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With the advent of globalization, the MNCs try to expend their wings across the borders which can get easily expended through FDI. However, at the time of expansion, the MNCs faces different challenges in the context of the language barriers, cultural differentiation. Along with this, the existence of the problems in the context of the local employment problems and also the problem in the competition turns out to be one of the important concerns for the managers to look into this. These things will get reflected in the following through the establishment of certain models and theories along with the research representations and the reflection by the research scholars.
Table of Contents
HRM challenges in MNCs and steps in addressing the challenges by the managers.
After having the higher as well as the unparalleled growth in the multinational corporations, some of the organizations in the modern business imperatives have tried to make full utilization of their effective management of the human resources. Their primary motive is to penetrate certain geographically dispersed areas of operations to achieve a sustainable competitive future. This research is important due to certain reasons like the entrance of many MNCs from the emerging economies in the western countries. Certain things have been reflected through the research which gets explained through different authors where it has been found that given the greater complexities in managing the operations in the international perspective, to ensure the higher quality management is very much critical in the domestic operations as compared to the international operations (Guillén,2012). As per the research findings, at the time of transferring the human resource practices overseas, the personnel selection from the overseas turns out to be the complex process. In the context of the cultural and institutional differences, the increased amount of higher investment and subsidiary presence in the UK had resulted in the hiring of more than 9000 employees as well as manages. However, in the context of designing as well as emerging the effective HRM policies to manage the local workforce, different challenges got raised like the managerial practices. These are the certain things that will be evaluated in the following through the underpinnings by the research scholars and also the steps that are followed by the managers in addressing these challenges (Ramamurti, 2012).
The emerging-market multinational companies are based on the emerging markets with the operations in around more than one countries and are also expanding at higher speed rates and the scales to make the Western multinationals to take proper notice of it. Here the new consumers having a higher growth in income created up to a billion of the new customers within the emerging markets. With the greater expansion of the MNCs in the global context, the international transfer of the policies and the practices linked with the necessity of transferring between the two geographical locations with diverse cultural characteristics. It had been highlighted by Sun and Yan (2012), that the organization culture is one of the important factors which is having the major impacts on the convergence and the divergence dilemmas over the national culture through which the local convergence can get easily pushed. As being opined by Myloni (2004), it can be stated that standardization is generally defined as the combination of different practices, and the workflows to attain the future organizational and the socio-technical measures are becoming one of the challenging points for the MNCs. The existence of tension between the standardization orientations among the multinational companies along with the localization adoption has been referred to as one of the important aspects in the internalization of the human resources management. At the time of transferring the HRM practices across the borders, Khavul and George (2010) opined that certain functions need to be followed by the particular MNCs like the product or the service development along with the financial management. The resources involved under this are the people, money, information, and machines. It can be stated by most of the authors like Teagarden (2009), that the international business is dynamic by nature. At the same time, the business also crosses the borders. In this aspect, the globalization is gaining the ultimate momentum. It can be reflected by most of the authors that the market is open now and hence it is beneficial or the completion both in the context of the domestic and foreign firms. A large amount of the workforces are themselves located in the other countries located away from their homes and the home countries.
One practical example that can be stated here is the example of Ford Motor Company who are having half of the employees lying outside the United States and at the same time, it is also having half of the employees lying outside the Netherlands. It has been found by some of the critics like Khavul and George (2010), that at the time of managing the business in Ford, it became problematic for Ford in managing and nurturing the suitable along with capable human resources in the context of the high competition both in the domestic and the foreign market. The presence of foreign competition in both the domestic and foreign markets forces the businesses in finding as well as retaining the competitive advantages. In this context, finding and nurturing the suitable form of the human resources in the aspect of the higher competition both the domestic and the international levels is higher o the priority list of the top management. In this situation, the presence of quality human resources is one of the most important requirements in the context of the implementation of global competitive strategies. To achieve international growth, the recruitment of the right people in the right place and also at the right time helps in contributing to the international growth of the organization.
Again it has been highlighted by Thite et al. (2012) that the management of the Ford Company has failed in affording the transfer of the staff to the international operations of the firm. In this context, there has also occurred a lack of the multinational schedule of the frequent meetings through which the corporate identities along with the consistency gets hampered. The research findings highlight that at the time of transferring the HRM practices across the borders, the management of MNCs like Ford in this regard have faced different challenging situations like lack of associative co-ordination between the employers, employee associations, and the quasi-governmental agencies. The management of the company faced problems in working with the liberal market economies like the freedom in managing the relations and at the same time emphasizing the short-term competition. Khavul et al., (2010) stated that the HRM principles which are linked with the CMEs at the time of transferring the human resources are the establishment of the long term orientations, better job securities along with the better involvement of the employees and the participation in the decision-making process.
In many countries like China, the MNCs had been facing a higher dilemma regarding how to find the best fit between the home country and the host country's demands. In this context, the MNCs have attempted in developing the synergies between the requirements of the home country and the demands of the host country which will be beneficial for both the parent company and the foreign subsidiaries (Myloni et al. 2004). Despite the best, it HM practices, the parent company has created a higher influence on the final synergy product which has created a trade-off between the HRM label of the home country and the host country through the advancement of the dominant HRM. The human resource map in Asia is changing. However, China on the other hand at the time of transferring the human resources across the borders have also suffered from the lack of the available workers since in many cases, it has been found that the Chinese workers are aging and long with that its strategic considerations is also diminishing and getting expensive daily. As per Khavul et al., (2010), coming to Taiwan and the UK, the presence of both the cultural and the institutional environment is different from each other.
The culture in Taiwanese had been categorized higher in the context of the power distance, low concerning individualism, and moderate in the context of uncertainty avoidance and masculinity. The institutional environment of Taiwan shapes HRM practices from the perspective of labor-management relationships. These are certain aspects behind the successful HRM practices when the MNCs try to transfer their HRM practices across the borders. However, the MNCs at the time of transferring the HRM practices across the borders face different challenging situations like the lack of co-operation among the employees along with the lack of flexible working programs between the Taiwanese. Taiwan in its domestic context is highly concerned with the risk of losing face. Hence their prime focus is towards the goal setting and the open communication methods. As per Khavul et al., (2010), Taiwanese at the time of shifting their Human Resources across the borders have faced certain challenges where they had taken time in adopting the culture of the other countries and also have taken time to address the target markets in that particular country. In other instances, it has been found that the Chinese MNCs in Vietnam have faced certain problems due to the lack of adequate knowledge regarding the local labor laws and the trends. Besides, the existence of the political problems like the lack of trust among the employees towards the employers needed to be coped up by the MNCs in China at the time of transferring the human management resources. Again at the time of transferring the human resources across the borders, the global human resource manager of that particular MNCs in China usually faces problems in setting up the socioeconomic variables long with the economic variables and also the language. These are some of the important variables as per the Hofstede's cultural dimensions. With the help of this, the Chinese society at the time of extending their international strategic decisions worldwide, certain degrees of conformity along with the individuality can get established easily based on which the co-operation also gets well encouraged along with rewarding the competitiveness.
The transfer of the HRM strategies according to Myloni (2004) highlights that transfer means the transfer in certain human resource competencies which looks like one of the important aspects of the competitive advantages. The host countries at the time of transferring their HRM strategies on the global perspective should look into certain factors like the presence of the comparative advantages in the foreign countries and the behavior of the consumers and the acceptance towards the new products and the services which the MNCs will try to offer through the transferring of the HRM resources across the borders.
Hence according to the managers, these kinds of issues can only be addressed through the effective utilization of the formal policies and the managerial control systems with the help of which the parent policies need to be easily propagated and also monitored. The factors that responsible behind the transfer of the HRM practices are the presence of the national culture, employment laws, and the firm strategies through which the organizational complexities can get avoided easily and the success can be easily reflected based on which the social-relational along with the organizational embeddedness can get readily established. The managers at the time of addressing the problems should concentrate on Kostova’s multilevel model which can be defined as both systematic and integrated. In this situation, the success of the transfer lies with the commitments and the trust of the parent Multinational Company. However, there exist certain limitations in the model like enhancing the improvement among the multinational company which needs to be addressed by the managers at the time of transfer of the HRM practices across the borders. In this situation, it had been recommended by Myloni (2004), that the establishment of the broader and open communication based on which the long term business strategies along with the fulfillment of the corporate mission statements needs to be fully utilized as one of the effective as well as a formal management tool. At the time of addressing these challenges on the transfer of the HRM strategies across the borders, more raining and preparation turns out to be essential and important for the home employees to adapt within themselves to maintain the multiple relationships and at the same time through this better family relations can get well maintained along with better external relations with distributors, customers, local communities and the allies.
To address the problems of the transfer in the HRM strategies, several training techniques need to make available to assist the overseas assignees in the area of the adjustment processes based on which the higher level of the personal involvement turned out to be necessary along with the effective intercultural training like the arrangement of the workshops and the sensitivity training which is an important part of both the immersion as well as the familiarization program. According to Oppong (2018), nowadays, the transfer of the HRM strategies or the development of the ventures within any country, the managerial training is highly necessary to have the well-trained managers having broader international experiences who can be able to take charge in many inter-cultural settings. There exist certain approaches to the International Human Resource management that is the cross-cultural management along with the HRM in the multinational firms and also the existence of the comparative industrial relations.
The establishment of the national cultures plays a dominant role in the present globalized context where a higher amount of businesses tends to convert themselves in the global organizations having a certain form of homogenized business practices. The introduction of the performance management practice by one of the multinational firm helps in maintaining the dominant cultural values based on which a society should be making the decisions behind the development and the introduction of the radical innovations through which the individualism can get easily promoted and based on this, the ethnicities and the radical mix up can be done greatly and this way the organizational diversity can get managed easily concerning the International Human Resources strategies transfers. As per Oppong (2018), after the proper training along with the effective cultural system, there should be proper maintenance of the corporate values and the cultures based on which the positive relationship between the culture and the organizational performances can get greatly influenced through the culture. These are a certain aspect that needs to be addressed by the MNCs to meet future problems. Standardization can be defined as one of the harmonisation of the different practices along with the workflows so that the organizational and the technical measures can get fulfilled easily. Some of the standardization and the reorganization measures get motivated through certain challenges like that of the demographic changes based on which the technological changes can get accelerated so that the oriented operational management systems can get easily accelerated and developed technically can get easily accelerated and developed technology.
The digitalization role in the context of the standardizing organizational process of recruitment can be seen as one of the primary drivers behind the setting up of the international business and the management. Through this, certain aspects get involved like that of the utilization of the new techniques to improve the efficiencies along with the development of the new possibilities so that the human resources can get easily managed. As per Oppong (2018), side by side, the better co-ordination needed to be present between the processes and the workflows so that the future working conditions can get easily improved through the so that the higher degrees of the complexities along with the ambiguities under the domestic market can get easily operated under the different national cultures along with the enhancement of the higher quality leadership with proper thinking and efficiencies at the time of adopting the performance-based cultures.
To conclude, the primary concern of the paper was to make an identification of certain challenges at the time of transferring the HRM practices across the borders. Some of the research studies highlight that the MNCs at the time of entering the foreign markets might faces problems in acquiring the right talents at the right time for the betterment of their marketing standards. In this section, the human resource transfer mans the adaptation of the flexible staffs and the efficient polices which helps in the contribution towards the effective cross-cultural human resource management practices, It can be defined as one of the centralized approaches based on which the MNCs can be able to thrive for the better outcomes in the future.
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