining a sense of
unity among staff members across all locations in support of
a single goal. Establishing a communal culture throughout all
offices is one method to achieve this. A daily email or
corporate blog can provide news and showcase achievements
from all offices. Social media groups or online collaboration
tools can help connect workers from different cultural
backgrounds around a shared goal.
CULTURE AND EMPLOYEE MANAGEMENT ISSUES/
IMPACT OF COUNTRY CULTURE ON IHRM

• One of IHRM's main areas of interest is managing the

adjustment process for expatriates.
• Thisrole has become more challenging as production and
sales have moved closer to markets.
• Hostcountry and third country management are used more
frequently.
• There is a simultaneous rise in the number of inpats;
• It can be challenging for both inpats and expats to adjust to
their new environment.
Types of Cultural Differences In The
Workplace
• These are some of the most common cultural differences that can cause
issues in the workplace.
• Religion: Many people's identities are rooted in their religion, which has a
profound cultural influence on perceptions, intentions, and conduct at work.
Differing moral standards and beliefs can lead to disputes among coworkers
or even discrimination based on religion. To ensure that everyone respects
each other's religious convictions while also upholding a fair standard of
conduct for consumers and clients, your company needs policies and
religious accommodations.
• Ethnicity: "Ethnicity" is the term used to describe being a member of a
social group that shares characteristics such as origin, language, legacy, and
identity. Ethnic groups that are frequently represented include Jewish, Irish,
Hispanic, and Cambodian. Everybody has different mannerisms,
communication styles, and patterns of conduct. People behave in ways that,
depending on their ethnicity, may appear normal or unremarkable to them
but may offend, confuse, or be unsuitable to their coworkers. Respectfully
addressing the matter and making sure that everyone's boundaries are
respected are crucial.
• Sexual Orientation and Gender Identity: Sexual orientation-related problems at
work are extremely widespread. Employee disengagement is frequently caused by
harassment, antagonism, discriminatory jokes, and improper queries directed
towards LGBTQ groups. In actuality, a lot of employees conceal their names out of
concern for prejudice.
• Laws prohibiting discrimination against employees on the basis of their sexual
orientation are in existence in many US states. Organizations should still place a
high priority on putting extra preventive measures in place to give LGBTQ
community members a secure and supportive work environment.
• Education: People's educational backgrounds can have an impact on how well they
fit into work environments. Diverse educational backgrounds lead to varying ways
of approaching issues and circumstances in the workplace. Conflicts may arise
between personnel who are working on the same tasks but using different
approaches because of their individual educational backgrounds
• Generation: Employees may also have differing perspectives, attitudes, and
notions of professionalism and business depending on their generation. Older
generations, for instance, are more likely to be job loyal since they often have
longer-term career ambitions.
• Millennials, on the other hand, are more likely to move on to another firm or better
positions since they usually seek growth opportunities and place a higher
importance on work-life balance.
•Some
Cultural
Cultural
Behavior:
Issues
Chloe, who
In The
moved
Workplace?
to New York from
Singapore lately, is beginning a new career as a newspaper
editor.
• Aftera few weeks, she observes that her coworkers are not
interacting with her as much, and she begins to feel
excluded. She makes the decision to discuss it with her
manager to get his opinion.
• Because she avoids making eye contact when interacting
with her coworkers, they assume she is unfriendly or dislikes
them. Conversations with Chloe are awkward for everyone
else as a result. She acts in this way because, in Singaporean
society, making direct eye contact might be interpreted as
impolite or hostile (particularly Muslim or Hindu).
• Once employees are educated about her culture, they
understand her behavior and feel more comfortable with their
differences.
• Educational Clash
• Omar recently began working at a nearby agency after
receiving his degree in marketing. Along with two other staff
members who have been with the agency for a few years, he
begins work on a new project.
• His coworkers tell him that "that's just not how we do it here"
when he raises the issue with them. He soon discovers that
his observations and ideas are not being taken into
consideration. He is aware that marketing tactics are dynamic
and that he has the potential to offer novel and inventive
concepts, but he is continually met with resistance.
• Omar will quickly become disillusioned and may begin to hunt
for other positions where he believes he can make a greater
contribution.
• Impact of Country Culture On IHRM
• The role of culture in International Human Resource
Management (IHRM) is significant and complex due to the
diverse and global nature of international organizations.
Culture influences various aspects of IHRM, and
understanding its role is crucial for effectively managing a
multinational workforce.
 Key Roles of Culture in IHRM
• Recruitment and Selection: Culture plays a critical role in the recruitment
and selection process of international employees. HR professionals must
consider cultural fit, language proficiency, and cultural sensitivities when
hiring employees from different countries.
• Training and Development: Cultural differences impact training and
development programs. IHRM needs to design training that is culturally
relevant, considering differences in learning styles and preferences.
• Employee Onboarding: Culture shapes the onboarding process for
international employees. It includes orientation to the host country’s culture,
local workplace customs, and the organization’s global culture and values.
• Performance Management: Cultural factors influence how performance is
assessed and managed. HRM practices such as performance appraisals and
feedback need to be sensitive to cultural nuances.
• Compensation and Benefits: Compensation packages and benefit
structures may vary based on cultural expectations. HR professionals must
align these with local norms while maintaining equity across global
operations.
• Global Mobility: IHRM often involves managing expatriate assignments
and international transfers. Understanding and addressing cultural
challenges faced by employees and their families during global mobility
assignments is crucial.
• Diversity and Inclusion: Culture is a key factor in promoting diversity and
inclusion within a global organization. HR practices should aim to foster an
inclusive culture that values and respects cultural differences.
• Cross-Cultural Communication: Effective communication across different
cultures is vital in IHRM. HR professionals must be skilled in bridging
communication gaps and addressing potential misunderstandings.
• Conflict Resolution: Cultural differences can lead to misunderstandings
and conflicts. HRM needs to be adept at mediating and resolving conflicts in
a culturally sensitive manner.
• Organizational Change: Culture plays a role in how employees from
different cultural backgrounds adapt to organizational changes. HR
professionals need to consider the impact of cultural differences when
implementing changes.
• Ethical and Legal Considerations: IHRM must navigate the
complexities of international labor laws and ethical standards while
respecting cultural norms and values.
• Leadership and Management Styles: Leadership and management
styles can vary across cultures. HR professionals need to be aware of
these differences and support leaders in adapting their styles as needed.
• Employee Engagement and Satisfaction: Culture has a direct impact
on employee engagement and satisfaction. HR practices should aim to
create a positive and inclusive work culture that aligns with the
organization’s values.
• Knowledge Transfer and Sharing: In global organizations, knowledge
transfer and sharing may be influenced by cultural factors. HR can
facilitate the exchange of knowledge and best practices across diverse
teams.
• Local Compliance: IHRM professionals need to ensure that HR policies
and practices comply with local laws and regulations in each country of
operation, considering cultural sensitivities