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BMP6003 International HRM

Introduction - BMP6003 International HRM

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Organisations achieve a competitive edge by hiring an efficient pool of employees. Usually, it has been seen that several business enterprises operate their business beyond national boundaries for this there is an intensifying requirement of managing international employees. In fact, the appropriate HR management basically refers to employing the equitable people in the appropriate positions where they belong in the case of a multinational firm. In terms of that, the global HR managers must then be engaged in a consistent network where they can quickly categorise and leverage virtuous ideas all-inclusive. It is indeed difficult to manage the global workforce due to having different cultural perspectives and behavioural norms. For this reason, such an integrated network relay on the fact of executive endurance.

This present human resource management assignment covers the concept of international HRM practices which are indeed characterised by a series of activities. It will also cover some international HRM issues that multinational companies now encounter in an extensive manner.

3 Most Important HR Practices for an International Business

IHRM practice 1


It has been observed that international firms do their supreme best in order to hire an exceptional workforce as they add most of the value to the business. for international firms, employees are considered to be the core asset through which they might be able to create a competitive advantage in a particular marketplace. It is, therefore, the concern of the HR managers to hire employees whose beliefs and perspectives support the within the company (Hosanoo, Rughoobur-Seetah and Ramrekha, 2021). Employing the right workforce might be facilitating for the international firms in order to increase productivity as well as edge a fitting working culture and self-esteem. Regarding this fact, hiring the rightful workforce is considered to be extremely crucial as an international HR practice.

    • Strategized Hiring:Through a proficient hiring method, the future success of an international firm can be determi8ned in an effective manner. Companies might set a suitable persona according to the responsibilities as well as screen candidates corresponding to that persona. International companies seem to hire people by accompanying on the basis of two foremost hiring strategies which are: Internships and Panel Based Hiring (Klobsanthia and Pinmanee, 2020). Conversing the topic of internships basically indicates a hiring process which provides time for the employer to determine the approach and quality of work. In terms of the interview panel, they are considered experienced leaders and bring in different perspectives to define if the applicant is suitable or not.
    • Global Hiring: The utmost opportunity related to the global hiring procedure is that it brings diversity within it. In a reaction to that, global diversity has the ability to increase efficiency, cultural literacy and increased rate of employee engagement (Hosanoo, Rughoobur-Seetah and Ramrekha, 2021). Therefore, IHR managers generally play safe by engaging a heavy prominence on technical qualifications and little on the individual aptitude to acclimatise to a foreign environment. The more you will look around the more likely you will be competent to find the right candidates for your organisation.

Critical analysis

Hiring an international workforce is considered to be one of the foremost things to do for multinational firms as it brings innovation and creativity. Having a diverse workforce is measured to be extremely accommodating for a firm as it helps to understand extensive consumer behaviour (Klobsanthia and Pinmanee, 2020). In fact, it is also considered facilitating to comprehending the various requirements of the consumer in a foreign country. Therefore, hiring the right workforce can increase productivity and brings innovation to a company. Furthermore, it is indeed true the rightful selection process determines the future success of the company as well as reinforces its vision in the global marketplace. However, recruitment and selection is not an easy process and the HR professionals have to work really hard to make the right decision regarding this subject. As per many researchers, an inappropriate selection of the workforce might impact an organisation by decreasing their productivity as well as revenue margin (Ceil, 2018). It has been observed that multinational corporations recruit people on the basis of their technical competencies and thus not having relational skills is considered the foremost reason for adjusting to the diverse working atmosphere. This directly impacts on low rate of productivity issues as well as fostering internal conflict among the employees.

IHRM practice 2


After the recruiting and selection procedure, it is considered the second and the most prominent aspect of IHRM. It has been considered a holistic approach which assists the employees to accomplish the company objectives quite effectively.

      • Managing Engagement and Performance: Having a diverse workforce, it is quite difficult for the IHR managers to manage the workforce along with engaging them effectively. As per the consideration of Gallup's meta-analysis, an accurately engaged workforce has the ability to demonstrate approximately an 18% increase in efficiency over the rest (Aljadir, Petersson Berg and Ullaghbaik, 2022). In terms of employee engagement, it basically refers to practices of apparent interaction with colleagues and seniors, open discussions as well as motivating them. For multinational corporations, it is quite mandatory to engage a diverse workforce. An effectively engaged workforce has the capability to fetch innovative ideas and provide effective solutions to a problematic situations. Therefore, engagement through motivation augments value to the corporation and is one of the age-old international HR practices which grasps well within time.

It has been seen that the employees like to get valued, and appreciated as well as getting from their superiors. This has considered facilitating for the workforce to understand the ultimate requirements in the allocated work and to find their key weaknesses (Tekieli, Festing and Baeten, 2018). Measuring employee performance aids a performer in consistently working on the same path. In fact, the other job of this performance evaluation also determines the success of an underperformer by identifying their key mistakes and learning from them.

      • Transparency: In terms of the International Human Resource Management, global firms have to put their focus on multiple aspects in order to become established and to make the workforce engaged. In relation to that, transparency has been measured to be the uppermost aspect which plays a crucial role (Aljadir, Petersson Berg and Ullaghbaik, 2022). It is indeed true that multinational corporations create a reliable relationship with their employees by fostering transparency. In fact, transparency also promotes contribution and engagement quite efficiently. The effect of Transparency persuades individuals to contribute to the decision making and to involve in allocating ideas. This directly impacts taking better decisions for the betterment of the firm to stay competitive in the international marketplace.

Critical analysis

By analysing second international HR management practices, it can be assessed that engaging the workforce as well as measuring their performance is definitely an integral part of the IHRM. It is therefore the concern of the HR manager to manage the workforce to operate effectively (Tekieli, Festing and Baeten, 2018). Otherwise, it might create a negative impact on the performance management of the company extensively. Generating loyalty within the workforce is certainly an integral approach taken by international firms. However, transparency might be able to generate a negative influence if they don't feel like an effective part of the organisation. They might not contribute expansively to the organisation's success if there is an unreliable bond found between the employees and the organisation (Hossin, Ali and Sentosa, 2020). It is therefore the apprehension of the HR managers to foster transparency to make them feel like an effective part. This will directly impact the increasing rate of productivity and determine the future success of the firm.

IHRM practice 3


Contingent compensation is measured to be the third and definitely most integral aspect of IHRM practice. Recruiting the right people will be accommodating to get compensation. Therefore, the people will add value to the company by working in an effective manner. It is indeed true that best practices have the competence to provide in terms of reinforcing the company's performance. It has been observed in an extensive manner that these types of compensation packages might take the practice of financial benefits to the employees (Hossin, Ali and Sentosa, 2020). It also works as an encouraging factor for the employees to provide their contribution. Regarding this fact, multinational firms get benefited and can increase their revenue margin in an effective manner. By connecting organizational performance aftermaths with individual recompenses the individual is incentivized to make the most of this outcome. It also generates a sense of proprietorship for the employee.

It has been observed that shred ownership, profit sharing and getting the employees involved in the decision-making process considered indeed facilitating an effective practice of IHRM (Vetráková and Smerek, 2019). These are some of the strategic approaches taken by multinational firms to generate employee commitment. It also enables reinforcing the long term vision of the company as well as recollecting extensive potential. In terms of that, compensation has been considered the core element of successful talent management. By focusing on retaining and managing talent the global firms have been creating a strong workforce and then utilising them to get the best outcome possible.

Critical analysis

It is indeed true that through a reasonable compensation, an international firm might be able to manage the workforce as well as motivate them quite effectively. therefore, additional incentives are another effective approach to provide value to the employees. However, it might not be successful all the time. Various issues can be generated in terms of the compensation for the international employees. Paying all the employees in a comparable rank is equitable remuneration (Vetráková and Smerek, 2019). It can be problematic as living and accommodation fees might be varying across other countries. In case of that, employees can demand additional compensation according to their living costs. It might definitely create conflicting situations in the organisation.

Synthesis of Key Issues

Managing the international workforce is definitely a multifaceted procedure. Therefore, the HR professionals of the international companies have to work really hard to retain and manage the talent whose vision aligns with the company. Not being effectively managing the workforce might generate a range of problematic issues and these will be discussed here quite in an extensive manner. By analysing the 3 topmost appropriate HR practices in the international area, it can be evaluated that there have been found some key issues. These are the common IHRM issues encountered by international firms during the time of managing their workforce. 

      • Managing a Diverse Workforce: In the case of an international workforce, employees come from different geographical locations having different cultural and social backgrounds. Due to this fact, their perception, philosophy and habits differ from each other (Kabalina, V. and Outila, 2021). In terms of that, the HR professionals encounter supreme challenges while working with the heterogeneous them. This impact of a diverse workforce directly influences the company's performance as there is a low level of employee engagement.
      • Stress and Internal Conflict: Globalisation has fostered the competitiveness of firms on international platforms. For this reason, multinational firms are focusing on generating competitive advantage through taking various strategic approaches. This has intensified the working pressure, extensive targets and working responsibility (Ozbilgin, 2020). This has been considered the primal reason for an increasing amount of working stress among the employees. Therefore, not being able to interact with the diverse workforce and having different norms has been considered the major issue in the IHRM. This is encouraging workplace conflicts quite in an extensive manner.
      • Ethics and Values: Ethics and values are considered to be the major aspects of organisational success (Farndale et al.,2018). A diverse workforce makes it complicated for HR managers to align them with specific organisational policies and values. In fact, having different cultural backgrounds and behavioural norms it is indeed difficult for an international firm to focus on generating business ethics for all of them.


This business report focuses on the 3 most suitable IHRM practices and by analysing there have been found some key issues. The issues here are quite effective and crucial. Mitigation of these issues is indeed necessary to create a competitive advantage for the international firms as well as manage the diverse workforce effectively.


Aljadir, D.O.Q., Petersson Berg, F. and Ullaghbaik, N., 2022. Adaptation of IHRM practices during crises.

Ceil, C., 2018. Importance of Adapting HRM Practices to Local Conditions. Available at SSRN 3520594.

Farndale, E., Sparrow, P., Scullion, H. and Vidovic, M., 2018. Global talent management: New challenges for the corporate HR function. In Global talent management (pp. 90-109). Routledge.

Hosanoo, Z.A., Rughoobur-Seetah, S. and Ramrekha, S., 2021. Diffusing Best Practices in IHRM: A Qualitative Case Study Analysis of a Mauritian Multinational. International HRM and Development in Emerging Market Multinationals, pp.298-313.

Hossin, M.S., Ali, I. and Sentosa, I., 2020. Human resource management practices from Islamic perspective: A study on Bangladesh context. Hossin, MS, Ali, I., & Sentosa, I.(2020). Human Resource Management Practices from Islamic Perspective, pp.391-405.

Kabalina, V. and Outila, V., 2021. International HRM Practices of Russian MNEs. International HRM and Development in Emerging Market Multinationals, pp.57-76.


Ozbilgin, M., 2020. International human resource management: Theory and practice. Bloomsbury Publishing.

Tekieli, M., Festing, M. and Baeten, X., 2018. Centralization and effectiveness of reward management in multinational enterprises. Journal of Personnel Psychology.

Vetráková, M. and Smerek, L., 2019. Competitiveness of Slovak enterprises in Central and Eastern European region.

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