How Global Threats Impact Multinational Enterprises' Workforce Management

This report analyzes the impact of global threats, specifically the Covid-19 pandemic, on the workforce management of multinational enterprises. It includes a case study on McDonald's and discusses changes in international operations, training and development of staff, managing virtual teams, and health and safety considerations.

How do global threats change
the way Multinational
Enterprises manage their
global Workforce?
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INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................11
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INTRODUCTION
Corona virus which is also termed as covid-19 pandemic disrupts each and every business
sector in all around the world. This global pandemic affected every business aspect be it
government, social, health care, manufacturing and more. All the businesses get seriously
impacted on term of growth and development (Zhu and Sardana, 2020). This pandemic still
continues to spread globally and effecting consumer shopping behaviour and industries like
transportation, food, medical travel and more. This pandemic also threaten every economy
around the globe and astonished the manner of business operations of multinational industries
like fashion, cars, food, hospitality, technology and more. Some of the biggest organisations like
Starbucks, Nike, McDonalds, Tesco Aston Martin and more faced serious destruction from this
virus. In this report formative analysis has been conducted on the manner in which the Global
threats such as covid-19 pandemic have the change the manner in which multinational
enterprising managing their workforce. In addition to this assignment also include covid-19
pandemic upon McDonalds which is operating its business services in food industry.
MAIN BODY
Covid-19 affected business organisation in every sector in all around the world and lead
them towards slow growth, decrease in sales and other quite tragic outcomes. It challenge the
way in which organisations are managing their business operations like management of
workforce, supply change management and more (Mazé and Chailan, 2020). Before this
pandemic there was international mobility which facilitates organisations to provide different
types of development opportunities to workforce. Multinational organisations however are
required to serve their customers even in this pandemic situation in order to maintain the leading
positioning and profitability in market Furthermore, it has been identified that due to this
pandemic organisations faced difficulties to manage their conferences and important meetings
that further lead to be cancelled. In addition to this it has been underlined that in order to protect
and manage their works from challenges of covid-19 multinational organisations are still trying
to overcome the consequences of these virus and engaged in the process of mitigating and
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managing impact Covid -19 upon workforce. Different type of practices and policies are being
adopted by HR and management in order to manage workforce globally in an effective manner.
Mentioned below there are some certain form of changes and modification that has been
implemented by McDonald's and other organisations in managing their international operations
strategies while concerning health and safety considerations for customers, employees and
business organisation.
Managing international operations:
Due to covid-19 multinational organisations are facing slowdown in global growth that
affected supply chain demand and business operations of companies, in order to overcome from
negative consequences of this pandemic entity is are forced to develop new strategies and
policies (Sarabi, Chng and Meyer, 2020). It is essential for multinational organisations in every
sector such as McDonald’s which is operating in food industry segment to address challenges in
global market. In order to overcome adverse impact of covid-19 and manage international
operations McDonald’s undertake advantage of different pricing strategy and customer price
sensitivity measures. Furthermore, it has been underlined that in order to overcome the losses
that have been faced by companies with the help of this strategy company is looking forward to
address the losses in upcoming months. This pandemic forced organisations around are world to
device new expectation and target for the year and are required to effectively address supply
chain disruption. Management of McDonald’s enforced new strategies in order to tackle liquidity
and credit challenges of distributor and customers.
In order to effectively manage international operations organisations like McDonald’s
undertaken certain modification and make investments in strategies to improve supply trends in
global market. In addition to this due to this pandemic organisation like McDonald’s are also
required to restructure their tax planning source of inventory, labour and supplies. In order to
generate international business revenue it is essential for multinational companies to effectively
imprecise upon tax compliances in order to effectively manage international operations.
Management of Tesco engaged in the process of organising business structure in order to
increase tax efficiency. It has been identified that in order to overcome the challenge of tax
consequences such as changes of international compliance business leaders of leading
organisations like Tesco, Aston Martin, Sainsbury, ASDA, McDonald’s and more are looking
forward to undertake advantage of strong International tax strategy while adhering International
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governmental mandates (Cooper and Nguyen, 2020). By undertaking all these measures into
account McDonald's which is operating its business activities in food industry if looking forward
to effectively manage its international operations in a well defined and effective manner. With
the assistance of these policies organisations can conduct their international operations in an
effective manner while overcoming challenge of covid-19 upon business operations.
Training and development of staff:
McDonald's is operating its business services at white scale, this cooperation is having
more than 38, 695 stores with 210,000 and more than employees in its franchisees around the
world. Due to covid-19 training and development of staff within company get affected in number
of ways. It has been determined that McDonald’s is multinational organisation which is
providing high quality services and facilities to customers all around the world, for this company
provide training to employees in order to enhance their skill, expertise and knowledge. Before
Covid-19 mobility was easy, but due to this pandemic approximately all the nations announced
lockdown that affected travel and tourism system in which domestic and international travel got
banned. It affects leading organisations like McDonald’s training and development campaigns.
In order to effectively manage key positioning it is essential for organisation to increase
capabilities of employees (Sharma and Soederberg, 2020). However it has been identified that
McDonald’s effectively consider safety of employees and their family and provide extensive
support to them in order to deal with stress, anxiety and other mental and physical pressure.
Covid-19 developed numbers of challenges that affected the manner in which workforce deliver
their services to customers around the world. McDonald's provides best practices and training
staff members to employees in all geographical locations through digital technology. In this
employees are being provided with the knowledge of social distancing at workplace and
importance of sanitization. This will help them in overcoming fear of infection. In relation to this
it has been underlined that McDonald’s also developed number of tie-ups with major hospitals
across all the location in order to provide employees and their family’s medical insurance and
other health in well-being measures.
In addition to this it is essential for multinational organisations like McDonald's are sure
that their workforce does not experience with any shortage of skills and knowledge and deliver
him high quality services and performance even during restrictions and around the globe. 80% of
McDonald's employee based are required to perform their roles and responsibilities from home
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as per according to the government guidelines. In order to ensure continuous operations
McDonald’s connected with line manager community in order to make sure that teams around
the world are delivering services across all part of their business sectors with the help of digital
technology. With the help of various digital platforms company provide with the future skill
program to employees with the assistance of IT infrastructure and right tools. Main aim behind
this is to provide effective work from home facility to employees. McDonald’s consider their
employees as a major source of revenue generation and it has been identified that half of the staff
of the organisations are women workers. In this, management of McDonald’s effectively
recognised the challenge of their women employees as they have multiple roles and
responsibilities. For this company review and modify their policies in which they provide greater
flexibility to women staff in order to manage their work life balance and offer agile ways of
working through which they can conduct their roles with more dedication and loyalty towards
organisation.
Managing virtual teams:
Due to covid-19 the age of use of virtual reality imposed challenges in front of leaders
and managers among organisation. However it has been identified that virtual means not physical
it can somehow affect productivity and team connection. Due to number of challenges virtual
reality have number of advantages through which business operations can be done in an effective
manner. In order to overcome the challenges of virtual team such as employee engagement and
team trust is essential for an organisation to undertaker advantage of effective strategy (Juettner
and et. al., 2020). It has been identified that during lockdown many countries around the world
imposed looked down and suggests organisations for the entire sector whether it automobile,
hospitality, food, coffee and more to allow work from home. In this situation organisations those
who are performing business on global scale such as McDonald's is required to guide and engage
employees from different workplaces in order to collaboratively conduct business operation. In
this tough time leaders and managers of this organisation mastered virtual leadership of teams
and guide team members effectively towards purpose and clarified roles with the proper
direction. During covid--19 main responsibility of leader is to have a structured approach and
underline strategies in order to delivery effective services. Managers and leaders of respective
company developed strong virtual team network and leverage technology in order to make
almost 80% of business professional to use online collaboration platform in order to work
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effectively (Shams and et. al., 2020). Furthermore it has been identified that in order to
successfully manage business operations and goals managers of McDonald’s doubled down the
fundamentals of good management and involve great meetings and communication in order to
have a collective strengths. In addition to this has been identified that in McDonald’s key
managerial executives undertakes telephone conferences in order to provide motivation and short
messages to employees in order to keep them motivated. Along with this, with the help of follow
up meetings, emails leaders and managers identify critical team problems and further resolved
them in effective time manner (Pikhart, 2020). It has been underlined that top managerial
executive of McDonald’s undertaker advantage of various strategies in order to motivate their
employees across different stores around the world, as due to this pandemic teams are working in
more stressful environment than ever. In this situation managerial executive are required to wear
different hats for different team in order to have strong communication with them (Lee, Yang
and Song, 2020). Along with this, it has been identified that this organisation conduct their
services at global scale in which some employees may reside in a remote location, in order to
overcome the issue of neglected communication and other complex situation leaders repeat and
ask questions to employees repetitively in order to make sure that there is no sign of
misunderstanding.
McDonald’s senior management also ensure that they provide necessary information’s to
employees and take regular feedback from employees not only in a professional manner but also
personally in order to determine their well being. Due to covid-19 governments around the world
are forced to change their policies in these situation leaders and HR managers assure that
employees are aware with the necessary information about the changed policies for their benefit.
Leaders and managers of McDonald’s ensure that they have regular meeting in order to provide
employees an opportunity to share their ideas and the manner in which they are coping and
managing their work. Managers of this multinational organisation creates an environment in
which employee share their idea. Along with this, McDonald’s leaders and manager conduct a
happy hour or a social hour digital platform at the end of the day with team, during this there is
no discussion on work related issues and team members get to know about each other the manner
in which they are coping during pandemic time. In addition to this, it has been determined that
McDonald’s consider that employee appreciation is imperative. For this leaders and managers
in virtual teams provide a gift card, an appreciation mailer addressing to the employee and
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marked to the entire team or posted on a common platform like Yammer or Workplace works
magical to bring back the sense of belongingness (Papanastassiou and et. al., 2020). Main motive
of this is to enhance sympathy and share their personal life in order to make sure that employees
are working with low burden or stress. With help of this leaders and managers of McDonald’s
maintain great working environment trust and openness that enhance this trust among each other.
Further it has been identified that leading organisations like Tesco, ASDA, Ashton Martin and
more from different industrial sector take advantage of virtual team from chat tools like
WhatsApp, Skype, MS team in order to engage their employees and perform business operation
effectively during covid-19 period.
Health and Safety considerations
Health and safety concern one of the most important and prioritized concerns of many
multinational organisation during without the outbreak of Covid-19. This global pandemic forced
change in the overall aspects of multinational enterprises in manner in which they are managing
the global workforce. Due to number of health and safety obligation, legal laws and government
measures organisations are required to provide health and safety facilities and relaxation to
employees around the world. McDonald’s is a multinational organisation and have large scale of
employees in the different graphical locations in different countries. It has been identified that
this pandemic affected each and every corner around the globe that makes essential for company
to revise its health and safety policies. Many leading organisations like Tesco, Sainsbury which
is operating this services in retail Industry sector, Starbucks which is conducting its operations in
coffee industry, Automotive industrial organisations like Aston Martin and McDonald's which is
operating in food industries are required to have strong health and safety consideration for
employees. Being labour intensive companies it is essential for these organisations to overcome
the negative impact of corona virus on employees mental as his physical condition.
In order to ensure proper health and well-being consideration of employee’s management
of McDonald’s enforced number of strategies in order to provide collective accommodation
services to their frontline workers who are even conducting their services in stores such as door
step food delivery. These workers have large exposure towards getting ill thus company offer an
extensive protective measures and equipments to these workers around all of their stories.
McDonald’s revised its employee benefits and compensation policy and offer many health care
facilities to employees and their families especially for those who are diagnosed with covid-19.
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Company provide employees with the facility of extended sick leave, paid time off, flexible
policies and vacation time. McDonald’s also increased sick leave or paid time off for their
employees and also extended many health policies. This organisation also provide employee
with the benefit of employee assistance program and provide mental health services for stress
management through digital platforms. McDonald’s also provide Child Health Care subsidies
and other dependent care benefits to employees along with unlimited paid time off without
penalties (Kong and et. al., 2020). This company consider their employees as one of the most
important asset thus; they provide employee insurance and other relevant benefits. Company also
provide emergency notification system, laptops, and portable equipments to their employees
around the globe with the devoting IT staff in order to help employee’s setup remote connection
at home. With the help of all these services and collaborative project video and audio video
conferencing and other online channel McDonald’s keep sure that their employees aware about
different advices policies and protocols of covid-19. Company also encourage their employees to
take enough medicines food water and other in case of scarcity or current time. Thus, according
to the above analysis it has been determined that with the many benefits and revised health care
policies multinational organisation like McDonald’s offer relaxed work environment to its
employees.
CONCLUSION
As per the above mentioned report it has been concluded that corona virus or covid-19 is
still continues to shaking the business as well as consumer behaviour on a wide scale. It has been
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analysed that organisations in both private and public sector measured serious destruction. This
pandemic has major consequence upon economies around the world that affects the manner of
business operations. Large multinational organisation in banking, technology, food travel and
hospitality manufacturing and more get affected due to the outbreak of covid-19. Corona virus
not only affected growth and development of business organisations along with this it also
affected organisations supply chain and the manner in which they are managing their workforce.
This pandemic make business organisation in different industries to undertake advantage of
digital technology to manage their workforce in an effective manner.
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Pikhart, M., 2020. The Use of Mobile Devices in International Management Communication:
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