Impact of International Mobility of Labour and Capital on Management of Multinational Companies

This research explores the impact of international mobility of labour and capital on the management of multinational companies, focusing on HSBC Holding Plc. It examines the benefits and challenges of mobility and identifies strategies to overcome management issues.

Understanding Business and
Management Research Methods
Individual

Contents
Topic: Impact of international mo1bility of labour and capital on management of multinational
companies. A research on HSBC Holding Plc................................................................................1
INTRODUCTION...........................................................................................................................1
Research Aim:.............................................................................................................................1
Research Objectives:...................................................................................................................1
Research Questions:.....................................................................................................................1
Rational of the research...............................................................................................................2
LITERATURE REVIEW................................................................................................................2
Main benefits of international mobility of labours and capitals for multinational organisations2
Challenges of international mobility of labours and capitals faced by management of HSBC
Holding Plc..................................................................................................................................3
Core strategies that help HSBC Holding Plc to overcome from the management issue.............3
DISCUSSION..................................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................4
FINDING.........................................................................................................................................5
REFERENCES................................................................................................................................7

Topic: Impact of international mo1bility of labour and capital on
management of multinational companies. A research on HSBC Holding
Plc.
INTRODUCTION
Today, emergence of globalisation enables a number of firms to move their businesses
internationally. It provides a number of features like trading blocs, international mobility of
labour and capital, global business communications etc. that allow firms to easily operate
business in multiple countries (Cohen, 2018). To persuade its influence, a research is going to
conduct in the present project, where how mobility of labours and capital arise issues for
multinational companies will be discussed. For this purpose, HSBC Holding Plc is chosen which
is one of the multinational investment bank of UK that operates its business in more than 65
countries. So, its mobilise both its labours and capitals to get high return on investment. But
apart from various benefits, it highly effects its business management that will be explored in this
project report.
Research Aim:
“To identify the issues faced by management of multinational companies due to
international mobility of labour and capital.” A research on HSBC Holding Plc.
Research Objectives:
 To determine the benefits of international mobility of labours and capitals for
multinational organisations.
 To identify the challenges of international mobility of labours and capitals faced by
management of HSBC Holding Plc.
 To develop the strategies that help HSBC Holding Plc to overcome from the management
issue.
Research Questions:
 What are the main benefits of international mobility of labours and capitals for multinational
organisations?
1

 What are the challenges of international mobility of labours and capitals faced by
management of HSBC Holding Plc?
 What are the core strategies that help HSBC Holding Plc to overcome from the management
issue?
Rational of the research
The main purpose of conducting this investigation is to develop detailed understanding on
the mobility of labours as well as capitals for large scale companies and its associated benefits
that could be leveraged by them (Baruch, Altman and Tung, 2016). Apart from this, another
motive of conducting this investigation is the personal interest of the researcher for improvising
their own skills and knowledge that would further help them out in conducting more effective
research in the near future. This would definitely develop them as the researcher and enhance the
scope in the same field.
LITERATURE REVIEW
Main benefits of international mobility of labours and capitals for multinational organisations
According to the views given by RADCLIFFE, B., (2020) Labour mobility is basically
termed as the ease with that labours can easily move from one place to another with the motive
getting job. On the other hand, capital mobility justifies the movement of capital from one place
to another. This can be clearly seen in the form of transaction of capital from one nation to
another one. Labour mobility and capital mobility are determined as two of the main methods
through which large scale companies can easily improvise their business performance as they are
able to prevent the situation of labour shortage in the nation where they are operating their
businesses in rightful manner. Along with this, another benefits attained by labour mobility is
increase in production as well as growth of the company as they are easily able to execute
approach the labour who further contributes in the success of the company by simply placing
their hard work into it (The Economics of Labor Mobility, 2020). On the other hand, benefits
that are attained by large scale companies with capital mobility is boosts up the economic access
of the businesses towards the global level from where they can easily bring capital to their
companies with lowest interest rate. It also helps company in improvising their business
performance as they are having satisfactory amount of funds for executing their business
activities and attain success with it.
2

Challenges of international mobility of labours and capitals faced by management of HSBC
Holding Plc
On the basis of the perception presented by author named as Favell, (2017), with the
globalisation mobility of labour and capital is becoming smoother for the large scale companies
as they are getting complete support from the nation’s side as well as their government too. But
at the same time, it has been analysed that these businesses often faces some problem in terms of
challenges while executing the mobility of labour as well as capital within their company. The
main challenges that have been faced by management team of large scale companies such as
HSBC Holding Plc while executing international mobility of labours are education and training
to labours, cultural barrier, higher employee turnover etc. this is so because migrant labours are
not that much trust worthy for the company (Collings and Isichei, 2018). On the other hand, if it
talked about the challenges that are faced by management team of large scale companies such as
HSBC Holding Plc while executing international mobility of capital is finding out guarantor for
them at international scale so that capital could be issues to them in rightful manner.
Core strategies that help HSBC Holding Plc to overcome from the management issue
From the viewpoint expressed by Shapiro and Hanouna, (2019), it has been analysed that
even though challenges associated with the mobility of labour and capital is higher but still it can
be said that business manager of the large scale company must emphasise on acquiring best
strategies so that it can eliminated in appropriate manner. the main strategy that must be adopted
by management team of large scale companies like HSBC Holding Plc for overcoming
challenges related to mobility of labour is set a good job description and revise their recruitment
policy so that they can easily choose only the right candidate for them who could work
effectively for the growth of the company. Here, it can be said that by revising recruitment
policies the HR department of company will choose skilled labour as per the core requirement of
their business Kirk, (2016). This would help in bringing right labour in the company so that their
money and time invested in training and development session could be saved. On the other hand
for handing issue associated with the capital mobility it can be said that the respected manager of
the company must focus on adopting some effective marketing tactics so that they can easily
develop their positive brand image at international market and develop their relations with the
other companies who could further sign up on the guarantor paper while bring capital from
global market to the home nation (Schmid and Wurster, 2017).
3

DISCUSSION
On the basis of overall information depicted in the literature review section, it has been
analysed that internationalization has brought two most influential concept for the businesses
such as mobility of labour and capital. Here, it has been determined that mobility of the labour is
simply termed as the free flow of labour from one place to another that is within economy or
outside the economy Cumming, Filatotchev, Knill, Reeb and Senbet, (2017). On the other hand
mobility of the capital is commonly termed as the concept with which large scale companies can
easily upgrade their capital by approaching international market for it so that funds can be raised
with minimum interest rate. Here, it has also been analysed that by approaching both of these
methods businesses can easily improvise their performance by simply increasing their level of
productivity with the extensive workforce (Guo and Al Ariss, 2015). Along with this, it also
helps company in enhancing their profitability at international marketplace in rightful manner.
Also, large scale companies are required to revise their recruitment policy in order to take
maximum leverage of mobility of labour so that they only hire skilled workforce within the
company.
RESEARCH METHODOLOGY
Research methodology is acknowledged as the effective framework that is used by
investigator in order to justify which methods have been adopted by them for executing the
research activities in effective manner so that valid outcome can be drawn from it (Monteiro and
Birkinshaw, 2017). The respective section is useful in collecting, evaluating, analysing and
interpreting data with the motive of drawing valid conclusion on the research problem. The
methodology adopted for the current study has been specified as below:
Sources of data collection: - This is defined as the medium that is acquired by
investigator in order to gather required information from which investigator would draw outcome
on the research problem. In order to gather information over the research topic investigator
mainly makes use of two types of sources of data collection methods such as primary and
secondary method (Sparrow, Brewster and Chung, 2016). Among both of these methods of data
collection, investigator basically focuses on making use of secondary sources with the motive of
gathering desired information on the proposed topic in rightful manner. Here, main preference
has been provided to books, journals, online articles and other published sources so that
maximum reliable information could be gathered within the limited period of time.
4

Type of investigation: - This method clearly emphasises on analysing overall
information gathered from different sources. Analysis of the investigation is basically done with
the two main methods that is qualitative and quantitative form of the methods (Latukha, 2015).
With reference to the present investigation, the researcher has made use of qualitative type of
investigation method as it supports in collecting and representing the detailed information over
the proposed research topic. It simply justifies the obtained findings in the theoretical format that
simply helps reader in drawing valid outcome on the same within the limited period of time by
covering maximum aspect related to the same.
Research approach: - Research approach is commonly seen as the effective plan and
process which includes range of steps developed on the assumption towards selection of the
several methods like data collection, analysis etc. This also justifies the nature of the research
that is being carried out by investigator for addressing research problem (Ravasi, Salamin and
Davoine, 2015). Inductive and deductive are two common forms of research approach that are
adopted by the investigator according to the suitability of the research in appropriate manner.
Among these inductive forms of research approach has been used by the investigator as it
provides contribution analysing overall data gathered with the usage of qualitative type of
investigation. The respective method is supportive drawing valid out based theories and concepts
given by different authors on the same topic.
FINDING
From the overall discussion made in the above section, it has been determined mobility of
labour and capital is seen as the effective way through which businesses can easily execute their
work and maximise their profitability. The main benefit associated with mobility of labour is
preventing the situation of labour shortage in the nation and increasing production as well as
growth of the company (De Cieri and Bardoel, 2015). On the other hand, the main benefit
associated with mobility of capital is to bring capital to their companies with lowest interest rate.
Here, the findings developed from literature review section revealed that main challenge
associated with mobility of labour is the time and money invested in education and training of
unskilled labour which ultimately hampers organisational performance and delays them in
accomplishing their predetermined goals and objectives (Caligiuri and Bonache, 2016) . The best
method to takeover this is revising recruitment policies of the company. Main challenge that
could affect mobility of capital is building up trust at international. In order to tackle this,
5

businesses are required to make use of rightful marketing strategy in order to boost up their
brand image at international marketplace.
6

REFERENCES
Books and Journals
Cohen, R.B., 2018. 12 The new international division of labor, multinational corporations and
urban hierarchy. Urbanization and urban planning in capitalist society, 7.
Favell, A. ed., 2017. The human face of global mobility. Routledge.
Baruch, Y., Altman, Y. and Tung, R.L., 2016. Career mobility in a global era: Advances in
managing expatriation and repatriation. The Academy of Management Annals, 10(1),
pp.841-889.
Collings, D.G. and Isichei, M., 2018. The shifting boundaries of global staffing: Integrating
global talent management, alternative forms of international assignments and non-
employees into the discussion. The International Journal of Human Resource
Management, 29(1), pp.165-187.
Shapiro, A.C. and Hanouna, P., 2019. Multinational financial management. Wiley.
Kirk, S., 2016. Career capital in global Kaleidoscope Careers: the role of HRM. The
International Journal of Human Resource Management, 27(6), pp.681-697.
Cumming, D., Filatotchev, I., Knill, A., Reeb, D.M. and Senbet, L., 2017. Law, finance, and the
international mobility of corporate governance.
Monteiro, F. and Birkinshaw, J., 2017. The external knowledge sourcing process in multinational
corporations. Strategic Management Journal, 38(2), pp.342-362.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Latukha, M., 2015. Talent management in Russian companies: domestic challenges and
international experience. The International Journal of Human Resource
Management, 26(8), pp.1051-1075.
Ravasi, C., Salamin, X. and Davoine, E., 2015. Cross-cultural adjustment of skilled migrants in a
multicultural and multilingual environment: An explorative study of foreign
employees and their spouses in the Swiss context. The International Journal of
Human Resource Management, 26(10), pp.1335-1359.
De Cieri, H. and Bardoel, E.A., 2015. A framework for work-life management in multinational
corporations. In Work and family interface in the international career context (pp.
197-217). Springer, Cham.
Caligiuri, P. and Bonache, J., 2016. Evolving and enduring challenges in global
mobility. Journal of World Business, 51(1), pp.127-141.
Guo, C. and Al Ariss, A., 2015. Human resource management of international migrants: Current
theories and future research.
Schmid, S. and Wurster, D.J., 2017. International work experience: Is it really accelerating the
way to the management board of MNCs?. International Business Review, 26(5),
pp.991-1008.
Online
The Economics of Labor Mobility. 2020. [Online]. Available Through: <
https://www.investopedia.com/articles/economics/09/labor-mobility.asp >.
7