Report on Human Resource Management in International Business

Introduction of Human Resource Management in International Business

               The expansion of business from a local location to other global destination is not an easy step to make for any company, because there are several aspects and elements associated with this major step. The global expansion to a new global destination can be the most difficult thing to manage. There are so many factors to look at during a global expansion because the local company to look at international laws as well as business-related laws of that particular destination. It is not an easy thing to register your business in another country, because so many laws and restrictions have to pass through. One more thing which is very important for international business expansion and that is managing the human resource. A company needs new staff members to play their part in business expansion, because it is a very specific area of work, and cannot be achieved without professionals of human resources. It means human resource management becomes one of the key elements in so many ways because human resources are the most critical assets of a company. Any plan and start cannot be implemented with the help of human resource (Dempsey, 2018). I am Human Resource Manager to manage the company’s operations in Oman, and I will present a brief report to discuss all relevant matters to handle human resource management with regards to International Business.

Opportunities in International Business

               It is important for our company to understand that international business does not have just challenges to handle, but it also comes with so many opportunities, which can make things bigger and brighter for a company. Being a toy manufacturing company, we need to understand that toy business is getting huge around the world, and there are various opportunities in different markets to sell innovative toys with more interesting features and great quality. Our company should know about the various benefits that we will have by expanding on an international level. It will provide us an opportunity to explore new markets so that we can expand the business further, rather than just setting up a manufacturing factory. Moreover, our company will be able to diversify its overall business structure, which is a great thing in the long term perspective. Different markets offer the new and skilled talent of human resources, which can help us to come up with more creativity and innovation. It will not only provide us to find new opportunities in terms of foreign investment, but it will also provide us a competitive advantage, because we will be able to diversify our manufacturing, and we could decrease costs by benefitting from cheap labor costs in China (Rossum, 2017). It has also been observed that the Chinese Toy Industry is experiencing extensive growth, like in 2016, China observed a 9.5% rise in exports, whereas a 23% rise in imports. The world’s half toys are being produced in just one province of China, named Guangdong. It shows how huge the toy industry is in China, offering a variety of opportunities for our toy company (Koty, 2017)

International Human Resource Staffing Strategy & Recommendations

               Our company has to look at different human resource staffing strategies. It is vital to understand that issues related to an international human resource are quite different as compared to local human resources. There are more complexities involved in the process on the international level. There are four considerable staffing strategies to look at such as Geocentric, Ethnocentric, Regiocentric, as well as Polycentric. Among these staffing strategies, the best one for our company is Regiocentric. According to this strategy, the people especially working on leadership positions are selected on the basis of region, rather looking at any specific country or workforce talent. For instance, if a manager is hired to manage an international business merger made with a Chinese manufacturer, then a person should be hired with regional expertise, because he will not only assist for China, but for the whole region, and it can provide more future opportunities. One good example of this successful staffing strategy comes from Coca Cola; as its head of marketing in the Asia Pacific handles activities related to the Pacific region, as well as, East Asia. So, it is recommended to higher new staff from the regional perspective as they will have knowledge and expertise for the whole region (GLOBAL PEOPLE STRATEGIST, 2019)

Cultural Factors need to be Addressed of Human Resource Management in International Business

               Our company has to realize that there are various issues and factors, which are critical to be handled properly, and one of those factors is the cultural factor. Every global business market comes with different cultural traits such as norms, values, language, etc. which are different from the culture of Oman. So, when our company’s delegates will meet and discuss the merger with their Chinese counterparts, they must keep the Chinese culture in mind. Chinese culture is quite different from Omani culture. Our company needs to keep in mind that the Chinese social structure, ethics, norms, and values may differ in so many ways. So, all of these cultural factors should be addressed accordingly to avoid any clash or issues in business dealing and negotiations (Hyatt, 2017)

Expatriate Compensation of Human Resource Management in International Business

               Our company should know that we may need to transfer some staff or leaders from Oman to relocate to China to handle different international business activities. But people will not be ready to move outside Oman if they are not provided an attractive package to work in china, which includes Expatriate Compensation. It means that the company should offer a handsome package, which is considerable for an Expatriate. However, we also have to make sure that the package is cost-effective for our company as well. It is recommended that the company should use home-based approach, and as per this approach, the cost for package for Oman will be compared with costs in China, and what will be the difference, it will be added in the compensation package so that an Expatriate can manage all his international expenses without facing any problem. So, a comprehensive and handsome package should be decided to keep the motivation and satisfaction level of the staff moving outside Oman.

References of Human Resource Management in International Business

Dempsey, C. (2018). The Role of HR in International Business Expansion. Retrieved December 13, 2019, from https://www.hrzone.com/community/blogs/craighsdempsey/the-role-of-hr-in-international-business-expansion

GLOBAL PEOPLE STRATEGIST. (2019). International HR Staffing Strategies. Retrieved December 13, 2019, from https://bluemarblepayroll.com/international-hr-staffing-strategies/

Hyatt, P. (2017). 7 cultural factors you need to consider when choosing your next export market. Retrieved December 13, 2019, from http://www.tradeready.ca/2017/topics/researchdevelopment/5-cultural-factors-need-consider-choosing-next-export-market/

Koty, A. C. (2017). Child’s Play: Opportunities in China’s Toy Industry. Retrieved December 13, 2019, from https://www.china-briefing.com/news/childs-play-opportunities-china-toy-industry/

Rossum, J.-E. v. (2017). 5 benefits of international expansion. Retrieved December 13, 2019, from https://www.bizjournals.com/bizjournals/how-to/growth-strategies/2017/12/5-benefits-of-international-expansion.html