Challenges Faced by Multinational Organisations in International Human Resource Management

This report discusses the challenges faced by multinational organisations in international human resource management and how to tackle them. It covers topics such as cultural clashes, ethical and legal laws, and maintaining uniformity in different branches. Recommendations are also provided to improve productivity and build a positive work environment.

Running Head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Overview
International human resource is a practice that is defined by the organizational activities and
it aims for efficient productivity and the effective management of the human resources. The
main functions that are performed by the staff of the human resource department are
recruitment, selection, training, development, appraisal, performance and managing the
activities of the workers. It incorporates capacities like business, determination, preparing
and improvement, execution appraisal and rejection done at worldwide level and extra
exercises, for example, worldwide aptitudes administration, ostracize administration and
some more (Brewster, Houldsworth, Sparrow and Vernon, 2016).
In this report, a portion of difficulties are confronted by dealing with the human asset
division of an association. It likewise limits the danger of disappointments in abroad task. In
straightforward terms, it is said as HR is overseen at global level to meet authoritative target.
Challenges faced by multinational organisations related to HR department
Multinational organisations are the one who controls and own various services in more than
one country. When multinational organisations work in global market they face various
challenges in relation with human resource management because multinational organisations
work in different countries with entirely different culture. Some of the challenges related to
human resource management are difference in beliefs and values of host and other country.
There are various differences that arise due to different culture. Human resource
management team is responsible for having a proper control over all the global operations.
There are some of the ethical issues that need to be resolved. The reason behind such issue is
uncertainty, volatility and ambiguity. The major concern that is faced in multinational
organisations due to HR department is creating a mind-set to improve the connection

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between international mobility and global function. The risk is increasing in the market due
to uncertainty as it does not permit human resource team to integrate all the operations
(Collings, Wood and Szamosi, 2018).
The other challenge is transferring skills to employee across different country. It was found
that every country as different values and beliefs. Thus, it is difficult to manage the issues
while hiring employees. Human resource management team should take an initiative of
offering training to the employees so that culture conflicts could be resolved. Human
resource department is also facing a challenge due to increasing use of automotive services
as it has decreased the demand of employee (Festing and Schäfer, 2014).
The role of HR department is to make sure that no cultural differences exist. The
diversification in the culture arises due to different languages, customs and beliefs. Thus, to
avoid such hindrances human resources department need to look for some action plans with
the motive of creating all the employees equally. In many cases, extra privilege is given to
the staff and employees or local region. Thus it is needed by human resource management
team to look at the performance capability of an individual without considering any other
factors. The staff and employees should be given equal importance in local as well as
international market (Sheehan, 2014).
Multinational organisations have diversified their services all over the globe. Human
resource management team face an issue while maintaining uniformity, business units are
present in different countries having different customs and policies. HR department find out
ways through which equality and uniformity is maintained in all the business units. This can
be achieved by having detail knowledge about local laws as well as finding out ways
through which safety can be maintained in an organisation. To maintain unity between
different branches, human resource management should build a community through which

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employees can interact with other. It covers some predefined rules and policies that will be
followed at time of recruitment. The conflicts arise due to difference in roles of an
employee. For removing such issues a common information system should be developed so
that all the information could be handled easily. Thus, advance technology helps in
improving overall productivity. In multinational business there are staff and employees from
entirely different background (Futurehrtrends, 2017).
The other challenge in multinational companies related to human resource management is
encountering of ethical and legal laws. As multinational companies are widespread in
different countries each have their own values and customs. Thus, it is the responsibility of
human resource management team to balance the laws in all the branches. One of the
difficult challenges that is used due to HR department is maintain security and safety. It is
seen that cybercrimes and cyber-attacks are increasing thus security measures are taken by
HR professionals so that security breach doesn’t occur. Multinational companies have high
prone to risks as they have a very sensitive information that can’t be leaked (Taylor, Doherty
and McGraw, 2015).
The globalised workforce has increased the challenges in the organisation related to human
resource management. One of the major issues is finding out ways through which
recruitment could be done. Hiring should be done in a similar manner so that talented
employees could be selected for better future. Human resource management should treat all
the candidates equally and having no difference between them in terms of gender and
culture. Social media is used for recruitment as it helps in hiring employees from different
locations. It is suggested that multinational organisations should offer equality to all the
employees by taking a holistic approach (Wood, 2015).

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For HR office, to guarantee that no difficulties would be confronted a few stages ought to be
taken to keep up solidarity crosswise over universal specialty units. This should be possible
by working up a worldwide representative network by having strict standards and
approaches for procuring and selecting. The difficulties looked in these procedures are
contrast in part of procedures advertisement framework. Thus, advance technology helps in
improving overall productivity. In multinational business there are staff and employees from
entirely different background (Reiche, Stahl, Mendenhall and Oddou, 2016).
The other issue that is faced by human resource department is it helps in making decisions.
The major challenge for the human resource department is to evaluate the current situation
in a critical manner in order to consider those decisions help in avoiding the risk (Stone and
Deadrick, 2015). The challenge of the team is to collect the weak spot and identify the
opportunities to take the correct decisions. The market value fluctuates and therefore it
becomes difficult for the team to take the decisions for all the existing businesses. The
success of the organisation is to maintain the sound environment at the working place which
can be achieved by accumulating all the complexities under one umbrella and making a plan
to cope up with the barriers and risk (Collings, Wood and Szamosi, 2018).
Apart from the challenges is advised to the human resource department to remove the
barriers. The process to remove the barriers certain training programs are introduced that
helps in understanding the beliefs and the customs. It avoids the chances of the conflicts on
the basis of the culture in the organisation (Boon, Eckardt, Lepak and Boselie, 2018).
The next big challenge which is faced by the organisation is creating an innovative business
case for the purpose of the CSR (Tzafrir, Meshoulam and Baruch, 2017). For any
organisation the corporate social responsibility is one of the major issues and the critical
points in the multinational scenario. This challenge arises when the organisation tries to

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enter the new market and there are several actions of the organisations which do not work in
the international market (Kamoche and Newenham-Kahindi, 2016). Therefore in order to
solve the problem of the social responsibility the HR department of the organisation needs to
take various steps. The first step taken by the department is to gain an understanding of the
practices and the nature of the environment to align the same with the global market. The
protocol came in to effect so that the communication can be done within the branches
(Bailey, Mankin, Kelliher and Garavan, 2018).
It ends up troublesome for the HR office to have a detail comprehension of the business
practices subsequently in order to have the security and the integrity the human department
makes it possible after taking into consideration by all the economic values. The other major
challenge is to keep a balance between social as well as the corporate culture. Some of the
cultural values cannot be compromised and thus the human resource department brings the
surety that all the values are maintained (Marchington, Wilkinson, Donnelly and Kynighou,
2016).
The other issue arises with new methodologies and changes in inner process. Changes in the
administration diminish the general profitability which can be controlled by directing
consistent trainings and the meetings. It is seen that multinational associations experience
the ill effects of administration issues, and these issues can be settled by investing time in
preparing advance programs. It helps in restricting the clashes in the association. For the HR
division, innovation and the quality of the employees are critical (Hollenbeck and Jamieson,
2015).
Consequently to be more directed, significant difficulties are out looked by human resource
administration in multinational organizations and are consistent with laws and controls. The
answer for this issue is that custom-based law ought to be intended for neighbourhood, state

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and government districts (Lester, Virick and Clapp-Smith, 2016). The rules and regulations
of the country differ from country to country. For example in many countries there are
several workers who are nit regular and does the part time work and yet receive the benefits
as that of the regular workers (Bondarouk and Ruël, 2016). Therefore the human resource
department has to clearly form the policies according to the belief of the country.
There are certain ways through which the challenges are solved by identifying the main
areas which can lead to fight. The human resource management should focus more on the
creativity and the innovative strategies. Human asset administration group should monitor
databases so yearly audits can be dissected. The maintenance can be enhanced by offering
positive workplace or offering rewards. Through bringing the transactional business policies
in the organisation the human resource management can develop and build a sound system.
There is different training and the cultural events are organised to remove the chances of the
fight and to make sure there is the positivity around the organisation. A portion of the parts
that are refined by human asset administration are overseeing concerns, for example, boss
marking, ability advancement, execution administration, venture group working, and
rewards and progression wanting to build up a power of worldwide chiefs. Jackson, S.E.,
Schuler, R.S. and Jiang, K., (2014)

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Conclusion
In this report, a discussion has been carried out on the human resource management and the
manner in which the workers work in the environment. The major challenges are also
identified and how the problems need to be tackled is seen in this entire report. Moreover the
HR department also have the ability to offer the measure up to chances to the workers. A
portion of the test looked in worldwide workplace is social clashes that can be settled by HR
supervisors.. The same can be achieved through the training sessions and the by
communicating the same to all the workers and making them aware about the importance of
the same.

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Recommendation
To avoid all the conflicts in an organisation it is recommended that an employee handbook
should be created so that policies and procedures could be managed. Human resource
management should also develop new strategies and process so that equality is offered to
them. They should also offer training so that cultural barriers are resolved. A proper process
evaluation plan should be developed so that outcomes are calculated and performance could
be improved. The Hr department should take steps to build up positive environment and can
also come up with rewards so that productivity could be increased.

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References
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., (2018) Strategic human resource
management. Oxford University Press.
Bondarouk, T. and Ruël, H. (2016). Electronic Human Resource Management: challenges
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Boon, C., Eckardt, R., Lepak, D.P. and Boselie, P., (2018) Integrating strategic human
capital and strategic human resource management. The International Journal of Human
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Brewster, C., Houldsworth, E., Sparrow, P. and Vernon, G.(2016). International human
resource management. Kogan Page Publishers, pp.176-185.
Collings, D.G., Mellahi, K. and Cascio, W.F., (2018) Global Talent Management and
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Collings, D.G., Wood, G.T. and Szamosi, L.T. (2018). Human resource management: A
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Futurehrtrends, (2017). What's Next Future Global Trends Affecting Your
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