Challenges Faced by Contemporary Organizations: MgMT20144 Assignment

This essay delves into the multifaceted challenges confronting contemporary organizations, with a particular focus on international staffing approaches. It begins by highlighting the shift from traditional hierarchical structures to more flexible, team-based models that empower employees. The essay emphasizes the importance of diversity and multiculturalism in today's globalized environment, discussing how organizations can leverage these aspects to enhance innovation, employee engagement, and customer relationships. Key challenges in international staffing, such as compensation, intellectual property protection, and language barriers, are examined. The essay provides practical solutions, including the development of inclusive policies, employee diversity training, and the integration of diversity initiatives into the organization's mission and vision. The content provides a comprehensive overview of the challenges faced by organizations in managing diverse workforces and international operations, offering insights and strategies for effective management.

Running head: CHALLENHGES FACED BY CONTEMPORARY ORGANIZATION
CHALLENHGES FACED BY CONTEMPORARY ORGANIZATION
Name of the Student
Name of the University
Author Note

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CHALLENHGES FACED BY CONTEMPORARY ORGANIZATION
INTERNAATIONAL STAFFING APPROACHES
The contemporary organizations are known to follow organizational structure, which is
known to follow the rigid top to down model of traditional structure is removed in the favor of
teams which are known to work on projects altogether. Instead of simply relying on the senior
management only the contemporary organizations drives the work process flow out through
designing various types of models and empowering the employees. Here the employees are given
more power to implement changes without the need of approval of the staff members in the
higher authority. In these types of business culture the employees are given or are provided with
the requirements, milestones and goals of production. They are also provided with the most
efficient and effective ways in meeting those goals by effectively communicating with each other
in the workplace (Stahl, Lee & De Luque 2017).
The main advantage of the employees in the contemporary organization is that the
employees are provided the freedom of developing and implementing their own decisions in
order to take ownership of the projects. This freedom thus leads to an increased productivity,
with greater quality of the work and the outcome will stick to the full satisfaction of the
customers engaged with the business. With this there is also a greater level of communication
among the employees of the company. According to the author Collings, Wood & Szamosi
(2018) every employee is dependent on the success of the other employee.
In the present era of ongoing globalization, there is an increase in the range of migration,
changes in the demographics and emerging market trends which are responsible for the
technological evolution. Therefore it is very necessary for the organization to manage the

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diversity and multiculturalism which goes far off the human resource management. The subject
of multiculturalism will lead the employees to better engage with the customers. This will thus
lead to an increase in the innovation, improved employee engagement, better customer
relationships and higher rate of satisfaction. This leads to an increase in the operational profit and
market share of the organization by achieving the competitive market. According to the author
Naser & Al Shobaki (2017) the concept of multiculturalism and diversity management is known
to encompass respect, acceptance, recognition and valuing the individual differences in the
organization. Whereas diversity is defined as the difference between the people which is known
to include the dimensions such as race, ethnicity, gender, sexual orientation, socioeconomic
status, age, status, religious belief and ideologies. The multiculturalism is known to include
various types of strategic alignment which are followed by the organization to include and value
each of the employees equally on the basis of the diverse characters they represent. This will
help the organization to achieve the organizational goals and lead to better business outcomes. Fr
this the organization has to strongly focus on the policies and various types of employee
engagement programs to fit various types of people in the organization.
According to the authors Denissen, Potter & Gosling (2016) the organizations which are
known to believe in multiculturalism and diversity management does not tend to focus on
minimizing the risk or the challenges with the cultures, rather they are known to attract those
employee who are diverse culture and characteristics. They also find different methods to
assimilate them in to the company cultures. The author also states that most of the companies in
Australia are employing the employees from diverse cultural background. Few of the inter
cultural differences which includes in the workplace are related with their dress, religious
practices, customs, social values and noon verbal behavior. Therefore this might lead to face

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various types of challenges in the workplace. Therefore in order to manage these the
organizations needs to train the staffs accordingly, they should teach them the proper use of staff
cultural skills, this will be able to promote the cultural celebrations and the employees will be
more flexible. However it has to be kept in mind that there should be no employee
discrimination against the workers from diverse background. This is because they own the right
to cultural background. Therefore the employer and the employee both should consider the
cultural differences as possible reasons for the problems which are related with the business and
in the workplace. In most of the contemporary organizations the mission and the vision of the
organization should align with the diversity in the workplace. According to the author Ferris,
Sim & Ang (2018) the inclusion is a collaborative, supportive and respectful environment which
is known to increase the participation of the employees. Therefore the diversity and inclusion is
the company’s mission, vision and strategies to support the diverse workplace and leverages the
effects of diversity to achieve a clear and competitive business advantage over other
organizations. According to the survey which was presented by the author Ferris, Sim & Ang
(2018) it states that more than 300 senior executives off the organization includes 32% of HR
talent management where the company’s diversity and inclusion priorities includes 65%
recruitment of diverse employees, 44% includes the development of intense diverse talents and
28% of cross generational employees (Gurung & Prater 2017).
With the diverse cultural differences the organizations in the present era are known to
face various types of challenges with their international staffing approaches will be discussed
over here (Sheldon, Antony & Car 2017). The international staffing is a very necessary piece to
the establishment of expansion puzzle. Moving into any kind of new market place or any kind of
new business organization situated in any international country will require the employee to

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assist effectively to the overall growth and expansion of the business. But it is always
recommended to hire or take any employee from the local areas as because they known the local
area and market better than the employee coming from outside (Child, 2015). For example hiring
an employee as in country sales will represent boost to the sales of the organization as because
they are known to rep the market culture better than anybody else. This will also help the
organization in increasing the customer base of the organization. Whereas staffing a person or
hiring a person internationally can be meant only for recruitment, but not for analyzing the
problematic situations in the organization.
The next part of the essay will deal with the challenges which are faced by the
organizations in their international staffing approaches. The first challenge which is faced by
them is planning the appropriate compensation for the international staffs (Keith, 2019).
According to the author the financial incentives are something which is used to keep the
international employees including the expertise motivated and help them to work for the rest of
the time with the organization. Therefore it is very important for them to keep a consultant for
them in order to determine the appropriate pay structure for performing the work in the
organization. Therefore the challenges faced by the companies are like making extra effort and
person to keep a track of the target market and the geographical location in which the
organization is operating in. this will help the organization to decide the best comp package from
the employee from the international market (Khan, Pitts & Williams 2016). The company will
also have to pay a high amount of tax to the government because the employees are both liable
for paying both the domestic and host country tax payment. In some of the cases it might be very
complicated for the organization to manage the international tax regulations as well. The tax
structures also include the withholding standards and other types of benefit requirements,

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termination requirements and varying rates. Therefore this might affect the time of the company
in dealing with the disputes. The next challenge which is faced by the organizations include the
intellectual property protections of the company. According to the author Ogbu, (2017) most of
the organizations are known to face various types of problems when determining the difference
between the contractors and the employees who are from the international market or
environment. This is known to affect the intellectual property protection of the organization. In
most of the cases the work which is made for the hire laws are mainly different from a single
country with another (Khan, Pitts & Williams 2016). Therefore before hiring any employee from
outside it’s is very important to understand the initial requirements before determining the
employee potential status. The organization faces various types of challenge in this context as
because it is against the law or illegal to engage with into an exclusive working agreement with
the contractor or employee from international. It is said as because the employee might open up
various types of confidential data like the organization’s strengths, IP protection against the
competitors of the business.
Challenges in differentiation of the languages and challenges are also faced by the
organization. Taking for the example of the US the maximum people over there usually speaks
English (Kim, 2017). After embracing diversity it can also be very difficult for the organization
to communicate effectively and efficiently with them. It becomes very difficult for the
organization to communicate with the employees. Although the most common language which is
spoken in US is English but with the number of people speaking other languages are increasing
with the inclusion and diversity.
The appropriate and creative solutions which can be recommended to the organization
facing this types of issues are provided over here in this part. According to the author Ogbu,

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(2017) the particular issues which are known to arise in the workplace in dealing with social or
cultural differences in international staffing approaches are all related with understanding and
respecting the decision of the organization on the employees. Proper identification and defining
the issue in the workplace will help the company address the challenge faced by them the
organization ahs to create an environment of accepting the thing of providing equal opportunity
for the people working in the organization. It will also help the organization to identify the
challenges and difference which are existing in the organization among the existing employees.
The organizational leaders also should take a look into the matter and should be able to better
examine the specific diversity issues and check the changes which are to be applied.
The organization can also develop, communicate and adhere to the organizational
policies which are related with the cultural differences. One good way of dealing with these
types of issues is by reviewing properly the existing company policies, training and development
and implementation of new ones if they found are relevant. Therefore according to the authors
Bleidorn, Arslan and Denissen (2016) this will create or establish a culture of acceptance within
the organization. Therefore it can be said that the diversity related initiatives can be fully
integrated into the mission and vision statement of the organization. The last solution which can
be drawn to this challenge is by providing employee diversity related training to decrease the
number of issues. The cultural difference exist in every workplace in order to reduce it the
organization can offer diversity training program from which the company can be benefitted in a
number of ways such as increase in the number of productivity, retention as well as employee
engagement. Therefore it is recommended that the company should team up or accompany an in
country legal expert to nail down the specific tasks which are assigned to the employees in the
organization. Taking various types of necessary steps can help the organization prevent various

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headaches. The next challenge which is faced by the organization is with the set of labor laws,
which the company needs to fully understand before confirming a hire from the international
source. The employee should also see that the new legal forces present in the new country are
solid before the hiring process.

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