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Global Human Resource Management

HRM6971

Assessment 2

TRIMESTER 1, 2024

STUDENT NUMBER: S802184

STUDENT NAME: AJAY PAL SINGH


Executive Summary

In the modern world, diversity and inclusion have taken on a central role in
International Human Resource Management. This review explores the
integration of D&I into IHRM. It also examines the global challenges that
D&I poses and how they impact IHRM. Finally, it provides recommendations
to enhance existing policies and practices. This review, which draws on a
variety of sources and methods, emphasizes that HR theories and
frameworks must be aligned with D&I to create inclusive workplaces around
the world. Global Human Resource Management Casebook was the result of
the first Ambassadors Programme Project (Hayton Biron Castro-
Christiansen & Kuvaas 2012). This special issue was the result of the second
project. HR Division members and commentators from around the world
were asked to submit papers to be reviewed by a double-blind panel to
examine current advancements in diversity and inclusion. We interpret
inclusion and diversity as two separate, but related concepts, which are
supported by empirical studies, whereas definitions of inclusion focused on
employee involvement and the integration of diversity into organisational
systems and processes' (Roberson, 2006, p. 227- 228). Both constructs are
addressed simultaneously in order to show how they can complement one
another. The articles in this special issue adopt an innovative method of
examining inclusion and diversity at work, highlighting differences between
countries. This collection of papers, which combine quantitative and
qualitative methods, helps us to better understand what the future holds for
diversity and inclusion. This special issue offers both a perspective from a
comparative point of view (which links study findings with national
contexts), and one that is strategic in international human resources
management (HRM), focusing on subsidiaries of multinational companies
[MNCs]. These papers contribute to theoretical debates about diversity and
inclusion dynamics, as well as adding value for HR practitioners through
conceptualisation, theory building and operational implications.

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Table of Contents:

1. Introduction
• Clarify Purpose
• Identify Scope of Report
• Background
2. Linking Diversity & Inclusion to IHRM
3. Global Challenges Associated with Diversity & Inclusion and their Impact on
IHRM
4. Recommendations for Modification and Improvement of Current Policies,
Procedures, and Practices
5. Conclusion
6. Reference List

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1. Introduction

Diversity and inclusion in organizations and societies are real, but they
remain elusive in academic writings. In particular, there hasn't been a
consensus on what inclusion means and how it is defined. The literature is
still in its early stages, but inclusion is gaining popularity with diversity
scholars. However, the majority of research lacks a theoretical foundation
and empirical tests are limited (Shore Randel Chung Dean Ehrhart and Singh
2011). Shore et al. The authors of the largest literature review of inclusion
to date, Shore et al. (2011), present their two main conclusions regarding
the current state of inclusion literature. "First, the practices associated with
the insider status are reflected by measures of inclusion, such as sharing
information, participating in decision-making, and being heard. These
practices may enhance the perception of inclusion among employees, but
more research is required to understand the psychology behind this. There
is no doubt that inclusion is beneficial for both individuals and
organisations, yet little is understood about the mechanisms or reasons
behind this. The last point indicates that the inclusion concept and its
theoretical foundation need to be further developed. These insights are
explored in more detail in the next sections.

 Purpose of Report

Many different definitions of both inclusion and diversity have been offered.
Below are some examples. Sherbin & Rashid's (2017) definition of diversity
is perhaps the best and most concise. "In the workplace context, diversity
equals inclusion." Without inclusion, though, it's impossible to make the
connections necessary for attracting diverse talent and encouraging their
participation. This will lead to innovation as well as business
growth. Inclusion is often the key to preventing a backlash against
diversity. Headcount is a quick and easy way to determine

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diversity. Quantifying feelings of inclusion is difficult. As a person, every
self has a distinct personality that makes her unique. Diversity involves
balancing the natural tension between different cultural and organizational
settings. Diversity is also possible without inclusion. This is a common
scenario in organizations today that are struggling to make all employees
feel welcome. In today's globalized and increasingly diverse market,
diversity is essential for organizations. However, the benefits of diversity
can only be realized with inclusion. Non-inclusive but diverse organizations
may suffer problems related to demographic diversity, such as conflict or
turnover. It is therefore fair to state that in order to achieve maximum
performance, organizations need to strive to create both an environment of
high diversity and a culture of inclusion.

 Scope & Background of the Report

This special issue was inspired by the International Committee of the


Human Resources Division of the Academy of Management. The
International Committee's goal is to engage and integrate the global HR
Division membership and develop and distribute knowledge relevant for
management scholars around the world. In August 2008 at the Academy of
Management (AOM) annual meeting, the HR Division introduced the
Ambassadors Programme. They are the representatives of HR Division
members in their respective countries. This programme aims to engage the
global HR Division membership. The primary objectives are
(1) to develop projects to engage, involve and serve the global HR Division
membership;
(2) to leverage the knowledge in the Division to develop products which
contribute to research, teaching, and service goals of Division members; and
(3) to promote the Division and the Academy of Management (AOM) to
scholars all over the world.

2. Linking the concept of Diversity & Inclusion to IHRM discipline

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As a vast field of study, diversity and inclusion encompasses such fields as
sociology, psychology, and management. In line with commentators (e.g. We
aim to add global perspectives to the conceptualization of Shen, Chanda
D'Netto & Monga (2009). We hope that by doing this, we can refine the
current way of thinking and uncover opportunities to increase diversity and
inclusion for both individuals and organizations. In order to achieve this
goal, we have identified three major challenges we think the field is
facing. First, we must define diversity and inclusivity within the national
context of a country and its implications for HRM practices (e.g. Talent
management, recruitment policy, performance monitoring, flexible work
practices, etc. It is necessary to conduct single-country studies that analyze
the context of the particular country in order to understand the
findings. New institutional theory, for example, is a relevant
perspective. Ferner, Almond, & Colling, (2005): Explaining the coercive,
normeative, and mimetic forces on firms to embrace diversity and inclusive
practices in any country context), and organisational injustice (how
perceptions about fairness relate to diversity and inclusivity, and whether
they vary across cultures, e.g. Roberson & Stevens, 2006). Second, we must
embrace commentators' calls for a more inclusive and diverse
conceptualisation. In studies on international assignments, for example,
researchers should not just focus their attention solely on expatriates, but
rather a wider range of people such as migrants, refugees, and exiles. A
second example would be to look beyond the diversity of skills and into the
diversity of values. Skills are linked to structural questions about what
diversity brings to the table while values refer to friction points that arise
as a result (Raghuram & Garud 1996). In order to understand the diversity
and inclusion of practices in two or more different countries, it is necessary
to conduct research. Exploring the degree of convergence and/or divergence
in practices, based on cultural or institutional influences. We also need
more global perspectives on diversity and inclusion. This includes a

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consideration of the impact of nationality or location diversity on
employees' perceptions of work organizations. Thirdly, the challenge is to
connect diversity and inclusion to performance (individual or team)
outcomes. This will help to better understand 678 E. Farndale, et.
al. Downloaded at 11:23 on 22 January 2015 by [Elaine Farndale]. The social
context theory of Ferris et. al. (1998) can be used to explore national level
factors, such as cultural, climate, the political system, the economic system,
and considerations for labour markets, in order to better understand how
diversity and inclusion practice impacts organisational effectiveness. Such
studies could aim to make sure that diversity and inclusion have more
positive than negative effects. By looking at diversity and inclusion from the
perspective of the national context, we can enrich our understanding and
theorising of these issues on an organisational, individual, or team
level. These challenges are addressed in the papers of this special
issue. They first focus on three different levels of analysis in order to talk
about diversity and inclusion at a global level: National, Organisational, and
Team. One paper examines gender empowerment in nations that are
implementing diversity and inclusion. On an organisational scale, it is
possible to observe and explain patterns in practices within organisations
across a nation based on national institutional and cultural characteristics.

3. Global Challenges Associated with Diversity & Inclusion and their Impact
on IHRM

Multi-national HR departments are faced with a growing list of challenges in


today's fast-paced work environment some as follows –

a. Onboarding and global hiring for remote workers

By hiring people from around the world, you can choose from a larger talent
pool and more diverse employees. Many companies do not have human
resource management specialists working in each global site. They have to
hire and integrate new employees remotely. It is difficult to hire someone

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when you cannot meet them face-to-face. Hiring and onboarding across
borders can take longer because the HR department needs to check all
credentials and qualifications.
The same is true for ensuring that all new employees, whether they are
onsite or remotely, receive the same excellent onboarding and
the program that they get, which will be tailored to the location they work
in.
And of course, there is a high cost associated with making the compliant and
also to take a "people-first" approach. However, it is also advisable to have
an international labor lawyer on staff or a legal team with expertise in this
area.
Employment law is one of the most important areas that you should
consider, as it varies from country to country and state to state within the
United States. The laws cover employee rights such as employment
agreements, terminations, immigration, work permits, tax, social security,
and notices.

b. Retention

Retaining talent in the present challenging economic climate is vital.


To do so, companies must understand the needs and wants of their
employees. Committing to a culture based on honesty and respect is one of
the best ways to keep talent. It is important to be open and honest with your
employees about their potential, and the future of the company. Offering
your employees competitive benefits and compensation packages is also a
great way to attract and retain top talent. Also, a company that offers
flexible work arrangements, career-development programs and a culture
centered on people can boost your retention.

c. Knowledge sharing across borders

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Sharing of knowledge is the sharing of information. Sharing knowledge
whether between individuals, departments, or organizations increases
motivation and productivity, enabling people to work faster with access to
the resources and insights they need. This process is a major challenge for
companies that have multiple locations around the world. Success depends
on the commitment of a business to prioritize knowledge sharing. Integrate
it in your corporate culture. It is important to emphasize its importance
from the first day of work to your team. This will help them to adopt it as a
habit.
It is HR who must ensure the company is equipped with a centralized,
efficient platform to store and share knowledge, which all employees can
use, wherever they are in the world.

d. Supporting healthy global corporate culture

With people working worldwide, speaking different languages, and


accustomed to sometimes-contrasting work practices, building a cohesive
company culture can be challenging. HR must ensure everyone feels
included and comfortable in the workplace, no matter where they are
located.
Communication with team members is key. Regular meetings such as team
meetings and all-hands sessions will keep teams physically separated
connected.

e. Geopolitical conflict

Communication, supply chains and workplace harmony are all affected by


the reality of wars across the world. HR leaders need to know how to deal
with sensitive situations in order to avoid heated debates at work. To be
prepared, you should have a HR strategy that addresses how to deal
with social politics in the workplace. This will help you find the right

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balance between respectful discussion and heated debates that are not
appropriate for work.

4. Recommendations & Improvements

To stay ahead of competition, and to help businesses flourish in light of


changing global expectations and the ever-changing workforce, new global
and people-centric HR strategies will be key.
Some of the most effective high-level strategies to address issues in
International HRM include:
o Create a plan for global communications

A global communication plan will help you decide what to communicate to


the people in your company, when to do so, and what technologies you
should use. This helps to ensure that your communication is consistent,
coordinated and aimed at achieving your desired goals. HR professionals can
create a cohesive and solid company culture by arranging meetings with
individuals and giving them frequent feedback on your global
communication plans.

o Work with a flexible workforce

Your existing staff may have many untapped talents. Communication with
employees can help you discover talents and skills that your company needs
but is not using. This will allow you to incorporate them into workforce
planning. Consider bringing in contractors or freelancers to assist with the
work load, to quickly switch to new projects and to adapt to the fast-
changing business environment. The flexibility of this approach is essential
for modern workforce planning. It allows your business to grow or change
focus, without having to commit long-term.

o Use an Agile HR Tech Stack

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By implementing an agile tech stack for HR, you can ensure business
continuity. Your people will be able to collaborate and communicate
effectively over time zones and across distances. You can use a combination
of communication tech such as Zoom, Teams and Slack to communicate with
your employees, an email system for project management, payroll software,
as well as an HR platform like HCM or HRIS. This will save you time by
automating repetitive HR processes. It will also help drive employee
retention through tailored experiences.

o Upward mobility and professional development are offered.

The investment in upskilling or retraining talented employees is an effective


and efficient way to increase the value of your workforce globally, and also
promotes upward mobility. This gives your team the assurance of job
security and growth for the long term. The forward-looking approach shows
that you are committed to your team's professional development. This leads
to a more motivated and future-ready workforce.

o Investing on best leaders

To be a successful leader on the global stage, you need to have good


management skills and a clear understanding of priorities. This will allow
international teams to work seamlessly across different time zones.
Your organization can stay competitive by having leaders who are able to
help team members resolve conflicts, work with cultural differences, deal
with time zone problems, and help them overcome expectations and cultural
differences. If your leadership, including C-levels and line managers, is
trained to effectively communicate with international teams and has a
thorough understanding of multi-cultural communication, your business
will be in an excellent position to tackle any HR issues that may arise.

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o Insist on compliance

It is crucial for companies expanding globally to understand the local


politics, laws, and policies. Hiring in-house lawyers to oversee compliance
at all levels of your business is a good idea. You can adapt your HR program
to meet the ever-changing and growing legal requirements of your multi-
national company. A comprehensive global HR strategy is required by
companies. It includes creating a flexible workforce and complying with
local and international laws.

o Act local, but think global

Multi-national corporations face a variety of human resources issues that


must be addressed. It does not matter if it is hiring and onboarding
employees worldwide, complying to international law, sharing information
across borders, or creating a united company culture. It is up to the HR
manager to create an HR Strategy and address the challenges of
international human resource management. This strategy focuses on global
unity, collaboration and communication. The best way to manage HR
processes and employees more effectively is by using a modern HR platform
which supports international teams and remote workers.

5. Conclusion

This article explains diversity within a global perspective and its impact on
organizational strategies and approaches. The article discussed how MNCs
can benefit from diversity strategies and the difficulties they might face
when dealing with diverse employees. It also highlighted the importance of
transnational and contextual approaches. Businesses are increasingly forced
to manage and hire employees with diverse backgrounds in an
interconnected and globalized world to maximize their human capital and
productivity. Businesses are therefore expected to work in diverse

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environments and teams, while minimizing frictions, and taking advantage
of the different perspectives and abilities (Thomas 2010). In order to
achieve this, the diversity effort will have to focus on engaging and
managing a diverse workforce so as it can yield a sustainable competitive
edge. Organisations must take proactive action to go beyond the legal
requirements to guarantee equal employment and promotion, as well as to
make sure that their diversity programs have value, are effective, utilize
individual differences and cultures, and benefit local and global
communities.

References

Patel, P., Sinha, P., Bhanugopan, R., Boyle, B. and Bray, M. (2018). The transfer of HRM
practices from emerging Indian IT MNEs to their subsidiaries in Australia: The MNE
diamond model. Journal of Business Research, 93, pp.268–279.

Ahonen, P., Tienari, J., Merilainen, S., & Pullen, A. (2013). The hidden contexts of power
and the invisible relations between them: a Foucauldian interpretation of research on
diversity. Human Relation, 67(3), 263-286.

Atthill, C., & Jha, J. (2009). A guide to gender-responsive education. London:


Commonwealth Secretariat.

Baubock, R., & Faist, T. (2010). Diaspora, transnationalism and concepts: Theories and
methods. Amsterdam University Press.

Bhagat, R., Triandis, H., & McDevitt, A. (2012). Managing Global Organisations: A
Cultural Perspective. Cheltenham, U.K.: Edward Elgar.

Bohlander, G., & Snell, S. (2010). Managing human resources. Mason, OH: South-
Western Cengage Learning.

Boxall, P., Purcell, J., & Wright, P. (2007). The Oxford Handbook of Human Resource
Management. Oxford University Press.

Caney, S., & Jones, P. (2014). Human Rights and Global Diversity. New York: Routledge.

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Carbery, R., & Cross, C. (2013). Human Resource Management: A Concise Introduction.
Basingstoke, U.K.: Palgrave Macmillan.

Cassiolato, J., & Lundvall, B. (2009). BRICS, Innovations and Policies. New York:
Anthem.

Cheong, P., Edwards, R., Goulbourne, H., & Solomos, J. (2007). Critical review of
immigration, social cohesion, and social capital. Critical Social Policy, 27, 24-49.

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