Essay On International Human Resource Management

 

The report is prepared with the main focus on analysing the various effective approaches to manage the future employees for an UK MNC, in a new branch located in one of the non-Anglo-Saxon country, which is Mexico. The report will depict knowledge and information on the influence of national culture or institutional context on the human resources fields across both United Kingdom and Mexico (Brewster, Mayrhofer, and Farndale 2018). The HR context of the two countries, i.e., UK and Mexico will be included here along with the consequences for HRM in the two major fields of recruitment and selection and management of diversity. This basically helps in understanding the features of the two nations and understand the importance of HR in the international context too. The major aspects that will be evaluated here shall be recommended to the CEO of the UK MNC, which is aiming to manage the future employees in the new branch to be located in Mexico.

The HR context of UK MNC represents the employees, with post graduate human resources management degree. It also highlights the management of human resources practices in UK, including the manpower planning, recruitment and selection, employment termination, training and development, management of industrial relations, evaluate of job performance and delivery of employee services across both private, voluntary and public sectors (Cumming, Wood, and Zahra 2020). In UK, the national institution refers to the Chartered Institute of Personnel and Development or CIPD, which is a major association for the human resources management professionals. This national institution is a professional body that ensures awarding and accrediting the professional human resources management qualifications and providing a proper degree to the individuals, who work across the different sectors in United Kingdom. In Mexico, there are central institutions, which look after the Planning, Organization and Administration of the Human Resources. Under the General Employment Framework is considered, open term employments and contracts are availed in accordance to the legal obligations (Oecd.org 2022). The main essence of HR context in Mexico is its manufacturing and production sectors, mainly dependent upon direct or general labour and indirect or professionals. Thus, the approaches to recruitment, retention and attraction of employees, compensation and benefits differ for these two contexts of HR.

 

The culture in the context of HR in UK, is about people working together in groups with those, who are known to them and could be related to easily. The culture in workplaces encourages gender equality and the masculine culture represents that people value competition, success and achievements, while considering the wellbeing of others as well. But the human orientation shows that they are strongly driven by interests and desires, and thus, they show little kindness or care towards others, rather than someone closer to them. As the UK MNC has focused on opening a new brand in Mexico, it is necessary to evaluate the culture in the context of well. While in UK, employers could easily terminate or dismiss someone without any warning, in Mexico, the employees have very limited negotiation powers, and they are usually tolerant of a top down approach, and autocratic style of leadership (Río et al. 2022). Mexican Federal labour Law considers a redundancy if the company ceases to operate. This reflects little or no liberty to the employees to provide suggestions, evoking autocratic leadership style. There is unequal distribution of power due to this as well, which might affect overall capability of individuals. In the Mexican workplace culture. Everyone is involved in the meeting, but the decision-making power lies in the hands of the manager or board panel. Most of the times, the decisions proposed by the junior employees are not even considered. Across the Mexican HR context, there are Federal Labour Law, Social Security Law, Employment National Housing Fund Institute Law 1972.  To set up a new brand in Mexico, it is also important to consider that every employee is to be involved in a written individual employment agreement, which consists of the terms and conditions of the employment. Visa is needed for the employees along with a valid work permit (Kanungo, Aycan, and Sinha 2020).

While the current labour market in UK shows an increase of employment rate by 0.2 percent post Covid 19 pandemic, the full-time employees have also increased, resulting in reduction of part-time employees. It could be a great opportunity to outsource few employees to the foreign country and ensure formation of a diverse workforce. The Mexican labour market is comparatively low as compared to the other countries. Women, youth, and older workers encounter problems in their employment. Informal employment is considered to be a challenge in Mexico. 57% of the labours were informal workers in 2018. There is a lack of public system of unemployment benefits. Even the expenses on labour market policies are low (Oecd.org 2022). Strategic approach in manpower planning, recruitment and selection, employment termination, training and development, management of industrial relations, evaluate of job performance and delivery of employee services across both private, voluntary and public sectors could make Mexico a great place, worth investing to open a brand, by drawing in skilled workers from UK and all over the world (Aycan 2020).

 

 

Institutions of HRM in UK is infested with a positive working culture. This is reflected in the field of recruitment and selection. In the UK MNC, mentioned in the case scenario, recruitment and selection occurs with HR managers’ compliance to Anti-Discrimination Act, Equality Act in the process of rolling job advertisements. Biases in selecting the candidates are averted. This is in the form of exercising equality while selecting the candidates from the minorities section, and low-income groups. The recruitment and selection are based on qualifications and merits instead of caste, creed, colour, religion and race. In some cases, employment agencies are involved in the recruitment and selection process, but in this, trust score is less, as they work according to their terms, where there could be discrimination, harassments for the candidates from minorities section and low-income group countries (Mira, Choong, and Thim 2019). Here, mention could be made of equity approach model, which is applied in the institutional context in UK. Through this model, the MNC ensures equality among the employees in the recruitment and selection. The applicability of the model is based on the believe that each and every employee is to get equal chance of achieving career growth. This model is also needed when the UK MNC would build a new branch to be located in Mexico. This model would enhance the cultural diversity and allow the local candidates as well as outsides to achieve professional development by experimenting with their professional skills, abilities and competencies. Establishing a new branch in Mexico would also need the HR manager of UK MNC to revise the policies to ensure that the candidates are able to access the job advertisements and information about the company processes (Boselie, Van Harten, and Veld 2021).

Objective factor theory is crucial for assessing the approach of the HR manager in UK MNC. This theory sheds light on rationality exposed by the HR manager for selecting the candidates. Here the related theories are theory of planned action and reasoned behaviour, which helps in enhancing transparency and fairness in selecting and recruiting the candidates. The choice exerted by the HR managers is implemented through objective assessment, for ensuring that the candidate gets the tangible benefits of the job. This believe reflects positive influence which is intended to be asserted while recruiting and selecting the employees. The important considerations, in this context, according to the policies are salary, incentives, other benefits, location, opportunities for career growth among others (Stoermer et al. 2021). If the new branch of the MNC is opened in Mexico, then the theory could be effective as it would expose rational choice in selecting the desired candidates. This rationality could also be helpful in gaining trust from the candidates, which is needed for extracting the required labour.

 

 

Institutional context of diversity management in UK reflects a collaborative working culture. This working culture consists of locals and outsiders from different socio-cultural backgrounds. Working in groups enhance familiarity of the locals and avert exclusion. There is gender equality, which reflects provision of equal opportunities to male and female employees in enhancing professionalism. The approach here is people oriented, which is reflected from following the values of respect in acknowledging the individual differences. (Yadav and Lenka 2020). On the other hand, Mexican workplaces have continued to struggle to improve gender equality and inclusion of diversity, as a result of which the human reosurces managemnt practices have been affected as well. In this context, it could be stated the opening a branch of the UK MNC in Mexico could be beneficial as the employees are granted rights for strengthening relationships with them. The HR manager of the branch could adopt equity approach model for ensuring that equality is maintained the provision of safe, healthy and congenial working culture, with the inclusion of more women in higher positions of management.  Minimum Wage Act is also to be considered by the HR manager when the new branch is opened in Mexico. It should promote equality and prevent gender discrimination in the Mexican workplaces.

Diversity management could also be reflected from the providing opportunities to the workers from diversified socio-cultural backgrounds and higher positions of management to female candidates.  Locals from the minority sections could also be included into the business, which could be effective and rational decision to enhance corporate social responsibility in Mexico branch (Lewis, Cardy, and Huang 2019). This action should reflect women empowerment, and preventing gender discrimination. Examples could be including the employees from other social cultural backgrounds in the projects and activities, and priding training to them to strengthen their skills. This action could reflect equality in the human resource management in the new branch, which would be located in Mexico. Events could be organized where both the offices would be involved. Participation of the employees in the events could enhance their adjustments, as they become familiar with the system, structure, processes. 

 

UK MNC institutional context includes training sessions enhancing the skills and knowledge of the employees.  This is through the involvement of Chartered Institute of Personnel and Development or CIPD in the operations. Providing training to the candidates from the minority sections and low-income group countries, under the guidance of Chartered Institute of Personnel and Development or CIPD, in the new Mexico branch would reflect proper diversity management (Ng and Sears 2020). Along with this, UK MNC, after setting up a new branch in Mexico can tie up with Chartered Professional in Human Resources (CPHR). This could be effective for HR manager in getting effective training on managing the human resources and enhancing cultural diversity. All of these could prove to be rational, if the objective is to help the employees in achieving their professional development. However, as the cultural context of UK reflects strong influence by interests and desires, therefore rationality and logical reasoning is needed for ensuring that equity approach is maintained for providing equal opportunities to the candidates, irrespective of their caste, creed, colour, religion, and race (Li et al. 2020).

 

 

From the discussion, it could be understood that there are various approaches used for managing people in UK MNC. In this management, influence of national cultural and institutional context plays an important role. HR manager of UK MNC conducts systematic approach in manpower planning, recruitment and selection, employment termination, training and development, management of industrial relations, evaluate of job performance and delivery of employee services. This is under the collaboration of Chartered Institute of Personnel and Development or CIPD. This collaborative culture could be effective in exercising diversity management if a new branch is set up in a non-Anglo-Saxon country, that is Mexico. This is because of the revision of Diversity and Inclusion policies, which would provide opportunities to the candidates from minority section and low-income group countries to polish their professional skills, abilities and competencies. However, consideration is needed on the terminations, lack of public system, expenses, availability if manpower, which could affect the corporate culture in the branch of Mexico. 

 

 

1. Human Rights Council and Commission could be involved in meetings by UK MNC for revising the diversity and inclusion policies, and legislations on gender equality, anti-discrimination. This revision could result in reducing the instances of discrimination, inequality and others

 

 

2. UK MNC also needs to revise the ethical codes of conduct to ensure that respect is provide to the individual sentiments and opinions of the candidates and employees from other socio-cultural backgrounds

 

 

3. Human Rights Council, Commission and representatives of Labour Commission could also be involved in the meetings of UK MNC, to revise the termination policies, rules, and regulations. The revisions are to be conveyed to the staffs through proper communication channels (Isotalus and Kakkuri-Knuuttila 2018).

 

 

4. Trainings could be increased in the progressive disciplines, so that the employees’ behaviour could be corrected to that of professional standards

 

 

5. UK MNC, before setting up the new branch in Mexico could sit in meetings Statutory bodies and Labour Commission for discussing, revising and enforcing the revised Minimum Wage Act, so that the employee performance is properly evaluated according to the number of duty hours which they have served (Scott-Baumann et al. 2019)

 

 

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