International Human Resource Similarity and Differences essay

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International Human Resources. This project sheds light on an Indian company that has decided to adopt the international human resource management plan. In doing so will allow the Indian company to explore many new opportunities that once wasn't available.

The economy is in a struggle and hopes for a better tomorrow are fading away. As a result, Larsen and Toubro decided to expand internationally. Soren Kristian and Henning Larsen founded Larsen and Toubro in 1938. The value of the company sits at 8.5 billion. According to, the value of Larsen and Toubro sits at 11.7 billion. It specializes in manufacturing and engineering services. It's quite evident that the company has experienced much success in the international world. The company has made the following achievements:

• Implemented hydrocarbon projects In India, Middle East and South East Asia

• Implemented power projects in India, the Gulf, and Sri Lanka

• Has the largest coal gasifier made in India

• Has made the biggest EO reactor.

• Has made the world's largest FCC regenerator.

• Has the highest viaduct in Asia

• Has the longest limestone conveyor


This research is explained via qualitative and ethnomethodology means. Ethnomethodology is defined as the study of methods that are used by people to explain their actions. However, qualitative research is of much importance. This research includes the use of surveys and interviews. Adopting this form of research increases the reliability of the data. It is responsible for explaining the outcome of an experiment. Primary data is vital because without it, research would continue to be a repeat of another researcher's work. Primary data is usually gathered in case studies, trials, and studies. It is favored over secondary data because it adds legitimacy to whatever that is being researched. Although primary data can be quite useful, it has its limitations. It is often that the means of obtaining primary data can be quite expensive and time-consuming. The way in which a researcher retrieves primary data can be unethical if he or she doesn't receive consent from the participant. Also, primary data can be biased based on the opinions and beliefs of the researcher.


Cook (2006) defined change as "the coping process of moving from the present state to the desired state at individuals, groups and organizations undertake in response to dynamic internal and external factors."

Laurent (1986) defined International Human Resource Management, as "the challenge faced by infant field of International Human resource Management is to solve a multidimensional puzzle located at the crossroad of national and organizational cultures."

Desatnick & Bennett (1978) declares, "Many firms underestimate the complexities involved in international operations, and there is some evidence to suggest that business failures in the international arena may often be linked to poor management of human resource."

Morgan (1986) defines International Human Resource Management as "the interplay among three dimensions -- human resource activities, type of employees and countries of operations."


• Increased in responsibilities -- More responsibilities exist when the human resource department functions in various countries.

• Relationship between employee and family -- The manager of the Human Resources Department is responsible for the arrangement of the family and employee to the foreign land.

• Awareness of culture -- Employees should be aware of the culture that surrounds him or her. This can greatly affect the success of the business. Employees come from different ethnic backgrounds and cultures. Therefore, adjusting to the new culture is key for success.


• Ethnocentric Approach -- Companies that adopt this approach view the world as one big marketplace.

• Polycentric Approach -- Unlike the ethnocentric approach, the polycentric approach views the globe as a differentiated market place.

• Geocentric Approach -- This is an approach where the organization utilizes methods whenever it feels necessary to do so.


L&T paid importance to international boundary expansion. IHRM gained immense importance in the age of globalization. The basic points that support the aspect are as follows:

• Creating competent global leaders is the most essential factor in terms of a successful business in the world.

• The business world id becoming increasingly global. Most of the markets worldwide are now part of a global network.

• Today, India is one of the most emergent and exciting markets in the world. Technical manpower and skilled managerial activities are the best that match in the world.

• Foreign trade and FDI in India have been increasing at a rapid pace. India has become a very important destination for many MNCs.

• Increasing the business means increasing the manpower.

• It is also important for the international firms to note that it is not very easy to get a qualified and talented manager in every part of the world.

• Strategic managers can create successful businesses.


• National Culture -- Culture is defined as a set of beliefs shared by individuals of a country. Values are standards of how things should go. This explains the difference in requirements and expectations of employees who belong to different countries or cultures.

• Political Forces -- The political turmoil is an indication of the political changes taking place across the globe. The political scene in a country has a major impact on the business operations of the country. Managing employees and expatriates in a politically dynamic country is a challenging task for human resource managers.

• Economic Forces -- The economic conditions of a country will have an impact on the functioning of an organization operating in that country.

• Market Forces -- Industry specific changes can have a big impact on the management of human resources in the international scenario.

• Technology Changes -- Sweeping changes in a technology intensive sector can have a dramatic influence on the human resources function of a firm which operates globally. It also has an impact on the educational system in the country and hence the products of the system too.

• Legal Forces -- Changes in the legal system of a country have a major impact on its economic performance. Liberalization has made India the favorite destination of many MNCs planning an expansion or relocation.

• Labor Forces -- The availability of talented and skilled labor in a nation can attract a vast number of investors, which can add value to the business environment of the country. There should also be healthy labor-management relations.

• Corporate Culture - The corporate culture of an organization has the power to rule over all the other forces mentioned earlier. If an organization succeeds in establishing and strengthening its own unique corporate culture, it can serve as its best competitive advantage.


• Job Analysis and Human Resource Planning -- Job analysis should include the special responsibilities and competencies of an expatriate and a global manager. Human resource planning becomes more complex as it includes the additional dimensions of cross -- country transfers.

• Recruitment & Selection -- Employee recruitment is another area, which must be given importance if a global business is to expand and thrive. Any decisions on local recruitment should be taken very carefully after taking into consideration all the related aspects.

• Training & Development - Training and development of employees in an international organization is different from that in a localized firm. In a global organization, employees need to be trained to learn and understand the elements of different cultures and also develop tolerance towards these cultures.

• Performance Appraisal Management - The performance appraisal system of an organization operating in different countries need to be designed and implemented with utmost care. It is important to note that neither the goals nor the metrics can be the same across different countries.

• Compensation Management -- Currencies and their valuation are different for different countries. One has to compensate employees who work in different countries while abiding by the principle of equity. The most important task is to ensure perceived equity and fairness of compensation among all the employees of the firm across the world.

• Career Management & Development -- Employees in an MNC desire more from the company than those in a local firm in terms of career advancement. They expect better career development opportunities and better prospects worldwide. It is the responsibility of the HR department to ensure that the career needs and expectations of the employees are satisfied.

• Unionism and Industrial Relations -- The legal and labor principles are different in different countries. It is the responsibility of the global HR manager to adhere to the laws of each country while operating in that country. At the same time ensuring good labor management relations in all countries in which the firm operates is also an added responsibility.

• Managing Cross Cultural Issues -- managing expatriates and their operations in a foreign country is also an important responsibility of the global HR manager.…[continue]

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