International And Comparative Hrm Commerce Essay


Human Resource Management (HRM) is a part of organization which performing into the activity of efficiently managing and directing human resources/labour towards achieving organizational goals. Typical activity by HRM staff would be recruitment, selection, training and development, performance appraisal, dismissal, managing promotions and so on. Human resource management is a very essential part of any local, multinational and also global corporate world. The nature and regulation of the employment relationship is concern of HRM department and the activity of this section, which is a diversity of disciplines contributes, particularly sociology, psychology, and industrial relations. To simply called HRM is managing term of condition include the line responsibility between employers and employees. It has large impact and is interrelatied to a corporate success and performance. When this department is performing a local deal with the term which is HRM and IHRM stands for a company, which is operating as multinational and globally that company deal with its employees, simply to say which HRM working globally within the same organisation is called International Human Resource Management. IHRM is concern about managing human resources at multinational companies. There are some differences between HRM and IHRM. Where the HRM performance is end, IHRM starts performing from there. The practices of IHRM are selection, training and development, compensation and career management. In this assignment, a multinational company called "DHL Express" has chosen to demonstrate the companies IHRM and the appropriate approach of the IHRM which can build the effective performance for the organisation and also would help to find out the way of managing people.

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DHL is a worldwide shipping business. In 1969 the company was founded to deliver documents between San Francisco and Honolulu. More than 35yrs it has been modern leader in the worldwide shipping business. The company is now part of Deutsche Post, the German modern privatization Mail service. Deutsche Post DHL in 2003 and acquired by airborne Express is integrated, DHL Express is known as a category created to. Today, DHL Express employs 550,000 run out of the 220 ​​countries and regions and product management.

Literature Review

Human resource management (HRM) is a coherent and strategic approach to the management of an organization's most valued assets - have to work separately and cooperatively contribute to the success of the purpose of this business. The process, there are some organisational procedure that handle with sectors related directly to people like as:-



Organisational development

Performance management




Employee motivation


Communication and


(Daniels, 2006).

Above the all sector that HR department has to do daily basic and it is also very basic. So every multinational organisation has to create with skill people and also to implement with a strategic approach which can be a system that will get the skill employees for the organisation.

A multination companies HR not only performing within the local area. It has also more different activity which include to the foreign branches which called international human resource management (IHRM). IHRM it's a little bit different of HRM that's why company have to select the more highly skill staff those who are able to perform on different culture management. So that company must have to take more steps to demonstrate the whole staffing system. There are some strategic approaches of IHRM which company must follow to build the strong operation management and a strong team. IHRM can be defined as "The set of distinct activities, functions and processes that are directed at attracting, developing and maintaining an MNC's human resources. It is the aggregate of the various HRM systems used to manage people in the MNC, both at home and overseas" (Taylor, Beechler et al. 1996:960).

IHRM and connect to strategy

A concept that HRM would be an organisational foundation of reasonable benefit and can change firm performance is component of the better strategic focal point in the ground of HRM called strategic human resource management (SHRM) (Park, Mitsuhashi et al. 2003). Therefore that strategic approach is equally creating position in the field of IHRM; however IHRM is directly connected to the strategic desires of the organisation. Basically IHRM is totally perform diverse HR- activity in any MNCs how HR-policies and practise will perform between the main company and its subsidiaries all over the world and also what are connection between both of them (Almond, Clark et al. 2004).

Approaches to HRM in MNCs

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Basically HRM into the MNCs is often component of either a virtual or international perspective. Comparative HRM in different countries and how national institutional distinctiveness of HRM systems - are affected by the practice, and they will be country specific. HRM (IHRM) geographically dispersed employees MNC's HRM through an international perspective on both the local and global competitive advantage associated with the occurrence of management. In this case, it is assumed that the organization is a strategic choice to a greater extent that their organizational structure, strategy is the best way of relating to the organizational and business environment are able to choose their human resources (Paauwe, Farndale 2006).

There are some chosen approaches which are given below:-

Legal and political concern

Foreign location development

The nature of the product and technology

Structure of company life

The subsidiary's age and history

The company's variation relation of country culture

And that the actions of multinational companies that IHRM approaches as a function of the way it can work. There are four approaches that are working in a multinational company. All this approaches are discussed below:-

Ethnocentric approach

Polycentric approach

Regiocentric approach

Geocentric approach

Ethnocentric approach:-This approach it's actually based in home county practice. Companies headquarters in home country will take the all decisions, employees from head office hold important places or jobs and its all subsidiaries must follow the headquarter. Basically top to bottom level all decision will be taken by parent company or headquarters. All expatriates of the companies in headquarter will control the all function in all subsidiaries by a systematic way which will be evaluate the performance every rolling year (Daniels, 2006).

Polycentric approach:- this is another approach of IHRM. In this approach all subsidiary will manage on local office of HR division. Subsidiaries normally create the team of expertise to develop the whole practices of the company (Claydon, 2007).

Geocentric approach:- This method is more authentic then other approaches. The parent company and the subsidiary company decide to work together, the performance of the staff. According to the workers, their credibility is on the system you choose to post. Staffs are suitable for any place that they will not move. The main subsidiary company of the parent company, but has decided not to take that class they can send. The parent company's decision based on what place is recommended for workers (Daniels, 2006).

Regiocentric approach: - This method is most generous for workers. Subsidiary company manager could his or her job better place for you to choose. This type of placement may be based on region or category basis. The director and the various places you can choose to work for the department. The best option is for the managers of the parent company. The employees that work in the specified location, according to their performance and to make that work better if he places his hand over the posts and cannot prove it (Daniels, 2006).

All above this approach will be applied by the companies HR expatriates those who are highly skilled in different sector and the expatriates are selected basis of the culture, place and competences such as geographical condition south Asia and western Europe, and also depend on commercial knowledge with behavioural approaches. After that it has concern on matter of training which actually varies from state to state. Especially multinational company are always looking forward to arrange training for their staff in different areas which called cross cultural training. Therefore they can put anyone to any subsidiaries office.

Critical Analysis

Best practices - performance improvements in recent years has been the idea that employment practices arise when companies use a specific set of additional interest. Two, bundles and high-performance work practices; see these two types of methods, one, universal procedure. DHL's express some HRM practices and standards applicable to all organizations and settings, no matter what their industry, geographical location, culture or organization (Pfeffer 1998). When it came to human resources, they have been very multidimensional and systematically employment and labour market cantered on internal security, and employment information and employee involvement in the sophisticated, comprehensive training, education and development, sharing, and high-potential companies pay reduction activities, status interval. However, this method has the drawback that DHL adapted to meet the high performance that it's easier to practice for the organization of labour costs in total costs when business is devoted to the aspect ratio. Economic downfalls but at the cost of the labour to make up a high proportion of total costs in 2008-2009 Patricia Burke, labour relations vice president, DHL Express Inc., Sept. 25 on the employer Littler's Global Institute, the crisis over time, so remember how DHL in 2008 and 2009's staff from 40,000 to 4,000 by the beginning of the end for both scale off back order for DHL Express international air express delivery back to the main business was. Job security terms, but this is a bad sign for the company, as excited when the economy was gradually exposed other than Burke to consider outsourcing the recruiting talent [2]

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Resource-Based View (RBV) - DHL all the strategies that follow it in their current and potential employees that the company invests a lot on, educating and training terms, thus making supply business is a very potential career path is set to studying. RBV has focus on personal qualities employees bring to the organization, using them to promote corporate growth and sustain competitive advantage. The best suitable method is to separate from the firm's internal resources and RBV in particular organizations active in sustainable emphasizing factors. DHL's two great examples of upholding its core competencies; [8]

Sources and talent management - time of economic crisis, the demand for skilled personnel and experts are increasingly in the channel so that they have a competitive edge in the use of first-class specialists and officials to make sure. In 2009, a survey of the 50 most attractive employers in the U.S. consulting firm Universum Globe DHL 120.000 managed by the students of the nearby university. DHL 42nd ranked overall, and was the only company to provide a list of indicators [8].

Internet Recruiting - their careers website is the most important point of contact for potential employees. Every year, more than 12,000 job vacancies online and post them to the database already holds details of 500,000 applicants. Market researchers Potentialpark Germany ranked second and third in their Career Portal Top Employer Web Benchmark 2009 he was in Europe [8].

Strategic HRM of the company

DHL is a company based on customer service, increase with the details on that roster. The company has been serving clients in a variety of ways that human development strategy. Below are the top customer service and there are different from the other company. Employees' trade has sentiment as a way to serve the customer. They work to improve it. Training during the weeding of customers they handle most of the speech will be. The parent company is always on the compensation of employees who choose to provide customers the best service. The attractive strategy is to increase the share of the market for the use of employees and information strategy that most of the customers. To inform their employees aware of the customer service is essential [8].

Company believes that the best strategy is to people, connected to the service and profitability. DHL is already a great service by trained staff and services provided by employees, customers, the profit will be given. This is the root level staffs and employees of the company will always try to make sure [8].

Different and others approaches of the company

Various alternative approaches that can apply to DHL to manage human development. DHL as a multinational company and a subsidiary company in the world, it cannot be applied to all branches of the human resources strategy. It is essential to select the best employees and the work environment, but it can sometimes be different. According to alternative strategies, there are some criteria that help the local subsidiary company. These are:

People status


Culture of the area

Living standard and expenses


Expansion of business

Competitors [2].

The development of standards for employees which are essential. Parent company of those who have not, there must be other possible it may not be the best worker. Competitors per country and per capita income between the basic things. When the parent company of the country's income cannot understand the situation, then the situation is to assume that the company's employees and can compensate for the incoming workers can understand. In this case, if the per capita income is less than the company can hire employees with a negotiable salary or wages. Another important part of the company is competing for. The risk is that the company does not lose efficiency because workers can take this competition. If the company has no skills other organizations, employees and the employees lose the opportunity to take advance action to take. The method according to other criteria is important. Employees are properly known local and international languages have to have the same educational background and experience [2].

The cultural part of the social and religious culture indicates the beginning of time. People of different religions who come in, they get a religious holiday celebration, and for additional fees have been able to get

Finally, the company appointed and expansion of the business, according to the state of the roster. If a potential for expansion and in turn have the best employees for the company and get a handsome amount of money spent may decide, other people will not have money for development.


All above the discussion, DHL courier service to find out and analyze the many ways in which multinational companies are based. Argued that the current method of analysis and multicultural world. DHL found the way to get business from production to apply correctly. Companies with employees who are expert in this market by the parent company and properly trained. Moreover, the method in which the multinational companies in the development of human resources will not be found out. It is possible to survive in the market without a team of workers cannot be improved. The human resources management strategies are essential for multinational companies. Human Resources are an option to run a global business world [8].