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Strategic problems facing Human Resource Managers (HRM) operating in multi-national companies (MNC)

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  1. Introduction
  2. Thesis
  3. Potential Problems facing HRM managers in MNC
  4. Workforce Cultures
  5. Recruitment and Retention Management
  6. Legislation and Public policy
  7. Performance Management
  8. Managing Adult Learning
  9. Managing Staffing Strategy
  10. Managing Corporate Social Responsibility
  11. Value systems in Society

A multi-national company is a company that has been formed to operate across known international physical boundaries (Cooke, 2003). These companies are often located to other international countries apart from the parent country in which it was originally founded. These multinational companies specialize in the production of a variety of goods or services that are distributed to their other branches in other countries.

In addition, there are also those companies that deal with provision of services that are also spread out in a number of countries all over the world. These include companies engaged in the finance and property investment sector. Banks are often located in various locations all over the world such as Barclays which has its parent country in the United Kingdom but has got branches all over the world (Doz, 1986).

[...] Managing Staffing Strategy A staffing strategy also needs to be put in place to ensure that staff attrition does not take place resulting in waste of human resource (Scullion & Collings, 2006). In cases where international offices are located in areas that have got harsh climatic conditions or culture issues then it is fundamental that a staffing strategy be developed. HRM managers face challenges when determining whether members of staff should be recruited from the local population or brought in from the parent country. [...]

[...] These value systems and norms present significant challenges to HRM because of the nature with which they affect interactions between people in society. Host countries may have groups of people that have been considered as superior to others. They are probably not allowed to socialize with other people of a lower level as realized with the caste system in India (Hofstede, 2001). Thus people of a lower caste are not allowed to be in the presence of those of a higher caste because of their belief systems. [...]

[...] HRM faces the challenge of ensuring that such appraisals are performed in an efficient manner to elicit the right type of information and receive appropriate responses for change (Briscoe, Schuler & Claus, 2008) Managing Staff Expatriation There are cases whereby staff members are sent out to operate in offices outside their parent country. These are considered as international assignments that may take several years or even forever depending on their nature. There are those who are sent on a one-off assignment while other are sent to manage international offices. As a result, staff members have to relocate their homes and families to such locations in order to continue with their social lives. Several staff members on international assignment have been known to turn down such assignments and even resign from their workplaces. [...]

[...] CSR is a component that is implemented by HRM because essentially it is implemented by the members of staff within the organization. It must be understood that not all CSR activities are suitable for all organizations hence each MNC has got to develop its own CSR activity that best reflects its vision. CSR selection presents a significant challenge to HRM because of the international dimension that it takes. Most activities they engage in are viewed in light of the international world because of their involvement with the international markets. [...]

[...] These councils should also be factored in by HRM managers as they are developing their staff and incentive structures owing to their influence. The World Trade organization is another important aspect of trade among MNC whose rules and aspects should be considered by HRM for MNC (Dorrenbacher & Geppert This trade body seeks to streamline trade operations all over the world by improving trade relations between different countries. It also sets various rules and regulations that affect aspects of employee relations and host relations that may be fundamental to companies operating across international boundaries. [...]

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