This article discusses the challenges faced by multinational organizations in human resource management and provides recommendations on how to address them. The challenges include recruitment, selection, and retention; benefits and compensation; HR planning; and acceptance of management change.
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HRM Discuss the following statement: Working in a global landscape, multinational organizations are faced with challenges that are related to human resource management. Identify and evaluate a selection of these challenges. Suggest ways in which multinationals can work to address or deal with these challenges. Introduction In the present era, the majority of the companies are emphasizing on enhancing the market area so that it could be easy to attain goals and objectives in the highly competitive market. It is examined that in the modern days of HRM the companies have to face different types of challenges in relation to the overall activities that are managed on international as well as on a national level. To work on the global platform is not considered as an easy approach for the companies as there are various challenges that are faced in relation to the human resource management (Farndale et al., 2017).In this paper, the discussion will be made on the concept related to "Challenges concerned with Human resource management and the ways that should be considered by the companies to deal with it". 1.0 Recruitment, selection and also retention as a challenge It has been investigated that one of the challenges is related to the recruitment, selection and also retention of the employees. To recruit the skilled employees is the difficult tasks for the organizations as there are different choices that are available with the candidate, so it enhances the problems for the recruiters to attract and retain the employees towards the assigned activities (Goldstein, 2017). This challenge has a link with the lack of understanding that takes place between the employees and the higher authorities. It can be said that lack of communication can boost the problems when the process of recruitment takes place, which means that the emphasis on searching the right employee for the right job post (Delbridge,Hauptmeier and Sengupta, 2011). Retaining talented workers can be a challenge that is faced by companies. This can be the challenge because, in the present era, the Millennial have the mindset that it is important for the company to favor the personal needs of the employees. But the challenge is enhanced of the recruiters in this case as the Millennial have the tendency to manage the operations by having the hope that it will boost the workload so they are not willing to stay for a long time in the 2
HRM company. Hence, it can be said that this is one of the major challenges which is faced by the companies and it is necessary to be resolved so that success can be achieved in the highly competitive market (Farndale, Nikandrou, and Panayotopoulou, 2018). 1.1 Recommendation According to this challenge, it is recommended that that motivation is one of the essential factors in which the company should emphasize so that it could b easy to retain the employees for a long time in the workplace. It is important to take into consideration the Maslow hierarchy of needs theory so that talented workers can be retained towards the activities of the company. This is one of the effective theories that can help in minimizing the challenge that is faced by the employees. This theory focuses on the five factors such as physiological needs, safety needs, love, and belongings needs and self-actualization needs. It is important for the higher authorities to emphasize on boosting the motivation level of the employees so that the retention rate of the employees can be enhanced and also it will help to attract and induce the talent employees towards the activities of the company. Recruitment and selection challenge can only be minimized if the candidates find the company a good place to work. So, it is recommended that the focus should be given on motivating the employees through different rewards which can help in enhancing the engagement level of the employees towards the work. It will also positively impact the recruitment and selection process of the company in the highly competitive business world. 2.0 Benefits and compensation challenge The organizations are also facing the challenge at the time of offering the benefits and compensation to the employees. The challenge takes place because of the changing global compensation policies. It is analyzed that in relation to different countries there is continuous change in the rules related to compensation and benefits. The norm of the government in different countries varies so it creates a challenge for the company to make the plans that are universally accepted. The balance of costing is also one of the aspects that are related to the benefits and compensation challenge (Parida et al., 2015). 3
HRM The profit margins of the company are reducing so it is important for the organization to emphasizeonminimizingtheircosting.Forthis,therearemanyorganizationsthatare minimizing the benefits that are offered to the employees. This is enhancing the ratio of the employee's dissatisfaction and due to this; the company has to face the challenge in relation to boosting the satisfaction level towards the job (Ulrich and Dulebohn, 2015). The economic environments in the different countries are also changing at a fast pace which is also boosting the expectation level of the employees in terms of salary. In context to this, it is difficult for the HRM to make the compensation plan that boosts the motivation level f the employees and also on the same time it is enhancing the overall burden of the expense ratio of the company (Minbaeva et al., 2014). 2.1 Recommendation To manage the challenge related to benefits and compensation it is recommended that the companies should focus on making the compensation plans according to the changes that take place from country to country. Also, the organization needs to construct a plan that has a proper balance in relation to these two factors. If the emphasis is given on the challenge related to the changing demands on the global platform, it is recommended that the companies should work with the employees by offering them the model that is appreciated by all the individuals in the workplace. In relation to this challenge, talent management is also the process that should be implemented by the human resource manager on the international platform assist will help to resolve the challenge of benefits and compensation. When talent management programs are considered then it would help the employees to boost their skills which will help them to gain benefits in relation to incentives that can be earned by them.The salary that is given to the employee should also be set according to the qualification and experience of the employees towards the work. 3.0 HR Planning HR Planning is also known as the challenge that is faced by the companies at the time of managing the work on the global platform. HR planning is an important factor that assists to analyze the current and future requirement of the company in context to attaining the overall goals (Kispal-Vitai and Wood, 2018). Human resource planning has a major connection with the 4
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HRM strategic plan of the organization. In reference to HR Planning, there are various challenges that are faced by the organization in the present era and the challenges are related to adapting the innovation strategy (Drahokoupil, 2014). When the operations are managed on the global platform then the major challenge relates to the process of innovation. There are different technologies that are used in the different areas and due to this the challenge enhances at the time of considering the innovation strategy (Gharibi Yamchi et al., 2016). 3.1 Environmental issue: It is seen that when planning is done then the environmental issue is also one of the major challenges that is faced by the companies in the recent scenario. The demographic factor affects the internal culture of the company and also the difference in the culture is concerned with the different generations such as BABY Boomers and also Generation X and Y (Dickmann, Brewster and Sparrow, 2016). It states that the employees want to focus on the different factors so that satisfaction level towards the assigned work can be generated. The HR planning includes of the planning that is done in relation to the organizational learning and its assist to maintain the overall business market changes in the competitive business world. So, it can be stated as the challenge that is faced by the multinational companies at the time of managing the work on the global platform (Cogin and Williamson, 2014). 3.2 Recommendations For managing the challenge related to HR planning, it is recommended that HR should emphasize on fixing the policies and regulations that should be implemented in the different branches that are located in different locations. Also, the senior managers should be appointed in the workplace so that it could be easy to regulate policies and plans of the company according to the set rules and norms of the company. The manager should be given the responsibility of managing the entire plans and policies of the company and also the emphasis should be setting the policies by considering the perspective level of the employee toward the work. Hence, it can be stated that to resolve this challenge fix rules and regulations should be implemented in each branch so that the activities can be conducted in a coordinated manner. 4.0 Acceptance of the management change 5
HRM It can also be stated as the challenge that is faced by thee companies in the competitive market. It is examined that as the business activities enhance the strategies, structure and internal process also grows. There are employees in the workplace who face the difficulty to accept the changes and due to this, the challenge that takes place relates to the decreased productivity ration and also the morale of the employees. This challenge is important to be controlled by the management so that it could be easy for the employees to accept the changes that will boost the productivity and success ratio of the company in the competitive market (Hayes, 2018). 4.1 Recommendations In relation to this challenge, it is recommended that the higher authorities should emphasize communicating the advantages of the changes to the employees. The regular staff meetings should be conducted so that it could be easy to explain the changes that are implemented in the workplace. It will help to boost the understanding of the changes that are done in the workplace. This is one of the best strategies that can help in enhancing the acceptance ratio of the employees towards the change that takes place in the workplace. Training is also the concept that can help to resolve the challenge related to the acceptance of the changes. The employee resists the change because they feel the pressure of the new activities and rules that are implemented by the management but by giving training to the employees it could be easy to enhance the overall skills and knowledge of the employees towards the changes that are implemented in relation to the activities performed by the employees. Therefore, it can be stated that communication and training are the best methods that can help to minimize the challenge related to the acceptance of the changes made by the higher authorities. 5.0 Conclusion It is concluded that there are various challenges faced by the companies at the time of conducting the activities on the global platform. But it is the responsibility of the higher authorities to minimize the challenges that take place while dealing with the different activities located in different places. The challenges that are faced by the majority of the companies at the time of conducting the activities are recruitment, selection and retention challenge, compensation and benefits challenge, HR planning and acceptance of the management change. 6
HRM These are the challenges that are faced by the companies and to control or minimize these challenges it is important to focus on the different factors such as motivation, fixing policies and rules training and development, proper flow of communication and the plans should be created. It is important for the companies to consider these strategies so that the activities can be managed smoothly in the market. Therefore, it can be stated that there are challenges that are faced by the companies but the right step can assist to resolve such challenges at the time of working on the global platform. 7
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HRM Minbaeva, D.B., Pedersen, T., Björkman, I. and Fey, C.F., 2014. A retrospective on: MNC knowledge transfer, subsidiary absorptive capacity, and HRM.Journal of International Business Studies,45(1), pp.52-62. Parida, V., Sjödin, D.R., Lenka, S. and Wincent, J., 2015. Developing global service innovation capabilities:Howglobalmanufacturersaddressthechallengesofmarket heterogeneity.Research-Technology Management,58(5), pp.35-44. Ulrich, D. and Dulebohn, J.H., 2015. Are we there yet? What's next for HR?.Human Resource Management Review,25(2), pp.188-204. 9