Challenges in Managing International Staff in MNCs

Managing the Multinational
Organisation
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Essay title: Critically evaluate the major challenges in managing the performance
of international staff and rewarding them in MNCs.

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Word count: 800
The paper will help in evaluating the significant challenges faced by MNC’s while managing the
performance of global staffing and rewarding them. It will discuss the challenges with the help of
relevant theories.
Managing the performance of the international staff in MNC's is determined to be a great
challenge. It has been argued that there possess various factors that put an impact on the
performance of international employees. These factors involve environmental factors, personal
adjustment to the international culture and technical knowledge. Other major challenges include
the level of provision served by the management and host environment. According to Đorđević,
(2016), conceptual theory demonstrates the significant contribution of HRM practices related to
performance management, cross-cultural issues, training-compensation management and
staffing. It also explains the three major activities of Human Resource Management (HRM),
such as utilization, allocation and procurement.
Some of the major challenges are as follows:
Managing Multicultural team
The diversity workforces of MNC’s comes from different countries with different habits,
religions, economic and culture (Aladwan, Bhanugopan and D'Netto, 2015). This difference
develops a different working style, and thinking way creates new challenges for HRM to manage
a multicultural team in MNC.
Shortage of cross-cultural training

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The managers in MNC lack understanding of culture block that creates challenges for them in
improving the effectiveness of international staffing management. However, this challenge
occurs as MNC avoids the implementation of a training program at the time of staffing
management (Devarajan, Maheshwari and Vohra, 2016).
Family problems
The international staff always think of their family members, hence these emotions creates a
great impact in their work. Thus family problems is another challenge for the managers.
On the other hand, the challenges related to rewarding international staffing includes residing in
high-class hotels, travelling business class and recollecting their regular flyer miles for own use.
However, the remuneration tends for International business travellers are limited with hardship
allowances for the places determined to be volatile or dangerous (lles and Zhang, 2013).
Therefore, these factors create challenges for the managers in MNC.
Based on the case study of International Leadership and Management Development Programme
(ILMDP) at Merlin it has been observed that Merlin is a charity organization in the UK that
focuses on helping to rebuild shattered health services, saving a life during crisis time and health.
The organization developed The International Leadership and Management Development
Programme (ILMDP) to serve team and management development to develop effective and
stronger management culture (Jackson, 2002). The company has implemented various HRM
policies such as leadership policies, retention policies and staff training. All these are determined
to be nationality staffing HRM policies at the time of international staffing.
The leadership policies are important as it helps in understanding the needs and wants of
international employees. It brings benefit to the organization by creating a framework individual