Solution
Soumi answered on
Sep 14 2020
Running Head: TRENDS/CHALLENGES OF IHRM FOR MNCS 1
TRENDS/CHALLENGES OF IHRM FOR MNCS 12
Subject Code: ______________________
Subject Name: Human Resource Management
Student Name: ____________________________
Student Number: ____________________________
Assignment Title: Trends/Challenges of IHRM for MNCs
Assignment Number: Assessment 3: Report
Total Word Count: 2648
Executive Summary
In the cu
ent report, the international human resource management (IHRM) challenges faced by multinational companies (MNCs) are discussed in details with a special reference to Australian origin MNC, Deloitte. In the first section of the report the three major factors- technology, education and mobility are discussed in the context of IHRM in the generic sense of the aspects. It is found that although technology makes the human efforts less manually exhausting, they face harsh resistance from employees within international setting. The intensity of technological innovation application is also very high in the international markets as organisation face frequent changes in the trends. The aspect of education is then discussed along with the incorporation of Hofstede Theory. The aspect of mobility is also discussed in critical details. In the following section of the report, the three discussed factors of IHRM challenges are aligned with the IHRM issues of Deloitte. In the next section, recommendations are provided in response to the identified IHRM issues at Deloitte and lastly a conclusion is also provided to make the readers’ understanding concrete.
Table of Contents
Introduction 4
Trends/Challenges Affecting IHRM and their Impacts 4
Three Main Trends/Challenges for International Human Resource Management 4
Technology 4
Education 5
Mobility 6
Analysing the Impacts of these 3 Trends/Challenges on HRM Practices of Deloitte 7
Impact of Technology on Deloitte’s IHRM 7
Impact of Education on Deloitte’s IHRM 7
Impact of Mobility on Deloitte’s IHRM 8
Recommendations for IHRM Issues at Deloitte 8
Conclusion 9
References 10
Introduction
The multi-national-companies treat the global market as their areas of business. The global market with its sufficient resources and demand proves to be a profitable region from which MNCs can profit rapidly. The use of technology reduces the chance of human resource usage, making the functioning process of HRM critical as they generate workplace changes, which are hard for the employees to adjust, in the international context. On the other hand, the education of the employees, acts as a deciding factor for assessing and aligning with international market context and the culture that influences. Lastly, the mobility of the human resource becomes a major concern for proper International HRM as employees offer resistance and face cultural conflicts. In the cu
ent business report the IHRM issues of Deloitte has been used as a company reference to understand the impact of education, mobility and technology over IHRM.
Trends/Challenges Affecting IHRM and their Impacts
Three Main Trends/Challenges for International Human Resource Management
Technology
The use of technology at the workplace, especially in the HRM is supposed to make the functioning of organisational performance smoother. However, technology yields positive results only after the taskforce who generate the core source of human resource based power for the organisation accepted it. As supported by Sumaja and Babu (2018), technology in IHRM is beneficial and employees generally accept its usage; however, that change in the existing working pattern, ensured by technological application, makes the employees resistant to change.
The employees at work go through rapid changes in the working frame of the change create resistance among the employees. As the employees react adversely and their resistance delays the adaptation of technological changes in the IHRM, it poses undermining performance on global level. The delay makes the changed demands of the customer addressing process slow. The technological innovation and implementation, as affirmed by Lee, Lin and Shih (2018), requires ample knowledge transfe
ing as each technology performs differently within a unique organisational setting. Along with the implementation of technology in the organisational body, IHR managers need to provide employees with training which in the global context becomes very difficult as each organisational culture affect the employees’ learning in different way and in many cases create confusion. As assessed by Meyer and Xin (2017), technological inclusion creates pressure on the organisation feel the need of as heavy investments to get the technical set up running. In such context, the recruitments of employees decline as a measure of expenditure adjustment, which eventually leads to shortage of employees in international markets.
Education
Providing education is a major challenge in IRHM as it determines the adaptive skills of HR managers as well as the employees working for an organisation. As identified by Wright, Tartari, Huang, Di Lorenzo and Bercovitz (2018), the education in the IHRM has three aspects – education of culture of the market, education of the skills needed for change management and education for the assessment of global perspective.
The relevance of providing education of culture generates from the existence of diverse cultures and their varied perspective towards single business proposition. As suggested by Valek and Williams (2018), MNCs do not restrict their business in a single cultural background, as they tend to go global; therefore, they had to work and do business in diverse cultures. The diverse cultures of a place tend to differ sharply from the MNCs’ native country culture, which makes the IHMR department to act and manage the human resource, as per the demand and behaviour of the customers. As business organisations have very little time, the providing of education becomes tough.
Firstly, there is there aspect of power distribution index, which determines to what degree the unequal distribution of power between two parties are accepted. As every country market has its own rate of power distribution index, it is necessary to gather need of proper knowledge. Secondly, aspect of the mentioned theory discusses the aspect of individualism versus collectivism, which determines the degree of formation of groups by customers in a market. As mentioned by Esquivel and Lopez (2018), similar to that of power distribution index, individualism versus collectivism also needs to be assessed properly to manage IHRM in the right way. Cultural difference also creates uncertainty of acceptance, the avoidance of which makes business expansion effortless.
In some cultural background, as stated by Al-Abdullah, Yaqoob, Atwa and Bsoul (2018), the market tends to be assertive and aggressive and on the other hand, some are modest and are in favour of quality of services and...