International Human Resource Management Report: Analysis and Insights

This report provides an in-depth analysis of International Human Resource Management (IHRM), focusing on the trends and challenges faced by multinational corporations (MNCs) in a globalized business environment. It explores the impact of technology, education, and employee mobility on IHRM practices. The report identifies key trends such as the increasing importance of technology in shaping employment markets, the evolving role of education in addressing demographic changes, and the significance of mobility in employee satisfaction and organizational commitment. Challenges discussed include the impact of technology on job displacement, the complexities of managing diverse educational backgrounds, and the difficulties in ensuring employee satisfaction during international transfers. The report examines how these factors influence business outcomes and offers recommendations for HR managers to effectively navigate these challenges and sustain business growth in the global market. The report concludes by emphasizing the critical link between HR activities and overall business success.

Running Head: International Human Resource Management
International Human Resource Management

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Contents
Introduction.................................................................................................................................................1
Trends and challenges faces by MNC's in managing human resource internationally................................1
Technology..............................................................................................................................................2
Education.................................................................................................................................................2
Mobility...................................................................................................................................................3
Impact to IHRM issues on the company......................................................................................................3
Conclusion...................................................................................................................................................4
Recommendation........................................................................................................................................5
References...................................................................................................................................................5

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Introduction
With the effect of globalization and liberalization, the importance of opening MNCs came into
existence. A multinational organization is one which works internationally in the global market
and has a wide diversified dimension of working. The MNCs also make use of upfront
technology to create differentiation in the market. Thus, with the initiation of MNCs the global
and economic business has taken an effective change and developed with time (Al Ariss, &
Sidani, 2016).
In order to manage the development, the company needs to manage their human resource
activities so that they sustain on global. As it is known that on a global level the companies earn
good profits similarly if taken the wrong step they can adversely affect the current state of the
business. Further, in the competitive environment, it is primary objective of the business to keep
their resources intact so that the managers can exercise their core business activities properly. As
globalization opens up way for profitable business, so it is mandatory for the organization to
manage the human resource activities internationally. The HR manager faces many human
resource issues daily which can affect the growth of the organization; it is their duty to solve the
problems and overcome the challenges faced them for the brighter future of the organization
(Armstrong, & Taylor, 2014).
Further, the report discusses the key human resources trends and challenges occurring in the
global business which is affecting the state of the business (positively or negatively). The
purpose of this report is to analyze the current trends and challenges in managing human
resource internationally and its impact on business; it also gives recommendation with the help

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of which an HR manager can sustain the growth of the business by managing the trends and
challenges.
Trends and challenges faces by MNC's in managing human resource
internationally
The fact is true that the world is now more turning into an international business which drives
economic growth for all the countries worldwide. The trends which are constantly seen are in the
areas like, technology, education, employees, economies, and communication etc. the movement
of global business leads to high degree of economic change and a growing number of
participants in the business. Also, complexity and uncertainty increased with the effect.
Numerous traditional strategies shifted with the aid of international initialization of business
process (Bhatti, & Ahsan, 2016).
The trends which the market has seen in the managing human resources with time is that there
has been a shift in the age group of the labor force working for the international companies, also
the expatriates becoming more culture oriented and working towards the benefits of the society.
Another remarkable trend which shall be noticed is the growth in the fields of education and
technology. These both aspects are getting more diverse due to which any activities which are
held in the business are changing its face (Brewster, et. al., 2016). Another key trend on which
the international business is focusing now days is the mobility of resources. It is very important
for the business to carry on the mobility function effectively as it decides the motivation level of
the employees in organizations. All the factors which are mentioned above have a great influence
on the activities of the business, thus they shall be adequately taken care and managed in an

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organization to gain competitive edge in the global market (Cascio, & Boudreau, 2016). Further,
they key trends and challenges are discussed below:
Technology
Technology is a tool with the aid of which business process implement innovation in their
organization. Technology is a rapidly changing aspect which provides benefits to the
organization. In the global business, in order to sustain in the market, it is important for business
to gain the competitive edge in the market. Competitive edge can be only achieved through the
use of technological advancement techniques. The technology implementation helps the
organization to change the employment market (Clark, et. al., 2016); the structure in which the
workforce in prevailing is a trending concept which is constantly changing with the changing
era. Thus technology is regarded as one of the trends in the international human resource
management. Further, it shall be noticed that of technology is not applied adequately then it
adversely the state of the organization so in this way it can act as a challenge for the organization
(Cooke, Veen, & Wood, 2017).
Further talking about the challenge it shall be considered that the power of IT is replacing the
jobs of normal people and acting as a permanent loss of jobs in the middle tier and at the first job
entry level. Also, the global business is facing issue in managing the business which has narrow
specific skills implemented in them. Apart from that, the fast-changing technology is making it
difficult for some companies to adopt the new and efficient due to which their business process is
becoming outdated. So, one of the challenge due to new trend in technology is that this process
many times creates difficulty for the companies to adopt them in their process and re-educate
that technology to the employees of the company (Dalton, & Bingham, 2017). This many times
acts as a burden for them to implement such changes in their management system. Apart from

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that another challenge which the company gets to face with the advancement of technology is
that it eliminates the jobs of many people and makes the personnel compact. As with the use of
such technology major work which used be one by people eliminates itself due to which some
people tend to lose their jobs (Dickmann, Brewster, & Sparrow, 2016).
Education
Education is considered as one of the positive factors which assist the growth of an organization.
But sometimes it may acts as a challenge for the global business process. Education helps the
multinational companies to provide solutions to the demographic human resources caused by the
company; it acts as both opportunity and threat to the company if no used wisely. Talking about
the education acting as a threat to the organization, the fact that shall be noted is that just like
technology; education is an ongoing process, which is changing every day (Farndale, et. al.,
2017). So, there is no boundation to the process of acquiring education, that if a person acquires
a limit of education then they are qualified to do certain job.
Education is a diverse field which keeps on changing, along with which another challenge
relating to education is difference in teaching style. It refers to the way or process in which
people attain education, as in an MNC most of the people who are employed for the job are
expatriate which symbolizes that their place from which obtained education was also different.
So difference in teaching style can lead to differences in the management of the company as
well. Summarizing to the above statement it shall be said that difference in education can lead to
cultural differences as well. All formal and professional people employed in the company would
have their point of difference of opinions due to difference in their teachings (Kaufman, 2016).

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Apart from that talking about the workplace learning, it shall be noted that now the workplace
learning has developed into a wider context due to which it becomes difficult for expatriates to
adopt the changes accordingly. The type of qualification provided in different institution is
different and the work offered in an organization is different. So, if the employee's mental skills
are adequately developed according to the profile of the work then it can act as a problem of the
organization (Kramar, 2014).
Mobility
Lastly talking about mobility in international human resource management, it relates to the
mobility of resources in a multinational corporation. Elaborating on the statement, this aspect
includes the promotion, demotion, and transfer of human resource in an organization. It is
mandatory for the organization to satisfy its employees with the kind of services they provide.
For instance, if a regional employee of US is transferred to Australia for their future job period,
approval of the employees is necessary because if the employee is not satisfied with such
decision of the company then it can adversely affect the state of the company in global business
(Reiche, Mendenhall, & Stahl, 2016). Thus, it is a crucial decision which the company needs to
take with the acceptance of the employees of the organization. Thus, if the decision of mobility is
not taken adequately in an organization then can create problem for the company in managing
human of the organization. Apart from that, the company needs to properly take the decision hat
which staff needs to go at the different outlet of the company who needs to stay in the same
office (Renwick, Redman, & Maguire, 2013).
Motivation of the employees, organizational commitment, and job satisfaction are the most
important aspects due to which a person performs their job effectively and efficiently. So, if an

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employee is transferred to another unit of the organization then the job satisfaction level can
decrease which can affect the state of the organization. Apart from that the cultural difference
Impact to IHRM issues on the company
The human resource activities are directly connected to the business function. So any change in
such activities can give a great impact on the growth of the business in international context.
Further, the impact of human resource activities on the multinational corporations is discussed
below.
 Talking about the impact of technological advancement on the growth of business is that,
with this effect, the employees of the company started getting demotivated as they were
unable to understand the technological changes happening in the internal management of
the company. The elder generation people employed in the company found it difficult to
cope up with the technology coming from different parts of the world (Paillé, et. al.,
2014). Apart from that, the expatriate is unable to make them understand regarding the
changes. The normal jobs of the people were also replaced with this effect. Although I
acted as an advantage for the company on the same hand this process also depleted the
human resource management of the company. further in addition to it, another way in
which technology affect the human resource managerial activities is that, as this process
depleted in the number of employees working in an organization and the people who had
routine jobs in their business, due to this loss of jobs a bad impression of company shall
prevail in the market. As the ex-employees of the company would talk about the furious
technological growth and the less job security chances of the employees in the company,
ten would lead to creating a bad image of the company in the market (Sheehan, 2014).

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 Another aspect which affected the international human resource activities in an
organization is education. This aspect talks about the culture difference prevailing in the
employees of the company, all have taken their lessons from different institutions due to
which there is a difference in thinking and applicability of theories in an organization
(Wilkinson, & Wood, 2017). Due to which many times employees clashes in the
organization as all people have their different point of opinions. Another problem in the
organization comes when newly skilled employee talks about some theories which the
experienced employees of the company are unable to understand as there are changes in
the courses. Due to this process, some employees of the company might feel distressed
which can act as an issue of the company. Education opens the mind of people and it also
improves the capacity to understand things. Thus, some people in the organization tend to
understand and respond to workplace activities in a better way while others might not due
to which communication gap can occur in the management process (Wilton, 2016).
 Lastly, mobility of employees which mainly includes transfers and promotions works as a
huge factor for motivation and demotivation among employees. As if transfer of
employees is with their will and consent then it will adequately respond to the unit of the
company otherwise vice versa. The mobility of human resource affects two units of the
same organization (Sekiguchi, Froese, & Iguchi, 2016).
Conclusion
Thus, in the limelight of above mentioned events, the fact that shall be noted is that in a
multinational corporate there are many human resource management issues which a business
process faces in their day to day activity. Apart from that, it is the duty of the HR manager to

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satisfy the requirements of the employees of the organization along with the objectives of the
company to sustain the growth in global environment. Also if the company will not prioritize
such issues, and then it can negatively affect their growth in global context. Apart from that, it is
very important for a human resource manager to actively look after the issues of all the
employees and resolve them so that future growth is sustained (Nickson, 2013).
So, in order to attain the global competitive edge the human resource manager needs to
adequately look after such issues and its impact on the business in economic terms. Thus the
above mentioned analysis evaluates the trends and challenges faced by an MNC, impact on the
business globally and recommendation with the aid of which ne can avoid such problems.
Recommendation
So after look at the above mention analysis of the key trends and issues faced by a multinational
corporation, a few recommendations that shall be noted are that firstly the human resource
managers shall actively participate in all the activities relating to the human resource of the
company. Secondly, the manager shall look after the mobility of the employees of the
organization; they shall look for the consent of employees who wish to go to the different unit of
the company for expansion purposes. Also, they shall promote the employee or provide them
monetary benefits if they approve for transfer. This will help the company to keep the employees
motivated and satisfied in their job.
Another way in which company can excel the international human resource management that
they shall provide training sessions to all the employees of the organization so the come up front
to the newly established technology and education in the market. This will help them to develop
and adopt different methodologies which will help them to sustain their personal future growth.

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Employees being the most important asset of the organization need to be satisfied with the
environment in which they are working, therefore the company shall organization regular cross-
cultural training programs so as to assist the growth of the employees of the organization.
Apart from that such events shall be held on a larger scale so that all the employees connected
with the working of the organization get to know each and share each other feeling. This will
help they create informal groups in the organization which will eliminate the problem of
communication or generation gap.
Lastly, the company shall international try to manage the economic goals with the benefits of the
employees of the organization as well so that competitive advantage is gained by the company.
So, if all such activities are applied by the MNCs in their business process then they can solve
their human resource management issues easily.

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