Nike's International Human Resources Practises - Case Study Example

Human Resource Management In the current research, an in depth analysis on the international human resource management policies are contrasted. It is observed that the multinational firms are facing huge challenge from the issues like the cultural difference, cross sectional conflicts, social and national policies, financial policies and economic strengths of the potential customers. Nike is selected to develop proper insight on the global HRM policies. Employees are from different backgrounds and cultural segment. International policies of Nike are reporting that they are providing separate consideration for the multinational workforce. The firm is having almost 60000 global employees so the HR managers have to develop effective strategies to manage their international workforce. Table of Contents Table of Contents 3 1. Introduction 4 1.1. Purpose of the study 4 1.2. Aim of the study 5 1.3. Objectives of the study 5 2. Literature Review 5 2.1. International Human resource management concept 5 2.2. Debating on international HR practises: 6 2.2.1. Informed Knowledge regarding factors of international human resource management 7 2.2.2. Significance of International human resource management practices: 7 2.2.3. Limitations of the IHRM 8 2.3. Developing critical review on models and theories: 9 2.3.1. Hofstedes Cultural Dimensions 9 3. Analysis of research 11 4. Conclusion 12 Reference list 14 1. Introduction International human resource management is adopted by the multinational structures. It can be defined as a process of managing international human resources available in various countries (Watson, Maxwell and DAnnunzio-Green, 2002). Globalisation is forcing firms to operate in different markets or countries. Many firms are selecting the international market to get increased potentials of market share and increased sales. Thus, firms have to deal with multiple human resource planning or management process. IHRM polices will be aiding the firms in developing proper method of staffing employees (Vries, Gründemann and Vuuren, 2001). In addition, allocating jobs as per the skills and knowledge of the employees will be possible with the help of the IHRM polices. Managers are able to employ innovative ideas, arrangement and standpoint to meet the production and quality criteria like TQM or Six Sigma (Brewster, Mayrhofer and Morley, 2004). In the current study, detailed evaluation of the IHRM polices are made in respect of the international firms. Nike is selected to develop more concentrated study on the international human resource management on the current topic. Nike is one of the leading multinational sportswear and apparel manufacturing firms, operating in the global market. The firm is having global employees base of more than 50000 employees. Cross-cultural conflicts, linguistic issues, religious context, political turmoil and employees management complexity is faced by the American based company. In addition, the firm is facing intense challenge from their competitors like Adidas, Puma, Umbro, Reebok and many other sports merchandising firms. Thus, they are required to develop efficient employee base with relevant skills and knowledge (Nikebiz.com, 2015c). 1.1. Purpose of the study Purpose of the study will be outlining the approaches adapted to managing international workforces of the firms. Mainly, the current study will be developed with the purpose of stating various issues and advantages of managing the international human resources of any firm. Firms are facing intense challenge in acquiring employees or human resources and allocating job among the employees (Bardhan and Weaver, 2011). The current study will be helping in gaining an insight on the international human resource management policies of Nike. Moreover, this study will be outlining the process of resourcing employees, allocating jobs and successfully utilising the human resources in different countries. 1.2. Aim of the study The study is aiming to outline international human resource management process of the multinational operational channel of Nike. Current study will be generating detailed idea on the HR process of Nike in their international set up. Major complexities and issues faced by the HR managers in the international context will be emphasised by reviewing various literatures or the theories and models of the human resources. 1.3. Objectives of the study To evaluate the international human resource management policies in managing employees in respect of the issues like the cross cultural conflicts and religious conflicts. To critically investigate on the IHRM polices adopted by Nike and identify its gaps To recommend Nike with some strategies to develop their IHRM polices to manage their international workforce 2. Literature Review 2.1. International Human resource management concept Briscoe, Schuler and Claus (2009) opined that IHRM is one of the most emerging approaches of managing human resources. These policies are using expert supervision and generalist practice. This concept is interlinked with different sets of international aspects like the financial aspects, international trading policies, strategic development, communicational strategies, political conditions and environmental sustainability issues (Child, 2003). In the contemporary era, globalisation is booming among the leading business operations. It has been observed that number of multinational enterprises (MNEs) and foreign direct investment is increasing rapidly. Thus, the concept of recruitment, human resources administration and personnel management is getting complex because of the cross cultural issues and multi-background issues (Chatterjee, 2014). However, DarteyBaah (2013) contradicted that major differences exists between national or regional HR practices and globalised HRM practises. Major reason of this difference is distinct traits of cultural, social and ethical practises among the multinational employees. Thus, multinational investment firms are developing association between HR strategies in the international perspective and business strategies (Harris, Brewster and Sparrow, 2003). IHRM practises are modifying the process of scheduling, course of action and events as per the international condition. International employees’ relation is a crucial strategy of the IHRM policies. Global manager are developing the strategies by evaluating the environment of the host countries (Currie and Kerrin, 2003). IHRM policies are highly used by the manufacturing and retail firms who are having multi country operations. They are using such practises in terms of managing their employees with a unique goal or objective set. Moreover, leaders will be able to guide their employees more enthusiastically and they will be able to avoid the linguistic challenges (Harris, Tuckman and Snook, 2012). 2.2. Debating on international HR practises: IHRM policies are the most emerging HR concept in the businesses. Globalised firms are facing complex issues in controlling and negotiating their resources. HR managers are facing the major challenge in terms of developing strategies for employee procurement, allocation of job roles and efficient consumption of human resources available in the international market (Huettinger, 2008). Moreover, international human resource management is having high link with the conventional HR practises. HR managers are hiring skilled and knowledgeable employees, providing training and development policy for the new recruits. Remuneration or compensation management is the most important part of IHRM polices (Kang and Mastin, 2008). International managers are concentrating on separate performance management policies which will help them in developing sound industrial relations between the employees and management. IHRM related knowledge will aid the management in terms of creating a new set of practises for the organisational HR management (Harzing and Ruysseveldt, 2004). 2.2.1. Informed Knowledge regarding factors of international human resource management Global economy is promoting the multi country presence of the organisations. Thus, HR management have to take the responsibility of operational practises and need to manage various traits of the employees. Any multinational organisation can have employees of three different national or country groups (MartínezLucio and Stuart, 2011). Mainly, international managers are following the activities as per the country culture and economic traits. Host countries are the areas or country regions from where the organisations are sharing their operations. On the other hand, global firms are having one home country which will be the base of their head quarter. Such home country will be influencing the cultural traits of management and strategic development. Employees of the home countries are treated with more values. Third countries are also playing crucial role in developing the IHRM frameworks. Such third party countries are sourcing the global firms with the employees or candidates and financial sources (Khan, 2014). 2.2.2. Significance of International human resource management practices: Global firms are using the IHRM techniques in terms of managing their employees and organisational culture (Mazanec et al., 2015). Major significance of using IHRM by any firms can be outlined as follows; Challenge: The concept of internalisation or globalisation is increasing rapidly. Organisations are going for the global markets to increase the profitability and market share. Thus, rate of the competition gradually increased among the multinational investment firms. Foreign direct investments are increasing the mobility in the human resources as global competition requires high skill set and knowledge base to produce high quality commodities and services (McDonnell, 2012). Modern business environment is outlining that the multinational firms are using the strategies like the strategic alliances and international mergers and acquisitions. Therefore, firms are facing intense issues like cross cultural conflicts, linguistic issues, technological insufficiency and reluctant to change statistics. Such challenges are affecting the strategic success of the Global business. IHRM policies are creating solutions for such issues (Mendenhall and Oddou, 2000). Commitment: Human resources management policy will be developed with unique principles for the international business segment. Such process helps the global HR management to control the issues like cross cultural conflicts with higher commitment among the employees. Intense industrial relation will help the management in developing the business networks. Moreover, parallel communication among the organisational structure will aid the management to control the employees (Migliore, 2011). Competence: Globalisation is increasing competition in multinational economy. Thus, globalisation is helping the firms to implement innovative strategies. IHRM helps HR managers in allocating jobs as per skills and knowledge base. Correspondence: Multinational firms are providing higher concentration on the learning process, training and development process to develop the employees. Knowledge acquisitions are proving to be the best techniques that increase the competitive advantage among the employees to achieve organisational objectives. 2.2.3. Limitations of the IHRM International human resource management have certain limitations, which negates the rate of success of the global firms. The limitations can be outlined as follows: Mainly, IHRM policy develops a conceptual framework for the different area cultures, customs, and traditional beliefs of the stakeholders. Organisational growth gets a dependency on conceptual or theoretical knowledge without any practical approach. However, globalised human resources management practices differ as per changing values and beliefs. Human resource management process and arrangements are developed based on the society of parent national. Contrarily, sharing the HRM policies into international countries like the host nations and third countries is complex (Migliore, 2011). In many cases, historical and political condition of the countries is changing rapidly. IHRM policies some time fails to merge the changes. Individual administration and industrial associations are conflicting with the collective policies, standard values, principles and multinational investments are deviating from the local culture (Pender and Sharpley, 2005). 2.3. Developing critical review on models and theories: 2.3.1. Hofstedes Cultural Dimensions In the international segment, culture plays a crucial role in the employee’s behaviour and developing human resources management strategies. Greet Hofstede developed five dimensional analysis on the cultural traits. These cultural traits will be helping the firms like Nike, Adidas, Puma, Tesco, Microsoft and many other firms to manage their international employee base (Khan, 2014). Power and Distance or PD index: Mainly, there are certain conflict exists between the employees. High PD counts are recorded by the small or medium sized firms like Umbro, LIDL and many other medium international firms which refers that the organisational groups are accepting the unequal power distribution among the employees. In such cultures, employees are aware of their power. On the contrary, ethical organisations like Nike, Adidas, Tesco and Microsoft are having lower power distance score which outlines shared and disseminated power among the employees. Equal power distance will be promoting the great working culture among the organisations (Poole, 2002). Individualism or IDV culture: This attribute of the cultural traits are signifying the strength of association among the people. High IDV scoring culture is observed in the backward or developing countries like Africa and Middle East. It denotes that the organisations of such areas are having lower connections among the employees. In the international segment, firms like Honda, Repsol and Ricoh have reported high IDV score, which outlines that lesser interpersonal relationship exists between the employees and management. In addition, employees are able to share their responsibility among the family and acquaintances only. On the other hand, low IDV score reported by the firms like Apple Inc, Microsoft, Nike and Adidas are having strong group consistency. Employees and other stakeholders are showing huge loyalty and respect among the organisational members Nike and Apple Inc are able to increase the efficiency of their employees with highly shared values and knowledge (Schuler and Jackson, 2006). Masculinity or MAS index: In the conventional organisational structure, there was certain degree of inequality existed among the role of male and female. According to Greet Hofstede, high MAS index reports that the automobile manufacturing firms like Honda, Ford, and Mitsubishi are accepting physical power of the male employees is higher than the physical power of females. Thus, they are creating distinct professions for the female workers. On the other hand, lesser MAS count reported in the retail industry like the Tesco, ASDA, Sainsbury, Morrison and Wal-Mart, they are ignoring the gender discrimination among the employees. In the responsible multinational firms, male and female candidates are offered with equal job roles (Verbeek, 2011). Uncertainty Avoidance Index or UAI score: In the globalised business of Apple, Microsoft, Tesco, Ford, Nike, Adidas and many other firms, employees have to go through various unknown situations which will create an anxiety among them. Ryan air, Air Asia and Daikin have reported with high UAI. These factors are representing that in the culture, employees are trying to avoid uncertain situations as much as possible. They are seeking to develop clear objectives and goals. On the contrary, small UAI index of major firms like Tesco and Nike indicates that the people or the employees will be readily accepting the change of the organisational structure. Such organisational culture will help the firms in meeting international success and achieve sound growth in the market (Vinken, Soeters and Ester, 2004). Long Term Orientation or LTO index: Such index is outlining the long-term goal orientation by the organisations. In the international aspects, behaviour and values of the employees must be developed as per the long-term success criteria. Such index helps Apple, Microsoft, Tesco, Ford, Nike and Adidas in meeting different challenges and issues faced in the international human resource management. Which forced them to develop long term objective for gaining growth and sustainability (Warner, 2003). However, global firms are facing intense cultural challenge resulting huge conflict among the employees and other stakeholders. Hofstedes Cultural Dimensions model will be informing the HR mangers with various cultural traits of international employees. Management need to identify the cultural traits of the employees, workplace and external society (Vries, Gründemann and Vuuren, 2001). 3. Analysis of research Nike is operating globally having the operational set up in multiple continents. The organisations are one of the leading firms in the world. Nike is required to maintain proper sustainability strategies. It has been observed that IHRM policy of the firm is expecting to develop the working conditions. Moreover, HR managers have implemented some strategy to develop the global supply chain and overall fashion and sports apparel industry. Supply chain of the firm is based on the product lines of Nike. The brand value of the footwear, apparel and equipment for different type of sports lines. Recently, Nike is adopting the outsourcing strategies. In the international market, the organisation has more than 600 outsourced factories during the year 2012-2013. In these factories, they are having almost 800,000 workers who are from 49 countries around the globe (Nikebiz.com, 2015b). The research has been developed from secondary data analysis. Such data will be collected from financial and operations reports available in the corporate website of the company and recent journals on the footwear and sportswear industry. Nike global HR management team has set up certain goals for their human resources. IHRM policy of the firm is aiming to promote equitable and empowered employees. The organisation is using innovative cultural and technological approach to develop their global supply chain of the products like footwear, sportswear and apparels (Watson, Maxwell and DAnnunzio-Green, 2002). International HR team have been appointing the quality criteria like TQM and Six Sigma in terms of contrasting historical success and limitation faced in the operational time (Nikebiz.com, 2015a). Recently, the firm have been observed with very low power and distance, individualism and masculinity score. Organisational culture of Nike represents that employees are sharing power and control equally among the employees. The global sportswear and footwear leaders also reported with uncertainty avoidance index (Nike, IKEA and IBMs outsourcing and business strategies, 2005). The employees of Nike are least feared of the risk of uncertainty like introducing new team, new strategy and new area to sale their products. On the other hand, Nike is promoting long term oriented culture which helps them in developing sustainable strategies. Long term goals are set to increase the compatibility in the footwear and sportswear industry (Nikebiz.com, 2015e). Building and empowering the ‘Winning Team’ is the latest strategy of the firm. This strategy signifies development of leadership traits among the people. International HR policy is increasing the dedication to develop skills and knowledge of the people. Mainly, development of leadership skills will increase the knowledge and experience among the employees (Child, Faulkner and Pitkethly, 2003). Sustainable aptitude exercise and infrastructure is used by Nike HR teams to increase the leadership (Nike, IKEA and IBMs outsourcing and business strategies, 2005). However, Nike is operating through international channel which refers that the human resources are collected from multiple numbers of sources. Thus, the firm is facing intense challenge of cross cultural conflicts among the European, Middle Eastern and Asian countries peoples. On the other hand, political conflicts like in the African, Latin American and Asian countries harmed the recruitment and staffing policy of the firm. To some extent, linguistic issues like the English, Spanish and Arabic also creates issues in the international HR practices. (Nikebiz.com, 2015d) Managing human resources in the international segment is crucial strategic attributes for the firms facing the globalised challenges. This study aimed research on international employees’ management policies of Nike. The firm has reported with huge employee group which is leading them in meeting complexity of operations. Thus, the researcher could have gained the insight on the management policies of the international workforce. 4. Conclusion From the study, it has been observed that there are remarkable difference between the conventional HR policies and international HRM practises. It has been observed that the firm is concentrating on developing leadership potentials among their employees. Moreover, international human resource management policy of Nike uses talent review process as one of the major strategic priority of the business. From the literature reviews and findings part, it can be said that the international leaders of Nike are responsible for improving the performance, budding skills, and assortment among the team members of the firms. However, the study also outlined that the firm is facing huge challenge from the cross cultural conflicts, racial, linguistic, religious and political conflicts. Thus, international human resource management polices of Nike uses prior training methods, disseminating the career opportunity and potential remedies of the conflicts. Experienced employees are sharing their views and beliefs among the juniors and newly recruit to increase their efficiency. HR managers are using the statement of improvements to appraise and motivate the employees. In addition, international HR management are disseminating the issues faced in the value chain of the company and industry among the employees. This process will increase the skill of the employees to identify and deal with the potential challenge like technological up gradation, political turmoil and environmental issues. Reference list Bardhan, N. and Weaver, C., 2011. Public relations in global cultural contexts. New York: Routledge. Brewster, C., Mayrhofer, W. and Morley, M., 2004. Human resource management in Europe. Oxford: Elsevier Butterworth-Heinemann. Briscoe, D., Schuler, R. and Claus, L., 2009. International human resource management. London: Routledge. Chatterjee, D., 2014. 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