Test (20%)

International Human Resource Management (BAGB4014)

Name: NUR BALQIS NABILA BINTI MOHD BAKERI

Matric No: KB221120051

ANSWER ALL QUESTIONS (60 MARKS)

1. Discuss TWO (2) Human Resource management activities in which a

multinational firm must engage that would not be required in a domestic
environment. (4 Marks)

i) International taxation – Operating across multiple countries exposes the

company to different tax regulations and laws in each jurisdiction. HR
must manage tax compliance, transfer pricing, double taxation treaties,
and expatriate taxation to ensure the company meets its tax obligations.

ii) International relocation and orientation – Transferring employees across

borders for international assignments poses unique challenges. HR must
handle immigration and work permits, provide cultural and language
training, manage relocation logistics, and offer ongoing support to
expatriate employees and their families to facilitate a successful transition
and effective work performance in diverse settings.

2. Why is a greater degree of involvement in employees’ personal lives inevitable in

many International Human Resource Management activities? Explain with THREE
(3) points. (6 Marks)

i) HR department need to know more about the employeess’s personal lives

including their maritual status and number of children.
ii) HR must ensure that the international assignee understand the different
aspect of his relocation
iii) HR must make sure that employee is working in a conducive environment
as well as his family is well taken care off.

For example, if the employee is sent to another country, HR needs to

make sure that children are sent to quality schools and that the living
conditions of the expatriate and his family is high.

3. Define culture. How can culture be conceptualized? (5 Marks)

Culture is a system of learned and shared beliefs, language, norms, values, and
symbols that groups use to identify themselves and provide a framework within
which to live and work.

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Test (20%)
International Human Resource Management (BAGB4014)

4. Outline the FOUR (4) dimensions of culture by Hofstede and discuss it in the
context organizations, specifically in Human resource management department.
(10 Marks)
i) Power Distance: Power distance refers to the extent to which individuals in
society accept and expect power inequality. In the HRM department,
understanding power distance is important to establish good
communication, decision processes and leadership styles that align with
employee cultural expectations.
ii) Uncertainty Avoidance: Uncertainty avoidance relates to how to deal
with health problems, uncertainty and risk. In HRM, it is important to
consider cultural differences when designing something related to job
security and employee involvement in decision making.
iii) Individualism vs. Collectivism: This dimension represents the degree to
which individuals prioritize their own interests over the interests of the
group. In HRM departments, this dimension is important for designing
reward systems, performance appraisals and team building activities that
fit the cultural preferences of employees.
iv) Masculinity vs. Femininity: This dimension describes the distribution of roles
and values between men and women in society. In HRM, this dimension is
considered important to promote diversity and create meaningful work.

5. Discuss the factors that influence Multinational enterprises (MNEs) balancing the
standardization and localization of human resource management in the host
countries. (10 Marks)
i) Global Standardization based on the global needs of MNEs
- Core HR strategy and structure is standardized to ensure consistency
and alignment with overall organizational strategy.
- Key aspects of corporate culture are standardized to maintain a
cohesive organizational identity.
- Larger and more mature MNEs benefit from standardizing certain HR
practices to take advantage of economies of scale and experience.
ii) Localization based on host country context.
- Adapting HRM practices to the local cultural context ensures they are
relevant and accepted by the workforce.
- Compliance with local laws and regulations is important, and HR
policies may need to be adapted accordingly.
- Smaller or newer companies may require more flexibility in HRM
practices to accommodate unique local conditions and needs.
iii) Localization based on local affiliate features.
- The degree to which local affiliates are assigned can influence the
degree of HRM localization.
- The role of local companies, such as global innovators can impact
HRM strategies.

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International Human Resource Management (BAGB4014)

6. The first two stages a firm typically goes through as it grows internationally are
exporting and sales subsidiary. Explain the stages and discuss the role of
international human resource at each stage. (5 Marks)

The first two stages of a firm's international expansion are exporting and
establishing overseas sales companies. At the exporting stage, the company sells
its products or services to overseas markets from a domestic location without
going overseas. International Human Resource Management (IHRM) is involved
in talent identification, cross-cultural training, legal compliance and language
support to facilitate the exporting process.

In the sales subsidiary stage, the company established a separate law in the
overseas market. IHRM is responsible for placing company staff, managing
expatriates where applicable, handling compensation and benefits,
implementing performance management systems, and providing training and
development programs for local and expatriate employees.

7. Explain the cross-border mergers, acquisitions, and international joint ventures.

What are the major differences? (6 Marks)

i) A merger occurs when two separate companies combine forces to

create a new, joint organization.

ii) An acquisition refers to the takeover of one entity by another.

iii) In a joint venture, two companies conspire to achieve a specific goal,

such as building a third company, working on an outside project or
marketing synergistic services.

8. There are FOUR (4) development phases of a Merger and Acquisition and the
respective Human Resource implications: pre-merger and acquisition, due
diligence, integration planning ad implementation and assessment. Explain each
phase and the role of Human resources at each stage. (10 Marks)

i) Pre-M&A Phase
During this phase, HR plays an important role in identifying people-related
issues and planning for appropriate efforts. They evaluate the workforce
and evaluate the organizational and cultural fit between the merging
entities. HR forms the M&A team and educates them on the HR
implications of a merger or acquisition.
ii) Due Diligence Phase
In this phase, HR estimates the people-related costs involved in the M&A,
including transaction costs, ongoing costs and potential savings. They also
identify and assess cultural issues that may arise during integration.

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International Human Resource Management (BAGB4014)

iii) Integration Planning Phase

During integration planning, HR is responsible for developing employee
culture-sensitive communication strategies to ensure effective
communication throughout the process. They design key talent retention
programs to retain critical employees. HR plays a key role in planning and
leading the integration effort, including developing a new strategy for the
combined entity. They assist organizations in coping with change,
determine organizational action plans, and develop staffing plans.
iv) Implementation and Assessment Phase
In this phase, HR focuses on managing ongoing change, especially
cultural change, and facilitating effective employee communication. HR
matches HR policies, particularly compensation amounts, to ensure
consistency across the merged entities. They monitor the integration
process, including organization and people-related activities. HR also
initiates a learning process to gather insights for future M&A activities.

9. Outline the TWO (2) challenges Human Resource department faced in

international joint venture. (4 Marks)

i) HR department must manage the relationship between the IJV and the
parent company, managing differences in HR rules, policies and
practices. Effective communication and coordination is also important in
bridging cultural gaps and aligning HR strategies to meet the needs of all
parties.

ii) HR department must develop specific HRM practices for IJVs, taking into
account, culture and business objectives. This involves designing policies,
procedures and programs that contribute to the IJV's success, such as
performance management systems, compensation structures, talent
acquisition strategies and employee engagement initiatives.

*** END OF TEST QUESTIONS***