International Human Resources Management Nike Case Study Sample

Subject Name : Management

International Human Resources Management Nike Incorporation

Executive SummaryThe purpose of the report is to understand the international human resource issues that are faced by Nike. Moreover, the analysis of theories will also be done to understand the issues and human resource management problems in a better way. The report will throw light upon various concepts including key management challenges faced by the company, case study analysis and different concepts of human resource management. It is identified that the employees in the company faces several issues like unfair wages, poor behaviour of superiors and subordinates, poor leave policies, lack of medical facilities, motivation issues, improper working conditions and working environment and work culture issues. They can be resolved by making appropriate policies and adhering to the country-specific standards.

Table of Contents TOC o 1-3 h z u
Introduction PAGEREF _Toc9608198 h 4Key management challenges PAGEREF _Toc9608199 h 4Case analysis and recommendations PAGEREF _Toc9608200 h 5Difference between domestic and international HRM PAGEREF _Toc9608201 h 6Issues faced by managers at both levels due to cultural differences PAGEREF _Toc9608202 h 7Methods and challenges of training and development of employees PAGEREF _Toc9608203 h 7Training the employee PAGEREF _Toc9608204 h 7Coaching PAGEREF _Toc9608205 h 8Mentorship PAGEREF _Toc9608206 h 8Challenges faced by the HRM department PAGEREF _Toc9608207 h 8Conclusion PAGEREF _Toc9608208 h 8References PAGEREF _Toc9608209 h 10

IntroductionThe challenge of international human resources management is generally faced when an organization operates in more than one country. It can also be faced in those organizations which operate in one country but they hire people of different nationalities and varying cultures. International human resource challenges are growing due to the incapability of the human resource department to manage the differences and train the employees appropriately. The aim of the report is to study the human resource challenges that are faced by Nike. Therefore, a case study of Nike Company is considered in which various challenges that are faced by the organization will be discussed in the report. Nike is an American multinational company which is indulged in the design, development, manufacturing, sales, marketing and distribution of footwear, accessories, clothing and services. It is also known for its range of sports products that are available in different nations. The structure of the report will include discussion of the management challenges faced by the firm and analysis of the case and recommendations for the actions that are needed to be taken. Further, it will also include the study of the difference between domestic and international HRM, issues faced by managers at both levels due to cultural differences and methods and challenges of training and development of employees. While analyzing the case, the theories and concepts of human resource management will also be considered and studied.
Key management challengesMany human resource issues have been found in Nike, some of them have been resolved while the others are still prevalent up to some extent. Nike is a big brand and thus, the company must pay attention to solve the management challenges that are faced in managing the human resources of the company. One of the issues that have been observed in the company is related to the unfair payment of compensation of wages to the employees. It is the key responsibility of the management and human resource department to look after the national and international standards of compensation. Moreover, it is also necessary that the employees are treated equally in a brand like Nike (Fair Labour Association, 2013). The firm has been accused of the exploitation of the employees and improper overall treatment. It is the key management challenge to treat the employees in an appropriate manner and follow the standards of human resource management in accordance with different nations. Employees are the assets for any company and if they are not satisfied, the company may fail at any time. Those organizations which have happy and satisfied employees are more capable to satisfy their customers too. Moreover, the company will also be able to retain the best talent with them. Moreover, the employees also do not have good motivation level while working in the firm due to which there are chances that the best employees can leave the firm. Nike has many competitors in the industry and once the competitor gets the knowledge of the companys weakness, they can easily war on the firm on the basis of those weak points. Therefore, the company must ensure that its employees remain satisfied otherwise the competitor may attract them. The well-being of the staff is also necessary so that the well-being of the entire firm can be ensured (Noe, Hollenbeck, Gerhart, amp Wright, 2017). Quality of work like is necessary so that best people can be recruited and retained which will ultimately result in better output for the firm. Therefore, the management challenge for Nike is growing consistently which is also aiding to the problem of managing the profit for the firm. Along with maintaining the revenue and profit, the company must make sure that it provides a quality work environment and satisfaction to its employees.
Case analysis and recommendationsThe analysis of the case suggests that there are many issues that have been faced by the employees in Nike (Townsend, 2012). It has now become significant for the firm to resolve those issues so as to maintain a competitive position in the industry and in the international environment. The organization is known for making its equipment in such organizations which are having cheap labor availability, authoritarian government and lack of human rights appeal. Moreover, the company also does not have quality work-life programs for its employees due to which the employees remain less motivated. The work-related issues in the company can be identified and resolved by introducing various programs (Cascio, 2015). Moreover, training, skill development and recruitment should also be made better so as to match the needs of the individual. Nike has to work in accordance with international standards. Moreover, it also needs to frame its own policies so that the best interest of the employees can be assured in the firm. It will also be helpful to enhance the brand image and market position of the firm.
Further, it has also been found that the behavior of the company towards its employees had been inhuman in some of the countries due to which the employees did not want to go to work. Moreover, the employees have also registered that they are suffering from a great lack of motivation and the major causes are working conditions and poor attitude of superiors towards them. Taking into consideration, Maslows need hierarchy, it can be stated that employees get motivated by the fulfillment of various needs that include basic needs of food, shelter and then the ladder moves upwards which include various needs like safety and security, love and belongingness, social needs, self-esteem needs and self-actualization needs. The company should understand that it must fulfill the needs of its employees according to Maslows need hierarchy depending on the level and position of the employee in the company. In South East Asia, the general treatment of its employees was not good due to which the general public denounced the company (Armstrong amp Taylor, 2014). Therefore, the firm must understand that the way it treats its employees can prove to be a deciding factor for its market performance. Occupational health and safety is an important aspect that must be considered by the human resource department of any organization. Moreover, the firm should have knowledge of occupational health and safety law in different countries and it must also abide by those laws. In South China, the employees of the company registered that they find difficulties in applying for sick leaves and approval is also unsure. Further, access to medical facilities is also difficult and not properly available.
These problems can be related to the fact that the employees that are employed by the organization or the human resource personnel of the company are not much knowledgeable about the working environment that should exist in a company. Therefore, the human resource manager or human resource personnel of the company should be such that they can provide good working conditions, working environment and proper facilities to the employees (Jackson, Schuler, amp Jiang, 2014). For this, the company need to employ good human resource manager or personnel and they should be provided proper training regarding how the working environment of the organization should be and what are their responsibilities. The manager must understand that people from different countries need to be treated, trained and developed differently and their inter-cultural differences must also be valued.
Difference between domestic and international HRM
In todays cooperate world, multinational companies have acquired surplus growth. Such huge organisations involve a large number of employees so there is a need for a separate department to handle these employees. Human resource is a department of any cooperative organisation which is the authority to manage the problems and issues related to or created by employees. The management of the human resource department is known as HRM (human resource management). HRM of the employees within the same country is referred to as domestic HRM (Brewster, Chung, amp Sparrow, 2016). Since MNCs work in multiple nations so there is a need to manage employees of different countries. International HRM is responsible for maintaining a balance between the requirements of employee and the organisation in different nations of the same organisation. There are typical factors that an International HRM requires including a need to enlarge perspective, improve interpersonal relations to understand personal issues of the employees, and advanced risk management.
Issues faced by managers at both levels due to cultural differences There are a lot of possibilities to find cultural differences within the same organisation at both the domestic and the international level. In countries such as India, A diverse culture can be found which can imbalance the smooth functioning of the cooperation. The following issues can be faced by both domestic and international HRM
The inability to adapt to the new climate
Diverse food habits may alter the efficiency of the employee
Disturbed sleep cycle due to different geographical areas for the international employees
Miscommunication due to different vocabulary accent (Cavusgil, Knight, Riesenberger, Rammal, amp Rose, 2014).
HRM may discover internal conflicts and discrimination due to diversity in culture among employees
Inefficiency to work due to the individuals religious or cultural holidays, it may affect the overall productivity of the firm
Methods and challenges of training and development of employees
The principal objective of training and development program is to create competent employees which are required for maintaining, rather increasing the overall productivity of the organisation. There are mainly three types of methods for training an employee which are as follows
Training the employee
The employee needs to be trained for work he or she is hired. Training includes making the employee comfortable with the normal functioning of the firm. In this session, the employee is provided with the work of low level and significance. Since allotting the responsible jobs in the inexperienced hands, can prove to be harmful to the firm. The responsibility of work is gradually increased.
CoachingTo train a newcomer, there is a requirement of a skilled trainer who is experienced in the same field. This trainer will train the employee the mentioned work for his/ her post (Story, Barbuto Jr, Luthans, amp Bovaird, 2014).
MentorshipThe coach will definitely teach the work which the new employee requires but other aspects such as normal functioning of the firm, ways to communicate, contacts etc. are also essential. A mentor guides these significant experiences and information as a part of the training.
Challenges faced by the HRM departmentThe training is a difficult part for a newcomer as adjusting to a new environment is difficult at times. Sometimes the harsh behaviour and the strict nature of the trainer may create a wrong impact on the mental health of the new employee. HRM requires handling such situation to maintain harmony.
ConclusionIt can be concluded that the international human resource management is necessary for companies which work in different countries and employees of different cultural backgrounds are recruited. There are various issues that are faced by Nike as analyzed in the case study of the company. The key management challenges are identified as retaining the employees and remaining competitive in the industry. Along with the satisfaction of the employees, it also needs to maintain profit for the company. The analysis of the case represents that the key issues that are faced by the employees in the company are related to unfair wages, poor behaviour of superiors and subordinates, poor leave policies, lack of medical facilities, motivation issues, improper working conditions and working environment and work culture issues. Thus, the company should understand that working in an international environment needs proper attention towards the human resources of the company and it should make proper work policies. Furthermore, the firm should also adhere to the rules and regulations of human resource management in different countries.

ReferencesArmstrong, M., amp Taylor, S. (2014).Armstrongs handbook of human resource management practice. London Kogan Page Publishers.
Brewster, C., Chung, C., amp Sparrow, P. (2016).Globalizing human resource management. London Rutledge.
Cascio, W. F. (2015).Managing human resources. New York McGraw-Hill.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., amp Rose, E. L. (2014).International business. Pearson Australia.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., amp Rose, E. L. (2014).International business. Pearson Australia.
Fair Labour Association. (2013). Home. Retrieved from http//www.fairlabor.org/
Jackson, S. E., Schuler, R. S., amp Jiang, K. (2014). An aspirational framework for strategic human resource management.The Academy of Management Annals,8(1), 1-56.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., amp Wright, P. M. (2017).Human resource management Gaining a competitive advantage. New York, NY McGraw-Hill Education.
Story, J. S., Barbuto Jr, J. E., Luthans, F., amp Bovaird, J. A. (2014). Meeting the challenges of effective international HRM Analysis of the antecedents of global mindset.Human Resource Management,53(1), 131-155.
Townsend, M. (2012). Nike Raises Factory Labor and Sustainability Standards. Bloomberg. Retrieved from https//www.bloomberg.com/news/articles/2012-05-03/nike-raises-factory-labor-and-sustainability-standards