Human Resources Management (HRM)

As the newly promoted vice president of human resources (HR), you are an influential member of the decision-making team that will select a country for global expansion.
For this assignment, follow the instructions below.
Develop a chart to compare and contrast the cultures of two specific countries to which your organization is looking to expand. The two countries must be on different continents, and you must use a minimum of 10 criteria from established cultural frameworks.
Write a 500-word synopsis of how culture impacts HR management in a global organization.
Identify two employment laws for each of the two countries you are considering for expansion.
Explain the significance of the laws and how they differ from U.S. laws or laws in your state.
Evaluate how each law could affect your hiring process and/or organization in general.
Identify which of the two countries you will recommend for the global expansion of your organization. Write a 500-word synopsis in which you summarize why you selected that country.
Explain how this choice will benefit your organization.
Finally, develop a hiring strategy for the new location, taking into consideration what you have learned about the country’s laws and culture.

ANSWER

ABC Ltd is considering global expansion and as a newly promoted vice president of human resources, I am an influential member of the decision-making team that will select a country for global expansion. ABC Ltd is based in California, United States of America.

When considering possible foreign countries that ABC Ltd would invest in, I considered two countries, Mexico and the United Kingdom. For this analysis, I will use the 10 criteria from established cultural frameworks to determine the most suitable country for the company to invest in, with regards to human resources. Table 1 below is a comparison of human resources parameters between Mexico and UK as given by the Organisation for Economic Co-operation and Development (OECD).

Table 1: Comparison of Human Resources Parameters between Mexico and the UK

Source: Own Illustration

From the data above, human resource practises in both the UK and in Mexico are not very different from each other and the company’s headquarters in the United States. However, in comparison, both the US and the UK promote work-life balance, a concept that is neglected in Mexico. Similarly, the gender inclusivity in Mexico is way below average especially in comparison to the UK and USA. However, all countries allow unionisation and right to strike which are fundamental for human rights. Employees can demand their due if allowed to the freedom of expression and it makes the entire system fair. With regards to ABC hiring processes, these rights mean that the company must meet the employment standards in terms of compensation and benefits to the new employees.

Of the two countries, the UK would be the best candidate for expansion in terms of the human capital index education, employee rights and freedoms, gender inclusivity and work-life balance. However, this conclusion is only based on HR factors and not business objectivity. This is because of the average wage that is almost double in the UK in comparison to Mexico making running a business in the UK a very expensive option in terms of overhead costs.

References

OECD.org. Human Resources Management: Country Profiles. Retrieved on 17^th July 2020 from https://www.oecd.org/gov/pem/hrpractices.htm

The World Bank. Human Capital Project. Retrieved on 17^th July 2020 from http://www.worldbank.org/en/publication/human-capital

FORBES. Best Countries for Business. Retrieved on 17^th July 2020 from https://www.forbes.com/best-countries-for-business/list/2/#tab:overall