Challenges in Managing Performance of International Staff in MNCs

This report discusses the major challenges faced by HR managers in managing the performance of international staff in multinational companies (MNCs). It explores the impact of wrong design, lack of commitment, retaining top talent, workforce diversity, and varied level of maturity on performance management. The case study of Marks and Spencer is used to illustrate these challenges.

Managing the
Multinational
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Critically evaluate the major challenges on managing the performance of international staff
and rewarding them in MNCs................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The job role of HR manager is considered as the challenging job role in regard of recruiting
and retention of employees within an organisation. Moreover, because of the fluctuation in
economy and local and global developments, there are various changes that may occur regarding
the rapid changes in an organisation and functioning of HR manager (Ranestad, 2020). In regard
of this, there are number of HRM challenges that should be addressed as it is essential regarding
the functioning of company and these challenges undertake environmental, individual and
organisational challenge. To carry forward this report Marks and Spencer is considered which is
a Multinational company, headquarter in London and also specialised in selling clothes, home
and food products. Hence, the report leads to cover details regarding the analysis of major
challenges in order to manage the overall performance of international staff and offering them
reward.
MAIN BODY
Critically evaluate the major challenges on managing the performance of international staff and
rewarding them in MNCs
Performance management is the suitable process in order to set up the shared and effective
understanding for what should be achieved at the organisational level. It tends to undertake the
effective alignment with the organisational objectives regarding the agreed measurement of
skills, required competencies, development plan and delivery of results of an individual. In terms
of Marks and Spencer, there HR manager focuses on the enhancement of performance by
effective development and learning in order to achieve their business strategy for the company.
Moreover, performance management tends to integrate the multitude of several components that
contribute towards the proper management of human resources (Ferraris, Santoro and Scuotto,
2018). In this context, the HR manager of Marks and Spencer face various challenges in order to
manage the performance of staff members and rewarding them which are discussed as:
Wrong Design: The performance management system and other techniques tends to fit for
the suitable needs of company. It cannot be undertaken for the duplication of the system
designed and also being executed within the another company. In terms of Marks and Spencer, if
the HR manager tends to take wrong decision regarding the development and growth of company
then it would lead to impact the overall performance of employees and also can demotivate them

for their overall performance. Hence, performance management can be considered as the
continuous process that cannot be performed twice in a year and the HR manager need to
consider the design for rewarding the performance and handling poor performers.
Lack of commitment: Commitment and proper support is important and also for the smooth
running and functioning of company. In this context, the leaders need to drive for the overall
process and also make proper management for the integral part of management of an
organisation (Roscoe and et. al., 2020). However, lack of commitment leads to develop negative
thoughts and perspective within the mind set of employees and can demotivate them regarding
their performance. For this, the HR manager of Marks and Spencer also tends to contribute
towards the proper setting of strategic direction and take proper measures for the performance
management like offering compensation, incentives, motivate them by engaging in the decision
making process of an organisation and so on.
Retaining top talent: Retaining top talent become the major challenge of HR manager that
leads to impact the performance of employees by which it become difficult to retain talented
employees within an organisation. It happens because of the shortage of offering rewards that
leads to develop high employee turnover and also impact the performance of employees which is
not a good news for company (Wikström and et. al., 2018). In context of Marks and Spencer, it
leads to cost several resources and also add major pressure on the top level management. Hence,
without effective talent and skilled employees, it becomes quite difficult for the Marks and
Spencer to achieve organisational goals that can impact the overall brand image as well.
Workforce diversity: With the changes occur in time, workforce diversity leads to increase
because of the changes occur in the overall environment. For this, workforce diversity depicts the
dissimilarity among employees within an organisation at the specified period of time (Danese,
Molinaro and Romano, 2018). In regard of Marks and Spencer, workforce diversity become the
major challenge the leads to impact the performance management of employees especially in the
Marks and Spencer as it the large company and has number of jobs which is off different nature.
For this, respective company need varying set of skills and to manage staff members at the same
time leads to put negative impact over the performance of employees.
Varied level of maturity: Employees of various countries are quite strong regarding the
different set of skills and also have varied level of maturity which is quite strong for the different
perspective. For instance, employees of US in strong in systematic analysis whereas employees

of UK are strong in impact evaluation. In terms of Marks and Spencer, by considering this factor
varied maturity level leads to impact the performance of employees as some of them gets
motivate to perform effectively whereas some of them gets demotivate for their performance
(Woldesenbet, 2018). In order to overcome from this factor, respective company need to offer
time to time rewards which is beneficial to manage the overall performance of employees and
also retain them for the longer period of time.
CONCLUSION
Therefore, from the preceding discussion, it is analysed that performance management is the
important factor in order to retain employees within an organisation for the longer period of time.
For this, proper management of reward plays an important role in order to retain employees
within an organisation for the long time. For this, it has been analysed that there are various
challenges which are being faced by the HR manager in order to manage the overall performance
of employees by offering them suitable rewards.

REFERENCES
Books and Journals
Danese, P., Molinaro, M. and Romano, P., 2018. Managing evolutionary paths in Sales and
Operations Planning: key dimensions and sequences of implementation. International
Journal of Production Research, 56(5), pp.2036-2053.
Ferraris, A., Santoro, G. and Scuotto, V., 2018. Dual relational embeddedness and knowledge
transfer in European multinational corporations and subsidiaries. Journal of Knowledge
Management.
Ranestad, K., 2020. Multinational mining companies, employment and knowledge transfer:
Chile and Norway from ca. 1870 to 1940. Business History, 62(2), pp.197-221.
Roscoe, S and et. al., 2020. Managing supply chain uncertainty arising from geopolitical
disruptions: evidence from the pharmaceutical industry and brexit. International Journal
of Operations & Production Management.
Wikström, E and et. al., 2018. Knowledge retention and age management–senior employees’
experiences in a Swedish multinational company. Journal of Knowledge Management.
Woldesenbet, K., 2018. Managing institutional complexity in a transitional
economy. International Journal of emerging markets.