International Human Resource Management: Challenges and Impact

This report provides a comprehensive analysis of the trends and challenges facing International Human Resource Management (IHRM) within multinational corporations (MNCs). It identifies technology, education, and workplace mobility as key trends and challenges, examining their impact on HRM p...Read More

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International Human Resource Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has helped in the overall analysis of the different kinds of trends and challenges of
the international human resource management in the different organizations. The different
kinds of impact of the same on the International Human Resource Management practices
have been taken into consideration which has been beneficial for the success of the
employees and the firm in a positive manner. The different kinds of recommendations have
been provided with the help of the different kinds of human resource management theories
which will be beneficial for the success of the firm.

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Table of Contents
Introduction................................................................................................................................3
Three Trends/Challenges for International Human Resource Management..............................3
Impact of Trends/Challenges upon HRM Practices of MNC....................................................4
Recommendations......................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
The report helps in analysis of the identification of the three trends for the
international HRM in the multinational organization. The analysis and identification of the
three trends upon the HRM practices of the multinational organization is required to be
analysed effectively. With the help of the different kinds of HR theories, this will be effective
in nature in managing the HR activities in the organization and reduce the challenges
effectively as well.
Three Trends/Challenges for International Human Resource Management
According to Tung (2016), International Human Resource Management includes the
different set of the activities which is aimed in managing the different organizational
activities at the international level to achieve the objectives and achieve the competitive
advantage as well over the different competitors at international and national level. However,
there are different kinds of challenges and trends which are required to be analysed and they
have huge effect on the HRM activities.
There are various types of challenges for the IHRM in the MNC which is required to
be analysed in an efficient manner which are discussed as follows:
Firstly, technology is a major trend for the IHRM in the MNC as the technology is
changing the different aspects and the first wave of the same can be seen in the HR
department. The technological advancements have been able to improve and automate the
processes and eliminate the unnecessary work which was time-consuming in nature
(Osabutey, Nyuur & Debrah, 2015). In the present scenario, this can be noticed that there are
different kinds of software which is inclusive of the following:
 Application tracking system
 Performance Management Software
 E-recruitment software
Furthermore, the education has played a major role in the international HRM
activities in the organization. Previously, this has been seen and noticed that there was no
such importance provided to the different HR courses in the different fields of work and
education. However, in the present scenario, this has been noticed that HRM has been treated

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as the major strategic framework which helps in managing the various activities in the
organization (Reiche, Stahl, Mendenhall & Oddou, 2016).
In the present scenario, there are various types of specialised courses on human
resource management which has helped in managing the different kinds of activities related
to the recruitment, selection and training processes which has helped in managing the overall
effectiveness. The leadership development and succession planning help in managing the
different processes and this will be for the development of the future leaders in the
organization (Luthans & Doh, 2018).
On the other hand, there are different challenges which are being faced due to the
mobility in the workplace. Globalization is the major trend in the present scenario wherein
this can be analysed that the mobility is essential in the present workforce, however there are
different kinds of negative impacts of the same which is inclusive of the following:
There are different kinds of security related risks wherein adopting to the mobility
strategy entrusts the employees to respect the corporate ideas to the different security
standards. There are different kinds of challenges wherein there are several challenges which
is inclusive of different work culture and management approach along with adjustments with
the tradition and culture has become difficult for the different employees working in the
organization (Taylor, Doherty & McGraw, 2015).
There are different kinds of mergers and acquisitions which are being taken place in
the different countries and this is affecting and there is clash between the different kinds of
culture of the host and the other country (Marchington, Wilkinson Donnelly & Kynighou,
2016). Due to this, there has been huge resistance to change among the different employees
working in the organization as the technological advancements are having impact on the
morale of the employees working in the organizations.
Impact of Trends/Challenges upon HRM Practices of MNC
With the help of the different HRM trends, this can be seen and analysed that
there are different impacts on the HRM practices of MNC. With the help of the technological
advancements, the HRM practices are getting smarter in nature and the internet portals helps
in customizing and personalising the workspace of the employees through the same.
Furthermore, there has been introduction of the virtual meetings as this assist in optimizing

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the work flow in the organizations as well. This has been seen that the performance appraisal
system which is the software program which helped in managing the different calculations
using data already in place and this has reduced the paperwork as well.
On the other hand, Thite (2015), has commented that the mobility has created huge
negative impacts on the human Resource Management in the MNC. The mobility has created
both positive and negative impacts on the HRM related activities and this will create huge
impact on the organizational activities as well. With the help of globalization, there has been
huge mergers and acquisitions in the different organizations in various countries which is
beneficial for the success of the organization. However, on the other hand this has influenced
the motivation of the employees in a negative manner (Reiche, Harzing & Tenzer, 2018).
There are various cultural barriers along with the communication gap in different countries
and this has affected the growth of the employees.
Figure 1: Maslow’s Hierarchy Theory
(Source: Thite, 2015)
Thite (2015), has commented that the motivation aspects are required to be taken into
consideration which will be beneficial for the success for the growth of the employees and
the firm in an efficient manner. The Maslow’s Hierarchy theory along with the organizational
agility theories and concepts of the HRM is required to be taken into approach which will be
effective in understanding the different issues which are caused due to the technological

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advancements in the different performances in the organizational related activities. Moreover,
tis has been noticed that in the different MNCs, this is essential that the different aspects of
employee training and the motivation procedures are considered and this is successful for the
overall growth of the firm and the employees (Jackson, Schuler & Jiang, 2014).
Recommendations
There are various recommendations which can be provided in order to improve the
different kinds of challenges which have been caused due to the advancement in the
technology along with the mobility which has been causing in the present scenario in the
organizations.
Firstly, the human resource practices are required to be taken into consideration and
considered as the strategic partner of the different organizations. With the implementation of
the motivational approaches such as the analysis of the different needs of the employees
working in the organization is beneficial in nature for the success of the firm. With the help
of the Maslow’s hierarchy theory, the needs are required to be taken into consideration which
will be beneficial for the overall growth of employees and firm (Collings, Wood & Szamosi,
2018).
Secondly, the organizational agility is the other approach which can be adopted by the
organizations wherein the employees should be made aware about the changes which is
essential for the success of the firm. With the organizational agility, this will be assisting the
capability of the firm along with the employees to engage themselves rapidly towards the
change in the market effectively. The barriers which has been created due to globalization
have to be reduced wherein the cross-cultural management issues will be reduced (Baum,
2016).
Thirdly, training and development is essential which will be beneficial for the
management of the diversity in the workplace. The diversity in the workplace which is
inclusive of managing the different language and cultural differences can be influenced with
the help of the training and development program effectively and more appropriately (Bader,
Schuster & Dickmann, 2016).
The technological advancements are causing huge impact on the job of the different
employees which is affecting the workplace ethics and responsibility. The employees should

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be made aware about the different kinds of changes which are taking place in the
organization as this will be helpful for them to become more effective in performing the
tasks. The education is required to be considered more effective in the performance of the
different activities more efficiently and this will be beneficial for the success of the firm
(Armstrong & Taylor, 2014).
Conclusion
Therefore, this can be concluded that there are different kinds of trends and challenges
for the international human resource management in the different MNCs. With the
implementation of the employee development approach in the HRM theory, this will be
helpful in motivating the employees and this will help the company in gaining competitive
advantage in the organization as well. The succession planning is the management approach
and objective which will be beneficial for the overall success and growth of the firm in a
positive manner.
Additionally, with the implementation of the different kinds of motivational theories
and approaches, the overall effectiveness of the different practices in the HRM theory will be
solved and the employees will be valued in the organization as well. This has been noticed
that the organizations are required to be treated as the strategic partners as they are beneficial
for the undertaking of the different activities in an efficient manner.

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References
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bader, B., Schuster, T., & Dickmann, M. (2015). Special issue of International Journal of
Human Resource Management: Danger and risk as challenges for HRM: how to
manage people in hostile environments.
Baum, T. (Ed.). (2016). Human resource issues in international tourism. Elsevier.
Collings, D. G., Wood, G. T., & Szamosi, L. T. (2018). Human resource management: A
critical approach. In Human Resource Management (pp. 1-23). Routledge.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic
human resource management. The Academy of Management Annals, 8(1), 1-56.
Luthans, F., & Doh, J. P. (2018). International management: Culture, strategy, and behavior.
McGraw-Hill.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource
management at work. Kogan Page Publishers.
Osabutey, E. L., Nyuur, R. B., & Debrah, Y. A. (2015). Developing strategic international
human resource capabilities in Sub-Saharan Africa. In International Human
Resources Management (pp. 37-51). Springer, Cham.
Reiche, B. S., Harzing, A. W., & Tenzer, H. (Eds.). (2018). International human resource
management. SAGE Publications Limited.
Reiche, B. S., Stahl, G. K., Mendenhall, M. E., & Oddou, G. R. (Eds.). (2016). Readings and
cases in international human resource management. Taylor & Francis.
Taylor, T., Doherty, A., & McGraw, P. (2015). Managing people in sport organizations: A
strategic human resource management perspective. Routledge.

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Thite, M. (2015). International human resource management in multinational corporations
from emerging economies. Handbook of human resource management in emerging
markets, 97, 121.
Tung, R. L. (2016). New perspectives on human resource management in a global
context. Journal of World Business, 51(1), 142-152.