Introduction
Globalised economics, Multinational Corporation and foreign direct investment (FDIs) and still migration flows result to the interaction of professionals of different culture. It gives rise to the display of intercultural differences and such diversity is crucial for human resources management in international environment (Taylor et al., 2013). In respect to this study, the complexity of cross-culture is explained with respect to integrate of international business activity with IHRM practice. Alongside, the key competencies for the selection of international managers are also examined. Lastly, approaches to IHRM practice undertaken. Thus, this study will help current or future firm to critically analyze the key competency that international HR director requires to possess for perform their business in multicultural environment.
Discussion
Complexities of Cross-cultural differences
Culture has a major role for the current and future businesses to undertake as with the globalization, FDIs etc. In such case, every firm indulges in expanding their business on international market. In that situation, it become complex for firm IHRM department and organization to integrate or align international business activity with IHRM practice in a way to decide to what extent localize their organization culture and management practice in order to fit best in host country (Horvat et al., 2014). Besides that, it also challenging to figure out which market in host country should be targeted
In addition to this, organization also face the complexities in the form of decide how much ration of employee they could bring to the home market and how much workforces they should hire form international market (Hart and Mareno, 2014). In respect to this, IHRM department face problem to make coordination with international management. This is because different country always possesses different business policies and norms and they work as per their culture demands and values. So, it becomes quite complex task to align the International business activity with IHRM (Čuhlová, 2015).
In respect to successfully expand the business operation in more than one country, then the culture model of Hofstede six dimensions requires to undertake. This model explained about the culture practice of 50 countries (Dartey-Baah, 2013). Based on this, it becomes easy for the firm to identify the cultural values and individual behavior which assist HR manager to overcome the complexities related to work in different cultural environment.
Apart from this study, the differences in viewpoint and set perception are also considered as a complex task for international organization or IHRM to retain the diversified cultural people less than one roof. It is because existences of differences viewpoint people give rise to the interaction of wide ideas and this can be result in the conflict (Khlif, 2016). This practice affects the working environment of business which turns out negative for the firm sustainability. So, this complexity is the major area to consider when firm expands their business in different cultural work environment.
Key competencies requirement for the selection of international manager
In respect to select, prepare and manage right international manager for performing the business activity in international market in a best possible manner. For this, there is need to possess certain competencies (Whimbey et al., 2013). These skills also allow the HR manager to face the complexities of both current and future work environment.
Although there are some companies that more rely on technical skills for the HR manager but with the changing business work environment and ethics, now key competencies that candidate for international manager should possesses are the communication skills, analytical thinking, and relationship building etc (Giancola, 2014). At the same time, presently desired competency is the adaptability, flexibility and social skill as cultural empathy. These skills majorly required at the time of managing cross-cultural workforces.
- Communication skills: This competency is important to figure out at the time of selecting the desired HR manager as if manager is incompetent to make a proper communication then how they will operate the business on host country.
- Analytical skills: – This skill is the must one for the HR manager to be possessed. This is because interaction of cross-cultured people gives rise to the conflicts and misunderstanding. So in such case, the analytical skill is needed to examine the current situation in order to take the decision accordingly.
- Relationship-building: – the selected HR manager need to competent in term to develop the team-spirit among the workforces and build the strong relationship between management and customers or manager with employee (Moore et al., 2018). For this, HR manager should need to specialize in understanding the individual behavior and attitude.
Thus, these skills are important to examine before the selecting the HR manager for international market.
Compare and contrast approaches to international human resource management practices
While discussing the international human resource management, it is determined that there are several approaches which can be beneficial for the businesses while entering into the international market. In this manner, it is determined that the human resource has a greater impact on the productivity and the success of the international business operations within the multinational organizations. Because of this, it is considered as an important factor essential for the competition. In this way, a number of organizations select the organizational culture model in order to operate their businesses within the international environment (Noe et al., 2017). At the same time, it also selects a degree of the national culture’s influence on the strategies. Within the organization, international management attitudes are known as the EPG framework. Later, this framework has been categorized in the four dimensions in concern of the international operation’s evolution. In this framework includes Ethnocentric, Polycentric, Geocentric and the regiocentric, etc.
In addition, the above approaches define the critical relationship between the international strategies and the human resource policies while filling the vacant positions within the local subsidiaries of the MNC (Briscoe et al., 2012). With the help of this framework, foreign companies get the way to expand their business and transfer skilled employees as well as human resource management related activities in an effective manner.
| S. No | Approaches | Description |
| 1 | Ethnocentric, | It defines the companies which are oriented for the home country. The key task within these types of organization is to fill the main positions within all the subsidiaries with the help of the people from the parent country |
| 2 | Polycentric, | Under this, another possible orientation is reflected by the polycentric alias host country which is oriented state of the mind. These affect the ways by which a company carries out its business abroad. |
| 3 | Geocentric | It is known as a transnational strategy which is oriented towards the complete world. |
| 4 | Regiocentric | It is the last approach to the organization’s international strategy. This approach belongs to the polycentric and the regiocentric strategy. |
Conclusion
From the above discussion, it is concluded
that HR manager to support organization in international market requites to
possess certain skills which are communication, analytical and
relationship-building etc. other than that, diverse cultural adaptability and
social skill also requires to influences the host country. The manager with
such skills can able to solve different complexities regards to cross-culture
in international platform.
References
Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management: Policies and practices for multinational enterprises. UK: Routledge.
Čuhlová, R., 2015. Cross Cultural Issues in International Human Resource Management. pp. 9-12
Dartey-Baah, K., 2013. The cultural approach to the management of the international human resource: An analysis of Hofstede’s cultural dimensions. International Journal of Business Administration, 4(2), p.39.
Giancola, F.L., 2014. Should HR Professionals Devote More Time to Intrinsic Rewards?. Compensation & Benefits Review, 46(1), pp.25-31.
Hart, P.L. and Mareno, N., 2014. Cultural challenges and barriers through the voices of nurses. Journal of clinical nursing, 23(15-16), pp.2223-2233.
Horvat, L., Horey, D., Romios, P. and Kis‐Rigo, J., 2014. Cultural competence education for health professionals. Cochrane database of systematic reviews, (5).
Khlif, H., 2016. Hofstede’s cultural dimensions in accounting research: a review. Meditari Accountancy Research, 24(4), pp.545-573.
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