IHRM Concepts and Theory Assignment Sample

• Subject Name : International Human Resource Management

Evaluating Contemporary IHRM Challenges in Domestic and Global Context

Introduction to IHRM Challenges 

IHRM is a strategic approach that encompasses a set of activities aimed at conducting human resource practices at the international platform (Farooq, Bhatti & Latif, 2019). It has the objective to meet the international standards of recruiting while maintaining competitive edge (Andersson, Brewster, Minbaeva, Narula & Wood, 2019). It is concerned with the process of allocating, procuring and organizing the resources in an efficacious custom in the multinational organizations. While conducting the practices of IHRM, it is critical that the industrial relations (IR) are taken into account. IR basically incorporates the employment relations and intricate interrelations between the employers and the employees.

This report is an extensive analysis of facets of IR of US in the relation and elaborates on the advantages of the Global Code of Conduct. The report is branched into four key sections. The initial section discusses the cultural background and the HR practices of the US. The following section of the assessment elaborates the IR characteristics of US. The third section discusses the significant impact of the IR practices on the HR practices and functions being followed by Hexaplex. The fourth section lays prominence on the Global Code of Conduct and also proposes whether Hexaplex should proceed with this approach. The concluding section will highlight the key underpinnings of the report.

Cultural Background and HR Practices in the US

In the US, The culture of recruitment is based on the process of identifying and recruiting the best-fitting candidates as per the requirement of the job position. Individuals are recruited in the country on the basis of the talent and the potential to bring innovation and creativity to the job profile. The recruitment procedure in the country is relied on the personal attributes of the candidates. This process mainly iterates around the selection of the candidates in such a manner that the employee turnover is diminished to the maximum point and the profitability is inflated. The US's recruitment culture looks for the people who have the ability to ensure that the successful blend with culture of the organization is ensured. It also looks for transparency in the process so that all the applicants are aware of the processes that will be encompassed in the recruitment procedure (Medrano, 2018). The culture of the country is backed up by fairness so that ethical compliance is ensured and satisfaction is elevated. They believe that prejudice-free practices pose a positive impact on all the employees and also ensure that a positive brand image

is communicated to people. Conducting a job analysis is a popular culture being trailed in the US’s system so that the job roles, accountabilities and competencies are recognized in an effectual custom. A professional recruitments strategy is trailed in organizations so that the top talent is attracted and recruited. Both the internal and external analysis is considered as a part of the job analysis strategy so that the most suitable target applicants are identified in a more efficacious manner. The recruitment process begins with the advertisement via the internet, through organizational websites and job-seeker websites. According to the author Rainnie (2016), of employee shared ownership schemes are popular culture in the US. It ensures that the qualified professionals are well-informed about the job and hence, the required talent is recruited. This also saves time as the applicants who do not meet the requirements are eliminated in the initial stage. It lowers the large pool of applicants and filters those who fit in with the needs of the job profile.

IR Characteristics in US

IR is a multidisciplinary field that emphasizes on the industrial relationship between the employers and the staff (Rainnie, 2016). In the US, unique industrial relations are trailed that majorly stress on the workplace conditions, safety in the workplace and working arrangements at all the occupational levels (Sheldon, Bamber, Land-Kazlauskas & Kochan, 2019). In the US, it is a key tactic that is incorporated to settle the disputes that fume in the workplace. It encompasses certain regulations that are intended to ensure that the minimum terms of employment are set. The IR characteristics of the US’s system are more centralized. The union presence in the country is quite celebrated as it has high power in the industries. The employees have the power to stand and raise voice against the employer in case of any discriminatory practice. Authors Sheldon, Bamber, Land-Kazlauskas & Kochan (2019) have stated that in the country, the IR has become more authorized and formal in the last decade. Marketing of the employment opportunities becomes easier with the assistance of IR that is more methodical. The formalized HR practices are directly associated with better opportunities for the candidates. It also plays a key role in promoting business growth.

For comprehending the industrial relations in the country, it is cardinal that the role of the Fair Labour Standards Act (FLSA) is comprehended. The constitution acts both power and source of the IR of the country (Andrias, 2018). FLSA regulates the principles of the IR in the country. It establishes statutory minimal conditions that need to be abiding by the organizations so that the fair work conditions are sustained. It regulates working condition like the maximum hours that an employee is bound to work per week, requests for the flexible timings, long service leave, and notice of termination, a notice of redundancy pay, annual leave and maternal or paternal leaves. These laws are applicable to all the national employee systems. FLSA controls the relations in the context of the industrial regulations by stressing on unfair dismissal, equal remuneration, industrial action, dispute settlement and right of entry.

The US’s IR is increasingly becoming more ‘hybrid’ in nature due to globalization. As a result of the intensive competition, the country is witnessing rapid production and reallocation of the jobs, job losses, and transfer of investments and share of the informal sector. The social pattern is also a key determinant that influences of the IR being trailed in the country. The decentralized bargaining systems in the organizations are increasing along with the individual performance house bonuses. The potential mobility of labour is quite high in rural areas. The National Labour Relations Act governs the industrial relations of the private sector (Levi, Melo, Weingast & Zlotnick, 2016). The IR in the country trails a three-tier structure. In organizations in the US involving CVS Health, ExxonMobil, UnitedHealth Group and Berkshire Hathaway follow three-tier IR structure. The local unions can have daily interaction with the employees which facilitates the smooth flow of information and protection of the rights.

Impact of IR Practices

Intervention by the Union

The IR practices in the US are more dependent on the exogenous factors such as GDP. US witnesses rapid structural changes as a result of fluctuation in its GDP. The organization has to sustain the changes in the social and market conditions of the country. The AFL-CIO which is among the largest union federation in the country regulates the interaction of the management with the workers and keeps a regular track of the same (Medrano, 2018). It provides an overall direction to the labour movement. It will impact the activities of Hexaplex has as he may have looked upon the level of intervention by the union. The practices such as government lobbying are also looked by the union in the country. However, union density is decreasing in the country. The probable reason behind this is the varying attitude of the management regarding the unions.

However, there is a need for Hexaplexhas to consider the rights of employees in the recruitment procedure.

Market Maturity and Infrastructure

The US has elevated market maturity as compared to Australia. Declining population rate is the key reason that the maturity of the market has grown in the country. Market maturity and infrastructure have an intricate interplay with industrial relations as the levels of the variables of maturity are known to impact the HRM practices. As compared to other countries, the US government intervenes to a less degree in industrial relations. The regulations of the US’s manufacturing sector majorly iterate around the safe and hazard-free workplace (Casady, Eriksson, Levitt & Scott, 2020). It will impact the Hexaplex ‘s activities in the context of the IHRM to consider the safety and health-related regulations. The recruitment procedure must be conducted in such a custom that the qualifications and licenses are scrutinized. Also, it is critical that the IHRM practices must be safe and must involve safety assessments of the candidates. A thorough proactive assessment of the candidates must be considered by Hexaplex has in the IHR practices.

Benefits of Global Code of Conduct

Global code of conduct is crucial in ensuring that the core beliefs of an organization are sustained. It provides a clearer vision and mission to the organization and the HR department. It assists in building the reputation of the organization in the market. Author Rahim (2019) has stated that it is beneficial in ensuring that the employees are prohibited from violating the laws. It is helpful in managing the organizational overall conduct. The benefit of the Global Code of Conduct is that it is the key to fostering trust in the workplace. It ensures that ethical culture is sustained. In the recruitment procedure, it communicates the ethical compliance to the employees and makes sure that the employees are lured.

Adhering to this code of conduct is beneficial in ensuring that an atmosphere of commitment is fostered (Furusawa & Brewster, 2016). It builds a robust foundation of the culture, in the US, it is crucial in safeguarding that the decision-making process is done in adherence to the laws and regulations. It lays out a format of the legal procedures that must be trailed to make sure that the employees display ethical behaviour. In the recruitment procedure, it is imperative in making sure that the employees have the knowledge regarding the code of conduct that they have to follow within the workplace boundaries. As a part of the code of conduct, personal reflects must be shipped ad it must be made sure that the formal procedures are maintained in an effectual custom. As a part of the Global Code of Conduct of the firm, Hexaplex must ensure that the gender pay gap must be filled, Foreign Service inducement is provided to all the employees as a part of the IHRM, global reward strategies must be provided to the employees and the cultural differences must be embraced among the employees. Also, it is critical that the Going Rate approaches must be adopted by the HRM members (Olivier, Hunt & Ridde, 2016).

Conclusion on Contemporary IHRM Challenges

The above-presented report has stressed on the facets of IR of US in the relation and lays prominence on the merits of Global Code of Conduct. The recruitment procedure in the country is based on the individual attributes of the candidates. This process principally revolves around the selection of the candidates in a way that the employee turnover is minimal to and the profitability is maximized. In the US, unique industrial relations are trailed that majorly stress on the workplace conditions, safety in the workplace and working arrangements at all the occupational levels. In the country, statutory nominal conditions that need to be abided by the organizations so that the fair work conditions are sustained are declared by the FLSA.

The report brings forward a picture of US's IR becoming gradually more 'hybrid' in nature as the influence of globalization. As a consequence of the intensive competition, the country is witnessing rapid production and reallocation of the jobs, job losses, and transfer of investments and share of the informal sector. The IR is impacting Hexaplexhas's operations in terms of inflated compliance with the safety regulations and the rights of the employees. The Hexaplexhas must fulfil the gender pay gap, must make sure that Foreign Service inducement is provided to all the employees as a part of the IHRM, global reward strategies are provided to the employees and the cultural differences are celebrated and diverse workforce is built.

References for Contemporary IHRM Challenges

Andersson, U. R., Brewster, C. J., Minbaeva, D. B., Narula, R., & Wood, G. T. (2019). The IB/IHRM interface: Exploring the potential of intersectional theorizing. Journal of World Business, 54(5), 100998.

Andrias, K. (2018). An American Approach to Social Democracy: The Forgotten Promise of the Fair Labor Standards Act. Yale LJ, 128, 616.

Baddon, L., Hunter, L., Hyman, J., Leopold, J., & Ramsay, H. (2017). People's capitalism?: a critical analysis of profit-sharing and employee share ownership (Vol. 1). London: Routledge.

Casady, C. B., Eriksson, K., Levitt, R. E., & Scott, W. R. (2020). (Re) defining public-private partnerships (PPPs) in the new public governance (NPG) paradigm: an institutional maturity perspective. Public Management Review, 22(2), 161-183.

Farooq, W., Bhatti, O. K., & Latif, S. (2019). Islamic Human Resource Management (IHRM) Practices Impact on Employees’ Work En¬ engagement: An Empirical Study. AL-ADWA, 34(51), 1-18.

Furusawa, M., & Brewster, C. (2016). IHRM and expatriation in J apanese MNCs: HRM practices and their impact on adjustment and job performance. Asia Pacific Journal of Human Resources, 54(4), 396-420..

Levi, M., Melo, T., Weingast, B. R., & Zlotnick, F. (2016). Opening access, ending the violence trap: Labor, business, government, and the National Labor Relations Act. In Organizations, Civil Society, and the Roots of Development (pp. 331-366). University of Chicago Press.

Medrano, J. D. (2018). Beliefs and trade union support for trade liberalisation in the US and the UK: the AFL-CIO and the TUC compared. Journal of International Relations and Development, 21(3), 769-797.

Olivier, C., Hunt, M. R., & Ridde, V. (2016). NGO–researcher partnerships in global health research: benefits, challenges, and approaches that promote success. Development in Practice, 26(4), 444-455.

Rahim, M. M. (2019). Quest for a Global Code of Conduct for TNCs—A Grim Tale. In Code of Conduct on Transnational Corporations, 1-22.

Rainnie, A. (2016). Industrial relations in small firms: Small isn't beautiful. London: Routledge.

Sheldon, P., Bamber, G. J., Land-Kazlauskas, C., & Kochan, T. A. (2019). Industrial Relations: Changing Trends Across Theory, Policy and Practice. The SAGE Handbook of Human Resource Management, 317.

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