International Human Resource Management

Question: Discuss about the International Human Resource Management. Answer: Introduction International business has gained its significance in late times. This significant impact of the trading is recognized in the global market by having a great emphasis upon the trade internationally. Moreover, the business ventures in the global market are controlled by a common body called globalization. In that aspect, the business trading in between two countries takes care of the process of integration in between them. With the impact of globalization the countries involved in the international business take care of the issues raised from the exchange of their views, ideas, opinions, products as well as other cultural aspects across the globe(Al-Sarayrah, et al., 2016). The described process in the international trading is associated with the various factors in between two countries. Therefore in the issue associated to this write-up is the relocation of a manager of the multi-national organization from Australia to handle one of its subsidiaries located in the United Kingdom. In that context, the write-up should involve all the necessary aspects or issues faced by the individual in accessing the human resources management as well as the employment relation in that organization in the United Kingdom(ArulrajahOpatha, 2016). Therefore the essay will describe the fact of global connectivity within the organization irrespective of any kind of impact of laws, cultures and all other aspects upon the working life of the manager in the United Kingdom. When the multinational organization in Melbourne is relocating a manager to manage the subsidiary branch of the organization in the UK, the manager must be prepared to face all the challenges that he or she has to face in the UK. It is because the business, as well as the economical environment of UK, has been greatly affected after Brexit(Baum, 2016). In fact, it can be said that there has been a lot of significant changes in the trading environment of UK and so is in its cultural environment. Therefore the implications regarding the impact of Brexit while working in the United Kingdom will help the manager to deal with various situations in his or her working life. Impact of Brexit on the Business, Economy and Human Resource in the UK Brexit is a well-known action taken by United Kingdom which states the decision of UK for its withdrawal from the European Union. The decision of the UK of leaving the European Union has discrete results. Most of the countries are thinking of to be in favour of the vote for the Brexit Referendum being ready for every kind of issues in businesses, economy, immigration and many more global campaigns. Generally, UK comprises of a maximum percentage of business within EU leaving which will affect both of them(Dhingra et al., 2016). In June 2016 United Kingdom had decided to leave EU by voting in favour of the referendum. With this action, the market of UK gets affected as it is getting imports from EU for several of products. In return, UK is also having the manufacturing plants of several products. Most importantly the Brexit affected the in-house production in the UK. The growth of manufacturing was affected by the emergence of Brexit. The dropping of the production led the decrease in revenue with the decrease in value of pound that has damaged the business(Brugge et al., 2016). But on the contrary, the actions should be taken to deal with such issue is to move production to the UK market which will eventually eliminate the need for pay rising cost that generally the overseas suppliers demand during trading. One of other benefits are the companies that choose UK market for business manufacture then those will be the topmost positions in the UK market as per the revenue who can take the proper advantage of th e weak pound. This will definitely help the manager in dealing with other organizations when he or she will come to UK market. It is because in initial condition Brexit hampered the manufacturing in UK and recession hit the UK hardly. But now UK market provides opportunities to various new businesses with significant value. In current condition, the production method and working process have led the enhancement of profits. In current times while UK is all set to leave EU permanently at that time the cost of the import materials is supposed to increase that developed the business outgoings with an efficient supply chain in UK market(Brugge et al., 2016). Though Brexit has created impact over the businesses that resulted in the rising costs but as a manager, he or she must know clearly about the situation. It is because the situation also offers the condition that offers a chance to re-examine and strip-back for the creation of more efficient ways of working that will be beneficial for the business. Like the business, the economy of UK also moving quite slowly and in return, the GDP of UK faced a sudden negative shock along with a political uncertainty. With the emergence of Brexit, the value of sterling pound decreased that made the economy to go down from growth into contraction in a couple of days. It was seen that in June the growth rate of UK market was up to 0.6% while after the decision of Brexit it came down to 0.2% with a high contraction within the market(Dhingra et al., 2016). The manager must know that before Brexit UK has been in the top record regarding employment, like 74% of employment record and 4.9% of unemployment. But in current condition after Brexit that water mark set by the UK has fallen down and then the damage is widespread. The pound sterling which was the strength of UK economy fallen down by the Brexit effect. On the whole the effects of economical condition of United Kingdom are mostly affected because there been a less amount of trading with European Union. In previous conditions UK goes for exports of 44.6 % to EU and imports of almost 53.2% from EU in goods as well as services. But Brexit decreased this percentage and affected the free trading by making trade diversion that poses a negative impact over the export industry of UK. In that case the other emerging economies like China also affect the economy share of UK upon the word trade. Moreover after leaving EU the inwards investments of UK get less attractive which results in returning of foreign organization within the border of EU. But on the flip side there also occurs the lowering down of the external tariffs raised by EU and after leaving UK can get the free deals without the external tariffs set by EU. Again after leaving EU, UK needs to pay to get benefits from the single markets without which the GDP percentage will come back to 0.4%. Moreover again the decline of value of sterling pound also led the deficit of 4.5% of GDP along with an increase in the rate of interest which decreased the investors confidence. Therefore UK need to make new trading process and it is also planning to join WTO to deal with the economic downturn. UK leaving EU impacted very deeply upon the labour market. It is because UK leaving EU became a big political issue that affected the migration of workforce from Eastren Europe into the UK. This activity eventually resulted into stress into infrastructure, housing as well as population. If it will be considered from the economic point of view at that time it can be considered that after UK leaving EU the labour market will get less flexible and they will get the freedom for restricting the net immigration. Therefore after UK leaving EU then neither the workforce from EU cannot come to UK nor can people from UK work abroad in EU. This will affect the budget as well as economy as a result of labour market shortages. Similarly, the Brexit has also affected the human resources. It is because the HR professional has shown a pragmatic approach for the decision of the UK of leaving the European Union. UK leaving EU affected the employment laws, migration, pensions and job market. The human resource managers in the capital markets, as well as asset management in the UK, generally shown their prospect that business is going quite well even though there is the lack of clarity of the effects upon it(Brugge et al., 2016). Moreover, the Brexit led the curling of the HR plans of hiring or recruitment. In addition, there has been an impact on the attractiveness of job openings in the non-EU countries. It is because Brexit also causes Brain-Drain and create impact over employee communication. As per this context, this context the manager becomes the expatriate in the UK so he or she must know all the implications related to the business units as well as the immigration laws to tackle with the shockwaves of Brexit in the UK(Zheng, 2013). How will the manager work along in the culture of UK When the multinational company of Australia is planning for relocating the manager from Australia to the UK at that time the company should take care of the capability of the employee. The manager in that condition is an expatriate who has been sent to UK who has to deal with the UK culture(Al-Sarayrah, et al., 2016. Therefore the senior management while taking the decision of relocating a manager he or she should take care of few things that will help the manager in getting acquainted with the new culture. When the senior management is taking up the international assignment then they must take care of the knowledge creation along with the leadership development of the manager(ArulrajahOpatha, 2016). The cross-cultural competency and excellence in technical skills of the manager will help him or her in surviving in the new culture. The company needs an urgent emergency in its subsidiary so sending the right person on an international assignment to the UK must go beyond solving the immediate problem. Therefore the manager must properly understand the job role and adapt him or herself as per the behaviour and dressing of UK culture. Dressing in a vital asset to get blended with the people however it is necessary to stay away or alert from strange people as well as locations(Baum, 2016). Another important thing for the expatriate manager is to be confident. It is because he or she can face many harassment or humiliation but staying confident is the best option to get blended with the culture smoothly. In addition, the manager going to relocate must clearly go through the cultures keenly to understand the attitudes of people clearly in the organization for personal safety and security. For that reason knowledge of UK along with its attributes of people is necessary by which the manager can be able to work well in the UK(Bourne, et al., 2013). Human Resources Management and Employee Relations Issues in the UK When any employee goes for an international assignment at that time the employee is going to face many issues. As in this case, the manager is going to manage the subsidiary of an Australian multinational company in the UK will face issue relating to the employee relations as well as the human resources in the new workplace(Xing Liu, 2016). Though there are many issues like dispute, personal reasons, poor customer feedback, delay in work, poor sales and much more. In that case, the most important issues that generally arise are the legal issues, conflict management issues, attendance issues and disciplinary issues(Clark, et al., 2016). The HR professional take care of such by implementing various rules and regulations regarding the employee performance, interest, conduct, and discipline. As per PopaitoonSiengthai, by managing these relationship issues the employers create a structured as well as productive behaviour in the workplace. The issues of the employee relation will sometimes discourage the manager in the new culture with patience and confidence he or she will be able to deal with the problem(PopaitoonSiengthai, 2014). Similarly, the manager will also face the human resource issue of employee turnover in the subsidiary of UK due to Brexit(Dartey-Baah, 2013). In that context, the manager will need either contingent workforce or face the need of expert employees. In addition,Punnett said that the manager will also seek the need of providing training to the existing employees for the enhancement of the quality and standards that will help in enhancing the productivity of the company(Punnett, 2015). Therefore the manager will take care of what kind of training programs needed along with the objective of training. The manager will also aim towards the target groups to tactfully handle the issues raised due to Brexit. Moreover, the manager will definitely also face the issue of workforce diversity within the organization which he or she must control by implementing strict rules and regulations(Dickmann, Brewster Sparrow, 2016). Important Employment Laws and Work Practices in the UK The employment law in the UK is comprised of amendments that ensure the development of labour law of UK. In that case, it takes care of the merchandise manufacture, regulation of workplace relations basing upon the status of the individual in relation to the company. It also engrosses the contract that shows the system of trade unions in the UK(GuerciCarollo, 2016). Therefore as per ThirkellAshma, the employment law of UK includes the employment contracts, wage and hour, holiday entitlement, discrimination laws, paternity and maternity leave and the termination laws along with redundancies(Thirkell Ashman, 2014). Before Brexit, the labour law in association with EU considers the efficient areas that deal with the health and safety and the transfers of undertaking along with the laws for the discrimination(Jun Rowley, 2014). Out of the employment law the discrimination law, family leave, working time obligations, transfer undertaking regulations all are the important rules of European directives that UK government will mostly repeal after UK leaves EU. After leaving EU, UK can retain some of the laws and change some of the other laws. Like for example there will be the imposition of a cap upon the discrimination compensation which is almost similar to that of unfair dismissal. The government will also plan for the removal of well established protection laws like family leave and right to paid holiday leave. Moreover the employment law will face a less amount of change because it will majorly affect the free movement of workers. It will lead to the legal, financial as well as significant uncertainties to the future of UK after Brexit. In addition, the UK legal system also provides some of the family-friendly employment rights for the employees along with the information and consultation. Further, the action of Brexit had its impact on the holiday pay, discrimination law, agency workers and the equal pay(Longoni, LuzziniGuerci, 2016). Similarly, the work practices in the United Kingdom take care of the employees who work for home, incentive pay, pensions to the business owners, recruitment as well as minimum wages and statutory pay obligations. These work practices in the UK changes as per the establishment of new societal values, changing demographics, advanced technologies, and rapid globalization(Wilson, 2014). Conclusion The essay focused on the highlights of the relocation of the manager from Australian multinational organization to the United Kingdom. In that case, the above-mentioned impacts of Brexit will help the manager in adjusting to the new organizational environment in the UK. The facts discussed in the write-up will help the manager in managing the situation raised in that subsidiary of that organization in the UK due to the impact of Brexit. References Al-Sarayrah, S., Obeidat, B. Y., Al-Salti, Z., Kattoua, T. (2016). The effect of culture on strategic human resource management practices: A theoretical perspective.International Journal of Business Management and Economic Research,7(4), 704-716. Arulrajah, A. A., Opatha, H. H. D. N. P. (2016). Analytical and Theoretical Perspectives on Green Human Resource Management: A Simplified Underpinning.International Business Research,9(12), 153. Baum, T. (Ed.).(2016).Human resource issues in international tourism.Elsevier. Bourne, M., Pavlov, A., Franco-Santos, M., Lucianetti, L., Mura, M. (2013).Generating organisational performance: The contributing effects of performance measurement and human resource management practices.International journal of operations production management,33(11/12), 1599-1622. Brugge, G. S., Perraton, J., Lindstrom, N., Evans, P. M., Lee, S., Quaglia, L., ... Wilson, S. (2016, June). Britain and Europe: The political economy of Brexitin trade and finance Workshop at the University of York, 14 June 2016. In Workshop at the University of York. Clark, W. C., Tomich, T. P., Van Noordwijk, M., Guston, D., Catacutan, D., Dickson, N. M., McNie, E. (2016). Boundary work for sustainable development: natural resource management at the Consultative Group on International Agricultural Research (CGIAR).Proceedings of the National Academy of Sciences,113(17), 4615-4622. Dhingra, S., Ottaviano, G., Sampson, T., Van Reenen, J. (2016).The impact of Brexit on foreign investment in the UK.BREXIT 2016, 24. Dartey-Baah, K. (2013). The Cultural Approach to the Management of the International Human Resource: An Analysis of Hofstede's Cultural Dimensions.International Journal of Business Administration,4(2), 39. Dickmann, M., Brewster, C., Sparrow, P. (Eds.). (2016).International Human Resource Management: Contemporary HR Issues in Europe. Routledge. Guerci, M., Carollo, L. (2016). A paradox view on green human resource management: insights from the Italian context.The International Journal of Human Resource Management,27(2), 212-238. Jun, W., Rowley, C. (2014). Change and continuity in management systems and corporate performance: Human resource management, corporate culture, risk management and corporate strategy in South Korea.Business History,56(3), 485-508. Longoni, A., Luzzini, D., Guerci, M. (2016). Deploying Environmental Management Across Functions: The Relationship Between Green Human Resource Management and Green Supply Chain Management.Journal of Business Ethics, 1-15. Popaitoon, S., Siengthai, S. (2014). The moderating effect of human resource management practices on the relationship between knowledge absorptive capacity and project performance in project-oriented companies.International Journal of Project Management,32(6), 908-920. Punnett, B. J. (2015).International perspectives on organizational behavior and human resource management.Routledge. Thirkell, E., Ashman, I. (2014). Lean towards learning: Connecting lean thinking and human resource management in UK higher education.The International Journal of Human Resource Management,25(21), 2957-2977. Wilson, J. P. (2014). International human resource development: Learning, education and training for individuals and organisations.Development and Learning in Organizations,28(2). Xing, Y., Liu, Y. (2016).Linking leaders' identity work and human resource management involvement: the case of sociocultural integration in Chinese mergers and acquisitions.The International Journal of Human Resource Management,27(20), 2550-2577. Zheng, C. (2013). Critiques and extension of strategic international human resource management framework for dragon multinationals.Asia Pacific business review,19(1), 1-15.