Human Resource Management: A Case Study

1.0 Introduction

Human Resource Management plays an important role in every organisation in managing people and make the organisation to achieve its goal. Basically, Human Resource Management is a main field and there are many subfields under it. Strategic Human Resource Management (SHRM) is one of the subfield that can be found under Human Resource Management. SHRM defines the organization’s intentions and plans on how its business goals should be achieved through the employees of an organisation (Ogunyomi, 2013). Besides that, it also helps an organisation to identify the ways to improve the competitive advantage in order to achieve organisation goal. Moreover, SHRM is one of the important thing for an organisation to achieve its goal and

IHRM playing an important role due to globalization and internationalization. This is due to increase of Multinational companies over the world where IHRM becomes very important for the companies to utilize its human resource effectively. Besides that, IHRM also helps this Multinational companies to increase or maximize their market size. IHRM provides a lot of benefits to company which uses it by helping out in the communication skills, increase the company’s performance, and help employees to perform better. For an example, Coca Cola is one the multinational companies that uses IHRM in its operation. Currently, Coca Cola’s operation are in more than 200 countries with diverse work force of approximately 55,000 employees (Hartono, 2009). The success of company is due to adaption of IHRM into its business because it expand its business globally by transfer it employees from the parent country to host county (Hartono, 2009). The reason of transfers of Coca Cola employees is to achieve the company’s major goals. So, basically IHRM helps companies which operates globally and internationally to achieve company’s major goal by being success in the global

The salary can be in two type, one is according to the currency of home country and the second type is according to the currency of host country. Basically, the base salary will be paid after deducting some important fees such as employee tax, employee fund fee and other fees (Suutari and Tornikoski, 2000. If the expatriate goes for a long assignment in a host country, the company must pay them higher salary from what they getting currently in the home country. Besides that, they should pay salary according to the duration of the assignment and covers their additional expenses in the host country. For an example, an Indian expatriate works in host country which is U.S and the basic salary he will be paid in the currency of home country is not enough for his expenses in U.S. So, here the employer should pay the expatriate in currency of host country which would be sufficient for the expenses in host