INTERNATIONAL HUMAN RESOURCES MANAGEMENENT thesis

(Student’s name) (Registration Number) ACKNOWLEDGEMENT I would like to acknowledge my supervisor () and the entire institution for assisting me accomplish this research. In particular, my gratitude goes to my husband for his support of this project. DEDICATION I dedicate this to my mother ABSTRACT The research is centered on how the improve the functionality of the Human Resource Management (HRM). With the increased competition in the global market by many of the contemporary companies. It is crystal clear that there is advanced in the globalization of the Human Resource Management into International Human Resource Management (IHRM). It targets five major insurance companies and will disseminate 300 questionnaires to volunteers to help in the research work. Participants privacy is reserved and out of the 300, 50 questionnaires are sampled for the final results as formulated in the discussion in the chapter four.

Table of Contents DECLARATION 2 ACKNOWLEDGEMENT 3 DEDICATION 4 ABSTRACT 5 LIST OF ABBREVIATIONS 8 LIST OF TABLES 9 CHAPTER ONE: INTRODUCTION 10 1. Background of the study 11 1. The Concept of Human Resource Management 12 1. The significance of the study 21 CHAPTER TWO: LITERATURE REVIEW 22 2. 1 Introduction 22 2. Human resource management 22 2. 3 International Human Resource Management (IHRM) 26 2. Best Practices in International Human Resource Management 29 CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY 32 3. Data validity and Reliability 35 3. Method of Data Analysis 35 CHAPTER FOUR. 37 RESULT AND DISSCUSSION 37 4. Introduction 37 4. Efficient workforce management in multiple countries 37 4. Recommendation 43 5. Conclusion 44 REFERENCES 48 LIST OF ABBREVIATIONS HRM: Human Resource Management. HR: Human Resource. IHRM: International Human Resource Management. MNCs: Multinational Companies. Since human resource is the most critical aspect of an organization, international companies need to design the best practices for managing their human resources.

A company with a successful international human resource management does not only improve its overall efficiency but also gains a competitive advantage in the rapidly changing global market (Von Glinow, et al 2002). However, organizations today have known the importance of human resource management (HRM) as the leading indicator in improving performance and achieving improved sales growth as well as the creation of innovative products (Beh& Loo, 2013). Technology plays a major role in enabling international companies to come up with the best practices in international human resource management through innovations. Therefore, international insurance companies need to be more productive, innovative and efficient in implementing its human resource management practices in relation to their objectives, business needs and the surrounding culture in order to remain competitive in the market.

” Firms with synergistic human resource management have the ability to utilize their human capital to obtain a competitive advantage and improve firm performance (Boxall, Purcell & Wright, 2007). According to Joseph & Danielle (2003), most of the researches on international human resource management tend to omit the context in investigating the HR needs of MNCs. Therefore, a thorough research needs to be conducted in the field of international human resource management. The existing literature reveals that multinational organizations which have adopted HRM best practices outperform organizations that have not yet adopted (Tzafrir 2006; Geringer, Frayne & Milliman 2002; Beh& Loo 2013). According to Tzafrir (2006), international human resource best practices enhance organizational performance. The practice of managing human resources of an organization has changed over time due to change in technology and increased competition in the market (Bratton & Gold, 2017).

Today personnel management has replaced human resource management in order to accommodate new practices adopted to enhance the practice of HRM (Delery&Roumpi, 2017). Therefore, unlike in the past, human resource managers need to adopt the best practices to manage their employees in a way that motivates them towards achieving organizational objectives. The significance of human resource management The success of every business lies in the hand of the employees no matter how clever or strict the managers are. Therefore, it is important to treat employees fairly and to motivate them in order to build a good relationship that can encourage performance (Brewster 2017). Teamwork improves performance in an organization 4. Proper human resource management ensures that jobs are located to the right person.

HRM practices enhance proper recruitment and selection as well as placement of the right personnel to the right job hence high quality of worker and increased productivity (Bratton & Gold, 2017). Workers feel motivated when working in their right place. Human Resource Management Model HRM model involves all activities performed by the human resource manager. After job analysis, capable applicants are attracted for employment. This process starts by advertising the vacant position and new recruits submit their applications. At this stage, the HR manager ends up piled with a pool of applicants from which to choose a few. After application, the selection is done. The applicants are differentiated to identify the best candidates. It creates a sense of understanding between the employees and the management.

Safety and healthy involves protecting employees from the risk of injury or loss. This can be effectively done through insurance or putting healthy measures to safeguard workers health. Employee’s welfare refers to amenities like schools, hospitals, and recreation. Human resource management is responsible for taking care of employee's welfare. Therefore, it is important for those companies to understand their environments and formulate ways to face the competition globally (Essays, UK. IHRM enables the MNCs to be successful enterprises at the global level. Although both human resource management and IHRM share a common concept, their functions might have slight differences. Domestic HRM vs IHRM Human resource management has a great impact on firms based on global markets. Global firms operate in diverse environments.

Also, unlike domestic international human resource management, the selection process in IHRM should reveal a true picture of the life, culture, and life to, which the employees may send. The HR managers of the IHRM are required to prepare a comprehensive job description on the job to be done covering all those aspects as well as the responsibilities, which may not be the case if it was in home country (Mathur & Gupta, 2011). While recruiting personnel of international companies, HR managers should consider cultural factors, labor costs, differences in labor markets, and practices of different countries. Also, HR managers of MNCs need to be conversant with the international labor laws to avoid conflicting with international laws. An example of a Multinational company that was once negatively affected by IHRM practices is Nike Corporation.

IHRM also handled several issues like gender issues, cross-cultural issues, and intercultural communication. Cross-cultural issues are the major issues which IHRM emphasizes on since they directly affect the human resources in multinational companies (Harris, Brewster & Sparrow, 2003). According to Mathur & Gupta (2011), cross-cultural issues include required abilities of human being such as adaptability, cultural empathy, positive attitude, emotional stability, semantic ability, diplomacy, and maturity. Gender issues mostly consist of gender discrimination in the workplace. Also, IHRM addresses intercultural communication issues which involve family background, gestures, and upbringing. Therefore, the best practices depend on individual firms and the effect of those practices on performance should not be generalized. Also, the effect of IHRM practices on firm's performance depends on employee skills, motivation, and empowerment (Edwards et al.

Human resource management is not just about recruiting skilled employees and motivating them. HR system also needs control and discipline (Edwards et al. HR managers need to control their employees so that they can work in ways consisted of organizational goals. The significance of the study This study will be significant to the managers and CEOs of various international companies since it provides insights on the best practices that they can apply in human resource management to recruit and retain the best human resource. The study not only suggests the best practices in IHRM but also equips managers with the knowledge on how to apply those practices in order to achieve high performance. Multinational Companies will also apply the insights provided by the study in order to achieve a sustainable competitive advantage.

In addition, the research on this topic will provide the basis on which scholars and students can conduct a further research in future. The researchers and students can use the finding of this study as well as its recommendations to conduct a further study on the research topic. The main aim of the Human resource management department being the effective performance of an organization involves the collection of different practices aimed at enhancing the performance of the organization in both local and global contexts (Rowley, 2003). Over the years, the human resource function has evolved from simple practice departments to complex structural departments due to the continuously changing business environment through which different businesses are situated. It is due to this reason that different theories have been established to explain different practices undertaken by different HRM managers to enhance the performance of the organizations they work for (Svendsen, 2011).

Different definitions have been made on the capabilities of the HRM based on the different understanding of the concept. The Human resource function contains different integrated concepts which are aimed at enhancing the effectiveness of the organization in undertaking its functions (Rowley & Keith, 2011). The concept has undergone a paradigm shift from simple concepts utilized in the so-called "people management" concept through developing into more complex practices to a flourished human resource management concept which involves a shift in the mindset of achieving the goals and objectives of an organization through people (Rowley & Keith, 2011). Currently, the human resource management is a well-established concept with numerous strategies implemented based on different concepts which are utilized to increase the well-being of the workers within an organization (Rowley & Keith, 2011).

This concept has ensured that the workforce is highly motivated to enhance their productivity which in turn leads to the increased performance of the entire organization. According to O’riordan (2017), the application of good practices by the human resource function enhances the performance of the entire organization. This concept has enhanced the motivation of the function to prove that the function does not increase the costs incurred by an organization but rather adds value to the organization as a whole. This development has led to the increased emphasis of the function in ensuring that the organization develops a culture of high performance through ensuring that the organization acquires talented and highly skilled workers who are devoted to their work (Cascio, 2018). It has also ensured that there is a positive relationship between the management of the organization and its employees through building mutual trust and encouraging the application of ethical practices which control the relationship between the different stakeholders within the organization (Bratton & Gold, 2017).

It is also involved in practices such as career development through the motivation of the employees of the organization and providing them with the tools to develop themselves through aspects such as training and employee retention tools. The function also undertakes activities such as evaluating employee performance which is also a tool used to motivate those workers who have great influence and performance in the organization through promotions and rewarding (Rowley & Keith,2011). Different scholars have also argued that it is the duty of the function to enhance employee satisfaction through provision of measures which enhance their work-life balance for workers to assume family responsibilities as they work for the organization. To understand how the IHRM functions there is the need to understand different global effects affecting the international organizations.

According to Svendsen (2011), international organizations need to seek a competitive advantage in their services a situation which is attributed to the IHRM function. This aspect is common to global organizations due to the increased competition in the global market where different organizations strive to get a share of the big pie. The attainment of such advantage is mainly focused on the strategies and policies applied by the IHRM and which directly influence the success or failure of the organization (Edwards & Rees, 2006). In most cases, this situation is influenced by the strategic needs of the organization where the enterprise emphasizes on the main objective of developing the organization in a global market and, therefore, implementing strategies which will enable it to attain the set objectives (Brewster et al, 2016).

To enhance the cooperation and integration between the two ends there is need to adopt information systems which will enhance coordination of activities (Dicke, Holwerda &Kontakos, 2004). The use of information systems as an act of adopting new technology introduces both opportunities to better the management process as well as challenges. Such systems can enhance the functions of the HR to be more efficient and improve the strategic functioning as it will be able to perform more than the administrative functions (Mathur, & Gupta, 2011). This is because the HR will be able to undertake strategic tasks which may be very crucial to the organizations in terms of time and money. With such technology, the organization can be able to source resources globally due to the enhanced connectivity (Brewster et al, 2016).

Edward and Rees (2006) also discovered that managing workforce from different countries efficiently contributes to effective human resource management CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY 3. Introduction This chapter focuses on the methods used in the study concerning the data collection, research design, population, methodology, data analysis, and data validity as well as reliability. More important, this chapter will present the methods used in collecting the data that was used in examining the best practices in IHRM and how those practices impact the performance of multinational companies. Ethical issues This research was conducted ethically with no any form of unethical practice involved but limited to deception, bias, or distortion facts and evidence. To ensure that the research was ethical, the following criteria were used in administering the research • Do No Harm: the research avoided any possibility of causing harm to the respondents either physically or psychologically.

In my case, I needed the approach that was to enable me to uncover the trends in opinions and perceptions of my respondents of the best practices in IHRM and their impact of firms' performance. Therefore, I choose a quantitative research design. Research Strategy The descriptive research strategy has been chosen in this research. This strategy facilitates the description of the best practices in IHRM and firm performance of 5 major international insurance firms. Since the data consisted of perceptions of the respondents, I think the descriptive method was the best strategy in this research due to the fact that the method provides logical approach (Kumar &Phrommathed 2005; Wiersma &Jurs 2005). I chose this data collection method because it allows a small chance of biasness and gives the greatest anonymity (Wiersma &Jurs 2005).

This was so important because the respondents never wanted to reveal their identity. Furthermore, anonymity encourages accuracy and data validity since the participants give correct information and sincere opinions. Sample Selection The stratified sampling method was used to distribute questionnaires to all respondents in time. The required respondents were selected by the use of multi-cluster and non-probability sampling techniques. I grouped the data into categories and applied descriptive analysis to summarize it. For uniformity and accuracy, I edited the data then arranged it for coding with a combination of survey planet tool. This enabled me to generate descriptive statistics like mode, mean, media and generate statistical measures such as frequency tables, pie-charts, and graphs. CHAPTER FOUR. RESULT AND DISCUSSION 4. Figure 2: Illustrates workforce management.

Engaging in essential global talent management Definitively, Talent management refers to employing the HR planning to enhance the success of a company (Berger et al, 2011). The various firms engaged confessed that, when it comes to employing the expected right candidate, the company always devote much of their time because it is pivotal in the success of the company hitherto. Most companies’ managers interviewed subscribe to the idea of the talent management department. They argued that to achieve success at global talent management, the company has to invest much beyond recruiting HR to fill vacant positions. enabling an appealing globalized workforce while encouraging employee engagement Most of the HRM interviewed were challenged, basing on the fact of revolution in the future of work that is rapidly becoming distributed globally.

They were obsessed by the enthusiasm of building a global workforce of the most competent talent attainable. The corporate cannot compete within the global scale if the task force is alienated from the company’s policies (Iles & Roberts, 1990). The Human Resource managers from the various companies were certain that if the business needs resources to be intentionally allocated to where they are demanded either in a newly elevated strategic center or in whatever the circumstance, whatever it is, the HR must purpose to affect the completion. Most HRM found it costly when it comes to engaging the employees in the implementations of company’s policies on the global scale. consequently, many agencies are on the run to regulate the market for the benefit of the consumers, the findings showed that for this to be achieved, HRM system must always reinforce for the extrinsic installation of the impetus of the workers to adequately and comfortably utilize their talents and potentials to upgrade service delivery to the customers.

Cross- Company has invested in data analytics, as quintillion bytes of data are generated each day. Data in these respective companies elopes from multiples source, these are records of the employee, competitor’s performance findings, company’s revenue expenditure reports among others (Davenport & Harris, 2007). The companies need to set up a dedicated data analytic team to enable them to assemble the data that might be foreign from the source. To achieve this objective, it was found that, HRM should employ and embrace the modern superior technology incorporation with mathematical functions that that automatically simplify the data efficiently. Since the research largely was dependent only on senior employees, it never allowed neither did it accounted for the young talent’s contributions. As the findings revolved around utilizing the knowledge of both junior and senior talents to enhance the company’s success.

This was not put into consideration hence some elements of prejudice depicted. Time limitation It was time-consuming as the study was focusing on five major insurance companies; it was hectic, tedious, cumbersome and so unpredictable studying different companies with different cultures. The diversity elements in my study dealt a heavy blow, in turn, trying to harmonize the key elements as ascertained in the scope of the study. On the time and financial limitations, I suggest that in future, each institution should be allocated proper timing and not the merge that does not provide proper results, financial allocation should be done, as per the proximity and limiting factor in a particular area of study in future to avoid shambolic sampling of the results in case the need arose.

Conclusion In summary, Human resource management plays a significant role in many organizations since it helps in determining the success, as well as the profitability of the organization. Human capital is the key factor in many organizations and there is the need for efficient management to ensure that the organization realizes its goals and objectives. Due to globalization and technological inventions, the practice of HRM has evolved almost to suit the dynamism in the management in many organizations or companies globally. This is because organizations that have skilled and competent workforce have a greater capacity to achieve success due to efficient utilization of HRM undertakings. S. , & Loo, L. H. Human resource management best practices and firm performance: A universalistic perspective approach.

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