Global Perspective on Human Resource Management Challenges

This report delves into the significant challenges facing international human resource managers in the evolving global business landscape. It highlights critical issues such as staffing foreign subsidiaries, emphasizing the complexities of expatriation and repatriation, and the importance of selecting skilled employees for overseas assignments. The report also addresses the challenges of bridging cultural differences between home and host countries, which impact training and development programs. Furthermore, it examines the complexities of determining compensation and benefits across different countries, the increasing difficulty of attracting and retaining talented staff amidst rising competition, and the challenges of managing workplace diversity. The report concludes by discussing the implications of these challenges on career development goals, emphasizing the need for continuous training, cultural awareness, and the development of technical skills to remain competitive in the global market.

GLOBAL PERSPECTIVE ON HUMAN
RESOURCE MANAGEMENT – 727883

Table of Contents
Introduction.......................................................................................................................3
Human resource management challenges..........................................................................3
Conclusion.........................................................................................................................6
Bibliography.......................................................................................................................7

Introduction
The global business world has been evolving at a very fast pace and is making market
survival tough for business organisations. Since the spread of globalisation and liberalisation,
exchange of products, services as well as human resources has increased amongst different
nations, which has further increased the market competition. The changes being experienced
in the business world are not only making the competition tougher for business organisations
but also for the human resources as well. Therefore, in this assignment, we will discuss some
of the major challenges that the changing international market trend would have on the
human resources and on career development programs.
Human resource management challenges
Some major human resource management challenges that international business organisations
are likely to face in the near future are discussed below:
First of all, a major challenge that international human resource managers are likely going to
face in the near future is related to the staffing of their foreign subsidiaries. The increasing
complexities of the global market is forcing human resource managers to recruit talented staff
from all over the world and make use of their skills and knowledge in the best possible
manner. To achieve maximum productivity and efficiency, human resource managers have to
recruit a mix of host country and home country employees in all their subsidiaries, which
proves to be a major challenge when it comes to expatriation or repatriation. Further, it is also
becoming difficult for human resource managers to find employees who can be sent for
expatriate programs to foreign subsidiaries because expatriate programs require heavy
investment and they can only be successful if a skilled and talented employee is selected to be

sent overseas. Being sent on a foreign assignment can be a great plus point for the employees
as they get to learn new skills and competencies. It also enhances their career development
opportunities. As a result, employees should try to gain as much technical knowledge as
possible and become more competitive so that they have a higher chance to be selected for
expatriate program.
Secondly, bridging the cultural differences between the home country and the host country is
a major issue that haunts international human resource managers. As discussed above, foreign
subsidiaries cannot be operated successfully by employing workforce from the host country
alone. Business organisations have to send representatives from their home country to look
after all the major operations. It is imperative that the home country employees who are being
sent to a foreign country should be well acquainted with the cultural preferences of the host
country as it can otherwise lead to a cultural shock, which increases the chances of failure
(Schuler, et al., 2011). Cultural challenges in international human resource management are
having a huge impact on career development opportunities for the employees. Employees
working in multinational companies are now being forced to indulge in training and
development programs that would enable them to understand the culture of all those countries
where their company has a subsidiary.
Thirdly, deciding the compensation and benefits for the entire workforce will be another
major issue in the year to come for international human resource managers. International
human resource management involves designing different pay systems for employees in
different countries in accordance with the local wage rates and market average pay
(Scroggins, 2010). The difference in the economic and legal structure of different countries
can force a company to pay unequal salaries and benefits to employees working on the same

position, but in different countries. This inequality of pay can have an impact on the
employees when they are sent abroad for special assignments. For example, an Indian sales
manager is being paid 1000$ a month whereas a sales manager working in China is being
offered a Salary of 1400$ a month along with housing allowances.
Fourthly, attracting and retaining talented staff in the international market will become one of
the biggest nightmares for international human resource managers. As the competition
between rival firms will increase and because of the continuous entry of new companies in
the global market, the fight for talented and skilled employees will become more aggressive
because of the shortage of competent staff in the international market (Ankur, 2016).
Multinational companies will try their best to lure in talented and skilled employees by
offering them higher salaries, incentives and benefits, which would make it difficult for
business organisations to retain their employees.
Lastly, managing workplace diversity will become more difficult for international human
resource managers. Operating at a global scale involves recruitment and selection of
employees from different cultures, which increases the diversity at workplace (Kokemuller,
n.d.). Managing diversity can be an issue for human resource manager as there can be a
greater number of interpersonal and group conflicts resulting due to difference in cultural
backgrounds. Due to diversity, communication in the workplace can also be affected as the
number of communication barriers increase with an increase in cultural variance.
These challenges will have a lot of impact on my career development goals. With the
workplace becoming more complex and the competition rising, it will become crucial for me
to continuously undergo training and development programs that would enable me to stay

competitive (Story, et al., 2013). I will also have to increase my awareness about the cultures
of all those countries where my company would have its business operations running because
I can be asked to interact with employees belonging to any of the subsidiary or can even be
sent to a foreign subsidiary for foreign assignments. Further, I will have to develop a lot of
skills and technical knowledge because the recruitment and selection processes are likely to
get tougher because multinational organisations will look for employees who would actually
add some value to their organisation and would be capable enough to be selected for
expatriate programs.
Conclusion
International human resource managers are likely to experience a great number of changes in
the next ten years, which will pose a significant number of challenges to their managerial
skills. The changing trends and the upcoming challenges will also have great impact on the
global market and on the workforce as well, which will further have a huge impact on the
way in which employees and employers perceive career development.

Bibliography
Ankur, 2016. The Challenges of International Human Resources Management. [Online]
Available at: https://www.linkedin.com/pulse/challenges-international-human-resources-
management-ankur-[Accessed 4 May 2018].
Scroggins, W. A., 2010. International human resource management: diversity, issues and
challenges. Personnel Review, 39(4), pp. 409-413.
Schuler, R. S., E.Jackson, S. & Tarique, I., 2011. Global talent management and global talent
challenges: Strategic opportunities for IHRM. Journal of World Business, 46(4).
Kokemuller, N., n.d. Negative Effects of Diversity in the Workplace. [Online]
Available at: http://smallbusiness.chron.com/negative-effects-diversity-workplace-
18443.html[Accessed 4 May 2018].
Story, J. S. P., Jr., J. E. B., Luthans, F. & Bovaird, J. A., 2013. Meeting the Challenges of
Effective International HRM: Analysis of the Antecedents of Global Mindset. Human
Resource Management, 30 December, 53(1), pp. 131-155.