The Main Challenges of International Human Resource Management

Document Type:Thesis

Subject Area:Business

Document 1

Today, many firms are deeply focusing on international markets as the world is becoming a global village with technology advancement. Thus, Companies are reaching the global markets with increasing pressure of fulfilling the diverse market and workforce needs. This makes the human resource management a challenging job to handle on an international level due to inevitable changes in foreign market and policies. This study focuses on exploring IHRM with an objective of evaluating the main challenges such as; staffing policies, training and development, and legal parameters that IHRM face and recommendations on the presented challenges. Staffing Policies Staffing defines the procedure that an organization follows in an attempt to select and train effective employees for specified job positions and functions based on their specialty.

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This is among the ways IHRM applies to understand the metrics of the local markets while helping the careers of the locals through promotion to local operations. The challenges that IHRM face with this type of policy approach is that it creates performance and knowledge gaps between managers from overseas and those from the home country4. This can be linked to different methods of management, problem-solving techniques and also the cultural context. Geocentric policy style entails staffing assigning jobs positions for individuals well-matched for the specified vacancy without consideration of the worker's family information such as origin or culture. Despite its flexibility, this policy might put pressure on IHRM when staffing overseas employees due to immigration policies, diversity management, and relocation costs.

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IHRM face challenges with employees failing to take responsibility to develop themselves, thus affecting the training process as well as general organization performance. Without effective employee growth and training, IHRM finds it difficult to differentiate its business from other competitive companies. This also makes employees less prepared for further growth hence slowing the organization. Management support is crucial during and after the training session and in most cases IHRM struggle with offering the right support for employees to develop new skills. While the organization advocates for training and development session, it is important that the staff remains motivated for skill upgrading. This is based on the fact that labor laws in overseas differ from those in local organizations and failure for IHRM to understand the local laws regarding labor affects the decision of most IHRM in global markets.

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Most countries have various acts that prohibit any form of discrimination in job hiring cases and officially made illegal all kinds of employment discrimination or recruits. This includes reasons such as race religion, national origin, color, and sex. The objective of this acts is to ensure that equality and fairness are exercised in connection to recruitment, training, salary, benefits and all responsibilities and activities related to the human resource management11. Thus, IHRM is most likely to face the challenges of civil penalties and fines as highlighted in various international acts in the event of any discrimination allegations against the company are reported. These challenges have the ability to impact the productivity and performance of a multinational organization at different levels in the event that IHRM lacks a strategic plan to combat such issues.

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Thus, the success of IHRM depends on the strategic solution to these three issues among others for the successful growth of any multinational company. Recommendation Staffing Policies Ensuring the proper staffing policies are followed is one way of moving a multinational organization to the right path towards success in its market of operation. There are various strategies that IHRM can deploy to ensure that companies adhere to staffing policies and scheduling. However, the top effective recommendations include; IHRM adopting an enterprise based staffing mindset, developing a strong company alignment, and holding the staff accountable based on their specified duties and positions. It is thus, import for IHRM to have a local national that is an expert in connection to the legal policies depending on the type of multicultural organization.

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The purpose of having an expert is to ensure that IHRM is consistently updated on various compliance issues. It is also important for a multicultural organization to outsource an administration with a specialty in payroll and compliance in the area the company is working on. It important that IHRM takes steps towards creating awareness of these legal policies among employees and take steps to ensure they are adhered to. This is one way of ensuring a multicultural operation under IHRM is operating without legal fines or compliance issues such as the violation of labor laws. Types of Human Resource Management Issues in International Business, 2017. Heioa, Fanny, and Lundeborg Louise. Managing a Global Workforce. Internal Human Resource Management as a Strategic Tool, 2017.

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