Impact of Pandemic and Brexit on International HRM

International Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Impact of pandemic on multi-national enterprises......................................................................3
Impact of Brexit on MNEs..........................................................................................................5
Impact of covid-19 on international HRM..................................................................................5
International HRM handling the crisis........................................................................................7
Health and safety.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals....................................................................................................................10
Online........................................................................................................................................10

INTRODUCTION
International HRM works and does same activities as human resource management. It
handles both functional and strategic matters. In other words it can be defined as performing
HRM related responsibilities and arranging necessary immigration facilities by organisations
having their operations in domestic or international countries. Pandemic has affected every
sector of every industry in both positive and negative ways. Outbreak of Covid-19 has caused
heavy drop in foreign direct investments, these investments are made by one organisation to
another which is located in different country (Edwards, 2017). Enterprises all over the world are
hit by this pandemic and have affected supply chain operations and few have come to the extent
of their disruption. There are many business challenges to overcome and solve now. Choices
made by the leaders and managers will contribute in the success leading path for multinationals.
Organisations must find solutions for the present financial and operational challenges of factors
like pandemic or Brexit effect by addressing needs and requirements of their people and
customers.
MAIN BODY
Impact of pandemic on multi-national enterprises
MNEs have successive as well as falling effects due to pandemic. Lack of demand and
supply has triggered a global recession. Government has applied new set of rules which are
affecting foreign investors resulting in large fall of global flows in FDI with high level of
uncertainty. FDI plays as a key role as being a source of finance in many developing countries.
There are many MNEs whose income has been declined. Apart from pandemic there are many
other factors such as Brexit affect which is UK planning on leaving European Union. This will
result in increase in import rates from other countries and large exchange rates. The impacts
because of pandemic were minimised after reopen of companies, but they do have to adjust to
new market conditions (Verbeke, and Yuan, 2021). Disruption due to pandemic along with many
long term changes in industrialisation patterns and importance of considering environmental
sustainability have caused many challenges for MNEs business approaches.
To help the organisations adapt and increase the supply chain, these MNEs have opted
for many digital technologies helping in improving logistics and visibilities of any potential
vulnerabilities. The new policies will have impact on MNEs, government has given policies in

support of the companies for overcoming from effects of Covid, some has even changed foreign
investment rules. Mitigation efforts because of pandemic and lock-downs all around the globe
are having damaging effects on economics. MNEs which hold a fair share of global FDI is going
through a major fall due to this pandemic. Many countries have imposed demarcation on
exporting medical supplies but the government is also trying to encourage domestic and foreign
investors but introducing some measures to increase the outcomes, incentives and many other
benefits while simultaneously making sure there are no adverse effects on public health (Saurav,
Kusek, and Kuo, 2020). In addition to this, several states have an arrangement of offering public
money to help companies come out of the losses due to operations being stopped, especially in
case of airline industry. Companies are now addressing with currency devaluation because of the
increasing oil prices and Markets focusing on safety, such challenges can be overcome by
pricing strategy keeping customers need in mind. Long term companies will have a need to push
their investment strategy and investing supply chain to vanquish the causes of shock. People are
focusing on re-examining every part of life after this pandemic. As companies are re-opening,
they are combining work with office time to get best results in productivity. Employees now are
focusing on finding a sense of purpose in the company, if they job does not provide them with
this, they are ready to switch. Airline industry from over the globe have been in debts, leisure
trips can help in fuel recovery but is a slow process.
This pandemic has resulted in total shutdown of such industries and then re-opening was
done by giving customers heavy offers to choose their airline and seats are not left empty for the
journey. For automobile companies, future looks bright, clean and electric as they are opting for
new sustainable development. Every industry is going for cloud technology or artificial
intelligence, many semiconductor companies are making chips which makes the existence of
artificial intelligence possible (Caligiuri and et.al., 2020). The current crises have kick started the
productivity in new ways. Every company is going for online channels, automating the task of
production and increasing efficiency of operations. The 2020 have been the most challenging one
for market. This pandemic has destroyed many business whereas has helped many owners to
start their small enterprise. The new technological way of promoting and working has given rise
to many artists and innovators to showcase their talents and ideas. MNEs survive because of able
to operate heavy number of foreign subsidiaries all under same governance so that they can
operate independently.