Challenges Faced by IHR Managers in International Business Operations

This essay explores the challenges faced by IHR managers in maintaining a workforce in other parts of the world apart from their headquarters. It also discusses the importance of IHRM, challenges faced by IHRM, and ways to develop professionalism and competencies in IHRM. The subject is International Human Resource Management, and the document type is an essay. The course code, course name, and college/university are not mentioned.

Running head: CHALLENGES FACED BY IHR MANAGERS
Challenges faced by IHR Managers
Name of the Student
Name of the University
Author Note

1CHALLENGES FACED BY IHR MANAGERS
Introduction
In this essay our aim will be to research the challenges faced by the MNEs usually to
maintain the workforce situated in other parts of the world apart from their headquarters. and
to research and analyse the possible u at s of developing a large level of professionalism and
capability in International Human Resource Management (IHRM) to face the challenges by
the Multi National Enterprises (MNEs). IHRM can be termed as the efficient implementation
of human resources in an organization in an international environment. There are four leading
activities importantly involved with IHRM are hiring and selection, training and
development. Compensation and rehabilitation of emigrants (Mbaabu , 2013). Current
definitions term IHRM with activities of the ways the MNEs manage their geographically
break-up workforces in order to build their human resources for competitive edge, both
nationally and internationally. The strategic approach includes the aspect and functions of
IHRM with the relationship between headquarters and its other branches, as well as the
policies and practices. IHRM may also be defined as an assortment of rules and regulations
that a MNE uses to operate local and international employees it has in other countries (Gupta
2013).
Importance of IHRM
The economy across the world has is vastly combined due to globalization Countless
corporations are broadening their arms into areas or other countries they hardly reached
before. These organisations comprehend a progressive stage known n as internationalization.
It can be thus, proved that competent human resource management of a company is the main
competitive edge, may be the most important element of the performance of a company. A
multinational enterprise primarily depends on the efficiency of its IHRM during the
internationalization process in order to endure in the essential global commercial market. In

2CHALLENGES FACED BY IHR MANAGERS
other words, it can be said that it is the IHRM’s duty and responsibility' to facilitate the
MNEs to be internationally fruitful.
The improvement of globalization has showed the occurrence of fresh challenges and
expansion of flu complications of managing the MNEs. IHRM plays a vital role in balancing
the demand for organizing and controlling foreign enterprises, and the need to cope up with
the local surroundings. Thus, IHRM has an extended definition of management localization,
global coordination, and the development of international leadership, and many more. It is
very much important to understand the reason of continuous development of importance in
International Human Resource Management. In current years, the fast growth of globalization
and international competition between the companies has been observed. The multi-national
enterprises or MNEs have expanded in figure and implication, which in turn are adding to the
ever-evolving importance of the part of the IHRM. The capability of human resource
management is considered as one of the prune factors to figure out the rise or fall of global
businesses. It is accepted in international operations that the component of management looks
more serious than in domestic operations An increasing deficit of managers with experience
and foreign exposure is becoming a growing insufficiency which usually affects an
organization’s corporate efforts to grow internationally. In the meantime, the developing
markets require managers with original capability and background-specific education to carry
on business in a successful manner in countries which are both culturally as well as
economically remote.
Therefore, a bigger role for IHRM activities is authorized in multinational enterprises.
But the loss in global business field is generally expensive in terms of human as well as
monetary terms, which is more serious precautionary step than that in national business.
Enterprises should take preventive measures to train and reward human resources. This helps
to make a full-grow n IHRM vital in modern business approaches. Human resource strategy

3CHALLENGES FACED BY IHR MANAGERS
plays an important aspect in the authority and application in MNEs. It is not futile to identify
which strategy to follow for a MNE in an internationalizing background. The objections are
the ways to implement these strategies to be fruitful. Establishing rare or uncommon
organizational art. is more important than basic innovations in ant global strategy. Thus,
IHRM strategy becomes the deciding determinant of the application or application and
success of the MNE strategy. The complicated essence of HRM problems involved in
international environment is undervalued by few companies. Poor human resource
management can be termed as one of the major results in the failure of the international
business. Emigrant performance decline or underperformance continues to create a problem
for IHRM in many international enterprises (Michael & Francis, 2018).
Challenges faced by IHRM
It is really a difficult task to manage a large number of employees who are u working
for a particular company in a number of countries. One of the major problems is staffing
guidelines. The process through which an enterprise hires. chooses and provides training
individuals to perform particular job roles which the management allots them with duties
associated with the job function is known as staffing, Growth of an efficient staffing
guideline is a dynamic challenge for IHRM. The ability of an organization to draw attention,
recruit and retain certified, skilled, and committed labour pool holds the achievement of any
enterprise. A major challenge is the topographical boundary between the head office and the
international offices which really make it really difficult to apply a daily communication on
regular basis. Political Factors in the overseas countries plays an uncertain environment in
IHRM. In such scenarios the human resource managers live in an unfamiliar state. And
therefore fail to prepare strategic decision due to their continuing quality for fear of what will
arise from the situation. The country’s legal system plays a crucial factor of the staffing
approach to be followed by an enterprise. In such cases, maximum international organizations

4CHALLENGES FACED BY IHR MANAGERS
face an objection where the country that hosts, fixes the representation as less as possible, of the
local workforce in the universal enterprises (Thoo & Kaliannan. 2013).
Many economic factors for instance the economic development and position
regarding the investment created by the MNEs affects the staffing approach largely followed
by global firms. The international human resource heads must consider detailing the
contrasting purchasing and also the growth capacities. For example, rising expenses in many
of the developing countries have compelled MNEs to replace the emigrants with the
provincial managers. The inadequate managerial talent in most developing countries has led
MNEs to face huge transaction expenses as they have to bring managerial people from other
countries. Cultural distance also serves as another main determinant of the staffing ideology
and blows excessively on IHRM. The international human resource managers face many
complex challenges, one of which is cross-culture communication. Differences in culture
clearly affects the performance of the enterprise. The developing countries here there is youth
population and high unemployment rates, such countries experience a massive skilled labour
shortage as most of the youths have limited skills. As of now, the only solution to solve the
problem of a limited skilled workforce by the company is to fill the gap with older skilled
workers and bringing more w omen into the workforce (Caligiuri & Bonache, 2016).
Professionalism and Competencies in IHRM
Given the fact that the IHRM have to face a lot of challenges while deciding on the
appropriate staffing policy, there are ways to develop the capability or professionalism in
IHRM. Effective Cross-Cultural Management is one such way. Miscommunications will
happen as there is difference in culture among the communicators. Inter-cultural management
delivers the best results to cross-cultural clashes. In order to overcome the difficulties of
behaviour, affection, civilization and race, multicultural companies can accept a number of

5CHALLENGES FACED BY IHR MANAGERS
strategies. Those strategies enclose the relocation and circulation of education and bicultural
skills. Assignments of short-term include a temporary or short-term transfer of the employees
to a foreign branch, may be for less than a year. Such assignment will help the company to
provide a solution to the challenge combined with talent deficit in the host county and
managerial development (Story et al., 2014).
Action Plans
Short-term assignments also provide extra benefits including increased capability,
flexibility and integrity. Commuter and Shifting Assignment indicate an employee working in
a country for a few days and after that moving to another workplace in some other country
and so on. This kind of arrangement helps to clarify the objection of cross-culture
communication and increase in flexibility. IHR managers have to face a lot of challenge in
their efforts to build and develop a high-quality workforce The HR manager should not only
give priority on quality training but also have to ensure that the training is effective and
engaging. Then should design the training materials in a way that can be used for multiple
training conditions to reduce the cost of training. Performance appraisals should be done to
all the branches of the company (Pudelko. Reiche & Carr, 2015).
Conclusion
It can be concluded that there are lots of challenges faced by international human
resource managers to perform a smooth running conditions. and to avoid such conditions.
They have to follow the recommended steps. The interconnection of national and
international economies due to globalization has been automatically certified on international
human resource management. As MNEs explore to accomplish international areas, human
resource methods and strategies are growing importantly on daily basis. They also act as the
instrument for planning and control of international operations of the organizations. In such

6CHALLENGES FACED BY IHR MANAGERS
cases. international human resource departments should convert themselves like the modern
corporate wor1d know-how a bunch of complicated challenges. Any organization looking to
deal with the global market should handle the operational cost properly and on pre-planned
basis on the bouncy pitch of the aggressive and difficult corporate economy if it has to taste
the success from international operations. The purpose of I HRM is to get the competitive
gain over the others by hiring and improving the skills, efficiency and productivity of all the
employees.

7CHALLENGES FACED BY IHR MANAGERS
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8CHALLENGES FACED BY IHR MANAGERS
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