Analysis of HR Competencies in Multinational Corporations

The report analyzes the different HR competencies required by directors in multinational corporations. It discusses the importance of communication, relationship building, and leadership skills. The report also covers different competency models and their impact on organizational productivity. Subject: Human Resource Management, Course Code: N/A, Course Name: N/A, College/University: N/A

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has helped in the analysis of the different kinds of HR competencies in an
effective manner which helps in managing the different activities of the organization
effectively. Furthermore, the different HR competencies model along with importance of the
same in the multinational organization has been analyzed which provided proper importance
and linkage of the same with the organization.

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Table of Contents
Introduction................................................................................................................................3
Analysis of the competencies of HR Director of Multinational Corporation............................3
Models of Competencies of HR.................................................................................................6
HR Competency Model..............................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
The report helps in the analysis of the different kinds of key competencies which are
required to be acquired by the HR director in a multinational corporation. Furthermore,
critical analysis is required to be done on the international business activity in context of the
emerging and current international human resource management theory. Lastly, the
complexity of the cross-cultural differences is required to be done with respect of the
integration of international kind of business activity along with the international HRM
practice as well.
Analysis of the competencies of HR Director of Multinational Corporation
There are different kinds of competencies which are required to be acquired by the
HR director as this will help in improving the communication and overall situation of the
workplace. This can be seen that there can be different employees from various culture and
proper communication is essential to interact effectively with all the employees. The different
models of competency for the HR managers in private along with public sectors is practically
the same and this is responsible for sustaining and creating productive workforce and positive
environment in an effective manner (Susomrith & Coetzer, 2015).
According to Gilmore, (2013) the HR managers and the director is responsible for
creating linkage between individual performance and business results effectively.
Furthermore, () has commented that HR competency is the mixture of different aids and job
knowledge which will be reflected in the job behaviour which can be measured and
appraised.
Figure 1: HR Competencies
(Source: Banfield, Kay & Royles, 2018)

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From the diagram, this can be analysed and identified that the HR Director
competencies help in the following manner to the organizations along with the employees
working in the company as well.
 Communication is the main factor which is essential and this is one such
competencies of HR director. The HR manager must have the ability to communicate
with the employees in the organization from line staffs to the executive leadership.
The skills of communication are essential for the HR director and the HR managers
should be able to convey the right message along with importance of fair employment
practices to executive team of the company (Gilmore, 2013).
 Relationship Building is the other main factor in which this is seen that HR director
along with the managers needs to work collaboratively as this helps in achieving the
goals effectively. The interpersonal skills along with relationship building are
fundamental to the success of HR manager. The HR manager and director needs to
have the ability to establish credibility and this will help in managing the different
objectives of the organization which is required to be achieved (Mankin, 2009).
 Leadership Skills is the other factor which is required to be adopted by the HR
director of the multinational company as this is the major competency of the HR
manager. The different HR director is responsible for creating different kinds of
strategic plans for the overall workforce and the HR department (Sankey & Machin,
2014). The HR director is required to direct the different kinds of activities of the HR
department and this will help in showing the commitment to the HR department goals
(Rees and Smith, 2017).

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Figure 2: HR Roles
(Source: Banfield, Kay & Royles, 2018)
There are different functional competencies of the HR which is required to be followed and
analysed effectively that are as follows:
Functional HR Competencies
 Compensation along benefits
 International HRM
 Building strategy of HR
 Talent and performance management
Generic Technical Competencies
 Business Knowledge
 Financial Perspective

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Figure 3: Relation of HR competencies with HR System
(Source: Banfield, Kay & Royles, 2018)
From the diagram, this can be analyzed that the HR competencies helps in
establishing profiles which can be suitable for outlining different requirements for the job.
The HR competencies help in determining the needs for training along with capturing the gap
between the current skills and the future skills which is required to be ascertained. Lastly, the
HR competencies in the multinational corporation helps in managing the differences
effectively without much difficulties and the different functions are being managed and
performed effectively as well in the organizations with effective skills of human resource
manager.
Models of Competencies of HR
Additionally, Reynolds, (2017) has commented that competency model of the HR will
help in identifying the success criteria that includes the behavioural standards and these
assists in providing different developmental tools for enhancing the skills effectively. With
the help of the competency model, this can be analysed that HR director of multinational
corporation will be able to improve the productivity and profitability of the organization. The
integrity and ethical behaviour are the other criteria which will help in attaining the different
goals effectively for the organization.

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Furthermore, on the other hand, Tahir et al., (2014) has commented that the HR
competencies will help in identifying the gaps between current capabilities and future
requirements as well. The HR director and the managers need to focus mainly on training
along with development efforts on the areas with greatest need or the impact and this
facilitates the organizational change and build desired kind of culture as well. The effective
model of HR competency will help the HR managers in supporting the business strategy
along with aligning with organizational and business goals as well.
HR Competency Model
Role Competency Demonstrates Activity
HR Director Proper decision-
making
Planning along with
evaluation
Oral Communication
Conflict
Management
Self-Management
Analytical, strategic
and creative thinking
Knowledge of
business system and
information
technology
Acts Decisively
Manages Resources
Applies conflict
resolution methods
in organizational
situations
Strategic Partner Awareness of
organizational
activities
Oral Communication
and Customer
Service
Knowledge on
mission of the
organization
Knowledge of the
activity of the
business system
Uses the different
HR principles along
with link the same
with the mission of
the organization
Conclusion
Therefore, this can be concluded that HR competencies are essential in the
multinational organizations as this has helped the organization and the employees to perform
effectively and gain the productivity of the organization as well. Furthermore, this has been
analysed that the different HR competencies includes the communication, training and
relationship building skills which has assisted in engaging the employees in different kinds of
activities and gain huge positive productivity in the future as well.

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References
Banfield, P., Kay, R. & Royles, D., (2018). Introduction to human resource management.
Oxford University Press.
Gilmore, S., (2013). Introducing human resource management. In Human resource
management. Oxford University Press.
Mankin, D., (2009). Human resource development. Oxford university press.
Rees, G. & Smith, P. eds., (2017). Strategic human resource management: An international
perspective. Sage.
Reynolds, M., (2017). Organizing reflection. Routledge.
Sankey, K.S. & Machin, M.A., (2014). Employee participation in non‐mandatory
professional development–the role of core proactive motivation
processes. International Journal of Training and Development, 18(4), pp.241-255.
Susomrith, P. & Coetzer, A., (2015). Employees’ perceptions of barriers to participation in
training and development in small engineering businesses. Journal of Workplace
Learning, 27(7), pp.561-578.
Tahir, N., Yousafzai, I.K., Jan, S. & Hashim, M., (2014). The Impact of Training and
Development on Employees Performance and Productivity A case study of United
Bank Limited Peshawar City, KPK, Pakistan. International Journal of Academic
Research in Business and Social Sciences, 4(4), p.86.