Ihrm in the Host Country, Research Paper Example

Executive Summary

Human resources management is a basic process that involves the need for administrators to guide and define the approach that the human forces are supposed to take to enable them to complete their tasks. This allows administrators to reach particular goals that they are expected to meet especially when it comes to shaping the culture of the organization that they are working for. It is believed that it is through this process that individuals who work for an organization are able to gain particular personal and professional developments that would make it easier for them to accomplish the goals that they have set for themselves and the ones that have been set for them by their organization.

In consideration to this matter, it could be realized that the manner by which business organizations have been developing recently, international operations have become a common scene in the industry. It is because of this particular change that the system of human resource management has also become more complex in form, especially in relation to establishing a common culture especially in connection with the kind of operation that the people force is supposed to give particular attention to. In the discussion that follows, we will provide a particular presentation on the utilization and application of IHRM or international human resource management operations especially when it comes to mandating business developments in relation to the changes and alterations that are happening in the world today that specifically affect the working condition and performance results of the work force. We will particularly focus on how IHRM applications helped particular international companies to survive within such a traditional environment.


IHRM or international human resource management concentrates on the aspect of developing a system that would support the need to create a bridge that would unite the differences that the work force have between each other. It is recognized through this system of management that people working in an organization come from different areas of the world, thus imposing that they have different backgrounds that specifically affect their attitudes and their behavior. The creation of unison in the middle of different beliefs among the said individuals specifically imposes on making it possible for the people to develop a single culture that is dedicated towards the progress of the entire organization.  Setting up a single culture that would guide everyone who is part of the organization is expected to create a common ground of performance that would surely bring in success to the entire team (Bloom, et al, 2010). Relatively though, we will discuss that when an organization has different branches established in different parts of the globe, even though the establishment of a single culture is possible, it could not be denied that somehow, the manner of operation of particular businesses in host countries would still be affected by the basic cultures of the nation surrounding the organization.

Transfer of knowledge

It is for this reason that IHRM operations try to manage points relating to human resource offshoring, establishing general global mindset among the people, creating a central performance culture and defining a national business system (Caliskan, 2010).  Notably, human resource offshoring issues include matters that relate to situations involving individuals separated by culture, race and personal principles. Working with a diverse population of workers within a specific team as a unified group is a complex situation especially if they have different perspectives relating to the nature of work that the entire organization is dependent upon.

On the other hand, when it comes to establishing a general global mindset, the management is required to make use of a general culture that would bridge all the differences that the people have between each other or to at least make the differences they have between each other to work as a complementary sense of operation making sure that the shortcomings of others are supported by the strengths of others. The definition of a national business system in an organization’s branch situated in a particular host country on the other end entails the need of the managers to make sure that the culture of the business coincides with the culture of the country in general. This specifically includes a relative monitoring on how the said branch of organization actually responds to the legal matters that the national guideline specifically identifies with. Through this approach of IHRM, it becomes easier for the administration to pass on knowledge to outside team members apart from the base-headquarters of the business therefore attempting to make a good implication on how general culture is established in a cross-country as well in an international-operation approach case (Shanine, 2011).

Training and development

We found that Internationally operating businesses specifically involve the condition of developing the branches related to the organization into becoming more correlated or connected to the base countries where they are established. This makes it easier for the organization to operate in a smoother process that would provide a sense of protection to the entire business. Considering that people from different countries are amalgamated within the organization, the HRM departments should be able to manifest balance in relation to the international factor that they have to thrive with.

International human resource management approaches specifically hope to create a unifying element that could keep people together. Drawing the blueprint for balancing out the strengths and weaknesses of each individual to compensate between each other specifically makes it possible for organizations to thrive along with diversity in a more responsive and effective manner. Host countries are noted to have a different platform of requirements for business operation, especially relating to matters of labor force development and protection. In consideration to this issue, business organizations are expected to take into account the need to manage the way they seek the process of managing their people according to such bylaws. This insists on the fact that even though there are particular general guidelines that the business is dependent upon, there are specific national bylaws as well as culture definitions that the management should give attention to. For instance, when the business operates in Asian countries like China, Singapore or perhaps even Korea, there are social traditions that are considered by the government to be highly important for recognition. Even though the organization being established in the area is American, the recognition of the host country’s characteristic and behavior especially involving business ethics, is a critical part of retaining the condition of reputation that the organization has in the country.

A little focus on the working scene in China suggests a great distinction on how IHRM stands at a directive standpoint especially in directing huge companies like IBM and McDonalds (Wang, 2010). The contrasting factor on the fact that the organizations mentioned function within two separate industries implies on the idea that IHRM operations could be applied in all the different industries concerning labor control and guidance that is connected with the issues of international business management. IBM, being in the computer industry, employs several thousands of individuals in China to be able to specifically define their manufacturing line that affects their selling points as the products are released all over the globe. Applying the principles of IHRM, the administrators of the IBM-China branch specifically direct the people according to the culture of the business while following the laws and guidelines of the national picture in relation to labor development and support matters (Wang, 2010).

McDonald’s on the other end, another American company, employ service crews who are expected to have direct communication with the organization’s clients. Having a general and overall international culture, McDonald’s Chinese franchisers are directed to follow through the distinctive patters of operation of the business around the globe (Wang, 2010). This is in support of protecting the trademark of the organization. Nevertheless, when it comes to dealing with HR issues, Chinese McDonald’s operators are expected to follow through the guidelines of the law especially when it comes to providing specific extra payment to workers during the holidays and giving them ample time to celebrate the said occasions as needed.

Practices, even those that are religious, ought to be recognized accordingly and should never be bypassed as these matters create the building blocks of the organization’s foundation in the country (Nienhueser, 2011). The respect that the organization’s administrators put forward to manage the people and recognize their behavior and the characteristics according to their race and their national background pays a great impact on how the entire business establishes its name in the community. Another crucial point to consider is the nature and culture of employment that the country recognizes as necessary. Relatively, one nation’s rule on employment differs from another. With this realization kept in mind, administrators who are supposed to oversee the organization’s international operation in several different countries should be able to take note of the laws and the regulations that the national government identifies with hence protecting the organization’s standing in the front of the national government system while also making a distinctive impact on how the people react to the existence of the organization in the community as a whole (Chee Hong, 2012).

Compensation and Recruitment

As we mentioned on the previous section of this discussion, compensation and recruitment in relation to labor management receives different forms of attention from different countries around the globe. In consideration to this, it could be analyzed that such countries also have different rules and regulations in relation to the said matter. IHRM policies intend to make a manifestation on how the national directives of a particular country is followed thoroughly by the administrators in providing the people with what they need and what they expect in a more balanced approach (Glinow, 2011). This way, the rights of the employees including that of receiving benefits from the company they work for becomes an easier path to take thus allowing the organization to expand further with the recognizable consideration from the national administration of the country they are particularly situated in.

Standardization and localization       

In a world where international camaraderie is expected to occur, it could be agreed upon that organizations operating within an international scale of management is rather a common scene to accept. Most often than not, even though such scenario has become a common matter in the field of business, only a few are actually able to manage their organizations towards success. Handling issues connected to such points of diversity among the people involve not only the establishment of the business-branches outside the country, but also that of the need to comply with the laws and regulations that the host countries identify with. This is the reason why the establishment of the principles and applicable options of IHRM has become one of the benchmarking factors that identify the possibility of an organization’s capacity to embrace success as a whole. It is expected that the future promises a greater process of defining and applying IHRM in actual business operations among business groups operating internationally.


In relation to the case of China and how IHRM is applied within the industries operating within the said territory, it could be observed how its proper application paves the way for a better sense of controlling business growth in the country. Establishing a good reputation among the people specifically makes it easier for any company to make a name in the world of international marketing and business operations. Most likely, with the proper application of this particular approach to human resource management, the legal aspects that the organization specifically identifies with become easier to handle. Creating balance between the internal and external operation of the organization becomes more possible to exist especially that the administrators become knowledgeable enough of the national rules and regulations they need to follow especially when it comes to dealing with the people and giving them the support and protection that are expected to come from the organization’s governing system. This way, the organization secures the possibility of existing in the host country for a much longer time with a remarkable and recognizable reputation that can be used to redefine their next steps towards improving international operations.


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