Human Resource Managers, multi-national companies, Strategic problems
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. [...]
[...] Human beings, owing to their cultural, social, political and economic diversity have presented challenges not only to HRM but also among themselves as they seek to interact. The situation is thus made more complex by the relatively higher staffing requirements of MNC. Potential Problems facing HRM managers in MNC Complex Organizational Structure However, such multinational companies pose significant challenges to the human resource managers (HRM) resulting to the complex structures involved in the development of multinational companies (MNC) (Scullion & Collings, 2006). Authority, responsibility and decision making is distributed within the organizational structure of these companies. [...]
[...] HRM have to create a balance between masculinity (staff members who work because they want to be the paramount at what they are) and femaleness (staff members who work because they like what they do). Belief systems in different societies emphasize different aspects for motivation and thus understanding these allows HRM to operate efficiently. Conclusion There are significant challenges that are presented to HRM of MCN making it seemingly inappropriate to seek out such a position. However, there are various methods that have been put in place to handle such potential challenges. [...]
[...] Hence HRM managers are faced with the challenge of selecting the most excellent individual for the post in question after they have understood the cultural dynamism of a particular country. Implementing a poor staffing strategy will work against operations. Managing Corporate Social Responsibility Corporate social responsibility (CSR) is an activity commonly undertaken by various companies so that they can provide some form of development in the communities with which they operate (Kramer & Syed, 2012). MNC are often perceived as merely seeking economic gain from countries and have in the past been accused of misusing the possessions of the host country. [...]
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