International Human Resource Management

Executive Summary of North American Computer Manufacturers

North American computer manufacturers requires a new international call center for expanding their business activities in the host country. As PCN IHRM strategist on the MNE organizing team, Iwill assist in deciding the country where the call center will be located. As a result of preferred conditions of MNE, this report will determine the traditional HR processes and consider the possible roles of IHRM with offshoring. Additionally, by describing employment relation between the host country and parent country, this report will try to find future MNE subsidiary expansion in the host country.

Table of Contents


1.1 Background.

1.2 Aims.

Call center: Trends, challenges, issues.

Roles of IHRM in Offshoring.

Call center in India.

4.1 Macro-environment context in India.

4.2 Employment relations between Host country and Parent Country.

4.3 Benefits of future expansion.

Recruitment process.




1. Introduction to Offshoring

1.1 Background of Offshoring

“Offshoring” is a general term for describing the outsourcing activities of a business. Similarly, contemporary offshoringrecognized as offshoring of services, present growth in the global economy based on services and knowledge and are evidenced by the concept of call centers. From an employment perspective, offshoring has been used to outsource contractors in countries where consolidation is poorly developed and can result in potential conflicts of interest in the manufacturing process. Many states now have laws that do not indicate that the labor crisis is irreversible due to structural conditions. In many countries, plant closure or redundancy legislation often specify that organizations have to compensate terminated workers through specific method, for example two weeks ’salary for each year of service. Many countries have larger payments for involuntary termination than the United States in particular (Harzing and Pinnington, 2010).

1.2 Aims of International Human Resource Management

In this study, I will place special attention on the context of the host countrythat is the general recipients of MNE's offshoring activities. For this offshoring country, I will discuss the roles of IHRM on offshoring as this tendency leads to the changes in the global workforce. The study will identify the current trends and challenges of call center and the microenvironment context of host country.

2. Call Center: Trends, Challenges, Issues

  • Artificial intelligence integrates into customer interaction

Organization is getting bottomless into the predictive analysis using Artificial Intelligence (AI) application to help customers and agents improve their call center experience. We see that as early recipients tend to respect AI applications for their call routes, AI will be used more and it is expected to see more connection scandals between different media channels and streaming call center responses (Björkmanand Welch, 2015).

  • Digital transformation

Businesses always try to differentiate themselves in terms of price or product quality. Today, we see that customers are increasingly looking for: rewarding experiences that affect their business relationships. Customer interaction is not an uninterrupted activity and customers get a more complete and consistent experience. With advances such as Olympic communication and machine-to-machine communication through the Internet of Things (IoT), a leading digital transformation strategy has become a big issue in the expectation of being competitive for business.

  • Advanced Contact Center Analysis

Even small businesses are using advanced analytics to convert data into phone calls and chats, recordings,SMS messages and much more in useful responses for agents. More and more former call centers rely heavily on analytical programs to create keyboards that affect their business. We've seen more merchants display this kind of statistics dashboard in the user interface, allowing phone agents and operators to get real-time updates on their customer experience. In general, we expect further progress in analysis as the organization continues to apply more integrated communication strategies and platforms (Schuleret al. 2011).

3. Roles of IHRM in Offshoring

Access to transportation and telecommunications in remote areas is now cheaper and easier as a result of the infrastructure needed for global business power has been expending. Due to the growing talent pool in the region and its comparatively low cost of labor, this is common for businesses to operate in international locations based on global demand-resources. When low-skilled labor demand is compared to labor-intensive regions, age-based organizations soon realize that where middle and higher education levels, prerequisites, offshore preservation can even be successful. Since then many companies have taken over customer service abroad and are now evaluating several possible levels of professional work abroad. Instead of focusing on hourly staff, "professional offshoring" involves high-level work such as research and development, product development, even international design and even product design (Noeet al. 2015).

Previously senior managers decided to use these facilities or “work moves”. Shortly after this decision, HR was informed when new international activities would begin. However, offshore strategies for talent management differ from the traditional approaches, so HR is taking the first steps in identifying geographic regions where quality talent is cheap but inexpensive. HR then compares labor costs and existing site activities with new sites and advises experienced managers on the economic benefits of active activities. By initiating the process and acknowledging ownership of the process, HR determines that talent management is the key issue and increases labor productivity. Strategic change is needed because in a fast-paced world, manpower should behave like any other business entity and HRM should act like any other business entity that would take advantage of cheap economic opportunities. In some cases, it may move from one location to another, or it may be offshore based on issues such as low labor, lack of unions, or flexible labor laws. Moreover, this is the role of IHRM in identifying opportunities as well as act rapidly to take benefit of economic opportunity associated with the supply of low-cost and high-quality talent (Sparrowet al. 2016).

4. Call Center in India

India is expanding its outsourcing process. The technical infrastructure and qualifications, as well as the motivation of the staff are considered to be the advantage of Western investors and partners.India is clearly a preferred outsourcing location, as call centers in India provides a variety of facilities that are not offered by other countries. Many companies are outsourcing call centers in India due to the convenience of time zones in India. To take a benefit of time difference in India, the concerned MNEhas been capable of ensuring that their customers get frequent customer support. The concerned company will set up their call centers in India as India has a large skilled staff and can offer cost-effective call center outsourcing services. Due to low labor costs in India, your organization can provide high quality call center outsourcing service on 24x7x365 days at a cost, i.e. 50% less than in the United Kingdom and the United States. Because it is outsourcing a great call center for accessible services (Sparrowet al. 2016).

4.1 Macro-Environment Context in India

  • Political risk

India is the largest democracy across the world and experiences a constant political environment. Additionally, the Citizenship (Amendment) Act, 2019 has caused widespread violence and protests in several parts of the country. Then again, corruption is a key extent of anxiety in India. This poses a challenge to the economic growth of country, detrimental to the political and business environment. But increasing public awareness and many government initiatives are opposing the challenge of corruption (Kumar,2013).

  • Political system

India has become the federal government and largest democracies among the world. Moreover, this culture of political tolerance is about maintaining a constant political environment that is an essentialaspect in attracting FDI (foreign direct investment). Thus, the business environment in India is influenced by various political aspects. Moreover, the tax system is highly developed as well as several tax, for example service tax, sales tax, and income taxare executed by the Union Government. The Government of India is adding support to the IT and outsourcing industries. The Indian government has permitted duty free exports of capital goods as well as has given tax exemption on ITES exports (Baranidharanand Vanitha, 2015).

  • Economy

India has the largest economies in terms of nominal GDP. The Indian economy has been constant because the introduction of the “Industrial Reform Policy” in 1991. According to the policy, the liberalization of foreign capital, the reduction in industrial licensing, and formation of FIBP has resulted in a stable improvement of Indian economic environment. In 2018, GDP will reach about$2.72 trillion. In September 2019, the country reduced the tax rate for offshoring organizationsfrom 30% to 22% and for new manufacturing firms from 25% to 15%. It should be noted that in a few years the country has changed a lot in corporate tax rates, such as in 2010, the tax rate was 33.99%, although it reached a maximum was 38.95% in 2001 (Schwörer, 2013).

  • Socio-cultural

Social factors indicate changes in trends that affect the business environment. India has a growing consumer market with an estimated volume of 1.2 billion. Further, India provides cheap labor and the workforce is expected to reach 160 to 170 million by 2020. India is a country rich in many races, religions, and languages. The main advantage is the large and well-educated labor force. India has the largest English-speaking inhabitants after the United States.

  • Technological

Technology presents fresh cost-cutting processes and influence the development of product. India is providing both 4G and 3G technology that has helped it in many technology projects. Additionally, the country is one of the strongest IT sectors among the world, gradually increasing software upgrades, IT development, and other technological improvement. With highly skilled IT workforce and advanced IT infrastructure, India provides huge opportunity for the organization to set up a new international call center (Guptaand Qiu, 2013).

4.2 Employment Relations Between Host Country and Parent Country

The variability of different aspects of employment (ER) involves a myriad of organizational actors, including political, different levels of influence. Furthermore, the ‘best way’ of running a country may be considered as a model of “innovation, imitation, or a deviation” and may depend on the relations between the host countries, the relative causes of integrated international operations and the firm’s investments in their preferred employment. Strong power to lead the system.

There are three choices for corporate strategies towards ER: Partnership, Unitarist, or Contingent Approach. The general monolithic outlook in the United States, portrayed as homeland in this study, focuses on the organization's goal of succeeding in the market. The creation of a general interest between the directors and the directors who have managed to achieve this goal is crucial to its success. However, the consolidation of this approach could be seen as detrimental to Europe's traditional practice of involving trade unions. On the other hand, the partnership approach integrates the aforementioned work councils like India. The role of “patterns of state, law, union, and ownership” is integrated into this contingent view set in the local context (Jacksonet al. 2014).

4.3 Benefits of Future Expansion

With the growing demand, India has been able to maintain its position as a top destination for call center support services. In reality, the global outsourcing market has grown by 4% in just one year. Skills and customer service will keep India out of the public eye and if call center services still have a bright future. Proposed new international call center may consider spending in Tier II and III cities to confirm that wages remain competitive as well as skilled workers get opportunities outside the second tier. As the market become more knowledge-concentrated, India has also become the preferred country for IT services. In future, the outsourcing business, like call center could become the largest revenue producer within the country. In contrast, emerging markets like India are seeing high growth. Compared to other regions in Asia in the field of high-tech, India's capital marginal power producers have to follow critical product / quality standards even for Indian subsidiaries (Mudambi and Venzin, 2010).

5. Recruitment Process

The three-step call center recruitment process includes:

  • Group Discussion - Candidates are assessed for their verbal communication skills with a focus on diction, accent, clarity of thought and speech as well as their overall confidence.
  • Operations - A highly effective way to evaluate candidates for teamwork, creativity and skills to work under pressure. English proficiency, numerical and analytical proficiency are verified for the initial proficiency test. Depending on the assessment and skills, specific references to the job may be relevant (Maertz Jret al. 2010).
  • Induction - The last step in the recruitment process of call center is an induction for the team members, in which they will be provided information on a specific topic.

6. Retention

  • Training and Development (T&D)

The training and development program is designed based on the needs of the organization, the type and skills of the trained staff, the initial purpose of the training and the work profile of the staff. This ensures that employees will use their management and leadership skills. The staff at the training center are more effective in understanding why training is important for their own work, clients and development.

  • Performance Management (PM)

The positive impact of performance management also affects the key performance indicators of the call center. Performance management helps the staff of call center perform their tasks in the most efficient way; Integrate processes and policies with customer experience so that employees are aware of the impact of their activities and promote a growing culture that focuses on improving the quality of customer experience (Nassimbeniet al. 2012).

  • Compensation

Compensation strategies help organizations manage staff costs and provide clear boundaries for managers and employees. There are three main compensation structures commonly used for the employees’compensation plans.

  • Team-based: Compensation is based on the goals of department or team. Every team member will get an incentive when the goal set by the call center is met.
  • Individual-based: Compensation is based on goals set by call centers. If the goal is met, individual employees are fit for a set incentive. It encourages employees to be more responsible and accountable.
  • Company-Based: Bonuses are based on the overall performance of the organization.

7. Conclusion on International Human Resource Management

IHRM or International Human Resource Management is an appropriate individual recruitment process in all countries where the human resource talent of an organization is effectively executed to achieve the mission statement of an organization. The HR managers of the IHRM department was then assigned to oversee staffing matters related to several citizens and therefore had to manage the formation of an internal HRM department for each employee working from all countries. As globalism observes the interaction between different cultures, written language and spoken often act as barriers to development. Moreover, the IHRM must overcome themulti-cultural differences between host country and parent country in order to establish and operate a new international call center in the host country.

References for International Human Resource Management

Baranidharan, S. and Vanitha, S., 2015. The impact of macroeconomic variables on Indian stock market using factor analysis approach. IPE Journal of Management, 5(2), p.38.

Björkman, I. and Welch, D., 2015. Framing the field of international human resource management research. The International Journal of Human Resource Management, 26(2), pp.136-150.

Gupta, V. and Qiu, R., 2013. The rise of the Indian multinational corporations and the development of firm-specific capabilities. Journal of Business Theory and Practice, 1(1), pp.45-65.

Harzing, A.W. and Pinnington, A. eds., 2010. International human resource management. Sage.

Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The academy of management annals, 8(1), pp.1-56.

Kumar, R., 2013. The effect of macroeconomic factors on Indian stock market performance: A factor analysis approach. IOSR Journal of economics and finance, 1(3), pp.14-21.

Maertz Jr, C.P., Wiley, J.W., LeRouge, C. and Campion, M.A., 2010. Downsizing effects on survivors: Layoffs, offshoring, and outsourcing. Industrial Relations: A Journal of Economy and Society, 49(2), pp.275-285.

Mudambi, R. and Venzin, M., 2010. The strategic nexus of offshoring and outsourcing decisions. Journal of Management Studies, 47(8), pp.1510-1533.

Nassimbeni, G., Sartor, M. and Dus, D., 2012. Security risks in service offshoring and outsourcing. Industrial Management & Data Systems.

Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2015. Human resource management. Gaining a Competitive.

Schuler, R.S., Jackson, S.E. and Tarique, I., 2011. Global talent management and global talent challenges: Strategic opportunities for IHRM. Journal of world business, 46(4), pp.506-516.

Schwörer, T., 2013. Offshoring, domestic outsourcing and productivity: evidence for a number of European countries. Review of World Economics, 149(1), pp.131-149.

Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management. Routledge.

Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into strategic human resource management. Human resource management journal, 21(2), pp.93-104.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Human Resource Management Assignment Help

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