1. Introduction Of International HRM Individual Assignment Sample
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This assignment engages in a detailed discussion as to how external and internal factors may affect the staffing choices of MNEs. Some of the most significant challenges facing MNEs will be highlighted and analyzed in order for them to navigate the way forward in volatile and uncertain times, in relation to the management of their international workforces. Among the external factors will be included the political, cross cultural, technological; organizational factors such as- culture and language barriers, and the current issues like the pandemic and Brexit. The internal factors that will be discussed include: organizational culture, business operations, leadership and management, staffing issues, staff motivation issues related to pay and compensation, issues of performance management, training and development. Throughout the discussion, multiple examples will be cited in order to enhance the authenticity of work, and add a practical dimension to it.
The context literature of this assignment is entitled “International HRM insights for navigating the COVID-19 pandemic: Implications for future research and practice” by Caligiuri et al. (2020) which demonstrates the significance of existing "international business (IB)" research, particularly work on "international human resources management (IHRM)", in addressing COVID-19 pandemic issues. Multinational corporations' decision-makers have adopted a variety of measures to mitigate the pandemic's effects. In the majority of situations, these measures are related to distance management and redefining boundaries, whether at the macro- or firm-level. Since the IB field was recognised as a valid area of academic investigation, managing distance and rethinking borders have been the major focus of much IB research. For example, the pandemic has exacerbated cross-border distance difficulties as a result of travel prohibitions and restricted international mobility, and frequently has placed new intra-firm distance constraints on formerly co-located personnel. Prior IHRM research has emphasised the challenges associated with remote work, including "staff selection", "training", "support', "health and safety", as well as "leadership" and "virtual collaboration". Much of this reasoning is useful to resolving distance-related pandemic issues. The current extreme cases of required "physical distancing" do not necessarily imply similar rises in "psychological distance", and they also provide perspective into the unforeseen advantages of a "virtual workforce", that will almost certainly influence the post-COVID world's "new normal." The authors propose three plans for future study in IHRM: handling uncertainties, promoting multinational and even international collaboration, and rethinking organisational success.
3. Analysis of Key Challenges Arising out of External and Internal Factors that Affect the Staffing Choices of MNEs
3.1 External Challenges
3.1.1. Political and Legal
In the domain of recruitment, political concerns may include a wide range of topics, such as education, healthcare, the political stability of the country, and employment. When talking about relocation with international prospects, keep in mind that they may have a family to consider in addition to the work role (Moroney, Knechel and Dowling, 2019). It's crucial to be aware of potential threats to a country in order to empathise with a candidate's concerns and to stay on top of any changes that might affect the recruitment process. In order to inform candidates about prospective advantages, it is also necessary to be aware of a country's strengths and opportunities.
Many legislative aspects must be researched and understood, and some people will be more concerned with certain rules than others. Legal repercussions, such as strict limits on drinking, clothing, and public behaviour, may have a cultural impact on the candidate's family and lifestyle. In order to offer career security, it is also important from a recruitment viewpoint to be aware of employment and discrimination legislation. Coping with "immigration laws”, acquiring appropriate "work permits" for the chosen personnel, and maintaining them in the country for a lengthy period of time is always a challenge and, most often, a time-consuming process (He, 2017).
For both corporations and politicians, economic issues are critical. They can have an impact on the overall earnings of the firm as well as the overall worth of pay offered to employees. "Exchange rates", "inflation", "interest", and "tax", all of which have a direct impact on business profit and candidate compensation, are essential to consider since they may influence a candidate's choice to take a position. The recruiting process in all organisations is influenced by a nation's economic situation. The "globalisation" and "liberalisation" of the Indian economy, for example, has led in a surge in financial services in India since 1991. The demand for "MBA", "CA", "ICWA", "CFA" students has increased dramatically as a due to the new economic policies (Khan and Khan, 2019). Even engineering students were required to get "finance" or "marketing" degrees or certificates in order to take advantage of career prospects, since demand, manufacturing industry, has not kept up. People with expertise in money management were in high demand. To find appropriate employees, businesses have to rely on significant advertising. By the late 1990s, however, the tendency had shifted. Except for the software and pharmaceuticals industries, nearly every other industry has in a state of recession. Thus, businesses have forced to reduce their recruiting expenses and rely on less costly media platforms in place of college recruitment, "search agencies", "employee referrals", "contractors", and other methods.
3.1.3. Cross culture or organizational culture
Employers who are oblivious to cultural differences while stressing employee compatibility in their selection and recruitment procedures might find themselves liable for discrimination claims. To avoid unfair treatment of candidates who are not "exactly like" the member, human resources specialists should make sure that screening procedures and hiring decisions do not result in prejudice.
It is also important for employers to realise that many corporate cultures (for example, those that are excessively protective or male-dominated) are more likely to cause the discrepancies in promotions, employment, and compensation that they are trying to avoid (Hamza et al., 2019). It is possible that these differences may violate the organization's non-discrimination policies.
3.1.4. Language barriers (expatriate assignments)
International countries speak a variety of languages. For instance, in India, about 29 distinct languages are spoken (Quay et al., 2017). Therefore, if candidates are not fluent in English or their native language, there will be a significant barrier to recruiters communicating with candidates and vice versa.
All industries are being impacted by the COVID-19 epidemic, although some are being impacted more than others. The economy has entered recession, which will undoubtedly have a profound effect on how businesses attract fresh personnel. Simultaneously, several established procedures, such as face-to-face employment interviews, must be replaced with more inventive ones.
Individuals Will Be Less Likely to Change Jobs
Candidate sourcing might become increasingly challenging. If an individual is employed on a full-time basis by their present job, their inclination to change will decrease. During a crisis, people will prioritise security above uncertainty (Ali et al., 2020). Simultaneously, those top performers who are concerned about their present companies' possible layoffs may be more receptive to other job possibilities today.
Remote Onboarding of New Employees Is Required
It's not as straightforward as providing an excellent onboarding experience without meeting in person or offering a tour of the workplace. Nonetheless, it is conceivable.
Job Interviews cannot be Conducted in Person
Companies all around the world are arranging for their workers to work remotely from home. The objective is to avoid needless travel and face-to-face contact. As a result, employment interviews cannot be conducted in the office (Ali et al., 2020).
Firing, fewer open positions, and an increase in open applications
Firing result in an increase in the number of jobless, which is a very unpleasant scenario. As a result, there will be an increase in employment applications. Because firms are reducing the number of available opportunities, candidates will begin submitting more open applications. Tesco has fire 45,000 temporary workers due to the challenges of the pandemic (Ouden, 2021).
The home economy is likely to stay rather steady in the future years. COVID-19 has damaged the domestic market, but we anticipate a rebound in the following years as life returns to normal. Businesses have witnessed a decline in the number of overseas candidates searching for jobs in the UK over the last few years (Van Kerckhoven, 2021). Britain is quite likely to abandon the EU's free movement concept, which will undoubtedly have an effect on the talent available from the EU. The choice to leave might have a long-term effect on the country's international accessibility. Due to Brexit, 900 people from Handmade Burger Co, 450 from BBC News, 500 from Jaguar Land Rover, 10,000 from Tesla, 600 from Clugston, 950 from Honda Logistics and a huge number of workers from other companies have been fired because of the issues faced by the companies in relation to their staffing decisions.
While technological applications have enabled companies across the world to act remotely in the process of staffing, there are multiple issues which limit their significance.
Possibility of Introducing Technical Difficulties
Certain resumes may be inaccessible to recruitment tools due to their formatting. This can eliminate highly qualified individuals from consideration or alter the way their CV is evaluated, all while recruiters remain ignorant of the issue. It's critical to have a mechanism for periodically verifying the programme to guarantee that technical faults do not obstruct employment (Dattner et al., 2019).
While recruiting software may expedite and simplify many elements of the hiring process, it should not be depended upon to make final choices or to assume management of recruitment entirely. Having this in mind would certainly enable companies to get the benefits of technology while avoiding any of its pitfalls.
May Eliminate Potential Candidates
Due to the fact that recruitment software is preset, applicants who think outside the box may be eliminated from consideration for reasons unrelated to their talents or fit. You may overlook a candidate who would have been a perfect fit for your firm based on their "soft" talents such as communication and creativity, just because they lacked specific credentials or experience required to compete with other applicants. This may unintentionally cost you a competitive edge, as your competitors' recruitment software is likely to operate similarly.
Possibility of Perpetuating Unconscious Biases
Several firms, including Amazon, have raised concerns about recruiting tools perpetuating prejudice (Dattner et al., 2019). It was revealed that the screening engine favoured terms often used by male candidates, resulting in unintentional discrimination against female applicants. Due to the fact that recruitment software tools must be configured by humans, it is conceivable for prejudices to be worsened by technology.
3.2.1 Culture/Value practices
After defining its culture, a business may determine which traits are most attractive in potential employees. It is essential to find someone who is culturally compatible with the organisation, since a new hire who does not mix well with the members of the team is more likely to feel isolated and alienated.
Even the most resourceful and well-funded firms are susceptible of committing these recruitment mistakes. One important example in point is Apple's 2012 hiring of former CEO of Dixon, John Browett to oversee its retail business (Trivedi, 2019). Even before he was hired, numerous outside experts predicted he would be a bad cultural fit and would leave quickly. Indeed, Browett's tenure of seven months in the position were tumultuous with Apple staff. Although Apple did not elaborate on the reasons for Browett's departure, Apple CEO Tim Cook indicated in a subsequent interview that Browett did not fit the company's culture and that employing him was a mistake.
3.2.2. Business operations
The decisions take for handling different business operations affect the staffing process of organizations across the world.
- Expansion and Development
When a company grows its operations in international markets, it will hire or consider hiring more people.
- 2. Human resource planning
Human resource processes and techniques that are effective help to close gaps in the organization's present employees (Malik, Pereira and Budhwar, 2017). This also helps to filter the number of persons to recruit as well as their credentials and talents.
- Personnel Procedures
The recruiting process is influenced by the organization's recruitment policy, which involves both internal and external recruitment. The organization's recruitment policy sets the enlistment locations and offers a structure for the implementation of the recruitment campaign.
3.2.3 Leadership and management
- Withdrawing or engaging in avoidance/hiding conduct
Employees must feel confident in their direct support and senior leadership. 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. Once again, this might result in restlessness and worry, which can have a detrimental effect on morale and productivity. One of Apple's strengths has always been its ability to produce new goods that consumers like (DeFeo and Tran, 2019). Steve's eccentricities did not discourage great talent from contributing to the objective.
When a leader creates an environment in which employees feel appreciated and are publicly recognised for their efforts, they are encouraged to stay put and produce their best work over time. Finally, if 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.
- Not being open about expectations
According to one survey, 22% of applicants are stressed out by false expectations (Player et al., 2019). They want to know the company's direction, the aims of their own team, and how they personally are expected to contribute to the achievement of a particular set of goals.
- Being evasive in the face of changing plans or limited resources
As Uber surely discovered this year, when employees are distracted by gossip and rumours, productivity and morale suffer. That is when talented applicants become restless and begin to search for work elsewhere.
3.2.4 Staffing issues
- Hiring Employees Who Are Incompatible with the Company Culture
It is critical for new recruits to complement the business culture and easily integrate into the workplace. One of the most perplexing employment issues is an employee's alienation from the company's culture. This issue is frequently neglected. A collision of cultures may have a negative impact on an employee's performance, create friction among coworkers, and reduce the business's overall productivity (Sobaski, 2018).
- Candidate Screening
Occasionally, in-house recruiters lack the time or resources necessary to find and screen applicants. As a result, businesses wind up with poor recruits, further increasing turnover. To avoid staffing issues caused by a lack of screening, enlist the assistance of a staffing agency to assist in the employment of competent personnel. For instance, “Well Fargo” and “DIRECTV” are two companies which have faced a lot of criticism due to their employees performing at sub-standard levels (Collings and Isichei, 2018).
- Managing the Business's Ebbs and Flows
Businesses experience ups and downs. Numerous businesses have busy seasons and quiet times. With these continual ebbs and flows, it can be challenging to maintain appropriate personnel numbers. Temporary staffing is one form of recruiting that may help businesses handle a variety of staffing issues. Employing temporary workers may assist in ensuring that a company is never over or understaffed, even at the time of the busiest seasons.
Another important employment issue that businesses face is understaffing. This has ramifications across several facets of a firm. Businesses should anticipate less productivity, increased stress levels, and a lack of business growth, among other cascading consequences. Hiring temporary personnel to cover for absent employees, new projects, or the busy season might assist avoid understaffing.
- Assuming Critical Positions
When a crucial job in a firm falls vacant unexpectedly, it can have a negative impact on the business. Everyday activities may go uncompleted, resulting in a halt in the stream of a firm. Because it might be difficult to locate an employee in a short period of time, particularly for a specialist role, a smart answer is to hire a staffing agency to assist you in rapidly filling the position (Collings and Isichei, 2018).
Additionally, employment firms have a broader network of contacts than in-house recruiters. Collaboration with a specialist employment firm, such as Liberty Staffing, may be quite beneficial for such roles.
- Combating Excessive Turnover
When staff go, your business may find it difficult to satisfy its responsibilities. By partnering with a recruiting agency, you may ensure a low turnover rate. A hiring company will pre-screen individuals and conduct skill assessments to verify that your new recruits are qualified for the open positions.
3.2.5. Staff motivation- pay and compensation
Compensation has a significant role in attracting, retaining, and converting employees. Compensation is a factor to consider while developing your company culture in the second talent of talent management, Design. The compensation plan you design will have an influence on the behaviours that are imposed, or not imposed, in a business. A sound compensation strategy's principal objective is "retention" and "recruitment" (Thanassoulis et al., 201/8). Offering an attractive salary structure enables you to recruit and retain superior personnel. Indeed, 66% of businesses questioned see retention as the primary reason for having a strong compensation plan, followed by improved hiring and remuneration for in-demand talents. The companies in the UK that provide attractive salary packages include- “Salesforce”, “Man Group”, “Kearney”, “Standard Chartered Bank”, “Credit Suisse”, “Facebook” etc.
3.2.6. Performance management
The following issues of performance management system may affect the staffing process bit time:
- Limited chances for staff advancement/career growth, such as lateral moves, transfers, and job shadowing.
- Failure to provide necessary continuing education and training.
- Avoid holding many extra meetings necessary to ascertain candidates' skills, limitations, and capacity to contribute what is required.
- Failure to hold quarterly discussion for planning the process of performance development on a consistent basis.
- Negotiate quality standards, objectives, and measurements based on requirements and accomplishments between the worker and his or her new boss.
- Inability to create precise job descriptions through the use of an employee recruiting strategy that defines the selection team.
- Providing no opportunity for ongoing mentoring and feedback.
- Inadequate compensation and recognition mechanisms that adequately compensate individuals for their continuing efforts.
3.2.7. Training and development
Inadequate training can result in increased irritation, lost effort, and dissatisfied personnel. Employees that believe they are not progressing and are getting dissatisfied with their employment frequently leave a company, lowering its employee retention rates (Ott, Tolentino and Michailova, 2018). Having a well-structured training and development system would attract a large segment of talented individuals and help to retain them within the organization.
This assignment has effectively investigated the internal and external factors that may influence multinational enterprise (MNE) hiring decisions. Most of the key issues that MNEs are supposed to encounter have been highlighted and examined in detail, in order to help them find their way forward in turbulent and unpredictable times. Political, cross-cultural, technological, and organisational obstacles, such as linguistic and cultural barriers, as well as current topics like as the pandemic and Brexit, have been identified and analysed. Corporate culture, company operations, leadership and management, and personnel problems are among the major themes that have been identified and discussed as internal factors which impact the staffing decisions of MNEs. To make the presentation as authentic as feasible, significant real life examples have been presented to back up the statements presented.
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