This report analyzes the trends and challenges of international human resource management in multinational organizations. It discusses the impact of these trends on HRM practices and provides recommendations based on HR theories.
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Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT International Human Resource Management Name of the Student Name of the University Author note
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1 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Executive Summary The report has helped in the overall analysis of the different kinds of trends and challenges of the international human resource management in the different organizations. The different kinds of impact of the same on the International Human Resource Management practices have been taken into consideration which has been beneficial for the success of the employees and the firm in a positive manner. The different kinds of recommendations have been provided with the help of the different kinds of human resource management theories which will be beneficial for the success of the firm.
2 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Table of Contents Introduction................................................................................................................................3 Three Trends/Challenges for International Human Resource Management..............................3 Impact of Trends/Challenges upon HRM Practices of MNC....................................................4 Recommendations......................................................................................................................5 Conclusion..................................................................................................................................6 References..................................................................................................................................7
3 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Introduction Thereporthelpsinanalysisoftheidentificationofthethreetrendsforthe international HRM in the multinational organization. The analysis and identification of the three trends upon the HRM practices of the multinational organization is required to be analysed effectively. With the help of the different kinds of HR theories, this will be effective in nature in managing the HR activities in the organization and reduce the challenges effectively as well. Three Trends/Challenges for International Human Resource Management According toTung(2016), International Human Resource Management includes the different set of the activities which is aimed in managing the different organizational activities at the international level to achieve the objectives and achieve the competitive advantage as well over the different competitors at international and national level. However, there are different kinds of challenges and trends which are required to be analysed and they have huge effect on the HRM activities. There are various types of challenges for the IHRM in the MNC which is required to be analysed in an efficient manner which are discussed as follows: Firstly,technology is a major trend for the IHRMin the MNC as the technology is changing the different aspects and the first wave of the same can be seen in the HR department. The technological advancements have been able to improve and automate the processesandeliminatetheunnecessaryworkwhichwastime-consuminginnature (Osabutey, Nyuur & Debrah, 2015). In the present scenario, this can be noticed that there are different kinds of software which is inclusive of the following: ï‚·Application tracking system ï‚·Performance Management Software ï‚·E-recruitment software Furthermore, theeducation has played a major role in the international HRM activitiesin the organization. Previously, this has been seen and noticed that there was no such importance provided to the different HR courses in the different fields of work and education. However, in the present scenario, this has been noticed that HRM has been treated
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4 INTERNATIONAL HUMAN RESOURCE MANAGEMENT as the major strategic framework which helps in managing the various activities in the organization (Reiche, Stahl, Mendenhall & Oddou, 2016). In the present scenario, there are various types of specialised courses on human resource management which has helped in managing the different kinds of activities related to the recruitment, selection and training processes which has helped in managing the overall effectiveness. The leadership development and succession planning help in managing the different processes and this will be for the development of the future leaders in the organization (Luthans & Doh, 2018). On the other hand, there are different challenges which are being faceddue to the mobility in the workplace. Globalization is the major trend in the present scenario wherein this can be analysed that the mobility is essential in the present workforce, however there are different kinds of negative impacts of the same which is inclusive of the following: There are different kinds ofsecurity related risks wherein adopting to the mobility strategy entrusts the employeesto respect the corporate ideas to the different security standards. There are different kinds of challenges wherein there are several challenges which is inclusive of different work culture and management approach along with adjustments with the tradition and culture has become difficult for the different employees working in the organization (Taylor, Doherty & McGraw, 2015). There aredifferent kinds of mergers and acquisitionswhich are being taken place in the different countries and this isaffecting and there is clash between the different kinds of cultureof the host and the other country (Marchington, Wilkinson Donnelly & Kynighou, 2016). Due to this, there has been huge resistance to change among the different employees working in the organization as the technological advancements are having impact on the morale of the employees working in the organizations. Impact of Trends/Challenges upon HRM Practices of MNC With the help of the different HRM trends, this can be seen and analysed that there are different impacts on the HRM practices of MNC. With the help of the technological advancements, the HRM practices are getting smarter in nature and the internet portals helps incustomizingandpersonalisingtheworkspaceoftheemployeesthroughthesame. Furthermore, there has been introduction of the virtual meetings as this assist in optimizing
5 INTERNATIONAL HUMAN RESOURCE MANAGEMENT the work flow in the organizations as well. This has been seen that the performance appraisal system which is the software program which helped in managing the different calculations using data already in place and this has reduced the paperwork as well. On the other hand,Thite(2015), has commented thatthe mobility has created huge negative impacts on the human Resource Management in the MNC. The mobility has created both positive and negative impacts on the HRM related activities and this will create huge impact on the organizational activities as well. With the help of globalization, there has been huge mergers and acquisitions in the different organizations in various countries which is beneficial for the success of the organization. However, on the other hand this has influenced the motivation of the employees in a negative manner (Reiche, Harzing & Tenzer, 2018). There are various cultural barriers along with the communication gap in different countries and this has affected the growth of the employees. Figure 1: Maslow’s Hierarchy Theory (Source:Thite,2015) Thite(2015), has commented that the motivation aspects are required to be taken into consideration which will be beneficial for the success for the growth of the employees and the firm in an efficient manner. The Maslow’s Hierarchy theory along with the organizational agility theories and concepts of the HRM is required to be taken into approach which will be effective in understanding the different issues which are caused due to the technological
6 INTERNATIONAL HUMAN RESOURCE MANAGEMENT advancements in the different performances in the organizational related activities. Moreover, tis has been noticed that in the different MNCs, this is essential that the different aspects of employee training and the motivation procedures are considered and this is successful for the overall growth of the firm and the employees (Jackson, Schuler & Jiang, 2014). Recommendations There are various recommendations which can be provided in order to improve the different kinds of challenges which have been caused due to the advancement in the technology along with the mobility which has been causing in the present scenario in the organizations. Firstly, the human resource practices are required to be taken into consideration and considered as the strategic partner of the different organizations. With the implementation of the motivational approaches such as the analysis of the different needs of the employees working in the organization is beneficial in nature for the success of the firm. With the help of the Maslow’s hierarchy theory, the needs are required to be taken into consideration which will be beneficial for the overall growth of employees and firm (Collings, Wood & Szamosi, 2018). Secondly, the organizational agility is the other approach which can be adopted by the organizations wherein the employees should be made aware about the changes which is essential for the success of the firm. With the organizational agility, this will be assisting the capability of the firm along with the employees to engage themselves rapidly towards the change in the market effectively. The barriers which has been created due to globalization have to be reduced wherein the cross-cultural management issues will be reduced (Baum, 2016). Thirdly, training and development is essential which will be beneficial for the management of the diversity in the workplace. The diversity in the workplace which is inclusive of managing the different language and cultural differences can be influenced with the help of the training and development program effectively and more appropriately (Bader, Schuster & Dickmann,2016). The technological advancements are causing huge impact on the job of the different employees which is affecting the workplace ethics and responsibility. The employees should
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7 INTERNATIONAL HUMAN RESOURCE MANAGEMENT bemadeawareaboutthedifferentkindsofchangeswhicharetakingplaceinthe organization as this will be helpful for them to become more effective in performing the tasks. The education is required to be considered more effective in the performance of the different activities more efficiently and this will be beneficial for the success of the firm (Armstrong & Taylor, 2014). Conclusion Therefore, this can be concluded that there are different kinds of trends and challenges fortheinternationalhumanresourcemanagementinthedifferentMNCs.Withthe implementation of the employee development approach in the HRM theory, this will be helpful in motivating the employees and this will help the company in gaining competitive advantage in the organization as well. The succession planning is the management approach and objective which will be beneficial for the overall success and growth of the firm in a positive manner. Additionally, with the implementation of the different kinds of motivational theories and approaches, the overall effectiveness of the different practices in the HRM theory will be solved and the employees will be valued in the organization as well. This has been noticed that the organizations are required to be treated as the strategic partners as they are beneficial for the undertaking of the different activities in an efficient manner.
8 INTERNATIONAL HUMAN RESOURCE MANAGEMENT References Armstrong, M., & Taylor, S. (2014).Armstrong's handbook of human resource management practice. Kogan Page Publishers. Bader, B., Schuster, T., & Dickmann, M. (2015). Special issue of International Journal of Human Resource Management: Danger and risk as challenges for HRM: how to manage people in hostile environments. Baum, T. (Ed.). (2016).Human resource issues in international tourism. Elsevier. Collings, D. G., Wood, G. T., & Szamosi, L. T. (2018). Human resource management: A critical approach. InHuman Resource Management(pp. 1-23). Routledge. Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human resource management.The Academy of Management Annals,8(1), 1-56. Luthans, F., & Doh, J. P. (2018).International management: Culture, strategy, and behavior. McGraw-Hill. Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016).Human resource management at work. Kogan Page Publishers. Osabutey, E. L., Nyuur, R. B., & Debrah, Y. A. (2015). Developing strategic international humanresourcecapabilitiesinSub-SaharanAfrica.InInternationalHuman Resources Management(pp. 37-51). Springer, Cham. Reiche, B. S., Harzing, A. W., & Tenzer, H. (Eds.). (2018).International human resource management. SAGE Publications Limited. Reiche, B. S., Stahl, G. K., Mendenhall, M. E., & Oddou, G. R. (Eds.). (2016).Readings and cases in international human resource management. Taylor & Francis. Taylor, T., Doherty, A., & McGraw, P. (2015).Managing people in sport organizations: A strategic human resource management perspective. Routledge.
9 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Thite, M. (2015). International human resource management in multinational corporations from emerging economies.Handbook of human resource management in emerging markets,97, 121. Tung,R.L.(2016).Newperspectivesonhumanresourcemanagementinaglobal context.Journal of World Business,51(1), 142-152.