SCHOOL OF BUSINESS ECONOMICS HOSPITALITY AND TOURISM MANAGEMENT
DEPARTMENT OF HOSPITALITY AND TOURISM
UNIT CODE: SHT 305
UNIT TITLE: HUMAN RESOURCE MANAGEMENT
1.James Mulinge. T12-0422-2022
2.Dorothy Nyumbile T12-0444-2022
3.Kingori Mercy T12-0436-2022
4.Joy Morara T12-7709-2021
5.Fatma jumwa; T12-8439-2021
6.Denis Mariita: T12-0464-2022
7.Cynthia Nthenya:T12-0407-2022
8.Hellen Achieng T12-0459-2022
9.Dominic Getanda -T12-0454-2022
GLOBALIZATION AND HUMAN RESOURCES MANAGEMENT.
Globalization in Human Resource Management (HRM) refers to the integration and interaction of
businesses and organizations across international borders, leading to a more interconnected workforce
Globalization transforms HR management by requiring businesses to manage a diverse, global
workforce, handle cultural differences, and ensure legal compliance across regions.
While global expansion offers access to diverse talent and market growth, it also presents challenges like
cultural misalignment, legal complexities, and communication barriers.
IMPACTS OF GLOBALIZATION
The effect of globalization in human resource management has both positive and negative impact.
Positive impacts.
1.Diverse Talent Pool
Global expansion allows businesses to access a diverse talent pool with varied skill sets and cultural
backgrounds. This diversity encourages innovation and creativity in the workforce by bringing various
perspectives and skill sets.
2.Market Expansion
Globalization allows companies to expand their market reach beyond domestic boundaries and enter
new markets. Through business expansion in different locations, organizations get opportunities to
understand diverse consumer behaviors better. New market expansion also provides opportunities
for revenue growth.
3.Cost Optimization
Hiring from certain countries could provide financial benefits to organizations, such as reduced labor
expenses or tax incentives. Organizations can maximize savings while complying with regional labor
rules by implementing strategic HRM strategies. Global operations can also help businesses take
advantage of scaling, boosting productivity and cutting expenses.
4.Access to global talent
Globalization enables organizations to access a vast talent pool from different countries and regions.
This diversity brings various skills, experiences, and perspectives that promote innovation and creativity.
Hiring talent from diverse backgrounds enhances problem-solving capabilities and drives organizational
growth.
3.Enhanced Innovation
A culturally diverse workforce encourages the exchange of ideas and perspectives. It leads to enhanced
innovation. Global employees' experiences and cultural backgrounds bring together diverse ideas and
techniques. Organizations need to encourage the creativity and potential of employees by creating an
inclusive work environment that values a range of opinions.
5.Cultural Exchange and Collaboration
Globalization in HR management facilitates cross-cultural workplace collaboration. Employees from
different cultural backgrounds learn from each other's experiences, approaches, and best practices. This
exchange of knowledge and ideas promotes cultural understanding and creates a collaborative work
environment. It also enables employees to develop cultural intelligence and adaptability.
6.Flexibility
Global expansion in HRM allows businesses to adopt flexible workforce models, such as remote work
and virtual teams. This flexibility enables organizations to tap into talent regardless of geographical
boundaries. Remote work arrangements also provide flexibility for employees, promoting work-life
balance and attracting top talent. Flexibility in HRM practices allows organizations to quickly respond to
customer requests and adjust to changing market conditions.
7.Better Resource Allocation
Globalization allows organizations to utilize resources according to customer demands and regional
needs strategically. This optimal resource allocation enhances operational efficiency and maximizes
expertise within each region. Organizations can ensure customer satisfaction and competitive advantage
by aligning resources with regional requirements by providing specialized products and services.
Negative impact
1.Cultural differences
This can lead to misalignment and misunderstandings in a globalized workforce. Communication styles,
work ethics, and business practices may differ worldwide. This cultural misalignment can stop
employees from effective collaboration and teamwork.
2.Legal Complexity
When expanding operations globally, businesses need to navigate diverse legal and regulatory
frameworks. Each country has its own employment laws, tax regulations, and labor standards. HR
professionals must adhere to multiple legal frameworks to ensure compliance and mitigate legal risks.
This complex process needs expertise in international labor laws and navigating cross-border legal
complexities.
3.Communication Barriers
Operating across different time zones and languages can result in communication challenges. Suppose a
Germany-based business hires people in France and China. German employers need to use a common
language for their employees from both countries. The company can go for English to develop a training
program. But English is a second language for both employers and employees. Different accents and
styles of communication can create miscommunication here.
4.Leadership Challenges
Globalization in HR management demands effective leadership to deal with the complexities of
managing a diverse workforce. Leaders must possess cross-cultural competencies, adaptability, and a
global mindset. Managing teams across different countries requires understanding cultural nuances,
communication styles, and business practices. HR professionals must provide leadership development
programs that equip leaders with the skills necessary to succeed in a globalized business environment.
5.Logistical Challenges
Managing a worldwide workforce involves a number of logistical challenges, including planning
employee engagement programs, onboarding procedures, and training schedules. HRM must design
systems that accommodate the logistical challenges of a geographically dispersed workforce.
FACTORS AFFECTING THE CHOICE BETWEEN CONVERGENCE AND DIVERGENCE
Convergence
Convergence refers to the idea that HR practices and policies become more uniform and standardized
across different countries and cultures. This approach often arises from the influence of globalization,
where companies adopt similar HR strategies to ensure consistency, efficiency, and alignment with
global corporate goals. It emphasizes best practices that can be applied universally, such as talent
management, performance appraisal, and employee training.
Divergence
Divergence, on the other hand, emphasizes the adaptation of HR practices to local contexts, cultures,
and labor markets. This approach recognizes that what works in one country may not be effective in
another due to differences in legal frameworks, cultural values, and economic conditions. Divergent HR
practices allow organizations to tailor their strategies to better fit local employee needs and
expectations, enhancing engagement and effectiveness.
In the context of globalization and Human Resource Management (HRM), the choice between
convergence and divergence is influenced by several key factors:
1. Cultural Differences
Divergence: Countries have unique cultures, values, norms, and work ethics that influence HRM
practices. For example, hierarchical structures are more accepted in Asian cultures compared to
Western countries.
Convergence: As globalization progresses, there is pressure for companies to adopt similar, global best
practices in HRM, often derived from Western management styles.
2. Economic Systems
Divergence: Different economic systems (capitalist, socialist, mixed economies) shape the way
organizations handle labor, compensation, and employment relations.
Convergence: Global economic integration can push HRM practices to align, especially in multinational
corporations where subsidiaries may adopt the parent company’s HRM systems.
3. Legal and Regulatory Framework
Divergence: Employment laws and regulations vary significantly across countries. Labor laws, taxation,
social security, and employee rights can affect how HR policies are designed.
Convergence: Global trade agreements, international labor standards, and supranational organizations
(e.g., the EU) can harmonize some labor practices.
4. Technological Advancements
Convergence: Global technological improvements (e.g., digital HR systems, AI in HR) encourage
uniformity in HR practices across borders, allowing for streamlined talent management and recruitment.
Divergence: The pace and extent of technology adoption vary globally, influencing HR practices
differently in developed versus developing economies.
5. Institutional Structures
Divergence: Institutions like trade unions, labor courts, and educational systems differ, which can create
variance in how labor relations and training programs are managed.
Convergence: Multinational corporations may standardize HRM practices across subsidiaries, reducing
institutional differences by enforcing global policies.
6. Global Competition
Convergence: Competitive pressures push firms to adopt globally recognized HRM strategies (e.g., talent
management, performance metrics) to enhance efficiency and remain competitive.
Divergence: Firms may adapt HR practices to local contexts to better compete in regional markets,
maintaining flexibility in labor management, training, and compensation strategies.
7. Organizational Culture
Convergence: Global firms often seek to establish a unified corporate culture across their subsidiaries,
requiring similar HRM practices globally.
Divergence: Organizations may allow local branches to maintain distinct cultures, leading to the
adaptation of HRM practices that fit local customs and workforce expectations.
8. Global Standards and Certifications
Convergence: International standards like ISO certifications and the adoption of CSR (Corporate Social
Responsibility) principles encourage the harmonization of HRM practices.
Divergence: Despite global standards, local industries and regulatory requirements may push for
divergent approaches, especially in regions with different development levels.
3.MANAGING EXPATRIATES
Expatriate is an employee who has been sent by his or her organization to work in a different country
for an extended period. Expatriates may come from any level of the organization and may be sent
abroad for various reasons such as to transfer skills, manage subsidiaries, or to gain international
experience.
Expatriate Management in HRM
Managing expatriates is a complex task that involves a wide array of functions starting from selection
and recruitment to training, compensation, and repatriation. Here's a breakdown:
Selection and Recruitment: The first step in expatriate management is choosing the right candidate for
the overseas assignment. HR professionals often look for candidates with not just the right skill set but
also cultural adaptability, emotional intelligence, and the ability to handle stress.
Pre-departure Training: Once the selection is made, the individual may undergo pre-departure training,
which includes cultural awareness, language training, and other skill-building activities.
Compensation and Benefits: The expatriate's compensation package is often a complex mix of base
salary, allowances (housing, travel, etc.), and benefits (insurance, retirement, etc.).
On-site Support: Once on assignment, expatriates often require ongoing support, such as career
development advice, mentorship, and feedback mechanisms.
Performance Management: The expatriate’s performance should be monitored carefully to ensure
that the goals of the assignment are being met.
Repatriation: This refers to bringing the expatriate back to their home country after the assignment is
complete. Poorly managed repatriation can lead to dissatisfaction
Types of Expatriate Training in HRM
Training is a vital part of expatriate management. Below are some types of expatriate training commonly
used in the HR context:
Cultural Awareness Training: This involves educating the expatriate about the cultural norms, beliefs,
and practices of the host country. This can be especially important in a diverse country like India.
Language Training: Though English is widely spoken in the business environment, training in local
languages can facilitate smoother communication in day-to-day life.
Preparation for Practical Matters: This involves training in the logistics of relocating, from finding a
place to live to understanding how local services like healthcare and banking work.
Legal and Compliance Training: Expatriates are educated on the legal obligations and rights they have in
the host country. This is important to ensure compliance with both home and host country laws.
Role-specific Training: This training focuses on the specific skills needed to perform their job in the new
environment, which can differ significantly from the home country.
Psychological and Emotional Preparation: Preparing expatriates for the psychological aspects of living in
a new country can help in reducing culture shock and stress.
4. ISSUE IN INTERNATIONAL HUMAN RESOURCES MANAGEMENT
Cultural differences: Cultural differences can impact many aspects of HRM, including recruitment and
selection, training and development, performance management, and compensation. For example, in
some cultures, it is important to build relationships and trust before making business decisions. In
contrast, in other cultures, decisions may be made quickly and without much consultation. IHRM
professionals need to be aware of these cultural differences and develop strategies to manage them
effectively. This may involve training employees on cultural sensitivity, adapting HRM practices to fit the
local culture, or working with local HRM experts to navigate cultural nuances.
Legal and regulatory differences: Legal and regulatory differences can impact many aspects of HRM,
including employment contracts, employee benefits, and data privacy. For example, in some countries,
employers are required to provide certain benefits to employees, such as health insurance or paid leave.
In contrast, in other countries, these benefits may be optional. IHRM professionals need to be
knowledgeable about the legal and regulatory environment in different countries and develop strategies
to comply with them. This may involve working with local legal experts or developing policies and
procedures that are compliant with local laws and regulations.
Communication barriers: Communication barriers can impact many aspects of HRM, including
employee engagement, training and development, and performance management. For example,
language differences can make it difficult for employees to understand HRM policies and procedures, or
for HRM professionals to communicate effectively with employees. Time zones can also be a challenge,
particularly for employees who work in different parts of the world. IHRM professionals need to develop
strategies to overcome these barriers, such as using clear and simple language, providing translation
services, or using technology to facilitate communication.
Performance management: Performance management is a critical issue in IHRM, as it impacts employee
motivation, engagement, and retention. Different countries have different performance management
systems and practices, which can impact the effectiveness of HRM practices. For example, in some
countries, performance appraisals are conducted annually, while in other countries, they are conducted
more frequently. IHRM professionals need to develop performance management systems that are
effective across different countries and cultures. This may involve developing standardized performance
criteria, providing training on performance management, or working with local HRM experts to tailor
performance management practices to the local context.
Political Factor
Political stability and government policies significantly impact HRM practices. In stable environments,
organizations can invest in workforce development and long-term planning. Conversely, in politically
unstable regions, companies may face challenges such as changes in labor laws, potential
nationalization, or shifts in trade policies, which can complicate hiring, retention, and compliance
efforts.
2. Economic Factor
Economic conditions, including inflation, unemployment rates, and overall economic growth, influence
HRM strategies. In a booming economy, companies may need to offer competitive salaries and benefits
to attract talent. Conversely, during economic downturns, organizations might focus on cost-cutting,
which can affect employee morale and retention.
3. Cultural Factor
Cultural differences affect HRM practices related to communication, leadership styles, and employee
motivation. Understanding local customs and values is essential for effective recruitment, training, and
performance management. Multinational companies often tailor their HR strategies to fit the cultural
contexts of their various locations to foster engagement and reduce turnover.
4. Legal and Regulations
Compliance with labor laws and regulations is critical in HRM. Different countries have varying
requirements regarding employment contracts, worker rights, benefits, and termination processes.
Global HRM must navigate these legal landscapes to avoid penalties and ensure fair treatment of
employees, necessitating a deep understanding of local labor laws.
5. Technological Advancement
Technological advancements are reshaping HRM practices through automation, data analytics, and
digital communication. Tools like HR software streamline recruitment, performance management, and
employee engagement. However, rapid technological changes also require HR professionals to focus on
upskilling and reskilling the workforce to adapt to new tools and processes effectively.
INTERNATIONAL ENVIRONMENT AND CULTURAL DIFFERENCES
Culture, in the context of global HR, encompasses a broad spectrum of shared values, beliefs, customs,
and behaviors that define a particular group of people
. It goes beyond nationality and language, encapsulating the subtle nuances that shape how individuals
perceive and interact with the world. Recognizing the multi-faceted nature of culture is fundamental for
international human resource professionals aiming to create a cohesive and collaborative global
workforce.
The influence of cultural differences on workplace dynamics cannot be overstated, especially in the
context of international human resource management therefore ;Varied communication styles,
attitudes toward authority, approaches to problem-solving, and perceptions of time can significantly
impact the efficiency and harmony of a global team.
Understanding this is pivotal for HR managers to foster a positive work environment, where individuals
from different cultural backgrounds feel valued and can contribute their unique perspectives to the
organization’s success.
Cultural Differences
1. Cultural Norms and Values: Cultural attitudes towards work, authority, and collaboration can vary
widely. For instance, collectivist cultures may emphasize teamwork and harmony, while individualistic
cultures may prioritize personal achievement. HRM must adapt leadership styles and team structures
accordingly.
2. Communication Styles: Different cultures have distinct communication preferences—some may be
direct, while others are more indirect. HR practices must accommodate these differences to enhance
team dynamics and reduce misunderstandings.
3. Work-Life Balance: Cultural attitudes towards work-life balance vary; some cultures value long hours
and dedication, while others prioritize personal time. HRM needs to design policies that respect these
cultural values to attract and retain talent.
4. Diversity and Inclusion: Globalization necessitates diverse workforces. HRM must implement
strategies that promote inclusivity and respect for cultural differences, fostering an environment where
all employees feel valued.
International Environmental Factors
1. Regulatory Frameworks: Different countries have varying environmental laws and regulations.
Multinational companies must navigate these differences to ensure compliance, which can affect HR
policies related to sustainability and corporate social responsibility.
2. Sustainability Practices: Companies may need to adapt HR strategies to align with local expectations
regarding environmental practices. For example, in regions prioritizing sustainability, HR might focus on
hiring talent with expertise in green technologies.
3. Resource Availability: Access to natural resources varies globally, influencing labor practices and
operational strategies. HRM must consider these factors in workforce planning and skill development
nstances where cultural disparities can significantly impact HR management.
HOW CULTURAL DISPARITIES CAN IMPACT HR MANAGEMENT
.Diverse Clientele Expectations:
Kenya attracts a wide range of tourists from different cultural backgrounds, such as Western tourists
who may prioritize adventure and unique experiences, and East Asian tourists who may seek more
guided, structured experiences. HRM must train staff to understand and meet these varied
expectations, tailoring service styles accordingly.
2. Language and Communication:
Kenya is home to numerous ethnic groups, each with its own languages and dialects. For instance, a
hotel in Nairobi might host staff who speak Swahili, Kikuyu, and Luo. HRM must develop communication
strategies and training programs that help staff effectively communicate with both local and
international guests, ensuring a positive experience.
3. Workplace Norms and Etiquette:
Cultural norms around hierarchy and authority can vary significantly. In some Kenyan communities, a
strong respect for hierarchy may influence employee interactions with management. HRM needs to
foster an environment that encourages open communication while respecting these cultural dynamics.
4. Conflict Resolution:
Different approaches to conflict can arise in a multicultural setting. For example, some employees may
prefer indirect communication to avoid confrontation, while others might be more direct. HRM should
establish conflict resolution training that incorporates culturally appropriate methods, helping staff
navigate disputes effectively.
5. Training and Development:
The approach to training may need to vary based on cultural backgrounds. For instance, hands-on,
experiential training might resonate well with some groups, while others may prefer theoretical
learning. HRM should tailor training programs to accommodate these preferences to ensure effective
skill development.
6. Cultural Celebrations and Holidays:
Kenya’s diverse ethnic landscape includes various cultural holidays and festivals. For example, Maasai
culture has unique rituals and celebrations. HRM can enhance employee engagement by recognizing
and celebrating these events, fostering a sense of belonging among staff from different backgrounds.
7. Work-Life Balance:
Attitudes toward work-life balance can differ. For instance, in some cultures, family is prioritized, while
in others, long hours are seen as dedication. HRM should create policies that respect these differences,
offering flexible working hours or family leave to accommodate diverse employee needs.
8. Guest Relations and Sensitivity:
Understanding cultural sensitivities is crucial. For example, when dealing with Muslim tourists, hotels
must be mindful of dietary restrictions, providing halal options and respecting prayer times. HRM should
train staff on these cultural nuances to ensure all guests feel welcomed and respected.
Legal and Ethical Considerations
Navigating cultural differences in the workplace necessitates an understanding of the legal and ethical
landscape, particularly in the realm of international human resource management. As organizations
expand their operations across borders, they encounter a myriad of international labor laws,
regulations, and ethical standards that vary significantly from one country to another.
HR professionals must stay abreast of these legal intricacies to ensure compliance and mitigate
potential risks. This includes understanding diverse employment contracts, addressing issues related to
employee rights, and navigating complex tax and benefits regulations specific to each jurisdiction.
Ethical considerations in global HR management extend beyond legal compliance to encompass the
broader principles of fairness, respect, and social responsibility. Ensuring equity in hiring, promotions,
and compensation practices is not only a legal imperative but also an ethical obligation. HR professionals
must be vigilant in addressing unconscious biases and stereotypes that may influence decision-making
processes. By fostering a culture of ethical conduct within the organization, HR departments contribute
to the establishment of a positive employer brand, which is increasingly important in attracting and
retaining top talent on a global scale.
There fore
Navigating cultural differences in global HR management cannot be overstated. It is not merely an
optional aspect of organizational strategy; it is a fundamental requirement for success in today’s
interconnected business landscape.
International human resource management is crucial for companies that prioritize cultural diversity in
HR practices, as they reap the rewards of enhanced innovation, employee satisfaction, and access to a
richer talent pool.
GLOBAL HR POLICIES
Global HR policies are guidelines,rules and procedures needed to govern the various aspects of the
entire employee lifecycle from hiring to benefits management to employee exits.
Below are the policies:
Employee relation.
Global HR develops employee policies and management practices that comply with local labour laws
and regulations.
Health and safety policy.
It promotes a safe and healthy work environment globally, complying with international and local laws
and ensure work place safety and well being.
Global mobility policy.
It facilitates international assignments and relations assistance and compensation adjustments for
employees working in different countries.
Recruitment policy.
This is a set of guidelines that manage the process of sourcing, selecting and hiring new employees. It
includes various functions like job analysis, identification of sourcing channels, defining a screening
criterion and scheduling interviews. It also helps in ensuring consistency, fairness and effectiveness in
the hiring process.
Training and development.
It encompasses organizational process designed to improve employees knowledge, skills and capabilities
eg developing programmes for foreign employees that consider cultural differences and language
barriers.
Performance management.
Implementing a standardized approach for evaluating employee performance across regions while
considering local norms and expectations
