Challenges Faced by IHR Managers in International Business Operations

Running head: CHALLENGES FACED BY IHR MANAGERS
Challenges faced by IHR Managers
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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