Trends and Challenges Faces by MNC-Free-Samples for Students

Question: Assume that you work in a multinational corporation (MNC). As the Head of HR you have been given the task to prepare a Business Report to critically review and evaluate the current trends and challenges affecting HRM internationally. You have to critically analyse how these challenges impact on the future HRM practices for your MNC. Answer: Introduction With the effect of globalization and liberalization, the importance of opening MNCs came into existence. A multinational organization is one which works internationally in the global market and has a wide diversified dimension of working. The MNCs also make use of upfront technology to create differentiation in the market. Thus, with the initiation of MNCs the global and economic business has taken an effective change and developed with time (Al Ariss, Sidani, 2016). In order to manage the development, the company needs to manage their human resource activities so that they sustain on global. As it is known that on a global level the companies earn good profits similarly if taken the wrong step they can adversely affect the current state of the business. Further, in the competitive environment, it is primary objective of the business to keep their resources intact so that the managers can exercise their core business activities properly. As globalization opens up way for profitable business, so it is mandatory for the organization to manage the human resource activities internationally. The HR manager faces many human resource issues daily which can affect the growth of the organization; it is their duty to solve the problems and overcome the challenges faced them for the brighter future of the organization (Armstrong, Taylor, 2014). Further, the report discusses the key human resources trends and challenges occurring in the global business which is affecting the state of the business (positively or negatively). The purpose of this report is to analyze the current trends and challenges in managing human resource internationally and its impact on business; it also gives recommendation with the help of which an HR manager can sustain the growth of the business by managing the trends and challenges. Trends and challenges faces by MNC's in managing human resource internationally The fact is true that the world is now more turning into an international business which drives economic growth for all the countries worldwide. The trends which are constantly seen are in the areas like, technology, education, employees, economies, and communication etc. the movement of global business leads to high degree of economic change and a growing number of participants in the business. Also, complexity and uncertainty increased with the effect. Numerous traditional strategies shifted with the aid of international initialization of business process (Bhatti, Ahsan, 2016). The trends which the market has seen in the managing human resources with time is that there has been a shift in the age group of the labor force working for the international companies, also the expatriates becoming more culture oriented and working towards the benefits of the society. Another remarkable trend which shall be noticed is the growth in the fields of education and technology. These both aspects are getting more diverse due to which any activities which are held in the business are changing its face (Brewster, et. al., 2016). Another key trend on which the international business is focusing now days is the mobility of resources. It is very important for the business to carry on the mobility function effectively as it decides the motivation level of the employees in organizations. All the factors which are mentioned above have a great influence on the activities of the business, thus they shall be adequately taken care and managed in an organization to gain competitive ed ge in the global market (Cascio, Boudreau, 2016). Further, they key trends and challenges are discussed below: Technology Technology is a tool with the aid of which business process implement innovation in their organization. Technology is a rapidly changing aspect which provides benefits to the organization. In the global business, in order to sustain in the market, it is important for business to gain the competitive edge in the market. Competitive edge can be only achieved through the use of technological advancement techniques. The technology implementation helps the organization to change the employment market (Clark, et. al., 2016); the structure in which the workforce in prevailing is a trending concept which is constantly changing with the changing era. Thus technology is regarded as one of the trends in the international human resource management. Further, it shall be noticed that of technology is not applied adequately then it adversely the state of the organization so in this way it can act as a challenge for the organization (Cooke, Veen, Wood, 2017). Further talking about the challenge it shall be considered that the power of IT is replacing the jobs of normal people and acting as a permanent loss of jobs in the middle tier and at the first job entry level. Also, the global business is facing issue in managing the business which has narrow specific skills implemented in them. Apart from that, the fast-changing technology is making it difficult for some companies to adopt the new and efficient due to which their business process is becoming outdated. So, one of the challenge due to new trend in technology is that this process many times creates difficulty for the companies to adopt them in their process and re-educate that technology to the employees of the company (Dalton, Bingham, 2017). This many times acts as a burden for them to implement such changes in their management system. Apart from that another challenge which the company gets to face with the advancement of technology is that it eliminates the jobs of many people an d makes the personnel compact. As with the use of such technology major work which used be one by people eliminates itself due to which some people tend to lose their jobs (Dickmann, Brewster, Sparrow, 2016). Education Education is considered as one of the positive factors which assist the growth of an organization. But sometimes it may acts as a challenge for the global business process. Education helps the multinational companies to provide solutions to the demographic human resources caused by the company; it acts as both opportunity and threat to the company if no used wisely. Talking about the education acting as a threat to the organization, the fact that shall be noted is that just like technology; education is an ongoing process, which is changing every day (Farndale, et. al., 2017). So, there is no boundation to the process of acquiring education, that if a person acquires a limit of education then they are qualified to do certain job. Education is a diverse field which keeps on changing, along with which another challenge relating to education is difference in teaching style. It refers to the way or process in which people attain education, as in an MNC most of the people who are employed for the job are expatriate which symbolizes that their place from which obtained education was also different. So difference in teaching style can lead to differences in the management of the company as well. Summarizing to the above statement it shall be said that difference in education can lead to cultural differences as well. All formal and professional people employed in the company would have their point of difference of opinions due to difference in their teachings (Kaufman, 2016). Apart from that talking about the workplace learning, it shall be noted that now the workplace learning has developed into a wider context due to which it becomes difficult for expatriates to adopt the changes accordingly. The type of qualification provided in different institution is different and the work offered in an organization is different. So, if the employee's mental skills are adequately developed according to the profile of the work then it can act as a problem of the organization (Kramar, 2014). Mobility Lastly talking about mobility in international human resource management, it relates to the mobility of resources in a multinational corporation. Elaborating on the statement, this aspect includes the promotion, demotion, and transfer of human resource in an organization. It is mandatory for the organization to satisfy its employees with the kind of services they provide. For instance, if a regional employee of US is transferred to Australia for their future job period, approval of the employees is necessary because if the employee is not satisfied with such decision of the company then it can adversely affect the state of the company in global business (Reiche, Mendenhall, Stahl, 2016). Thus, it is a crucial decision which the company needs to take with the acceptance of the employees of the organization. Thus, if the decision of mobility is not taken adequately in an organization then can create problem for the company in managing human of the organization. Apart from that, the co mpany needs to properly take the decision hat which staff needs to go at the different outlet of the company who needs to stay in the same office (Renwick, Redman, Maguire, 2013). Motivation of the employees, organizational commitment, and job satisfaction are the most important aspects due to which a person performs their job effectively and efficiently. So, if an employee is transferred to another unit of the organization then the job satisfaction level can decrease which can affect the state of the organization. Apart from that the cultural difference Impact to IHRM issues on the company The human resource activities are directly connected to the business function. So any change in such activities can give a great impact on the growth of the business in international context. Further, the impact of human resource activities on the multinational corporations is discussed below. Talking about the impact of technological advancement on the growth of business is that, with this effect, the employees of the company started getting demotivated as they were unable to understand the technological changes happening in the internal management of the company. The elder generation people employed in the company found it difficult to cope up with the technology coming from different parts of the world (Paill, et. al., 2014). Apart from that, the expatriate is unable to make them understand regarding the changes. The normal jobs of the people were also replaced with this effect. Although I acted as an advantage for the company on the same hand this process also depleted the human resource management of the company. further in addition to it, another way in which technology affect the human resource managerial activities is that, as this process depleted in the number of employees working in an organization and the people who had routine jobs in their business, due to th is loss of jobs a bad impression of company shall prevail in the market. As the ex-employees of the company would talk about the furious technological growth and the less job security chances of the employees in the company, ten would lead to creating a bad image of the company in the market (Sheehan, 2014). Another aspect which affected the international human resource activities in an organization is education. This aspect talks about the culture difference prevailing in the employees of the company, all have taken their lessons from different institutions due to which there is a difference in thinking and applicability of theories in an organization (Wilkinson, Wood, 2017). Due to which many times employees clashes in the organization as all people have their different point of opinions. Another problem in the organization comes when newly skilled employee talks about some theories which the experienced employees of the company are unable to understand as there are changes in the courses. Due to this process, some employees of the company might feel distressed which can act as an issue of the company. Education opens the mind of people and it also improves the capacity to understand things. Thus, some people in the organization tend to understand and respond to workplace activities i n a better way while others might not due to which communication gap can occur in the management process (Wilton, 2016). Lastly, mobility of employees which mainly includes transfers and promotions works as a huge factor for motivation and demotivation among employees. As if transfer of employees is with their will and consent then it will adequately respond to the unit of the company otherwise vice versa. The mobility of human resource affects two units of the same organization (Sekiguchi, Froese, Iguchi, 2016). Conclusion Thus, in the limelight of above mentioned events, the fact that shall be noted is that in a multinational corporate there are many human resource management issues which a business process faces in their day to day activity. Apart from that, it is the duty of the HR manager to satisfy the requirements of the employees of the organization along with the objectives of the company to sustain the growth in global environment. Also if the company will not prioritize such issues, and then it can negatively affect their growth in global context. Apart from that, it is very important for a human resource manager to actively look after the issues of all the employees and resolve them so that future growth is sustained (Nickson, 2013). So, in order to attain the global competitive edge the human resource manager needs to adequately look after such issues and its impact on the business in economic terms. Thus the above mentioned analysis evaluates the trends and challenges faced by an MNC, impact on the business globally and recommendation with the aid of which ne can avoid such problems. Recommendation So after look at the above mention analysis of the key trends and issues faced by a multinational corporation, a few recommendations that shall be noted are that firstly the human resource managers shall actively participate in all the activities relating to the human resource of the company. Secondly, the manager shall look after the mobility of the employees of the organization; they shall look for the consent of employees who wish to go to the different unit of the company for expansion purposes. Also, they shall promote the employee or provide them monetary benefits if they approve for transfer. This will help the company to keep the employees motivated and satisfied in their job. Another way in which company can excel the international human resource management that they shall provide training sessions to all the employees of the organization so the come up front to the newly established technology and education in the market. This will help them to develop and adopt different methodologies which will help them to sustain their personal future growth. Employees being the most important asset of the organization need to be satisfied with the environment in which they are working, therefore the company shall organization regular cross-cultural training programs so as to assist the growth of the employees of the organization. Apart from that such events shall be held on a larger scale so that all the employees connected with the working of the organization get to know each and share each other feeling. This will help they create informal groups in the organization which will eliminate the problem of communication or generation gap. Lastly, the company shall international try to manage the economic goals with the benefits of the employees of the organization as well so that competitive advantage is gained by the company. 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