Impact of National Issues on Human Resource Management in International Organizations

This article discusses the impact of national issues on human resource management in international organizations, with a focus on economic and social issues in India and China. It highlights the challenges faced by organizations when expanding their business operations in other countries and how it affects their human resource management. The article also provides recommendations for mitigating these issues, such as selective recruitment, high wages, employee empowerment, and participation.

How National Issues impact on Human Resource
Practice when managing organization
Internationally

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
REFERENCES................................................................................................................................4

INTRODUCTION
Human resource management can be defined as the approach and function performed
within the organization in order to manage the employees in an effective and efficient manner.
This helps the organization in gaining the competitive advantage and also it boosts the economy
of the nation in terms of the employment and growth. Human resource practice involves various
activities such as recruitment and selection along with the on boarding and training programs
which is followed by the performance management and exit interviews (Rana and Sharma,
2019). The two non UK countries chosen for the following essay are the India and China. India
is the South Asian Country which is the most populous democracy in the world. China is the East
Asian country which has the population of more than 1.4 billion. National Issues in India
considered here is the economic issue that includes employment and unemployment rate which
impact on Human Resource HR Practice when managing organization Internationally. National
Issues in China considered here is the social issue that includes high and tough competition
which impact on Human Resource HR Practice when managing organization Internationally.
Therefore, the following discussion is based on the elaborations of such issues in context of the
human resource management.
MAIN BODY
When the companies think of going international so that they can expand their business
operation, at that time they face various national challenges of the country they think of
extending and this will impact their human resource a lot. The issue that they will encounter will
be: Economic issue: When an international firm think of managing their human resource in the
country like India they will face a challenges where they will not get the skilled employees they
want. This will affect the company image and performance as well they will face problem of
effectively managing their human resource. To managed their employee, the company, need to
invest a lot of capital for providing training and coaching. They need to develop the skills among
the employee which will be the major national issue in India as unemployment rate is so high
that organisation cannot get the talented employee for their business (Kianto, Sáenz and
Aramburu, 2017). Social issue: Another challenge that could be faced by international
organisation is the social issue. Country like China is so developed that the competition at their
will be so high. The infrastructure they use are so advanced that company need to fight with the
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existing business in very strong manner. This could be another issue for the company and
expanding their business in such a developed country is better because at their they can reduce
their workload by getting advanced technology and bigger market. So to survive in china a
proper societal analysis need to be done (Saeed and et. al., 2019).
Diversifying business operation in other nation will impacts a lot in the context of
managing their human resource. The major impact of national issue on human resource is on
their productivity level. Country like India has unskilled labour this will impact the organisation
as solving communication problem between the Human resource and Expats. Because there is a
cultural difference and also physical distance among the top level managers and lower level
employees. This will affect their motivational level because there will be a gap between them
which will indirectly demotivate employee and they will not effectively work. The other national
issue is diversified workforce at the time of international expansion (Papa and et. al., 2018).
When company goes in the global market they will hire the staff from the nation they are
expanding. This will impact them as there will be diversified workers. The company need to
build a very effective tools so that they can know the requirement of each and every employee of
other counter. On the other hand, in context of china the employees over there are so fond of
advanced technology, they need improved tools and equipment. This will impact the
international organisation as they need to invest a lot of capital to provide effective technology to
the staff so that there can work will full energy and will works towards the goal and objective of
the company (Azeez, 2017).
It is recommended that the human resource practice must include the several activities in
order to rectify and mitigate such issues. For example, the organizations who are operating
internationally but facing the national issues can provide the employment security so that the
employees can be satisfied with the job and the working environment. Moreover, the selective
recruitment must be carried out by the human resource manager in order to gain the skilled and
experienced employees. It is also recommended that the it must be the high and lucrative wages
along with the incentive pay. It is suggested that employee ownership must be carried out as a
practice of human resource management (Yusoff and et. al., 2020). It is also suggested that the
employee empowerment and participation, information sharing, training and development
programs, treating employees with respect and dignity and providing promotion on a frequent
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basis. This is because it motivates the employees to be more productive that can help to mitigate
the national issues faced by the organizations internationally.
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REFERENCES
Azeez, S.A., 2017. Human resource management practices and employee retention: A review of
literature. Journal of Economics, Management and Trade, pp.1-10.
Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource management
practices, intellectual capital and innovation. Journal of Business Research, 81, pp.11-20.
Papa and et. al., 2018. Improving innovation performance through knowledge acquisition: the
moderating role of employee retention and human resource management
practices. Journal of Knowledge Management.
Rana, G. and Sharma, R., 2019. Emerging human resource management practices in Industry
4.0. Strategic HR Review.
Saeed and et. al., 2019. Promoting employee's proenvironmental behavior through green human
resource management practices. Corporate Social Responsibility and Environmental
Management, 26(2), pp.424-438.
Yusoff and et. al., 2020. Linking green human resource management practices to environmental
performance in hotel industry. Global Business Review, 21(3), pp.663-680.
human resource management.
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