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Altomi Associates: Developing an International Human Resource Management (IHRM) Strategy - Essay Example

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One of the few sure things in this unsure and unstable world is the increasing pressure of globalisation on businesses. There is a growing number of globally operating companies and globally operating workforce…
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Altomi Associates: Developing an International Human Resource Management (IHRM) Strategy
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"Altomi Associates: Developing an International Human Resource Management (IHRM) Strategy"

Download file to see previous pages This essay presents a proposal for Altomi’s IHRM strategy. The proposal focuses particularly on the implementation of an appropriate approach to IHRM strategy and transferring HR policies and practices from the UK to the various BRIC—Brazil, Russia, India, and China—countries. The proposal is divided into three sections, namely, short-term aims, medium-term aims, and long-term aims. Short-Term Aims Numerous of the most challenging and essential aspects of international human resource management (IHRM) planning arise from cultural differences between countries; usually, these differences conflict. Hence, one of the most difficult challenges that Altomi will face in its internationalisation efforts is managing cultural differences in the four countries where it plans to do business. Culture is one of the factors that balance the difference between international and domestic HRM. Numerous unsuccessful businesses in the global arena are because of lack of cultural knowledge and an assumption that ‘what works at home will work here’ (Regis, 2008, p. 169). As stated by Geert Hofstede, there are five cultural dimensions, namely power distance (e.g. hierarchy, status), uncertainty avoidance, individualism-collectivism, masculinity-femininity, long- or short-term orientation (Paul, 2008, pp. 155-157). Altomi has to thoroughly evaluate these cultural factors to determine which HR processes they can transfer to BRIC and which have to be modified so as to survive and succeed in the new market. A knowledge and appreciation of the host country’s cultural standards, an understanding of the differences alongside enthusiasm to learn and distribute knowledge or information to the Associates of Altomi in BRIC, can largely determine the success of the business. Numerous of the HR policies, operations, and practices of Altomi will be much affected by the culture of BRIC. For example, in China there is much importance given to unity, honour, and integrity; performance evaluations in China are somewhat different from the UK as evaluators will not be eager to make a negative evaluation of an employee because it could possibly damage the relationship between the employee and the manager (Steers, 2006, p. 135). In Brazil, Russia, India, and China according to Hofstede’s study, power distance is high. This means that these societies value inequalities and hierarchies (Steers, 2006, p. 135). Thus, Altomi should designate a superior for their Associates in these four countries, someone who will assume full responsibility and exercise absolute power. In terms of uncertainty avoidance, Brazil and Russia value conformity to legal systems and rules. These societies desire high bureaucracy and impose rigid obedience to rules to avoid uncertainty. Altomi should make sure that rules are properly established and followed in their Associates in Brazil and Russia. On the contrary, India and China are open to risks or uncertainties (Steers, 2006, pp. 135-136). These societies are not afraid of imperfections or deviations from established rules. They prefer adjusting to the situation, and dislike rigid obedience to rules. Altomi’s Associates in India and China may benefit from more open employment terms and conditions, and encouragement of suggestions and feedback from employees. Altomi has to learn to address global issues like doing and negotiating business abroad, and recruiting and training employees in other countries. As people acquire skills to cope successfully with various cultures, they normally should undergo a process called ‘development of cross-cultural competence’ ...Download file to see next pagesRead More
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