1. Introduction Of International HRM
Get free written samples by our Top-Notch subject experts and Assignment Helper team.
This report delves into the details about how internal and external variables may influence a Multinational Enterprise’s (referred to simply as MNE, is a business that manufactures goods or provides services in many countries) hiring decisions. Some of the most critical difficulties confronting MNEs in managing their foreign workforces would be highlighted and discussed in order to assist them in navigating the path forward in unpredictable and uncertain times. External considerations to consider include political, cross-cultural, and technical concerns; organisational factors such as cultural and linguistic obstacles; and current events such as the epidemic and Brexit. The following internal elements will be discussed: organisational culture, operational activities of the company, leadership and management, staffing issues, employee motivation concerns linked to salary and compensation, performance management, and training and development. Numerous examples will be used throughout the discussion to demonstrate the authenticity of the work and to lend it a practical dimension.
The subject matter of the report’s context literature is entitled “International HRM insights for navigating the COVID-19 pandemic: Implications for future research and practice,” by Caligiuri et al(2020).It demonstrates the importance of current “international business (IB)” analysis, particularly work on “international human resources management (IHRM),” in addressing COVID-19 pandemic issues. Decision-makers at multinational businesses have taken a range of strategies to reduce the pandemic’s consequences. These metrics are frequently associated with distance management and reframing limits, whether it be at the macro- or firm level. Since the IB field was established as a legitimate area of academic inquiry, controlling distance and rethinking boundaries have been a primary focus of much IB study. For example, the pandemic increased cross-border distance challenges as a consequence of travel restrictions and reduced international mobility, and quite often imposed additional intra-firm distance limits on previously co-located people. Prior IHRM research has emphasised the difficulties inherent with remote work, such as “employee selection,”“training,”“support,”“health and safety,” along with “leadership” and “virtual collaboration.” Much of this thinking is applicable to overcoming pandemic-related distance concerns. The present severe examples of needed “physical separation” do not always indicate comparable increases in “psychological distance,” and they also shed light on the unanticipated benefits of a “virtual workforce,” which will most likely impact the post-COVID globe’s “new normal.” The authors recommend three areas of future research in IHRM: uncertainty management, multinational and even worldwide collaborations, and redefining organisational performance and success.
3. Analysis of Basic Challenges arising out of External and Internal Factors that Impact on the Staffing Choices of MNEs.
3.1.1 Pandemic: The dreadful impact of COVID19 has created a susceptible atmosphere and also impacted greatly on different organizations in a different manner. As a matter of fact, employees in different MNEs sectors have to encounter assorted problematic situations regarding the fact of a pandemic. Some major issues of MNEs have been discussed in a brief manner in this study (Caligiuri et al., 2020).
Displacement- During the time of conducting the first wave of COVID19 pandemic, numerous countries have refused entrance to the employees due to the fact of pandemic restrictions. Therefore, due to these difficulties in movement and restrictions, the rate of the latest asylum submissions was blocked globally at the starting of 2020 (Srinivasan and Eden, 2021). As a matter of fact, it has been observed mainly that the rate of returns of globally displaced people has been knocking down by almost 72% and on the other hand, the rate of immigrants successful in escaping the COVID19 limitations was 22%.
3.1.2 Legal Factors: Different business has to face numerous difficulties or certain constraints during the time of operating in diverse regions or foreign countries. As a matter of fact, various businesses are also impacted by certain regulations and federal state (Haddara, 2018). However, it is indeed true that legislation influence on exceedingly on the activities of HR. state and federal legislation basically utter the ultimate duration of business which has to retain personnel records along with other employee information. It will also demonstrate various aspects of how to accumulate this data and the collection process of this significant information (Ayentimi, Burgess and Brown, 2018). For instance, the accountability and health insurance portability act, the genetic information nondiscrimination act, and the Americans with disabilities act. According to these acts, companies have to sustain this kind of restriction in order to operate a business successfully in foreign countries.
However, the primal intentions of these regulations are to place compulsions on employers in order to preserve the privacy of employee medical information. The safeguard procedure has also been done to ensure the managers of the company operations along with the limitations of regulations (Abugre and Boachie-Ansah, 2021). As a matter of fact, HR professionals have to remain abreast of legislation and train managers towards their responsibilities.
3.1.3 Technological Factors: Technological innovations have been proved to be a mandatory factor in the case of expanding the business in the global market or operating the business into an unknown market (Haddara, 2018). It is indeed true that the significant impact of technology has been observed not only to increase the brand recognition and promotion of a company but also it has been proved to be extremely accommodating in order to recruit more employees. Through utilizing the technological platform, it has become effortless to advertise a convinced position for the requiring post and also describe the basic criteria of the post along with professional skills. As a matter of fact, it has been pragmatic that regarding the fact of COVID19 pandemic employers are rotating to e recruiting in order to discover experienced new employees for satisfying vacancies (Abugre and Boachie-Ansah, 2021). In order to formulate the recruiting procedure superior efficient and cost-effective, the rate of e recruiting has been escalating regularly in the multinational sectors.
Abilities in implementing new technologies for the exceptional communicational channel, business, and marketing operations will be capable to make various candidates stand out over others. As a matter of fact, the implementation of superior technological innovation will bring exceptional productivity. The young generation who has grown up through utilizing various technologies will become beneficial for conducting the job more efficiently (Haddara, 2018). Therefore, the training cost will be reduced regarding the fact of utilizing the technology in an appropriate direction as young generations are accomplished with abilities to use technology.
3.1.4 Economical Factors: Customer in various organizations is now considered as the primal aspect of conducting business successfully along with the matter of HR management. The contribution of the employees towards the company will decide the ultimate success of the organization and thus customers will be satisfied (Sugavaneswaran, and Šarki?nait?, 2021). The excessive rate of the economic downturn has been observed in several multinational sectors and as a matter of fact, the COVID19 pandemic has been considered to be the major responsible factor for this contraction. Therefore, governmental policies and certain regulations also have an impact on the overall earnings of the firm. As a result, it will also become an influential factor for the payment process of the employees. The awful effect of the pandemic also has proved to be a responsible factor in increasing the unnecessary cost of these sectors (Haddara, 2018). In order to maintain a proper COVID19 protocol, every business sector has to expend large amounts of money.
Exchange rates, inflation rates have an unswerving influence on the profitability of these business sectors. However, in order to obtain qualified or skilful employees across the globe, these multinational companies have to expend a lot through advertising, creating a job proposal, utilizing a significant platform for promotion, etc. (Sugavaneswaran, and Šarki?nait?, 2021).
3.1.5. Social and Cultural Factors: The increasing requirement of the society has pressurized the multinational companies to differentiate their products compare to the rival companies. it is indeed necessary for a firm to identify various social impacts before taking any kind of initiative steps for conducting the business (Hsu, Shih, and Pai, 2020). A multi-cultural workforce can offer various aspects of benefits for a company in spite of pleasing its legal conformity. An appropriate recruitment procedure is extremely significant in order to attract the skilful employees within having better understanding and also it will be accommodating to stay competitive in the global market. Understanding the cultural differences will make the recruitment procedure more influential for the foreign employees to become a significant part of the organization and also, they will find a comfort zone in these sectors. Otherwise, there will be a clash between the employees in the same sectors and that cannot be accepted for ongoing the working process effectively.
A multinational workforce having gender discrimination and cultural barriers will not become triumphant in the process of global expansion. As a matter of fact, cultural differences have an imperative function in the process of the recruitment system in order to make certain that onboarding of the candidate understanding is optimal. It has been considered advantageous to obtain up to date about the traditions, rituals, and differences between diverse countries (Ayentimi, Burgess and Brown, 2018). Therefore, the multinational company will become more knowledgeable about significant and unique information of different cultures. As employees from different countries have assorted perceptions and behave in a different way, it will facilitate the company in order to stay competitive in the global market.
3.1.6. Language Barriers: Lack of appropriate communication skills represents the basic fault of the language barrier. Specifically in the case of the South Asian employees, when they went to the European countries, they have to encounter numerous problematic situations regarding the fact of conducting proper communication (Hsu, Shih, and Pai, 2020). South Asian employees have to face several complications for lack of fluency in English languages.
Communicating in a completely different language can create a cultural clash between employees within a similar sector. As an example, in the case of some cultures, it’s not frequent to utilize straight language. As a matter of fact, direct conversation can be considered rude and cause problematic situations among the employees (Ayentimi, Burgess and Brown, 2018). Therefore, employees coming from dissimilar cultural backgrounds might be expecting to be asked for their judgments or perceptions towards the organizations.
Lack of ability to speak English correctly will create a problematic situation for the employee to deal with the international suppliers or can create an understanding problem between the colleagues. Generating a healthy environment where employees who aren’t native English speakers can feel demotivated and they can ask for clarifications without being derisive (Farndaleet al., 2017). As a matter of fact, it is indeed important for the employee to work on sectors having no language barriers and being able to communicate with the employees appropriately. Thus, the recruitment process will be accommodating to gather more foreign employees in order to expand the market of the company globally.
3.2.1 Company operations
The decisions made to manage various company activities have an effect on the personnel processes of businesses worldwide (Prajogoet al., 2018).
Human resource management
Effective human resource processes and strategies aid in closing gaps in the organization’s current workforce (Stewart and Brown, 2019). This also aids in filtering the pool of candidates for hire, and also their qualifications and abilities.
Recruitment is affected by the institution’s recruitment process, which encompasses both internal and external recruitment (Townsend and Gershon, 2020). The organization’s recruiting policy establishes enlistment sites and provides a framework for the recruitment campaign’s implementation.
When a business expands into foreign markets, it will recruit or explore hiring additional personnel.
3.2.2. Culture/Value practices
Following the definition of its culture, a firm may decide which characteristics make potential workers most desirable. It is critical to identify someone culturally fit with the business because a new recruit who does not gel with the team members is much more inclined to feel alone and alienated (Mitrina, 2021).
Even some of the most competent and very well-funded businesses are prone to making these hiring errors.
3.2.3 Management and Leadership
- Not being open about prospect
Several candidates want to understand the direction of the company, the objectives of their very own group, and the role they are expected to play in achieving a certain set of goals. They often experience stress as a result of incorrect preconceptions.
- Being elusive in the face of altering strategy or limited resources
Workers are often side-tracked by rumours and gossip, as a result, that their motivation and morale suffer (Swanwick, 2019). This is the point at which talented candidates grow restless and begin looking for work elsewhere.
- Withdrawing or engaging in avoidance/hiding conduct
When a leader/manager is not approachable or available – particularly when it is clear that s/he is not talking with or connecting with staff – it may be quite unsettling and unpleasant for them. This might result in restlessness and worry, which can have a detrimental effect on morale and productivity. Employees must feel confident in their direct support and senior leadership. One of Samsung’s strengths has always been its ability to produce new goods that consumers like. Samsung’s eccentricities did not discourage great talent from contributing to the objective.
When a leader recognises his or her top talent for their particular abilities, they will offer their best to the larger good — and will stay the course even when times are rough (Howell and Feyrecilde, 2018). Finally, if a. leader creates an environment in which employees feel appreciated and are publicly recognized for their efforts, they are encouraged to stay put and produce their best work overtime.
3.2.4 Employment issues
Businesses go throughcycles of ups and downs. Numerous enterprises witness peak seasons and off-seasons. With this constant rise and fall, it can be difficult to maintain adequate staffing levels. Temporary staffing is a type of hiring which might assist organisations with a range of staffing challenges. Employing temporary employees may help ensure that a business is never overstaffed or understaffed, even during the busiest seasons.
- Assuming Critical Positions
When a critical position in a business becomes vacant suddenly, it may have a detrimental effect on the business (Disney and McPherson, 2020). Daily operations may go unfinished, resulting in a stop in the flow of a business. Due to the difficulty of placing an employee in a short amount of time, especially for a specialist’s function, using a staffing agency to help in quickly filling the position is a wise choice.
Additionally, recruitment companies have a larger contact network than in-house recruiters. Collaboration with a specialised employment business, like Freedom of Employment, may be advantageous for certain positions.
- Fighting Extreme Turnover
When employees leave, the firm may struggle to meet its obligations. Employers can assure a low turnover rate by working with a hiring firm. A hiring business must undertake pre-employment screenings and skill tests to ensure that new hires are suitable for the vacant jobs (Vidotto, 2021).
- Hiring Incompatible Employees
It is important for new employees to complement the corporate culture and integrate seamlessly into the workplace (Adams, 2020). The alienation of an employee from the company’s culture is one of the most puzzling employment concerns. This is a regular omission. A clash of cultures might have had a detrimental effect on the employees’ performance, create issues amongst colleagues, and impair the overall productivity of the organization.
At times, in-house hiring managers lack the time and resources needed to locate and screen candidates. As a result, firms end up with ineffective recruits, which contribute to increased turnover. To minimize staffing problems caused by insufficient screening, utilising the services of a recruitment firm aids in the recruitment of qualified people.
Understaffing is another significant employment issue that firms confront (Andelet al., 2021). This has repercussions across several areas of a business. Businesses should prepare for decreased productivity, increased levels of stress, and a lack of company development, among other cascading effects. Employing temporary staff to cover for unavailable workers, big projects, or the hectic season may help minimize understaffing.
3.2.5. Performance management
The aforementioned performance management system concerns might have had an effect on the staffing process over time:
- Limited opportunities for career advancement/development, such as lateral movements, transfers, and work shadowing.
- Inadequate provision of required ongoing education and training.
- Avoid scheduling several more sessions to assess candidates’ abilities, limits, and competence to contribute the needed amount.
- Inability to conduct quarterly meetings for the purpose of planning the performance development process on a consistent basis.
- Negotiate quality standards, targets, and measures between the employee and his or her new supervisor based on requirements and successes.
- Inability to develop accurate job requirements through the usage of a defined selection team defined by an employee recruitment strategy.
- Ignoring the possibility of continuing mentorship and feedback.
- Inadequate methods for compensating and recognising individuals for their continued efforts.
(Source: Armstrong, 2021)
3.2.6. Training and development
Inadequate training could result in increased irritability, effort loss, and unsatisfied employees (Noe and Kodwani, 2018). Employees who think they are not on the rise and are unsatisfied with their jobs typically quit, reducing a company’s retention rates of employees. Possessing a well-structured development and training framework will attract and retain a big percentage of bright employees.
3.2.7. Staff motivation- pay and compensation
Compensation should be considered while building business culture through the skill of talent management (Isiaka, OLUSESI and Abdulmaleek, N.D.). It has a critical influence on the recruitment, retention, and conversion of workers. Compensation plans have an impact on the behaviours that are enforced, or not imposed, in a firm. The primary aim of a sound compensation plan is “retention” and “recruitment”. By offering an attractive compensation structure, one may attract and retain top talent.
This assignment included an in-depth examination of the internal and external elements that might affect multinational enterprise (MNE) employment decisions. The majority of the critical challenges that MNEs are expected to countenance have been identified and studied in depth in order to assist them in navigating tumultuous and uncertain times. Political, cross-cultural, technical, and organisational hurdles, like linguistic and cultural constraints, have been discovered and analysed, as well as current events like the epidemic and Brexit. Corporate culture, international operations, management and leadership, and personnel issues are only a few of the key topics recognised and explored as internal variables influencing MNEs’ hiring decisions. To ensure that the presentation is as authentic as possible, important real-world examples have been used to substantiate the assertions made.
Abugre, J.B. and Boachie-Ansah, R., 2021. Digitizing Recruitment and Selection of Employees in Ghana: A Social Media Network Perspective. In Business in Africa in the Era of Digital Technology (pp. 43-61). Springer, Cham.
Adams, T.L., 2020. Professional employees and professional managers: conflicting logics, hybridity, and restratification. Journal of Professions and Organization, 7(1), pp.101-115.
Andel, S.A., Tedone, A.M., Shen, W. and Arvan, M.L., 2021. Safety implications of different forms of understaffing among nurses during the COVID?19 pandemic. Journal of Advanced Nursing.
Armstrong, M., 2021. Performance management.
Ayentimi, D.T., Burgess, J. and Brown, K., 2018. HRM practices of MNEs and domestic firms in Ghana: divergence or convergence?. Personnel Review.
Caligiuri, P., De Cieri, H., Minbaeva, D., Verbeke, A. and Zimmermann, A., 2020. International HRM insights for navigating the COVID-19 pandemic: Implications for future research and practice.
Disney, L. and McPherson, J., 2020. Understanding refugee mental health and employment issues: Implications for social work practice. Journal of Social Work in the Global Community, 5(1), p.2.
Farndale, E., Brewster, C., Ligthart, P. and Poutsma, E., 2017. The effects of market economy type and foreign MNE subsidiaries on the convergence and divergence of HRM. Journal of International Business Studies, 48(9), pp.1065-1086.
Haddara, M., 2018. ERP systems selection in multinational enterprises: a practical guide. International Journal of Information Systems and Project Management, 6(1), pp.43-57.
Haddara, M., 2018. ERP systems selection in multinational enterprises: a practical guide. International Journal of Information Systems and Project Management, 6(1), pp.43-57.
Howell, A. and Feyrecilde, M., 2018. Cooperative veterinary care. John Wiley & Sons.
Hsu, I., Shih, Y.J. and Pai, F.Y., 2020. Applying the modified Delphi method and DANP to determine the critical selection criteria for local middle and top management in multinational enterprises. Mathematics, 8(9), p.1396.
Isiaka, K.E., OLUSESI, L.D. and Abdulmaleek, O.A., COMPENSATION MANAGEMENT AND EMPLOYEES’JOB SATISFACTION AMONG STAFF OF CENTRAL BANK OF NIGERIA, LAGOS.
Mitrina, D., 2021. Analysis on the relevance of company culture values at worker level inside business organisations.
Noe, R.A. and Kodwani, A.D., 2018. Employee training and development, 7e. McGraw-Hill Education.
Prajogo, D., Toy, J., Bhattacharya, A., Oke, A. and Cheng, T.C.E., 2018. The relationships between information management, process management and operational performance: Internal and external contexts. International Journal of Production Economics, 199, pp.95-103.
Srinivasan, N. and Eden, L., 2021. Going digital multinationals: Navigating economic and social imperatives in a post-pandemic world. Journal of International Business Policy, pp.1-16.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Sugavaneswaran, R. and Šarki?nait?, I., 2021. The Importance of Internal and External Factors for the Selection Decision of Expatriates. Vilnius University Open Series, pp.113-119.
Swanwick, T., 2019. Leadership and management: what’s the difference?. BMJ Leader, pp.leader-2019.
Townsend, R. and Gershon, M., 2020. Attaining successful construction project execution through personnel and communication. Journal of Construction Engineering and Management, 146(9), p.04020101.
Vidotto, B.C., 2021. Identifying and characterizing employee groups by turnover risk using predictive analytics (Doctoral dissertation).