Challenges in International Human Resource Management

Running head: COMPARATIVE HUMAN RESOURCE MANAGEMENT
COMPARATIVE HUMAN RESOURCE MANAGEMENT
Name of the Student:
Name of the University:
Author note:

1COMPARATIVE HUMAN RESOURCE MANAGEMENT
Introduction
Over the last few years, the globalization procedure or operating in global environment
has created extraordinary scopes for multinational companies’ investment and business. Several
multinational business enterprises are aiming to increase their business globally by varied
opening strategies such as shared business projects and subsidiary. Reports of Lasserre (2017)
have mentioned that while 25 million population and 7.69 million square kilometres has
developed as a significant land for foreign multinational organizations. Kennedy, Welch and
Monshipouri (2017) have claimed that many global companies have been aiming to enter into the
Australian market through different strategies. For example, Coca Cola has been operating its
business as a wholly foreign owned organization which produces beverage operate in
Melbourne, Sydney, Queensland and other regions and is direct shared venture associate in
similar resource in Perth (Lasserre 2017). However, as per the view of Kordos and Vojtovic
(2016), IHRM is transforming as the modern business and encounters several and complex
challenges. The shift of IHRM currently is a direct demand of rapid trends within businesses
because of factors such as globalization. The paper will discuss different challenges which
multinational companies face while executing their business operations in global environment.
Additionally, it will propose some relevant recommendations for aiding these companies to
mitigate such challenges.

2COMPARATIVE HUMAN RESOURCE MANAGEMENT
Discussion
Challenges faced by International Human Resource Challenges
International Human Resource Management (IHRM) has develop into one of the highly
renowned issues in global organization and multinational companies executing their operations
in global environment. Welch and Welch (2018) have opined as the highly significant of
competent workers in multinational companies, the IHRM has been developed. According to
Yeo and Saboori-Deilami (2017), multinational companies implement standardization of HRM
which has been assumed that coherence strategy along with direct practice has the potential to
result operational efficiency and productivity. Nonetheless, Kennedy, Welch and Monshipouri
(2017) have noted that companies are encountering challenges after the global dimension
becoming more and more renowned consequent to developments in operating environment and
structures. Different individuals in different countries have diverse cultural patterns and
conception on organizational behaviour. According to Yeo and Saboori-Deilami (2017),
diversity as well as intricateness of cross-nation and cross-culture may be consequential to give
rise to strategy conflicts for multinational organizations when they tend to adopt IHRM.
Comprehensive studies of Welch and Welch (2018) have shed light on human resource as
a decisive aspect which could be identified as a economical benefit for company’s long-standing
growth and repute. For instance, Kordos and Vojtovic (2016) have noted that while Australia
being equivalent to around 0.33% of the total world populace and thousands of university
populations each year has been accounted as a mammoth labour market for international
companies. Subsequent to its access of World Trade Organization (WTO) several global
companies have penetrated into the Australian market and are strategizing their local employee

3COMPARATIVE HUMAN RESOURCE MANAGEMENT
strategy in Australia. However, Verbeke and Kano (2016) have claimed that the development of
HRM system has not aligned with the speedy increase of economic development in Australia,
several of overseas business enterprises exposed that employing as well as retaining competent
managerial personnel is diverse and complex in Australian market. Moreover, it has revealed that
recruiting the experienced managerial workforce has been identified as a major challenge for
global business enterprises while operating the Australian market owing to several causes.
Challenge related to Shortage of Talent
Around four vital issues are found in IHRM which foreign multinational business
enterprises encounter while they attract as well as retain competent professional workforce in
Australia. One of the challenges has been the shortage of talent. According to Khilji, Tarique and
Schuler (2015), talent at this juncture can be defined as the young individuals showing upward,
systematic, skilled and competent abilities. For example, over the last years, Australia has
noticed thousands of university graduates students every year. However, Stone and Deadrick
(2015) have claimed that the enormous business market did not generate further talent to the
country. In Australia subjects like major of art subjects such as management, advertising,
marketing and language which has led to the increase of talent shortage. According to Cascio and
Boudreau (2016), by contraries, overseas multinational business enterprises operating in
Australia seek to magnetize a particular type of skilful employee base with higher technical skills
and intensely appreciate global management skills.
In recent times, multinational companies have experienced that a number of graduates
major in science subjects are trained in their profession. At this point of the discussion Khilji,
Tarique and Schuler (2015) have cited the example of Atlassian Company in Australia where the