Integrated Human Resource Management

Importance of Integrated Human Resource Management and its Challenges

Integrated Human Resource Management (IHRM) is important for the multi-national business firms to align the HRM processes and activities with the organizational strategy for the achievement of the organizational goals and objectives. This essay discusses the importance and challenges of integrating the international HRM function with the organizational strategy in the international business enterprise. This assessment also describes the nature of the integrated human resource management function, multi-national organization strategies, and integrated human resource processes (Righeimer and Energy, 2015). For this essay, the multinational corporation, Telstra Telecommunication Company is selected. Telstra is the leading telecommunication company in Australia that offers a range of telecommunication services across the countries outside of the Australian market.

The IHRM is an important component of the organizational development process comprising of the human resource policies, processes and strategies that originate the behaviors, attitudes and actions of the human resources toward the attainment of the organizational long-term goals and business objectives. The IHRM is the combination of the organizational strategy and International HRM function that links the organizational strategic planning with human resource management function for the achievement of the organizational goals and business objectives at national and international level (Anne-Harzing and Pinnington, 2010).

The IHRM is a structured and coordinated HRM process that assists to integrate the organizational strategy with the HR processes and data integration in order to facilitate the cross-cultural reporting for delivering value to the multinational business operations of the firm. It dives the HR processes including the employee development and succession planning, learning management, performance monitoring and control, compensation, staffing and recruiting, and reward management into the organizational strategy for the effectiveness and efficiency of IHRM (Righeimer and Energy, 2015). It is important for converting the behaviors, decisions and judgments of the organizational staff members into action-oriented behaviors for the achievement of the organizational goals and long-term objectives. Most of the multinational corporations use integration of the human resource management practices from the multiple systems. The IHRM is important for the MNCs to ensure better workforce alignment to overall strategy, generating higher revenues and turn-over per year, better internal talent mobility, improving workforce performances, and improving ability to quickly respond to the changing business environments.     

The IHRM is an integrated managerial process of the organization that considers the systematic and on-going assessment process for continually managing and improving the performances of the employees toward the accomplishment of the organizational goals and mission. The IHRM includes planning the work, setting standards of performance, developing capacity to perform, continually improve the performances, periodically evaluating the performance and reward management system for ensuring the optimized performances and productivity of the employees (Bohlander and Snell, 2010).

The IHRM is imperative for developing the performance management strategies for motivating the employees and increasing their job satisfaction and productivity by facilitating them supportive and learning environment, flexible working conditions, safety workplace, training and skills development programs, and performance appraisal and reward system. The IHRM is important for Telstra to prepare the employees to work in different environmental conditions by providing them the cross-cultural training. The integration of the International human resource function with the organizational strategy will assist in developing HRM plans and policies in line with the organizational strategy after assessing the external environmental impacts. It will assist to build cross-cultural teams who could work in different environmental conditions (Burma, 2014). The IHRM will be important to develop the skills, knowledge, and competence of the employees through the cross-cultural training and communication technologies in order to enhance the global employees’ performances and productivity. The IHRM provides a conceptual framework of the international HR strategies and practices in the multi-national organizations from the emerging economies. It provides several managerial insights and guidance into the motives, strategic opportunities and constraints in the cross-cultural transfer or international movement of the HR policies and practices.

The integration of the human resource policies and practices with the organizational strategy is imperative for the organization to develop effective HR plans, strategies, processes and mechanisms that will assist in managing and utilizing the human resources effectively toward the attainment of the corporate goals and objectives. The IHRM is important to develop effective strategies in order to enhance the employees, performances and productivity by reducing the absenteeism, grievances, tardiness, slowdown, equipment breakage, and decreased employee turnover (Gary, 2010).

The IHRM is important to manage the performances of the workforces at the international level by providing them cross-cultural communication and technological training through using the latest communication technologies and performance management techniques in order to enhance their skills, knowledge, and capabilities. It is important to integrate strategies to encourage the employees to perform effectively in the different cultural and geographic environments. It examines the organizational capabilities to determine the future leadership strategy in the global context (Guest, Pauuwe, and Wright, 2012). It is imperative for the organization to align the HR processes and activities into one integrated competence based business model as well as linking the business planning processes with the external stakeholders in order to continually improve the performances of the employees for the accomplishment of organizational goals and mission.

There are several challenges will be faced by the management in the multi-national firms while integrating the international HRM function with the organizational strategy. These challenges include people management, HRM diversity, innovation, government regulation, disruptive technological changes, environmental issues, geographic instability, supply chain management, international employment standards and legislations, ageing workforce and slow growth in key markets. The organization has been facing complex challenges in finding the skilled workers with the specific organizational functions who could work in the different geographical environments (International Labor Organization, 2015). Telstra has been struggling in recruiting the skilled and talented personal with the apparently rare ability to guide them through competitive and unpredictable external environment. For ex- the most important challenge faced by Telstra is developing a service culture through innovation and technological transformation in different geographical environments in order to deliver the high-end and valued technological solution for the local as well as international customers.

The growing demographic changes across the developed and developing countries also put pressure on the multinational business organizations to initiate and implement the integrated solutions to educate, integrate, and retain the diverse workforces within the different environmental situations. It becomes difficult for the MNCs to adapt the organizational strategy to a rapidly changing worker profile in the different environments. Due to the multi-generation workforce and growing cultural diversity, Telstra Company has been undergoing the most substantial challenges while linking the organizational strategy with the people management to perform in the different cultural environments (Kumar, 2010).

The growing government regulations and the geopolitical instability across the countries in the geographical world pose challenges to the organizational strategy while managing the roles, tasks, and liabilities of the workforce in the different cultural environments. The ageing workforce also poses challenges to the organizational integrated human resource strategy. Many experienced workforces are not departing the workforces who are creating complexities in linking the organizational strategy with the workforce management (Machado and Davim, 2013). Telstra is facing challenges in aligning the technology best practices to the global management strategy. The company has also been undergoing the complex problems, such as misunderstanding due to difference in culture, language communication, traditions, and expression to read, difficulties in leading teams remotely and building trusts and camaraderie, problems in managing team members’ performances and productivity and information overload.  

Some problems arise due to technical or cost issues, security of information errors, cultural and linguistic misunderstandings that pose great challenges to the organizational strategy (Miller and Grordon, 2014).

The globalization of the businesses is an increasing HRM issue posing challenges to the integrated HRM processes and planning of the organization. Due to the globalization issues, the growing government regulations and legal issues at the local and international level also suffer the HRM planning and processes of the firm. The technological adaptation and change is another challenge for the integrated HRM strategy of the firm that forces to adapt the human resources to the technological changes. Along with this, change management, leadership development, organizational development and effectiveness, compensation, staffing, succession planning, learning and development, HR effectiveness measurement, and staffing and recruitment are different HRM concerns that pose challenges to the integrated human resource strategy of the firm. The rising labor costs, technological availability, government pressures for creating more jobs, and working age population are some HRM challenges faced by Telstra while operating the businesses in different geographical environments outside of the Australian country.

Telstra Company has been facing the complex problems in developing extensive expatriate networks in the different cultural environments for controlling and coordinating the dispersed subsidiary operations but it has been focusing on developing local talents as well as replacing the expatriates or outsider candidates for managing the external international operations across the globe. The company also faces the global challenges, such as global institutional arrangements regarding the employee involvements and relationships, localization in the staffing of the subsidiary key positions, and widening gap between the informal HRM practices and formal HRM practices.

On the basis of above studies, it is found that several management challenges have been facing by Telstra while integrating the organizational strategy with the international human resource management practices. So, it is required for the firm to manage these challenges for the effectiveness of the integrated human resource management. It is highly recommended for the multi-national corporations to adopt the global standardization approach for managing the subsidiary HRM practices efficiently. The MNCs should pursue the hybridization of the local HRM practices and global HRM standards for ensuring the effectiveness of the integrated human resources practices. The company should try to achieve the coordinated balance between the global integration and local responsiveness for managing the international HRM practices (Mwangi and Kiambati, 2015).

The formation of the cross-cultural teams will assist in managing the effective human resource development practices across the globe. The cross-cultural technology will be effective to provide the technological training for adapting the workforces to the changing technological needs in the global context. Along with this, effective leadership changes and organizational development will be effective for integrating the organizational strategy with the human resource management practices for the achievement of the organizational mission and goals. Additionally, the firm is required to attract new talents being capable of working with the technological changes because the young employees will be more adaptable to the technology changes for working in the different working conditions.

The use of the digital communication technologies, such as Skype, Teamviewer and Social networking sites (Facebook, Youtube, Google+, Whats-app, Instagram, Twitter, and Pinterest) will be effective to encourage greater communication among the internal and external organizational members of Telstra (Simons, 2011). So, the use of the latest communication technologies will be effective to integrate the organizational strategy and HR processes and activities interactively.   

In response to overcome the challenges to the IHRM, Telstra Telecommunication Company should consider the practices, like-cross cultural training and technological education, performance management system, effective supervision and control, employees participation and engagement, incentive based payment, team work and job security in its routine activities for promoting higher performances of employees in different geographical contexts.  The company should also use several performance management tactics, such as setting performance standards, goals-setting, benchmarking, establishing rules and regulations for employees, and the use of the performance improvement methods and scientific technologies for the better practices of the IHRM. It will also assist in establishing and maintaining good relationships and interactions with the internal as well as external team members (Sims, 2007).

From the above discussions, it can be concluded that the integration of the HRM policies and practices with the organizational strategy is imperative for the multi-national business firms to turn the organizational managerial practices into the strategic human resource management. This essay described the benefits of the integration of the human resource management practices with the organizational strategy in the multi-national cultural environment. The human resource management challenges and complexities were also faced while linking the organizational strategy with the HRM function in the global context.

References

Anne-Harzing, W. and Pinnington, A. (2010). International Human Resource Management. Canada: Sage Publication.

Bohlander, W. G. and Snell, S. (2010). Managing Human Resources. Australia: Cengage Learning.

Burma, A. Z. (2014). ‘Human Resource Management and Its Importance for Today’s Organizations’ International Journal of Education and Social Science, Vol. 1 (2).

Gary, D. (2010). Fundamentals of Human Resource Management: Content, Competencies and Applications. Sydney: Pearson Education.

Guest, E. D., Pauuwe, J., and Wright, P. (2012). HRM and Performance: Achievements and Challenges. Australia: Cengage Learning.

International Labor Organization (2015). Human Resource Development, Industrial Relations and Achieving Management Objectives. [Online]. Available at: http://www.ilo.org/public/english/dialogue/actemp/downloads/publications/srshrm.pdf. (Accessed: 18 September 2016).

Kumar, R. (2010). Human Resource Management: Strategic Analysis Text and Cases. UK: I. K. International Pvt. Ltd.

Machado, F. C. and Davim, P. J. (2013). Human Resource Management and Technological Challenges. London: Springer Science& Business Media.

Miller, D. V. and Grordon, E. M. (2014). Meeting the Challenge of Human Resource Management: A Communication Perspective. Australia: Routledge.

Mwangi, B. W. and Kiambati, K. (2015). ‘Integrating Human Resource Management with Organizational Strategies’, Global Journal of Management and Business Research: A Administration and Management, Vol. 15, Issue 7.

Righeimer, P. J. and Energy, M. (2015). Aligning Human Resources & Strategic Plans. [Online]. Available at: http://www.maverickec.com/index_files/Aligning%20HR%20Strategy%20epulse.pdf. (Accessed: 18 September 2016).

Simons, R. (2011). Human Resource Management: Issues, Challenges and Opportunities. USA: CRC Press.

Sims, R. R. (2007). Human Resource Management: Contemporary Issues, Challenges, and Opportunities. Melbourne: IAP.

 

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